Some Idaho Electric Solar customers fear that their investments won't break even at speed changes
Idaho holds a solar-enabled sign at the Idaho Capitol in Boise in 2024 (contributed by Idaho Chapter Sierra Club)
Hawk Sahlein installed 12 solar panels in his Boise home in December 2023, hoping it will build equity in his home and promote clean energy.
The 36-year-old spent $18,000 on the group and even borrowed a loan from a credit union to fund the investment. The decision came after talking to several solar companies about costs and conversations with other solar panels, with Idaho power bills reduced after installation.
Sahlein is excited about producing his own energy from solar panels, but now the idea is “acid”, he told the Idaho capital Sun. This is because Idaho's power has made a request to the Idaho Public Utilities Commission to reduce its credit for its non-ambiguous rooftop solar owners or those who install the system after December 2019.
A company spokesperson told the Sun that the change was to ensure Idaho Electric paid a fair price for the energy it purchased.
If the rate changes were implemented, Salliin's solar panels would hardly save money on his electricity bill, increasing the expenses of the loan he paid. He and 13,700 other Idaho power customers will be affected by the change. Many others spend more money on solar systems at home, ranging from $40,000 to $100,000, according to a comment on the Idaho Public Utilities Commission website.
Hawk Sahlein, a local artist and lifelong Boisean, installed 12 solar panels in his home in December 2023 (court by Hawk Sahlein)
What are the proposed changes to rooftop solar?
Some Idaho people install rooftop solar because credit reduces the cost of their electricity bills. When customers with solar energy generate more energy than using, the extra energy is sent to the grid of Idaho Electric. The company then attributes these people to energy at a fixed tax rate, called export credit rates.
In December 2023, the Utilities Commission made a final ruling on the new “Net Billing” program that requires Idaho Electric to update its export credit rate on April 1 each year. Solar advocates and owners say the proposed tax rates change significantly this year.
“People in Idaho go to solar because it lowers their power bills, provides them with energy freedom and security, and helps the environment,” Alex McKinley, owner of Empower Solar, said in a press release from the club Sierra Leone, Idaho. “The power of Idaho is trying to favor people's benefits by biasing these roof solar rates. That's not right.”
Credit rates depend on when energy demand during the year (such as summer) (June 1 to September 30).
Idaho Powers' current export credit rate setting is:
Summer peak time: 16.99 cents/kWh Off-peak hours: 5.6 cents/kwhnon-summer: 4.8 cents/kWh
The proposed export credit ratio that the Commission will change by June 1 is:
Summer peak time: 14.05 cents/kWh Night time: 1.76 cents/kwhnon-summer: 0.959 cents/kWh
“I looked at the prices they offered, and it was terrible,” Salliin said. “In the months of the summer, less than a cent per kilowatt-hour, so credit in any non-summer or time dropped by 80%. That's crazy for me.”
Salein said the changes would make it difficult for him to break in investment.
The spokesperson said
Jordan Rodriguez, a spokesman for Idaho Electric Power, said the main reason for the decline in credit rates is that the energy market price in 2024 is lower than the 2022 market price that determines the current interest rate.
“(Export Credit Rate) reflects the market value when exporting energy to Idaho Power and provides additional compensation for the benefits of on-site generators,” he said.
He said the rate changes ensure that Idaho's electricity pays fair market prices for the energy it receives, which are adjusted every year.
“The power of Idaho supports clean energy and leverages an increasing number of solar and other clean resources,” he told the Sun. “Site generation has the potential to reduce the energy needed for Idaho in a few days, but it is not enough to meet all of our needs and is non-company, which means there is no guarantee that it will be generated and available when we need it.”
This change will affect residents without traditional status, as well as large commercial, industrial or irrigation customers who install systems after December 2020, and Oregon customers who install solar panels after June 2024.
Rodriguez said 5,300 of the 19,000 Idaho Power customers have legacy status and will not be affected.
Individuals who want feedback on the proposed changes can use case number IPC-E-25-15 leave a comment on the Idaho Public Utilities Commission’s website. The committee is expected to make a decision before it takes effect on June 1.
Capital Chronicle, like the Capital Chronicle, is part of the National Newsroom, a nonprofit news network that is a 501C(3) public charity. Idaho Capital Sun maintains editorial independence. For questions: info@idahocapitalsun.com, please contact editor Christina Lords.
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