Idaho Solar Owners Blindsided: Power Company Seeks 60% Cut To Energy Payouts

Idaho homeowners who invested in rooftop solar panels are reeling after Idaho Power proposed to slash their compensation rates by more than 60%. The utility company’s proposal, officially filed as Case #IPC-E-25-15, would reduce payments to nearly nothing during the winter months when Idaho Power wants to pay solar owners less than 1¢/kWh while charging customers at least 8¢/kWh for electricity. The proposed October through May rates constitute an 80% decrease from previous compensation levels.

Solar homeowners face devastating 60% rate cuts with winter compensation dropping to less than a penny per kilowatt-hour.

Over 70 angry homeowners attended a public hearing on May 21, 2025, to protest the changes. Many residents said they spent their life savings to install solar panels, expecting fair returns under the state’s net metering policies. The change mirrors the global CO2 emissions trend as clean energy initiatives face opposition across the country. The proposed cuts would take effect on June 1, 2025, if approved by the Idaho Public Utilities Commission.

This isn’t the first financial hit for solar customers. Idaho Power recently raised the monthly “connection” fee for all customers from $5 to $15, a 150% increase. The company also switched from net metering to net billing shortly after many homeowners installed their systems. This follows a pattern seen in California, where similar policy changes resulted in nearly 17,000 jobs lost in the rooftop solar sector.

“This proposal takes away opportunities for energy autonomy and security,” said Alex McKinley, a local solar business owner who spoke at the hearing. Many homeowners now report paying both solar installation bills and power bills after previous policy changes.

An independent analysis funded by the Sierra Club concluded that Idaho Power is undervaluing the benefits of rooftop solar. Industry experts from the Solar Energy Industries Association (SEIA) argue that net metering creates smoother demand curves and helps utilities better manage peak electricity loads.

The policy changes would affect more than 13,000 Idaho citizens who have invested in solar technology. Initially, Idaho Power requested no open hearing on this issue, raising transparency concerns among residents.

The Idaho Public Utilities Commission is expected to make a final decision in May 2025. Citizens can submit public comments at puc.idaho.gov/Form/CaseComment referencing the case number. If the cuts are approved, many residents claim they’ll never realize the full return on their solar investment.