Utility Idaho Power has asked the Idaho Public Utilities Commission (PUC) to drastically slash the rates it pays rooftop solar customers for excess energy. This move could severely impact solar adoption in Idaho just as electricity rates are climbing.
The utility wants to drop the Export Credit Rates (ECRs) – the amount rooftop solar owners get credited for feeding power back to the grid – by 60%, from the current 6.18 cents per kilowatt-hour to just 2.46 cents. That’s a massive 72% plunge from the previous rate of 8.8 cents per kilowatt-hour, which had stood for over a decade.
If the PUC approves the proposal next Month, the new lower rates will kick in on June 1, right before peak solar-producing months. This shift is part of Idaho Power’s controversial “Net Billing” program approved in December 2023, despite public backlash. Under this new system, ECRs would change every year, making it nearly impossible for residents to calculate the financial returns of their rooftop solar investments – a major deterrent to adopting solar.
The proposed rates would vary seasonally. From October through May, when electricity demand drops, Idaho Power wants to cut solar payments even further by a staggering 80%, paying less than 1 cent per kilowatt-hour. Meanwhile, it plans to charge non-solar customers at least 8 cents per kilowatt-hour for the same electricity, padding its own profits.
Idaho Power is basing these rate cuts on an internal “Value of Distributed Energy Resources Study” from 2022. However, environmental groups hired independent analysts who argue that Idaho Power’s data selectively undervalues solar power.
“How can our state regulators just let this happen? The PUC is supposed to double-check the utility’s math to make sure Idaho ratepayers aren’t being taken advantage of,” said Lisa Young, director of the Idaho Sierra Club. “Distributed solar is worth more than the retail electricity rate, not less. The PUC needs to stop turning its cheek on corrupted math and letting this monopoly utility pad its pockets even more.”
Idaho Power customers already faced unpopular hikes to their monthly fixed charges from January 2025, when their flat monthly fees rose from $5 to $15. These fixed charges hit low-income residents hardest and discourage energy conservation and rooftop solar.
“People in Idaho go solar because it lowers their power bills, gives them energy freedom and security, and helps the environment,” said Alex McKinley, owner of the local small business Empowered Solar. “Idaho Power is trying to take that opportunity away from people by skewing these rooftop solar rates in its favor. It’s not right.”
Members of the public can submit public comments at puc.idaho.gov/Form/CaseComment and reference Case #IPC-E-25-15.
To limit power outages and make your home more resilient, consider going solar with a battery storage system. In order to find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. They have hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use and you won’t get sales calls until you select an installer and you share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisers to help you every step of the way. Get started here. –trusted affiliate link*
FTC: We use income earning auto affiliate links. More.
