Montana solar panels: The complete guide in 2025
Data updated Jun 3, 2025
Interested in going solar? You'll need to install a 12.6 kW solar panel system to cover the average electric bill in Montana, which will cost you about $22,597 after the federal tax credit.
Cost for an average system in Montana
| Out of pocket cost, cash | $32,282 |
| Federal tax credit (30%) | - $9,685 |
| Price post tax credit | $22,597 |
| 25-year savings | Payback period | Electricity offset |
|---|---|---|
| $27,247 | 13 Years | 92% |
As long as your federal tax bill is high enough, you can take advantage of the federal investment tax credit (ITC).
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Going solar in Montana
Montana’s sunshine and solid net metering programs make Big Sky Country a bountiful state for solar energy. Factor in the federal solar tax credit, and Montanans can cut the cost of solar by thousands of dollars, speeding up their payback periods and increasing the value of their investments.
Here's our guide to going solar in Montana.
Cost
How much do solar panels cost in Montana?
Solar panels will save you a lot of money over time, but the upfront costs aren't cheap. The average Montana homeowner needs a 12.6 kW solar panel system to cover their electricity needs, which comes out to $32,282 before incentives. Prices range from $27,440 to $37,124, but after the federal tax credit, that drops by 30%.
While this may sound high, it will pay off in Montana. That's why over 500 Montana homeowners have used EnergySage to receive and compare quotes for solar installations. You can expect to earn back your initial solar investment through electricity savings in about 12.82 years, while most systems last at least 25 years. You'll often see this number referenced as your solar payback period.
There are a few ways to finance your solar panel system so you don't have to provide all that money upfront.
Cash purchase: You'll own the system and pay for it upfront. This provides the best long-term savings.
Solar loan: Allows you to retain ownership of your system, while owing little to no money upfront. Solar loans aren't all created equal: If you have access to subsidized clean energy loans through local incentive programs, that's usually your best bet. A home equity loan or a personal loan are often your next best options – private solar loans typically come with higher interest rates or upfront fees.
Solar lease or power purchase agreement (PPA): A third-party company owns your system and either leases you the solar panels (solar lease) or allows you to purchase the electricity they generate (PPA). These generally provide the lowest savings and generate the most negative press about solar. If you choose this financing option, read the fine print: You can get trapped in them for longer than you'd like.
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Incentives
What are the best solar rebates and incentives in Montana?
Incentives help bring solar's price tag down considerably in Montana. Here are the major ones to know about:
| Incentive | Average savings in Montana | Description |
|---|---|---|
Residential Clean Energy Tax Credit, formerly the federal investment tax credit (ITC) | $9,685 | Lowers your solar panel system's cost by 30% |
Montana solar property tax exemption | 0.74% of your system’s cost, annually on average | If you use solar energy as a source of power, you won't need to pay a property tax for 10 years on the value your solar panels add to your property. |
Alternative Energy Revolving Loan Program (AERLP) | Varies | You can borrow up to $40,000 with fixed 3.5% interest for 10 years. |
Yellowstone Valley Electric Cooperative | $1,000 | Offers a rebate to members who install a solar panel system for watering stock. |
Is net metering available in Montana?
If you live in a state with a net metering program, you can earn credits for the excess generation your solar panel system produces and delivers back to the grid. It’s essentially a solar buyback program that makes it so you owe little to nothing on your electric bills.
Utility companies in Montana offer great net metering programs. In general, you’ll be credited for your excess generation at the retail rate. Net metering rules apply to all investor-owned utility companies, but many electric co-ops have also voluntarily adopted net metering.
Learn more about Montana’s net metering programs:
Equipment
Equipment quality
Solar panel efficiency continues to improve every year—that is, they produce more power per square foot. As of 2025, many top-selling solar panels produce around 450 watts in full sunlight. To maximize your roof’s production potential, look for panels with at least that level of output.
It’s also important to choose an inverter setup that fits the design of your roof.
And if you plan to add a solar battery, make sure it’s compatible with your inverter setup for smooth integration.
While higher-end equipment can be more expensive upfront, it often leads to greater savings over time. Premium products usually come with longer warranties—up to 25 years or more—and are built to last. They also degrade more slowly, meaning you’ll get more consistent energy production further into the future.
Companies
Who are the best solar installers in Montana?
We pre-screen all of the solar companies on EnergySage to ensure they'll provide you with a high-quality installation. We then rate them based on their results, reputation, and responsiveness. Here are the highest-rated EnergySage installers in Montana:
Ready to start looking for a solar installer?
Here are some of the most popular ones near you:
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resources
Top solar resources for Montana
- Montana Solar Loan Providers
Search through our list of top loan providers to finance your solar panel system.
- Montana Department of Environmental Quality
Learn about MT solar programs from the state government.
- Montana Public Service Commission
Read more about how utility companies work in MT.
- Montana Electricity Profile (EIA)
Learn about MT energy production and prices.
- MT State Solar Factsheet (SEIA)
See quick stats about how much solar energy has grown in MT.
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