Idaho Solar Guide

Prepaid Lease, Purchase or Monthly Lease: How to Pay for Solar in Idaho in 2026

The 30% homeowner solar tax credit is gone. How a prepaid lease, cash, a loan and a monthly lease compare in Idaho in 2026, side by side with the old credit.

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Updated September 2026

Short answer

Since January 1, 2026, a homeowner who buys solar with cash or a loan gets no federal tax credit. A prepaid lease can still bring federal value to you, because the system's legal owner is a business that can still claim it and passes part of it back as a lower price. In 2026 that often makes a prepaid lease the lowest cost way to go solar, and it can be financed for $0 out of pocket. Buying still makes sense if you want to own the system from day one, claim Idaho's state deduction, or expand freely later.

What changed, and why leases are back

THROUGH 2025

Buyers got 30% back

Homeowners who bought a system could claim 30% of the cost as a federal tax credit (Section 25D), as long as they owed enough federal tax to use it.

JANUARY 1, 2026

The homeowner credit ended

Federal legislation signed in July 2025 ended the homeowner credit for systems installed on or after January 1, 2026, with no phase-down.

NOW

Business owners still qualify

Companies that own solar can still claim federal credits for now. When a third-party company owns the system on your roof, it can share that value with you through a lower price.

Every option, side by side

The grey column is how buying worked before 2026, for comparison. Monthly leases are included for general information. We focus on purchases and prepaid leases, and we are happy to look over a monthly lease offer with you.

	Cash purchase	Solar loan	Prepaid lease	Monthly lease	Cash, before 2026
Who owns it	You, from day one	You, from day one	Our partner for the first several years, with ownership options starting in year 6	The leasing company	You
Upfront cost	Full system price	Little or none	System price minus up to 30%, or $0 out of pocket with financing	Little or none	Full price, 30% back at tax time
Monthly payment	None	Yes, loan payment	None if paid upfront, or a low monthly payment if financed	Yes, for the lease term	None
Federal credit	None for 2026 installs	None for 2026 installs	Claimed by the owner, passed to you as the discount	Claimed by the owner, may lower the payment	30% (Section 25D)
Idaho deduction	Yes	Yes	Goes to the system owner	Goes to the system owner	Yes
Service and warranty	Our warranty plus manufacturer warranties	Our warranty plus manufacturer warranties	Partner's 25-year guarantee, plus our warranty and the manufacturer warranties	Handled by the leasing company	Installer and manufacturer warranties
Best for	Owning outright with the simplest paperwork	Owning without paying upfront	Lowest system price in 2026, with $0 out of pocket available	Little or nothing upfront, long agreement	No longer available

The same $30,000 system, three ways

An illustration, not a quote. Your price depends on your home, equipment and eligibility.

CASH, BEFORE 2026

$21,000

net, after the credit

Paid $30,000 upfront

Claimed $9,000 back at tax time

Needed enough federal tax owed to use it

CASH, 2026

about $28,900

net, after Idaho's deduction

Pay $30,000 upfront

No federal credit

Idaho deduction: $20,000 over 4 years, worth about $1,060 at Idaho's 5.3% rate

PREPAID LEASE, 2026

as low as $21,000

with up to 30% off

Up to 30% off the $30,000 price

Or finance it for $0 out of pocket

Ownership options starting in year 6

Assumes the same $30,000 system price before any discount. The Idaho deduction figure assumes enough Idaho taxable income to use the full $5,000 each year. This is general information, not tax advice.

Which one fits you?

Prepaid lease: You want the lowest system price available in 2026 and plan to stay in the home. Pay upfront, or finance it for $0 out of pocket.
Cash or loan: You want to own the system outright from day one, claim Idaho's deduction, or add panels and batteries freely later.
Monthly lease: You want little or nothing upfront and are comfortable with a long agreement and a monthly payment.

What to compare before you sign

Total cost over the life of the system, not just the upfront or monthly number.
Who owns the system, and when and how you can take ownership.
Who handles warranty and service during each stage.
What happens if you sell your home. Get the transfer terms in writing.
Who can claim Idaho's state deduction. It goes to the system owner.

Frequently asked questions

Can I still get the 30% solar tax credit in Idaho?

Not on a system you buy and install in 2026 or later. A prepaid lease is the main way homeowners still benefit from federal credits, through a lower price.

What is a prepaid solar lease?

You pay for the whole term at the start, either upfront or with financing for $0 out of pocket. A third-party company owns the system for the first several years, claims the federal value, and passes it to you as a lower price.

Can I own the system later?

Yes. Our prepaid lease partner offers ownership options starting in year 6. Our warranties and the manufacturer warranties continue to apply.

Is buying solar still worth it without the federal credit?

It can be, especially in North Idaho where Avista, Clearwater Power and KEC credit exported solar one-for-one. Compare the total cost against a prepaid lease for the same system before you decide.

What happens if I sell my home?

Terms vary by agreement. Ask for the transfer terms in writing before you sign. We walk every customer through them.