Complete Guide to Solar Energy in Montana

Your complete resource for solar energy. Everything you need to know about solar laws, solar costs, solar financing, and solar installation in Montana.

13.33¢/kWh
Average Retail Electricity Price
50 kW
Net Metering System Size Limit
$40,000
Alternative Energy Loan Program Maximum
~1,300 kWh
Estimated Annual Production per 1 kW Installed

Why Solar Makes Sense in Montana

Reliable Solar Production

Montana has solid solar potential for homeowners, farms, and small businesses. A common planning estimate used in Montana solar guidance is about 1,300 kWh of annual production for every 1 kW installed, which can make solar a practical long-term option when system size is matched to actual usage.

Net Metering is Available

Montana allows eligible private-generation systems to participate in net metering. For many customers, that means solar can offset on-site electricity use and reduce how much power must be purchased from the utility.

Low-Interest State Financing is Available

One of Montana’s most important current solar advantages is access to state-backed financing. The Alternative Energy Revolving Loan Program continues to offer low-interest funding for qualifying renewable energy projects, including solar.

Solar Economics Depend on Real Usage

Because Montana no longer offers its former state tax credits for energy upgrades, project value in 2026 depends more on system sizing, financing terms, annual usage, and utility billing treatment than on expired incentive claims.

Quick Solar Facts

Average Retail Electricity Price: 13.33¢/kWh
Net Metering System Limit: 50 kW
Estimated Annual Output: ~1,300 kWh per 1 kW
State Energy Loan: Up to $40,000
Annual Credit Settle-Up: Once per year

Quick Solar Savings Calculator

Important 2026 Updates

Alternative Energy Revolving Loan Program Remains Available

In 2026, Montana’s Alternative Energy Revolving Loan Program remains one of the most important financing options for qualifying solar projects. The program offers loans up to $40,000, terms up to 10 years, and a 3.5% fixed interest rate for eligible applicants and projects.

Montana DEQ Alternative Energy Revolving Loan Program

Montana No Longer Offers Its Former State Tax Credits for Energy Upgrades

Montana no longer offers its former state tax credits for energy upgrades, so homeowners in 2026 should evaluate solar based on project pricing, financing, net metering rules, and expected production rather than expired state tax incentives.

Montana DEQ Tax Credit Status

Montana Solar Laws & Regulations

Net Metering Size Limit

In Montana, eligible private-generation systems up to 50 kW can qualify for net metering under participating utility programs. This makes the policy relevant for homes, farms, and many small commercial properties.

Montana DEQ Renewable Energy

Annual Credit Settle-Up

Under Montana utility net metering programs, excess generation can accumulate as bill credits during the year, but unused balances are subject to an annual settle-up. Because of that, system sizing should be based on realistic on-site consumption rather than maximum possible production.

NorthWestern Energy Net Metering Private Generation

Property Tax Exemptions

Montana provides property tax exemption pathways and special tax treatment for certain types of energy property, so the tax treatment of a solar project should be reviewed before installation.

Montana Department of Revenue Property Tax Exemptions