Cost of solar panels in Montana (2024)

How much do solar panels cost in Montana?

With professional installation, a typical 7-kilowatt (kW) residential solar panel system in Montana costs $19,600. That price drops to $13,720 after the full federal solar investment tax credit (ITC).

The size of your solar panel system is a big factor in your overall solar costs. Not surprisingly, the smaller your system, the less you pay. The average size of solar systems in Montana is 11.47 kW. Depending on your household energy usage, you might need a smaller or larger system.

Average solar panel installation cost by system size in Montana

Are solar panels worth it in Montana?

Solar isn’t as popular in Montana as in some other states, but it still makes financial sense for many residents. On average, it costs $9,800 to $28,000 for panels that last about 25 years. Over that same time period, you can avoid approximately $67,246 in total utility costs.

Another bonus? Real energy independence. However, this leads us to another consideration: the cost of a solar storage battery, which isn’t typically included in solar quotes. They sometimes cost as much as the panels. Solar batteries are a must if you want real energy independence and essential if you go off-grid. They can also cost as much as the panels.

Homeowners with solar panels typically save $20,000 to $90,000 over 25 years.

Going solar is still a big investment. In the worst-case scenario, you spend thousands on a system that doesn’t work as expected. Financially, solar panels are only worth it in Montana (or anywhere else) if what you’re paying for the panels is cheaper than your current electric bill. The panels also have to keep working for it to pay off.

For instance, Krysten in Eureka, Montana, was happy at first, but her solar company wasn’t very helpful when she had a technical problem. “They just keep telling me that, ‘No, it looks like your system is working fine’ because the power is on. However, when the power to the grid goes off, then it won't be working fine. I don't know if they don't believe me or they just don't want to think of the problem,” she told us.

Luckily, Krysten’s experience appears to be an outlier. Based on feedback from other verified solar customers, solar panel investments tend to pay off over time in Montana.

» STILL NOT SURE? Solar energy pros and cons

Solar panel installation cost factors in Montana

The equipment — solar panels, inverters, mounting hardware and other electrical accessories — is typically the largest portion of your overall total costs (approximately 25% to 50%). Labor, which includes planning, preparing and connecting your system to the grid, accounts for 10% to 30%. Local permits and fees are a small part of your overall costs.

» BEST STATES FOR SOLAR: Montana ranked 25th in 2024

Solar panels

Most of your solar equipment costs come down to how much you pay for solar panels. You’ll hear installers talk about how “efficient” their panels are.

Solar panel efficiency is a measure of how well a panel makes electricity. The more efficient the solar panels you buy are, the fewer panels you need. While more efficient panels cost a little more, you save by buying fewer panels.

In general, monocrystalline panels are considered the best bang for your buck. Cheaper solar panels are typically polycrystalline. The difference comes down to efficiency and materials: Monocrystalline panels are made from pure, single silicon crystals; various silicon fragments melted together are used to make polycrystalline panels.

Additional solar equipment costs 

Solar arrays also contain mounting equipment, wiring and other devices, such as inverters, batteries or a monitoring system.

• Solar batteries: A battery stores energy for later use. It’s a must if you want real energy independence, and they sometimes cost as much as the panels. Prices often depend on the battery’s storage capacity, lifespan, brand and other factors. Expect to pay between $7,000 and $18,000, though some cost $30,000 or more.
• Solar inverter: Inverters convert the electricity generated by your solar panels from direct current (DC) to alternating current (AC). Inverter costs usually range from $1,000 to $3,000.
• Monitoring system: Some companies include a solar monitoring system to track how much energy your system produces and if there are any problems. If not, you can buy a stand-alone system for $80 to $400.

Condition of your roof 

Quality solar panels should last 25 to 30 years, and your roof needs to last just as long. Otherwise, you’ll have to pay to remove the panels, fix your roof and reinstall them again. This is a frustrating and expensive process you should avoid if you can.

ConsumerAffairs often hears from disgruntled solar customers who felt blindsided by expensive roof repairs needed after their solar panel installation was complete. If you want to ensure a seamless and cost-effective solar journey, your roof must match the system's longevity. Get your roof inspected, fixed or replaced before you go solar.

