Montana residents have solar incentives available to help finance the installation of solar panels. The federal solar investment tax credit offers the biggest savings, but you can also take advantage of net metering and Montana-specific tax credits and exemptions.
Federal Solar Investment Tax Credit
In 2022, when the federal government passed the Inflation Reduction Act, it also extended the Solar Investment Tax Credit. It increased the percentage of project costs a homeowner can deduct to up to 30%. The average cost of a solar panel system falls around $16,000 and a 30% tax credit can mean savings of $4,800.
Net Metering
Net metering is available in Montana and the state requires all investor-owned utilities to offer net metering. With net metering, you can receive a rebate on your utility bill if your solar power system generates excess power. In some states, you can receive cash back, but in Montana, you will only receive a credit to your electricity bill.
Renewable Energy Systems Exemption
The Montana Renewable Energy Systems Exemption serves as a property tax exemption for those who install solar panels on their property. The incentive exempts homeowners from any additional property taxes incurred by increasing their property value with solar panels. The exemption extends up to 10 years.
Alternative Energy Revolving Loan Program
Montana also has the Alternative Energy Revolving Loan Program where homeowners can get a loan for a solar project at a fixed 3.5% for up to 10 years on projects up to $40,000. That’s a far lower rate than you’ll find with most solar loans, which can have rates from 4% to 7%.
Alternative Energy Systems Income Tax Credit
Montana residents can also claim the Alternative Energy Systems Income Tax Credit for up to $500. A couple can each claim the credit for a combined $1,000 credit if both paid for a system that cost $1,000 or more.
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