Montana Solar Incentives, Tax Credits and Rebates

Are there any solar panel incentives in Montana?

Montana homeowners typically pay the full upfront cost of a solar installation, unless they use financing. However, you may qualify for a property tax exemption, utility rebate or low-interest state loan.

Yellowstone Valley Electric Cooperative rebate

This rebate from Yellowstone Valley Electric Cooperative (YVEC) helps cover the cost of installing a solar-powered system to water livestock. If your system costs $2,000 or less, the co-op will pay 50% of the cost. If it costs more than $2,000, you'll get a flat $1,000 rebate.

To qualify, you must be a YVEC member connected to the co-op’s service and provide proof of installation. You must apply within 90 days of purchase.

Property tax exemption

Montana has a property tax exemption for homeowners installing solar power systems. Here's how it works: Up to $20,000 of a solar system’s appraised value is exempt from property taxes for 10 years.

Multifamily and nonresidential properties may qualify for an exemption of up to $100,000.

What to know about net metering in Montana

Net metering is a system of give-and-take between you and your utility company. It lets you use power from the grid when your panels aren’t producing enough, and earn credits for any extra electricity your system sends back.

Producing more energy than you use can reduce your overall savings.

NorthWestern Energy and Montana-Dakota Utilities let unused net-metering credits roll over during a 12-month billing period. At the annual settle-up, however, remaining credits expire without payment. Because of this, it’s generally best to size your system close to your actual electricity use.

Rural electric cooperatives set their own solar compensation rules. Some bank excess kilowatt-hours for later use, while others credit exported electricity at a lower wholesale rate. System limits and annual reset dates also vary, so check your cooperative’s current policy before installing solar.

Solar panel costs in Montana

Average solar panel costs in Montana generally range from $13,289 to $26,579.

System size is a big cost factor when going solar. A typical Montana household needs about a 7.1 kW system, which costs $18,886 on average. Depending on your energy needs, you might need a smaller or larger system.

Your total price also depends on whether you add battery storage to your system. Solar batteries typically cost $7,000 to $18,000 and can add significantly to your total system price.

Solar panel costs by system size in Montana

Ways to pay for solar panels

Going solar is similar to buying a car: You can pay cash, but many people finance or lease systems with minimal upfront costs. Leasing solar panels lets you install a system without high upfront costs. A solar company installs and maintains the panels on your property, and you pay a monthly fee to use them.

Alternative Energy Revolving Loan Program

The Montana Department of Environmental Quality offers loans of up to $40,000 for eligible alternative energy systems, including solar panels. The fixed interest rate is 3.5% in 2026, and borrowers can repay the loan over up to 10 years.

Energy-efficiency improvements may also qualify when installed alongside an eligible alternative energy system, but they cannot be financed as standalone projects. Applications are accepted quarterly and ranked for funding, so approval is not guaranteed.

Property Assessed Clean Energy (PACE) financing

Montana’s C-PACE program provides private financing for eligible solar and energy upgrades on commercial, agricultural, nonprofit and multifamily properties with at least five units. The property must be in an approved C-PACE district.

Financing may cover up to 100% of eligible improvements on an existing building. Terms can extend up to 30 years, with payments collected through a special assessment on the property tax bill. However, C-PACE is not available for typical single-family homes.

Helena Residential Energy Efficiency and Renewable Energy Loan program

Homeowners within Helena city limits can borrow up to $12,000 at 0% interest, with no fees, for eligible renewable energy and efficiency upgrades. The loan is repaid through the property tax bill over 10 years. You must apply before starting the project, and funding is limited.

Federal mortgage options for solar panels

Some federal mortgage programs let eligible borrowers include solar panels or other energy upgrades in a home purchase or refinance loan. Rules vary by lender.

• FHA Energy Efficient Mortgage: Eligible borrowers may be able to add cost-effective energy improvements to an FHA-insured purchase or refinanced mortgage. A home energy assessment is generally required for an Energy Efficient Mortgage. FHA also has separate provisions that allow eligible solar and wind systems to be included in the mortgage.
• VA Energy Efficient Mortgage: Eligible borrowers may be able to add up to $6,000 in approved energy upgrades to a VA-backed purchase loan or Interest Rate Reduction Refinance Loan. For improvements costing more than $3,000, projected savings must generally justify the higher mortgage payment.

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