Federal ITC 26% (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
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.
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 26% federal tax credit
11 solar companies in Montana provide pricing on SolarReviews. Here are the best rated companies near you.
4.81 92 Reviews
Brian Blicker, over 1 month
Jeff was great to work with. Install was completed quickly and for proposed price. Highly recommended.
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Brian Blicker, over 1 month
Jeff was great to work with. Install was completed quickly and for proposed price. Highly recommended.
4.77 63 Reviews
The Devins, 5 days ago
Great communication and a job well done! We love how easy they made it to install solar on our home, and they pointed us in the direction of great financial resources to help fund our project.
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The Devins, 5 days ago
Great communication and a job well done! We love how easy they made it to install solar on our home, and they pointed us in the direction of great financial resources to help fund our project.
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.
4.61 34 Reviews
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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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
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 !
4.32 15 Reviews
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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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
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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4.12 58 Reviews
A, over 1 month
I bought solar panels form IPS 7 years ago. There were problems from the beginning. Panels didn't work right the 1st year. Finally fixed. There has been no Regional Manager for the past 7 months and no indication when position will be filled. My solar panels have not been working well for past year, according to records, and I now have solar panels and am paying an electric bill. Work in New England region is subcontracted out. Subcontractor was here multiple times and has not fixed problem. Presumably, a new subcontractor has been hired. When one calls or emails service department in Colorado, it takes multiple times to get a response, I have now called/emailed daily for 4 days in a row, still no response. Last conversation was that they would have someone here quickly. I am frustrated and dismayed.
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Average cost (5kW system)
$26,200 ($5.24 per watt)
A, over 1 month
I bought solar panels form IPS 7 years ago. There were problems from the beginning. Panels didn't work right the 1st year. Finally fixed. There has been no Regional Manager for the past 7 months and no indication when position will be filled. My solar panels have not been working well for past year, according to records, and I now have solar panels and am paying an electric bill. Work in New England region is subcontracted out. Subcontractor was here multiple times and has not fixed problem. Presumably, a new subcontractor has been hired. When one calls or emails service department in Colorado, it takes multiple times to get a response, I have now called/emailed daily for 4 days in a row, still no response. Last conversation was that they would have someone here quickly. I am frustrated and dismayed.
3.75 1 Reviews
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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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.