Federal ITC 30% (tax credit)
State tax credit: Yes ($1,000)
Net metering (by utility)
There can be solar tax credits and incentives available at the federal, state and local levels. The calculator above will show you the value of all incentives your home is eligible for.
Montana legislators haven't done a whole lot to make it easier for you to go solar, but the state's Public Services Commission came through in a big way for 2020 and beyond. That year, NorthWestern Energy attempted to advance a frankly villainous proposal to end net metering, reduce compensation for excess solar energy made by home solar panels, and impose new fees on solar owners. Thankfully the PSC not only rejected the proposal, but responded with a resounding "NO."
The PSC not only rejected NorthWestern's proposal, but also decreed that net metering would be the law of the land until distributed solar generation reaches as much as 5% of the utility's peak load. For context, Montana currently has enough rooftop solar to meet about 1% of peak demand, which means you'll have solid net metering for years to come.
Want to get solar panels for your home? Net metering provides you with 100% credit for every kilowatt-hour your panels generate, meaning you save as much money as possible and solar pays off its cost faster. Montana's commitment to net metering means you can rely on it long into the future.
Learn what solar incentives are available to Montana homeowners
See what Montana solar incentives you qualify for based on your utility company and city
Find out how much these incentives and/or Montana solar tax credits will reduce your cost to go solar and add batteries
The federal solar investment tax credit will have the biggest impact on the cost you will face to go solar in Montana
If you install your photovoltaic system before 2032, the federal tax credit is 30% of the cost of your solar panel system. This is 30% off the entire cost of the system including equipment, labor and permitting.
Example: If your solar energy system costs $20,000, your federal solar tax credit would be $20,000 x 30% = $6,000.
The federal tax credit falls to 26% at the end of 2032.
With net metering in some states, you get full retail rate credit for the amount of electricity you send back into the grid with your solar panels.
Net Metering requires your utility to monitor how much energy your solar power system produces and how much energy you actually consume to make sure you get credit for the surplus you send back to them.
In 2019, the Montana Public Services Commission rejected attempts by the state's main utility company, NorthWestern Energy, to reduce the amount paid for solar energy and levy new fees based on peak demand of solar owners. The Commission also put in place rules that net metering in the state would be preserved until the solar power reaches 5% of the state's total energy generation capacity.
Montana requires all investor-owned utilities to offer net metering. All surplus energy you produce will be applied as a credit to your next monthly bill. Unfortunately, if you manage to run a surplus for an entire 12-month period (customers may elect to start yearly cycles in January, April, July or October), the accumulated surplus is granted back to the utility without compensation. We think they should cut you a check.
While electric companies other than investor-owned utilities are not covered by the regulation, the Montana Electric Cooperatives’ Association (“MECA”) has adopted model net metering/interconnection guidelines that mirror state law, but with an even lower 10 kW system size limit. Net metering is available in whole or part from most MECA members.
While Montana does not have a dedicated state rebate for solar panel installation, some manufacturers offer their own solar rebates. These programs are usually available for a limited time or in certain geogrpahic regions, so check with an installer to see what's available to you.
Before 2022, Montana offered a $500 income tax credit ($1,000 for joint filers) for anyone who installed solar panels on their home. Unfortunately, that tax credit was ended as part of Senate Bill 399 in 2021. 2022 is also the last year to claim the federal solar tax credit of 26% of the costs to install solar. In 2023, the federal credit drops down to 22% before disappearing completely thereafter.
In addition to the money you’ll get back on your income taxes, Montana legislators have made sure you’ll also save bundles of money in property taxes. After all, installing a solar power system adds a great deal of value to your home.
Thanks to the Renewable Energy Systems Exemption, up to $20,000 of assessed value from your solar power system is 100% exempt from all property taxes for 10 good long years. That’s thousands of dollars saved over the next decade!
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Prices based on a 11.8kW system, after 30% federal tax credit
12 solar companies in Montana provide pricing on SolarReviews. Here are the best rated companies near you.
4.82 96 Reviews
Ise, over 1 month
Jeff and team arrived when they said they would, got the job done quickly, and we were up and running within a few days. Nice to see the grid-tied meter running backwards for a change!
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Ise, over 1 month
Jeff and team arrived when they said they would, got the job done quickly, and we were up and running within a few days. Nice to see the grid-tied meter running backwards for a change!
4.78 64 Reviews
John, over 1 month
We are so happy with the work SBS Solar did on our first Solar array that we went back to them for a second solar system. Professional, easy to work with, and timely installation was important to us and they again hit the mark. We highly recommend SBS Solar!
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John, over 1 month
We are so happy with the work SBS Solar did on our first Solar array that we went back to them for a second solar system. Professional, easy to work with, and timely installation was important to us and they again hit the mark. We highly recommend SBS Solar!
4.67 63 Reviews
Anonymous, over 1 month
Not only were they great to work with during the planning and installation, when we had trouble with an inverter several years later, they arranged for a warranty repair that cost us nothing. Working on our second system with them now.
