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What Boise homeowners should know about solar power as federal tax credits are set to expire

Claims for credits can be made through December 31, 2025.
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BOISE, Idaho — Installing solar shingles can nearly eliminate monthly electricity bills.

However, upgrading your home's energy infrastructure requires a substantial upfront investment ranging from $30,000 to $120,000, depending on system size, according to Sandra Daffer, co-owner of Hawaiian Built Roofing.

The federal government currently offers a 30% tax credit for clean energy upgrades, which significantly reduces the initial cost.

"So it's literally 30% off the total project," Daffer explained.

According to the IRS, a wide range of clean energy upgrades qualify for the 30% tax break.

This includes:

  • Solar electric panels
  • Solar water heaters
  • Wind turbines
  • Geothermal heat pumps
  • Fuel cells
  • Battery storage technology 

However, the credit is scheduled to expire at the end of 2025.

WATCH: What you need to know about solar before the 30% federal tax credit expires

What Boise homeowners need to know about solar as federal tax credits come to an end

Despite the tax incentive, the long-term financial benefits may be limited.

An average home using around 1,000 kilowatt hours will only save approximately $2,560 over 20 years,  according to Idaho Power.

Homes with lower energy usage could potentially see a financial loss.

Solar power can also face efficiency challenges during winter months and nighttime hours, raising questions about year-round performance in Idaho's climate.

"We're anxious to see how it's going to work this winter as well," Daffer said.

But, Daffer said homeowners can remain connected to the traditional power grid for reliability.

"You just take power from Idaho Power when you need it, and when you make too much power, you're giving it back to them," Daffer said.

The City of Boise, which plans to run on 100% clean electricity by 2035 and achieve carbon neutrality by 2050, reports positive results from existing solar installations.

"Where we have solar installs, they're performing really well, so we're seeing good return on investment," said Steve Burgos, public works director for the City of Boise.

Qualifications and claims for the clean energy credit can be found on the IRS website.

This story was initially reported by a journalist and has been, in part, converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.