Idaho PUC Cuts Rooftop Solar Compensation by 31% Despite Opposition
The Idaho Public Utilities Commission (PUC) has finalized a rule that will reduce compensation for rooftop solar owners in Idaho by 31%. The decision follows a public comment period where 88% opposed the rate decrease and a proposal by Idaho Power to cut net-metering rates by 60%.
Lisa Young, director of the Idaho Chapter of the Sierra Club, acknowledged that the PUC's adjustments helped mitigate the impact on customer power bills, despite opposing the solar rate changes. Kate Bowman, Vote Solar's Interior West senior regulatory director, warned that low compensation for solar energy will stifle investments in rooftop solar.
Idaho Power's study valued excess solar energy at 2.8 to 4 cents per kWh, while an independent study by Crossborder Energy valued it at 18.3 cents per kWh. The new export credit rates are approximately 65 cents per kWh for summer on-peak, 39 cents per kWh for summer off-peak, and 90 cents per kWh for the non-summer season. The PUC suspended Idaho Power's requirement to update its export credit rate until 2028 to reduce uncertainty for customers and the solar industry.
The PUC's decision will impact rooftop solar owners in Idaho, with reduced compensation for excess energy sent to the grid. The PUC will consider petitions for reconsideration until Oct. 21, with the next formal opportunity to comment on Idaho Power solar rate changes in April 2028.