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Anonymous, over 1 month
Not only were they great to work with during the planning and installation, when we had trouble with an inverter several years later, they arranged for a warranty repair that cost us nothing. Working on our second system with them now.
4.58 35 Reviews
Michael Smith, over 1 month
OnSite was a pleasure to work with. They kept me fully informed of my solar installation from when I first reached out to them until the project was completed and directing electrons into my electrical system and the grid. The quality of their workmanship is outstanding. All the technicians who worked on my installation were qualified and highly trained. Furthermore, I appreciated their professionalism and willingness to answer all my questions.
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Michael Smith, over 1 month
OnSite was a pleasure to work with. They kept me fully informed of my solar installation from when I first reached out to them until the project was completed and directing electrons into my electrical system and the grid. The quality of their workmanship is outstanding. All the technicians who worked on my installation were qualified and highly trained. Furthermore, I appreciated their professionalism and willingness to answer all my questions.
4.53 11 Reviews
Christopher S, over 1 month
Excellent service every time. These people really know their stuff. They spaced my panels perfectly on my roof. Highly Recomended !
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Christopher S, over 1 month
Excellent service every time. These people really know their stuff. They spaced my panels perfectly on my roof. Highly Recomended !
4.42 13 Reviews
Jeffrey and Marla Barnes, over 1 month
We just recently went solar. The whole experience was fantastic. AJ was the best at sitting down with us and explaining how it all works in a way that was super understandable. He drew pictures of how it would all look like. Explained the financial side and the beneficial side of how solar panels would provide all the electricity needs we would have in the future. The whole installment went down with no problems. The whole team was very professional and friendly. We are excited to one day having no electricity bill. To finalize the project, Destiny came out and showed Jeff how to install app on his phone and how to monitor what we're producing every day and how much money we're saving. It's incredible. Even with the cloudy day we've had this week, the solar panels are producing. We highly recommend Purelight Power for all your solar needs.
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Jeffrey and Marla Barnes, over 1 month
We just recently went solar. The whole experience was fantastic. AJ was the best at sitting down with us and explaining how it all works in a way that was super understandable. He drew pictures of how it would all look like. Explained the financial side and the beneficial side of how solar panels would provide all the electricity needs we would have in the future. The whole installment went down with no problems. The whole team was very professional and friendly. We are excited to one day having no electricity bill. To finalize the project, Destiny came out and showed Jeff how to install app on his phone and how to monitor what we're producing every day and how much money we're saving. It's incredible. Even with the cloudy day we've had this week, the solar panels are producing. We highly recommend Purelight Power for all your solar needs.
4.30 21 Reviews
Whitney Lake, over 1 month
This is my third system installed by Planetary Systems. They are our neighbors. The building is to be an experimental lab.<br />
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Whitney Lake, over 1 month
This is my third system installed by Planetary Systems. They are our neighbors. The building is to be an experimental lab.<br />
Geoff Ogden, over 1 month
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4.15 60 Reviews
MEADOWLARK, over 1 month
We have had IPS install solar panels on 3 houses through the years. The first time they were very attentive and were more than ready to explain how the panels work and to get them installed. For the second time, the process went smoothly as well. For the third time, I felt like my emails got lost of the shuffle of too many emails to deal with for them and being shuffled between representatives. Over the course of a year (because I would forget about my email to them for months at a time), I started up the conversation multiple times. When I finally sent an email explaining that I was waiting for answers and asked if they really wanted my business, I got a very apologetic response from a lead rep and the solar panel process got rolling immediately and thoroughly. They checked in often to confirm dates and paperwork. The panels are up and running and we are content with the company.
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Average cost (5kW system)
$26,200 ($5.24 per watt)
MEADOWLARK, over 1 month
We have had IPS install solar panels on 3 houses through the years. The first time they were very attentive and were more than ready to explain how the panels work and to get them installed. For the second time, the process went smoothly as well. For the third time, I felt like my emails got lost of the shuffle of too many emails to deal with for them and being shuffled between representatives. Over the course of a year (because I would forget about my email to them for months at a time), I started up the conversation multiple times. When I finally sent an email explaining that I was waiting for answers and asked if they really wanted my business, I got a very apologetic response from a lead rep and the solar panel process got rolling immediately and thoroughly. They checked in often to confirm dates and paperwork. The panels are up and running and we are content with the company.
4.06 16 Reviews
Thomas J. Elpel, over 1 month
Oasis Montana custom designed our photovoltaic system back in 2002. The system has worked great over the past twenty years, although there has been some wind damage to the Zomeworks Passive Solar Trackers, especially the aluminum reflectors. Whatever issue has arisen, Oasis Montana has helped track down solutions, providing stellar customer service twenty years after the sale!
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Thomas J. Elpel, over 1 month
Oasis Montana custom designed our photovoltaic system back in 2002. The system has worked great over the past twenty years, although there has been some wind damage to the Zomeworks Passive Solar Trackers, especially the aluminum reflectors. Whatever issue has arisen, Oasis Montana has helped track down solutions, providing stellar customer service twenty years after the sale!