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Key Points
Montana’s installed solar capacity already powers over 32,000 homes and will continue to grow over the next five years.
Federal and state incentives can help cut the total cost of solar in Montana.
Solar panels in Montana can reduce your electric bills and your home’s carbon emissions and provide more price stability.
Ready to go solar? Call 877-307-7668to be connected with a solar expert today!
Solar power in Montana
Solar power has room for growth in Montana, a state where most energy is sourced from coal. Currently, 248 megawatts (MW) of solar energy are installed in Montana, enough to power over 32,700 homes, according to the Solar Energy Industries Association (SEIA). Montana has invested over $338 million in the industry and created over 350 jobs. The state currently ranks 40th in the nation for solar installations and is expected to grow by 831 megawatts (MW) in the next five years.
Homeowners who want to go green and reduce their home’s carbon emissions can benefit from investing in solar energy in Montana. Solar arrays can be a reliable energy source and shield customers from electricity price fluctuations over time.
Get your free solar savings estimate
You can significantly lower your energy costs by investing in solar panels. Enter some basic information below and we’ll provide an instant, free estimate of solar cost and savings for your home.
Montana solar panel cost
According to Lawrence Berkeley National Laboratory, solar systems cost an average of $31,558 in the U.S. before any incentives, such as rebates and tax credits. Measured in dollars per watt, the average cost comes out to $3.67 for an 8.6-kilowatt (kW) system. Although the total amount may seem like a significant investment, you could save money on your electricity bills every year.
The cost of solar panels for Montana residents depends on your typical energy consumption, desired system components, electrical or roof repairs, and other miscellaneous expenses. Your solar installer will help you figure out the system size that is right for you based on your energy usage. If you have a large household, you may consume more energy and need a more extensive system. Solar permitting, labor, and inspections add to the total cost of your solar system. Additionally,more efficient solar panels or the addition of a solar battery can increase the total price.
How does Montana solar save you money?
Montana residents have some of the lowest electricity bills in the U.S. The average monthly bill as of June 2023 is $115. You can enjoy even more savings on your electric bills after going solar once you’ve paid off your system. After accounting for the 30% federal tax credit, your average payback time for an 8.6 kW solar panel system in Montana is 16 years.
System
size
Estimated price
in Montana
Number of
solar panels*
3 kW
$11,010
8–10
4 kW
$14,680
10–13
5 kW
$18,350
13–17
6 kW
$22,020
15–20
7 kW
$25,690
18–23
*Estimated panel count is based on the average panel size ranging from 300 to 400 watts.
The best Montana solar panel incentives or rebates
Solar panels can be a large investment. However, you can offset the cost with tax incentives or rebates. For example, the Inflation Reduction Act includes the Residential Clean Energy Credit. Residents who buy and install solar in Montana can receive a 30% tax credit on their federal income taxes for solar purchases through 2032. The credit can even be retroactively applied to systems bought at the beginning of 2022.
Montana also offers statewide solar incentives to help lower your costs further. Here are a few Montana solar incentives:
This program offers individuals loans for alternative energy system installation, including solar panels and solar water heating. It is offered at a low (3.5%) interest rate with no early payment penalty.
Montana residents can receive bill credits when their solar panels produce more energy than the household uses in a month. Check with your local utility for details.
You can claim a tax credit for 30% of the total cost of your solar panel system if you buy and install between 2022 and 2032. The credit decreases to 26% in 2033 and 22% in 2034 and expires in 2035 unless Congress extends it.
Solar incentives in Billings
NorthWestern Energy, one of Billings’ utilities, offers net metering incentives to its solar customers. Montana’s net metering law requires that all net metering energy credits reset to zero after a 12-month billing period.
NorthWestern Energy’s net metering benefits are available in Missoula, too. In addition, NorthWestern Energy partners with the Missoula Urban Active Research Solar Project to provide solar energy for Missoula’s four public high schools. Missoula Electric Cooperative offers separate net metering benefits to its customers.
Contact NorthWestern Energy at 406-497-4165.
Call Missoula Electric Cooperative at 406-541-4433.
Solar incentives in Helena
The City of Helena offers a financing program for energy improvements on your home, including solar panels and solar water heating. The loan has a maximum limit of $12,000 and can extend for up to 10 years. This 0% interest program is placed as an assessment on your yearly property taxes.
Why choose Montana solar power?
Lower energy costs
Despite a high upfront cost, solar panels can provide price stability against fluctuating energy prices. With these savings, your array can eventually pay for itself, with most solar systems recovering initial costs in an average of 16 years in Montana. Your savings will vary depending on the size of your solar system and your home’s total energy consumption. If your solar panels produce a surplus of power, you may be able to sell it back to the grid through net metering.
Establish energy independence
Another benefit of installing a home solar system is lowering your dependence on the grid and relying more on your own electricity generation. Energy costs often fluctuate, making homeowners vulnerable to rate increases. You can power your home with solar energy in Montana without entirely relying on electric utilities, which can help you reduce demand from the power grid during peak load hours. When you buy a solar battery with your system, you can keep using electricity during a power outage. Home solar systems also help to curb the nation’s dependency on foreign fossil fuel imports.
