Idaho Regulators Approve Limited Rate Changes for Idaho Power Rooftop Solar Customers

Boise, ID- Yesterday, the Idaho Public Utilities Commission (PUC) gave a partial approvalto Idaho Power's request to dramatically decrease the compensation rates for rooftop solar power, immediately impacting over 14,000 households across southern Idaho who installed solar since 2020. The utility's proposal was met by universal opposition from the public through nearly one thousand written comments and packed public hearings.

In its final order, the PUC recognized that Idaho Power's original proposal would result in especially sharp bill increases for solar customers and create uncertainty for customers and the solar industry. The order, on average, limits solar rate decreases from the Idaho Power-proposed 60 percent to 31 percent, and delays the next rate update until 2028.

"Even though we're opposed to these solar rate changes, we appreciate the adjustments the PUC made to Idaho Power's original proposal to help reduce the impact on customer power bills," said Lisa Young, Director of the Idaho Chapter of the Sierra Club."Energy affordability is an increasingly important issue in Idaho, and the PUC has a key role to play in ensuring that our monopoly utilities don't unfairly raise our bills. We will continue pushing the PUC to listen to Idaho ratepayers and prioritize fair rates moving forward."

These new solar Export Credit Rates(ECRs) take effect today, Oct 1, 2025. Experts say the ECRs, which originally went into effect in January 2024, were already unfairly low because they underestimate the value that exported solar energy provides to the grid. Solar owners will now only be compensated less than 3 cents per kilowatt-hour for the vast majority of the year, with higher rates only during peak hours in the summer.

"We just want to be treated fairly," said Jeremy Brunson, a rooftop solar owner in Meridian,"and this is blatantly unfair. How can the PUC justify a reality where Idaho Power pays me three cents for the electricity I make and then sells it to my neighbor for eight to ten cents? The PUC has more work to do to take a serious look at Idaho Power's biased calculations and make this right."

Solar advocacy groups assertthat Idaho Power's calculations fail to accurately quantify the benefits of local rooftop solar power generation, which adds energy to the grid and reduces the need for expensive infrastructure.The PUC largely did not address these issues and did not respond to requests to hold additional technical hearings for experts to share more information and cross-examine the utility's representatives. Idaho Power also identified an error in its calculation for the current export rate, resulting in underpayments of a total of $210,000 for exported solar energy in 2024. The issue continued until September 30, 2025 and the PUC did not require Idaho Power to correct these underpayments.

"Homes and businesses in Idaho are eager to invest in rooftop solar to reduce their reliance on energy from the grid while also helping to meet the state's growing power needs. It's a shame that the Idaho PUC continues to undervalue individual investments in rooftop solar, which help make electricity cleaner and more affordable for everybody," said Kate Bowman, Vote Solar's Interior West Senior Regulatory Director."Allowing Idaho Power to pay solar customers just a small fraction of the value of the energy they send to the grid will stifle investments in rooftop solar and undermine customers who have already committed to generating clean, local energy."

Idaho Power is forecastingthe need to add nearly 2,000 megawatts of new energy resources in the next five years to meet growing demand, including 745 megawatts of utility-scale solar. Advocates argue that investor-owned utilities Idaho Power are contradicting these goals by disincentivizing rooftop solar in order to increase its own profits, regardless of impacts on customer rates. In fact, while Idaho Power argued rooftop solar rates are unfair for non-solar customers, they introduced fixed fee increasesputting a heavier burden on low-income people.

"All this uncertainty and these new solar rates make it hard for us to do business here. Lots of solar companies and workers are moving elsewhere where the utility rate policies are more reasonable," said Alex McKinley, owner of local solar company Empowered Solar. "Southern Idahoans deserve fair and easy-to-understand options to go solar, and we want to be able to serve these communities where we grew up and are raising our families. With these new rate changes, plus other federal policy changes, things are definitely getting harder for us."

The PUC will consider "petitions for reconsideration" until October 21st. The next formal opportunity to comment on Idaho Power solar rate changes will now be in April 2028, after Idaho Power submits an update and new proposal to the PUC at that time.

In a separate PUC case, Idaho Power also proposes to increase electricity prices for all customers by 13.1%. A public hearing on the proposed increase will be held November 20 in Boise and via phone, and the PUC is accepting written comments now. More details here.

Groups who advocate to defend solar rates include Idaho Sierra Club, Vote Solar, Portneuf Resource Council , Climate Action Coalition of the Wood River Valley, Snake River Allianceand Empowered Solar.

About the Sierra Club

The Sierra Club is America's largest and most influential grassroots environmental organization, with millions of members and supporters. In addition to protecting every person's right to get outdoors and access the healing power of nature, the Sierra Club works to promote clean energy, safeguard the health of our communities, protect wildlife, and preserve our remaining wild places through grassroots activism, public education, lobbying, and legal action. For more information, visit https://www.sierraclub.org.