Some Idaho Power solar customers fear their investment won’t break even under rate change

Idahoans hold up signs supporting solar energy at the Idaho State Capitol in Boise in 2024. (Courtesy of the Idaho Chapter Sierra Club)

Hawk Sahlein installed 12 solar panels onto his Boise home in December 2023 with the hopes that it would build equity onto his home and promote clean energy.

The 36-year-old spent $18,000 on panels, even taking out a loan from a credit union to finance the investment. The decision came after speaking to several solar companies about the cost, as well as speaking to other locals with solar panels whose Idaho Power bills reduced after installation.

Sahlein was excited about producing his own energy from the solar panels, but now the thought is “sour,” he told the Idaho Capital Sun. That’s because Idaho Power put in a request with the Idaho Public Utilities Commission to decrease the amount it credits its non-legacy rooftop solar owners, or those who installed their systems after December 2019.

The change is to ensure Idaho Power is paying equitable prices for the energy it buys, a company spokesperson told the Sun.

If the rate changes are implemented, Sahlein’s solar panels would barely save him money on his power bill, adding to his expenses on top of the loan he took to pay for the panels. He, and 13,700 other Idaho Power customers, would be impacted by this change. And many others have spent even more on their solar systems at home — ranging from $40,000 to $100,000, according to comments on the Idaho Public Utilities Commission website.

What are the proposed changes for rooftop solar?

Some Idahoans have installed rooftop solar because of the credits that reduce the cost of their power bill. When customers with solar power generate more energy than they use, the extra energy is sent to Idaho Power’s grid. The company then credits those individuals for the energy at a set rate, called the export credit rate.

In December 2023, the utilities commission made a final ruling on a new “net billing” program, which requires that Idaho Power file an updated export credit rate each year on April 1. Solar advocates and owners said this year’s proposed change in rates is drastic.

“People in Idaho go solar because it lowers their power bills, gives them energy freedom and security, and helps the environment,” Alex McKinley, the owner of Empowered Solar, said in an Idaho Sierra Club press release. “Idaho Power is trying to take that opportunity away from people by skewing these rooftop solar rates in its favor. It’s not right.”

The credit rate varies depending on when the energy demand is the highest in the year, such as in the summer months — June 1 to Sept. 30.

Idaho Power currently has the export credit rate set at:

Summer on-peak hours: 16.99 cents/kWhSummer off-peak hours: 5.6 cents/kWhNon-summer: 4.8 cents/kWh

The proposed export credit rate, which the commission will change by June 1, is:

Summer on-peak hours : 14.05 cents/kWhSummer off-peak hours: 1.76 cents/kWhNon-summer: 0.959 cents/kWh

“I looked at the rates they’re proposing, and it’s bad,” Sahlein said. “It’s less than one cent per kilowatt hour in the non-summer months, so it’s like an 80% drop in the credit on any non-summer day or time. That’s wild to me.”

Sahlein said the changes would make it hard for him to break even on his investment.

Proposed rates ensure Idaho Power pays fair market prices, spokesman says

Idaho Power spokesman Jordan Rodriguez said the main reason behind the decrease in credit rates is that 2024 saw lower energy market prices compared to the 2022 market prices used to determine the current rates.

“The (export credit rate) reflects the market value of the energy at the time it is exported to Idaho Power, combined with additional compensation for the benefit on-site generators bring to the grid,” he said.

The change in rates ensures Idaho Power is paying fair market prices for the energy it receives, which are adjusted annually, he said.

“Idaho Power supports clean energy and is using an increasing amount of solar and other clean resources in our energy mix,” he told the Sun. “On-site generation has the potential to reduce how much energy Idaho Power needs to generate or purchase during some hours of some days, but it’s not sufficient to meet all our needs and is non-firm power, meaning there is no guarantee it will be generating and available when we need it.”

The change would affect residents without legacy status, as well as large commercial, industrial, or irrigation customers who installed systems after December 2020, and Oregon customers who installed solar panels after June 2024.

Rodriguez said 5,300 out of 19,000 Idaho Power customers have legacy status, so they would not be impacted.

Individuals wanting to leave feedback on the proposed changes can leave comments on the Idaho Public Utilities Commission’s website, using the case number IPC-E-25-15. The commission is expected to make a decision before the new rates take effect on June 1.

Idaho Capital Sun, like the Capital Chronicle, is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Idaho Capital Sun maintains editorial independence. Contact Editor Christina Lords for questions: info@idahocapitalsun.com.

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