Montana Solar Incentives & Rebates Guide 2026

The federal Investment Tax Credit (ITC) allows Montana homeowners to deduct 30% of the total cost of a solar energy system from their federal income taxes. For a typical 6kW system costing $16,740 in Montana, that's a direct tax credit of $5,022. This isn't a deduction — it's a dollar-for-dollar reduction of your tax bill.

The 30% ITC is available through 2032 under the Inflation Reduction Act, then steps down to 26% in 2033 and 22% in 2034. There's no maximum cap on the residential credit. If your tax liability is less than the credit amount, you can roll the remaining credit forward to the next tax year. The system must be installed on your primary or secondary residence, and you must own it (leased systems don't qualify for the homeowner credit).

Montana does not currently offer a state-level solar tax credit. However, Montana homeowners still benefit from the substantial 30% federal ITC, worth $5,022 on a typical 6kW system. Even without a state credit, solar is economically attractive in Montana with electricity rates averaging 12.98¢/kWh.

Great news for Montana homeowners: Solar energy systems are exempt from property tax assessments. 10-year property tax exemption Studies show solar adds 3-4% to home values. For a $300,000 home, that's roughly $12,000 in added value — and with Montana's property tax exemption, you save approximately $132 per year in property taxes you'd otherwise owe on that increased value.

Montana does not currently exempt solar equipment from state sales tax. This means you'll pay the applicable sales tax on your solar system purchase. However, the 30% federal ITC and other available incentives more than compensate for this cost in most cases.

Net metering policy: Full Retail Rate. Net metering available The current system size cap is 50 kW.

Montana's full retail rate net metering is one of the strongest solar policies available. Every excess kWh your system sends to the grid earns you a credit at the full retail rate of 12.98¢/kWh. This means your solar panels generate maximum value — surplus energy produced during sunny hours offsets your evening and nighttime consumption at the same rate you'd pay to buy that electricity.

Montana has a mandatory Renewable Portfolio Standard (RPS) target of 15% by 2015 (met). This legally binding target drives continued investment in renewable energy infrastructure and often supports solar-friendly policies like net metering and SREC programs. A strong RPS is generally good news for solar homeowners, as it creates market demand for renewable energy and helps maintain favorable solar policies.