Idaho Power is anticipating its energy demand to nearly double over the next five years. Massive amounts of new power are required by the electrification of cars and appliances, combined with the rapid growth of local AI data centers. Meeting this demand is no small task. One solution Idaho Power is overlooking, and undermining, is the possibility of a vast network of rooftop solar and batteries. As this energy boom continues, we need Idaho’s Public Utility Commission (PUC) to move Idaho Power in a clean power direction that helps keep power costs low.

Idaho Power’s response to this coming demand increase is to construct two new methane power plants by 2030 and reduce the amount of utility-scale wind, solar, and battery storage it had previously planned to build. What happened to their promise of 100% clean electricity by 2045? There is a fast, cheap, and clean solution Idaho Power has missed, which could put it back on track.

Right now, Idaho has thousands of rooftops baking in the sun, producing nothing. With solar, these rooftops have the potential to produce electricity that is sent to the grid. As other states have done, these rooftops can become a network of mini power plants that cut carbon emissions, reduce strain on power lines, and ultimately keep power costs low for all ratepayers. This vision hinges on whether the PUC will approve fair compensation for rooftop solar production.

Instead of encouraging a local solar energy boom, Idaho Power has requested that the PUC lower the Export Credit Rate, meaning home solar owners would get even less compensation for their excess electricity. If approved, the lower compensation would discourage new residential installations, weakening the state’s solar market and slowing the growth of clean homegrown energy sources.

And now, installing residential solar will become even more difficult. Earlier this year, Congress passed the “Big Beautiful Bill”, which repealed virtually all of the residential clean energy tax credits enacted by the Inflation Reduction Act. That means the federal 30% solar tax credit, which has helped thousands of Idahoans afford solar, will expire at the end of this year. Without it, the cost of going solar will jump overnight, causing the payback period to stretch out for years. Starting January 1, 2026, solar power will be out of reach for most Idahoans.

This is the opposite of good planning. Rooftop solar doesn’t just benefit the homeowner; as a network, it can benefit the entire transmission system and community. It generates power during daylight hours and, with batteries, can reduce peak demand in the evenings without expensive fossil-fueled generation and long-distance transmission lines. It can also help keep emergency power on in local communities when the grid goes down. In addition, residential solar creates local jobs in installation and maintenance, which in turn builds Idaho’s economy.

Rocky Mountain Power (RMP) in Utah and eastern Idaho already has a proven network of 6,000+ residential batteries which keeps their grid reliable, resilient and secure... RMP customers who install a battery and enroll in the Wattsmart Battery Program are eligible to receive up to $2,000 as an upfront incentive from the utility, along with ongoing bill credits. RMP does this because these customer-owned batteries are valuable to the utility and the grid. Idaho Power would be wise to follow Rocky Mountain Power’s lead to meet demand instead of building two more short-sighted and polluting fossil fuel plants.

The PUC has the authority and the responsibility to ensure that Idaho’s energy policies balance the needs of the utility, the grid, the climate, and the public. Lowering compensation for solar owners, at the very moment federal tax credits vanish, will slow the deployment of an inexpensive energy resource that could be helping Idaho’s growing demand. These two blows together may kill the residential solar industry in Idaho.

This is not about handouts or subsidies; it’s about having the freedom to produce our own power, paying people fairly for the service they provide, and helping the community. Without a healthy rooftop solar market, Idaho utilities will have to lean more heavily on out-of-state transmission and expensive, centralized fossil fuel plants that lock us into decades of higher electricity rates and more pollution.

It makes sense and cents; the technology and cost for networked rooftop solar have proven themselves to be viable. With some vision, our future could be an opt-in solar network of homeowners that form a virtual power plant. The only thing missing is the will of our Idaho institutions to support this untapped opportunity. We hope our Idaho PUC will protect fair compensation for rooftop solar and encourage Idaho Power to create a virtual power plant that will stimulate our solar industry and incentivize Idaho’s homes to help power the future.

Lisa Young is the Director of the Idaho Chapter of the Sierra Club.

Linda Engle is the Secretary of the Portneuf Resource Council.

Martha Bibb is an active member of the Climate Action Coalition of the Wood River Valley.

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