Go green
Solar energy is a green and renewable energy source. Installing a solar panel system can reduce your home’s carbon footprint and local pollution, as solar panels do not emit greenhouse gasses into the atmosphere. Switching to solar energy is also non-invasive since solar panels can be installed on existing infrastructure. According to the Department of Energy, reducing emissions can help lessen environmental-related health problems and mitigate climate change.
Should I buy or lease my solar panels?
Montana homeowners can purchase or lease their solar panels. Some homeowners may even have access to community solar programs. While the initial investment in solar is high, purchasing a system provides the best return on your investment.
If you can afford to purchase outright, you will recoup your costs in the savings from your monthly electricity bills. Otherwise, solar loans help make panel installation accessible to more homeowners. Directly purchasing or financing also allows you to claim state and federal incentives — leasing is exempt from such incentives. Your home’s resale value can increase by an average of $15,000 after installing a solar system.
Learn more about different ways to access solar in the following table:
Payment method
Benefits
Drawbacks
Cash purchase
You’ll save the most in the long run, increase your home’s value, and get the tax credit
No maintenance, simple, and easy to start using solar energy
No ownership of panels or incentives
Montana solar panel companies
There are currently28 solar companies operating in Montana, including 20 installers. Before signing a contract, research the company’s experience, customer service ratings, and warranties for repairs or replacement panels.
As an energy marketplace, SaveOnEnergy can help you find the company best suited to your needs. To learn more about solar installers in your area, you can request more information or call the number on your screen to speak with one of our experts.
12-year quality-of-work and 25-year product and performance warranties
1985
Purchasing, financing, or leasing systems
25-year product, performance, and quality of work warranties
What to look for in a solar contractor
Finding a trusted solar contractor to install your new solar panels is key to avoiding solar installation scams. To search for a reputable solar installation company near you, research the following factors that every reliable company should have:
Good solar contractor reviews. A trustworthy and established solar contractor will have testimonials and reviews accessible to potential customers.
Quality products. Research the manufacturers of the solar panels to ensure they’re top-of-the-line products.
Licenses and certifications. Solar contractors should have the necessary licensing and certification to safely and correctly install solar panels. In some states, it’s required to have a solar contractor’s license.
Financing options. Top solar companies offer several financing options so that homeowners have the opportunity to install solar panels on their property.
Beware of free solar panels in Montana scam
Free solar panels don’t exist. Any company claiming to offer free solar panels is likely a scam to either trick you into providing credit card information or trap you in a loan. If a solar panel installation company seems too good to be true, trust your instincts and find a different solar contractor.
Important solar installation factors to consider
Even if you found the perfect company to install solar panels on your Montana home, there are a few factors to consider before you install them on your rooftop.
Condition of your roof: Your roof plays a significant role in determining whether your home is ready for solar. Everything from the shape and size of your roof to its orientation and slope can impact the efficiency of solar panels. You should also consider the age of your roof and how soon it might need replacing.
Local climate and weather: Solar technology is designed to operate in any environment, but certain weather conditions are better suited for collecting energy. Your panels need direct access to sunlight for maximum solar energy generation. Heavy shading around your house can reduce the efficiency of your solar panels.
Neighborhood rules and regulations: Montana’s solar easement law allows solar owners to create easements to ensure their systems get maximum sun exposure. While the legal provisions allow you to have the easements, you need to negotiate the terms of such easements with your neighbors. Always check with your community before making significant changes or signing an installation contract.
The national average cost to install a residential solar system is $31,558. Your home size, the condition of your roof, the panel type, and the solar company can all impact the total cost of your installation. However, federal and state incentives can help you offset your initial investment and make it easier to go solar.
Solar in Montana can be a good investment. If your home is in a location with direct exposure to sunlight, you may have considerable savings in energy costs. Depending on your monthly electric bill and how much energy you generate, you may even be able to recoup your investment costs in a few years.
Your home’s specific needs and energy consumption play a role in determining how much you will save by investing in solar energy. Larger systems may cost more upfront. However, if your energy bills are high, you could save a lot each month by generating your power. With net metering, you may even be able to sell any excess energy generated back to the power grid.
SaveOnEnergy’s independent energy marketplace is a great place to explore various solar installers in Montana and determine which one is right for you. Prior to signing a contract with a company, research customer satisfaction ratings and see the installer licenses and professional certifications. Fill out this form or call us at the number on your screen for more information and find the solar installer in Montana to fit your needs.
Nationwide efforts for positive environmental impacts are at an all-time high, and solar energy is a great way to reduce your carbon footprint. As a renewable energy source, solar energy does not emit harmful pollutants into the atmosphere like burning fossil fuels. Solar panels also rarely impact the local environment since they get installed on existing buildings.
