The utility proposed a 60% cut to net metering rates, extending cuts that took place last year, and dropping the rate to about 2 cents per kWh.
Electric utility Idaho Power filed a proposal with the state’s Public Utilities Commission to cut net metering rates by 60%.
Net metering enables homes and businesses to credit solar output exported to the grid against utility bills. It’s an arrangement that provides emissions-free electricity to the local grid while offering participants the possibility of covering all electricity costs through self-consumption and exported electricity credits.
In January 2024 the rate was cut from 8.8 cents per kWh exported to 6.18 cents per kWh. Now the utility seeks a rate of only 2.46 cents per kWh, damaging the value of investment for rooftop solar customers.
“Unfortunately, some utilities perceive net metering policies as lost revenue opportunities,” said the Solar Energy Industries Association (SEIA).
California transitioned to an 80% cut to net metering rates in April 2023. The California Solar and Storage Association (CALSSA) reported that nearly 17,000 rooftop solar jobs, around 22% of the workforce, were lost in 2023 as a result, although rising interest rates played a role too.
While utilities have taken an anti-rooftop solar stance, analysis suggests that net metering provides a net benefit to the grid and lowers rates for all billpayers.
“Net metering policies create a smoother demand curve for electricity and allow utilities to better manage their peak electricity loads,” said SEIA. “By encouraging generation near the point of consumption, net metering also reduces the strain on distribution systems and prevents losses in long-distance electricity transmission and distribution.”
The Idaho Public Utilities Commission is expected to make a decision in May. If approved, the reduction in compensation rates to homeowners and businesses would take effect on June 1, 2025.
“We invested heavily in solar for our property, looking forward to low power bills under net metering. Right after the installation, the PUC decided that Idaho Power could switch to net billing. Now we have a solar installation bill on top of a power bill,” said Fred Johnson, a Marsing, Idaho resident. “They have completely removed the incentive for solar power.”
An independent analysis funded by Sierra Club and other environmental groups concluded that Idaho Power is undervaluing rooftop solar’s benefit to the grid and ratepayers broadly by using selective data and calculation methods.
The rate cuts come shortly after Idaho Power imposed a $15 fixed monthly fee for electric bill ratepayers this January. The fee applies regardless of the amount of electricity used. This fixed fee is up from $5 per month a few years ago.
“We need the PUC to help enable every Idahoan’s right to generate their own clean power, not hinder it,” said Mike Engle, chair of the Portneuf Resource Council. “The PUC needs to deny this request that dramatically decreases the solar export credit rate.”
The public hearing date for the proposal is not yet announced. Members of the public can submit public comments at puc.idaho.gov/Form/CaseComment and reference Case #IPC-E-25-15.
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