Labor costs

Solar equipment costs are going down, but labor costs are higher than ever in some areas. Installing solar panels yourself might initially seem cheaper because you'll save on labor costs. However, it's crucial to consider several factors for safety before going the do-it-yourself route. If not installed correctly, solar panels pose safety risks, causing roof leaks and other problems.

Local permits and fees 

Permits and interconnection fees, though relatively cheap, are worth mentioning. Costs vary slightly depending on where you live —  Helena, Bozeman, Red Lodge and elsewhere all have their own different fee structures and application processes. Often, a good solar installer will either guide you through this process or complete it on your behalf.

» GREENEST STATES: Montana ranked 35th in 2024

How to save money on solar panels in Montana

There’s no way around it — solar panel installations are expensive. Here are some tips to maximize your savings on solar panels in Montana:

• Compare quotes: Get quotes from at least three or four different solar companies in Montana. This lets you compare different proposed equipment, pricing, financing terms and estimated energy production to find the best overall value. Don't just go with the cheapest option without vetting quality and services.
• Lower your electrical load: Before going solar, it’s smart to upgrade any old appliances. For example, replacing an old refrigerator with a more eco-friendly one reduces your electric load, which also helps lower your utility bill. If you use less electricity, you need fewer solar panels, making the whole system cheaper.
• Use incentives: In addition to the federal solar tax credit, Montana has multiple local incentives and programs. Some solar panel manufacturers offer rebates on their products. While these may not be specific to Montana, they can still provide additional savings. You can inquire with your installer about any available manufacturer rebates.

» MORE: Why are solar panels so expensive?

Solar incentives, tax credits and rebates in Montana

The federal solar investment tax credit (ITC) is still usually the most significant financial incentive for homeowners buying solar panels. The ITC credits 30% of the system’s total cost — including equipment, labor and permits — toward what you owe on federal income taxes.

The ITC drops to 26% in 2033 and 22% in 2034.

For example, if you spend $10,000 installing a solar panel system, the ITC is worth $3,000. If you owe $15,000 in taxes, the credit reduces your debt to $12,000. The ITC only offsets your tax liability; you can't take advantage of it if you don’t owe taxes in the first place.

Don’t get confused: The ITC is not a rebate or a refund. It is a credit that goes toward what you owe on federal income taxes the year your system becomes operational. Any unused portion of the credit rolls over into future tax years.

Additional solar incentives in Montana include the Alternative Energy Revolving Loan Program (AERLP) and a 100% property tax exemption.

What is a solar property tax exemption?

A solar property tax exemption means that — for tax purposes — the addition of a solar energy system won’t result in an increase in your property's assessed value. Essentially, your property tax bill won’t go up because your solar panels increase the market value of your home.

How can I pay for solar panels in Montana?

Affordable financing makes the upfront costs of solar more manageable. For instance, most leases let you start saving from day one with little or no money down.

• Loan: A solar loan works like any other type of home improvement loan — there’s an application and approval process, and you pay it back over time (with interest) each month. In an ideal financing scenario, your system generates enough extra power to pay off the loan. Solar loan terms typically last eight to 20 years.
• Lease: Leasing solar panels is a great way to set up a system without the high upfront costs. A potential downside is that you are not eligible for the same tax incentives.
• Home equity: Using a home equity line of credit or loan to finance a solar installation can be a financially beneficial option — home equity interest rates are relatively low, and homeowners can still take advantage of the federal solar investment tax credit.

» SOLAR PANELS: Lease vs. buy

Compare solar installation companies in Montana

We compared ratings and reviews, equipment options, warranties, availability and other factors to pick the top solar companies in Montana.

Bottom line

Residential solar panel system costs typically fall between $10,000 and $30,000 or higher, depending on factors like the system's size, local labor rates and available incentives. Montana homeowners with solar panels can typically save more than that in total avoided energy costs over the lifetime of a system.

The ConsumerAffairs Research Team has conducted extensive research to compare the costs of going solar in Montana and other states.

Solar costs vs. savings: Montana and nearby states