Montana Solar Guide 2026
Everything Montana homeowners need to know: costs, incentives, net metering policy, and what makes this state unique for solar.
Quick answer
Montana solar economics depend mainly on 4.8 average peak sun hours, an estimated $2.95/W installed cost, 11.0¢/kWh electricity, and the state's current net-metering rules.
Reviewed 2026-07-26
- Best for
- Montana homeowners comparing solar costs, incentives, and payback assumptions.
- Inputs needed
- annual kWh usage, utility rate, installed $/W, net-metering policy
- Formula used
- Typical production = system kW × peak sun hours × 365.
- Source checked
- state incentive data, utility tariff checks, Wattcrunch price benchmarks
Key fact about Montana solar
Montana has solid sun hours (especially eastern MT) and full retail net metering, but a tiny state income tax credit and low electricity rates limit solar ROI. Billings and Missoula are the main solar markets.
Peak sun hours
4.8
hrs/day avg
Avg electricity rate
11.0¢
per kWh
Median install cost
$2.95/W
before incentives
Typical payback
14 yrs
8 kW system, avg usage
Typical 8 kW system in Montana
Annual production
14,016 kWh
Year-1 savings
$1,542
System cost (est.)
$23,600
No federal tax credit — Section 25D expired December 31, 2025.
Montana Net Metering Policy
Full retail net metering (MCA 69-8-601)
Montana law requires full retail net metering for systems up to 50 kW. NorthWestern Energy and other utilities must credit exports at retail. Annual settlement with unused credits.
Montana Solar Incentives
Available in addition to any utility rebates. Federal 25D credit is $0 for homeowner-owned systems from 2026.
- ✓State income tax credit: 5% of cost (up to $500)
- ✓Property tax exemption
Top Utilities in Montana
Interconnection timeline: 4–8 weeks
State-specific decision guide
What to verify before signing a Montana solar quote
In Montana, the financial result depends on more than sunshine or the headline installation price. Confirm the export rule, program eligibility date, and interconnection timeline for your exact utility before treating a payback estimate as a promise.
Export value
This page models full retail net metering (mca 69-8-601). Ask which tariff and export credit apply to your account, not only which program name appears in the proposal.
Incentive eligibility
Check equipment, income, installer, application, and placed-in-service rules before subtracting an incentive from the quote. Programs can close or change terms.
Interconnection
Budget for the published 4–8 weeks and confirm who pays for a required meter, service upgrade, or engineering review.
Source trail: production assumptions use NREL PVWatts; incentive discovery should be checked against DSIRE; electricity-market context is available from the EIA. Confirm final tax treatment with the IRS and your utility.
Calculate your Montana solar economics
Our calculators are pre-filled with Montana data. Run any tool below.