Summary of Montana solar incentives 2021
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.
On this page, you can:
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Learn what solar incentives are available to Montana homeowners
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See what Montana solar incentives you qualify for based on your utility company and city
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Find out how much these incentives and/or Montana solar tax credits will reduce your cost to go solar and add batteries
Federal solar investment tax credit
The federal solar investment tax credit will have the biggest impact on the cost you will face to go solar in Montana
This perk is commonly known as the ITC, short for “Investment Tax Credit”. If you install your photovoltaic system in 2020, the federal tax credit is 26% of the cost of your solar panel system. This is 26% 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 26% = $5,200.
The federal tax credit falls to 22% at the end of 2022.
Net energy metering in Montana
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.
Montana solar rebates
While Montana does not have a dedicated state rebate for solar panel installation, some manufacturers like LG offer their own solar rebates. These programs are usually time sensitive. For example, LG offers a $600 solar rebate on their equipment, which your installer can help you redeem over the next year.
Montana state tax credit
In addition to the solar power rebate from NorthWestern Energy, when tax day rolls around you’ll also get some cash back from the state. Montana’s Residential Alternative Energy System Tax Credit offers a tax credit on 100% of the price of a solar power system, up to a maximum of $500 for individuals and $1,000 for households with more than one taxpayer. The credit may be carried over for up to four years.
Property tax exemption
In addition to the money you’ll get back on your state 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!
Cost of solar panels in your part of Montana after all applicable solar incentives
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Prices based on a 11.8kW system, after 26% federal tax credit
Solar prices near you
Payback period
9.1-11.1 years
Net profit (savings less system cost)
$43,018-$52,578
Average size system installed in MT in 2021
11.8kW
Solar panel cost calculator
Best 10 solar companies in Montana
10 solar companies in Montana provide pricing on SolarReviews. Here are the best rated companies near you.
4.67 63 Reviews
Latest review
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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Latest review
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.
4.66 47 Reviews
Latest review
Vinod Nair, over 1 month
I consulted with Dan from SBS Solar on our solar needs. During his site visit, he gave me all the information needed to make an educated decision on type of solar install that was best for us. His office staff was efficient providing all needed documents tao make the Solar loan application process relatively painless. They coordinated with the energy provider to get all the paper work and permits in order for the solar installation.. SBS Solar has a crew of technicians who are punctual and respectful of your time and property. They finished the project on time and followed up post installation to program the system as per-my needs. Upon being informed of two panels that were underproducing, they reached out to manufacturers and later replaced the panels to ensure I was getting the best output from my installed Solar system. I was really pleased with their service and would highly recommend SBS solar for your solar needs
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Latest review
Vinod Nair, over 1 month
I consulted with Dan from SBS Solar on our solar needs. During his site visit, he gave me all the information needed to make an educated decision on type of solar install that was best for us. His office staff was efficient providing all needed documents tao make the Solar loan application process relatively painless. They coordinated with the energy provider to get all the paper work and permits in order for the solar installation.. SBS Solar has a crew of technicians who are punctual and respectful of your time and property. They finished the project on time and followed up post installation to program the system as per-my needs. Upon being informed of two panels that were underproducing, they reached out to manufacturers and later replaced the panels to ensure I was getting the best output from my installed Solar system. I was really pleased with their service and would highly recommend SBS solar for your solar needs
4.61 34 Reviews
Latest review
Ty Morrison-Heath, over 1 month
My new panels look great and are performing well. The whole team at OnSite was great to work with, from the installers to the sales crew. I've worked with them on two projects now, and I know they take care of their customers, with one of the projects requiring some warranty work that was taken care of quickly. My only minor complaint was that they were slammed when I contacted them (Late March 2020), and it took until the end of September before my panels were turned on. Overall I'd absolutely work with them again, though!
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Latest review
Ty Morrison-Heath, over 1 month
My new panels look great and are performing well. The whole team at OnSite was great to work with, from the installers to the sales crew. I've worked with them on two projects now, and I know they take care of their customers, with one of the projects requiring some warranty work that was taken care of quickly. My only minor complaint was that they were slammed when I contacted them (Late March 2020), and it took until the end of September before my panels were turned on. Overall I'd absolutely work with them again, though!
4.53 11 Reviews
Latest review
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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Latest review
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 !
4.38 41 Reviews
Latest review
Marc Wallace , 2 days ago
From the initial call through the build and with following up on the switch on, everyone has been good to work with and positive. They even sent a team to fill in a trench in the yard with soil and grass seed. Seeing the energy production on the app is gratifying too.
Read more
Latest review
Marc Wallace , 2 days ago
From the initial call through the build and with following up on the switch on, everyone has been good to work with and positive. They even sent a team to fill in a trench in the yard with soil and grass seed. Seeing the energy production on the app is gratifying too.
4.32 15 Reviews
Latest review
Susan Overfield, over 1 month
Highly professional from start to finish. Just hire them and save yourself headaches. I couldn`t be more pleased with everything about Oasis and the savings outcome.<br />
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Latest review
Susan Overfield, over 1 month
Highly professional from start to finish. Just hire them and save yourself headaches. I couldn`t be more pleased with everything about Oasis and the savings outcome.<br />
4.30 21 Reviews
Latest review
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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Latest review
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 />
Latest review
Geoff Ogden, over 1 month
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3.75 1 Reviews
Latest review
Anonymous, over 1 month
Great to work with, stand behind their work. My BGB solar array installed 5+ years ago continues to perform at or above predictions, and has been maintenance free.
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Latest review
Anonymous, over 1 month
Great to work with, stand behind their work. My BGB solar array installed 5+ years ago continues to perform at or above predictions, and has been maintenance free.
3.75 1 Reviews
Latest review
Anonymous, over 1 month
Jack was very helpful and responsive to my questions and they installed the project quickly once they were available (it was summer). He took care of all the interconnection paperwork and was helpful in setting up the communication between the inverter and our wifi router. The project is low on frills but also very low cost, which is all I really was looking for. The panel power optimizers allow for detailed information on each panel's production and will allow me to identify any problems with individual panels if they ever occur. The overall quality of the work done by Solar Montana is very high.
Read more
Latest review
Anonymous, over 1 month
Jack was very helpful and responsive to my questions and they installed the project quickly once they were available (it was summer). He took care of all the interconnection paperwork and was helpful in setting up the communication between the inverter and our wifi router. The project is low on frills but also very low cost, which is all I really was looking for. The panel power optimizers allow for detailed information on each panel's production and will allow me to identify any problems with individual panels if they ever occur. The overall quality of the work done by Solar Montana is very high.
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