Is solar worth it in Montana?
For a typical Montana home in 2026, solar is not worth it: about a 19.6-year payback and $3,978 saved over 25 years after paying for the system. Check your own home, because roofs, usage and utilities vary a lot.
- Payback, typical home
- 19.6 yrs3.9 kW, paying cash
- Electricity price
- 13.8¢per kWh, U.S. 18.0¢
- Solar production
- 1,277kWh per kW per year
- Exports credited at
- RetailFull retail net metering
The numbers for a typical Montana home
| Electricity use | 825 kWh a month (Montana average) |
|---|---|
| Best-value system | 3.9 kW, producing 4,982 kWh a year (50% of use) |
| Price | $12,860 at about $2.90/W |
| First-year savings | $690 |
| Payback | 19.6 years |
| 25-year net | $3,978 (2.1% a year return) |
| Rate increase assumed | 1.8% a year, from Montana's 2015–2025 history |
Paying cash, no federal credit, 5% discount rate, microinverters, $25 per kW a year for maintenance and repairs. Methodology.
Why it comes out this way
- Electricity is cheap: 13.8¢ per kWh, 23% below the U.S. average (18.0¢), so each solar kWh saves less.
- Most utilities credit exported solar at or near the retail rate, so you get full value for midday surplus.
- A typical system here produces about 1,277 kWh per kW per year (ranked #45 of 51).
- There is no federal tax credit for homeowners who buy in 2026, which adds several years to payback compared with 2025.
Net metering and export rules in Montana
Full retail net metering. NorthWestern Energy customers get kWh-for-kWh net metering for systems up to 50 kW. Excess kWh roll forward monthly but are zeroed out (forfeited) at the annual anniversary.
kWh credits at full retail volumetric rate.
- Netting: monthly
- Unused credits: Monthly kWh rollover; unused credits expire at the annual true-up with no payment.
- System size limit: 50 kW
- Fixed charges: Standard basic service charge; PSC rejected 2019 proposal for solar demand charges/separate class.
- Last major change: 2019 PSC rejected NorthWestern net metering changes; retail NEM retained until solar reaches higher penetration.
- Pending: NorthWestern could revisit in a general rate case; not verified for 2025-26.
Read net metering explained to see why export rules can swing payback by years.
| Utility | Export credit | Notes |
|---|---|---|
| NorthWestern Energy (Montana) | ~100% of retail | 50 kW cap; annual forfeiture of excess kWh. |
Solar incentives in Montana
The federal 30% Residential Clean Energy Credit ended for systems installed after December 31, 2025. What that means.
| Program | Type | What you get | Status |
|---|---|---|---|
| Property tax exemption | property tax exemption | 10-year property tax exemption for value added by renewable systems (MCA 15-6-224). Eligibility: Residential/commercial systems | active |
| Montana has no sales tax | other | No state sales tax applies. Eligibility: All | active |
Ended programs: Residential Alternative Energy System Tax Credit.
What solar costs in Montana
A fair cash price is around $2.90 per watt before incentives. For the 3.9 kW system that fits a typical home, expect roughly $9,600 to $13,600; smaller systems cost more per watt.
How many homes have solar
- Homes with net-metered solar (2025)
- 12,536
- Share of homes
- 2.2%
- Residential solar capacity
- 103 MW
- Growth over the past year
- +26.5%
Sources: EIA-861 (2025), EIA small-scale solar estimates, LBNL Tracking the Sun and state interconnection data.
Electric utilities in Montana
| Utility | Homes served | Price (2026 est.) | Typical use | Typical-home verdict |
|---|---|---|---|---|
| NorthWestern Energy | 333,713 | 15.4¢ | 707 kWh/mo | Not worth it |
| Flathead Electric Cooperative | 64,334 | 10.7¢ | 1,184 kWh/mo | Not worth it |
| Yellowstone Valley Electric Co-op | 21,471 | 15.2¢ | 893 kWh/mo | Close call |
| Montana-Dakota Utilities | 19,626 | 12.0¢ | 822 kWh/mo | Not worth it |
| USBIA-Mission Valley Power | 16,353 | 10.0¢ | 1,274 kWh/mo | Not worth it |
| Missoula Electric Cooperative | 14,867 | 11.7¢ | 1,068 kWh/mo | Not worth it |
| Fergus Electric Cooperative | 6,855 | 17.0¢ | 896 kWh/mo | Close call |
| Northern Lights | 4,700 | 13.2¢ | 1,073 kWh/mo | Not worth it |
| Fall River Rural Electric Cooperative | 1,525 | 11.9¢ | 1,179 kWh/mo | Not worth it |
| Powder River Energy | 51 | 12.8¢ | 1,155 kWh/mo | Close call |
| McKenzie Electric Cooperative | 25 | 8.4¢ | 1,802 kWh/mo | Not worth it |
| Black Hills Power | 13 | 16.1¢ | 702 kWh/mo | Not worth it |
| Avista | 10 | 14.3¢ | 911 kWh/mo | Close call |
Solar by city in Montana
Protect yourself when buying
- Check the license. Construction contractor registration (Dept. of Labor & Industry) plus Montana electrical contractor license for PV electrical work. Look up an installer
- Cancellation rights. Federal law gives you 3 business days to cancel most door-to-door sales over $25. How to cancel
- HOA and solar access. Solar easements allowed; no strong HOA protection law identified - verify.
- Community solar. Limited; some co-op community solar arrays; no statewide program.
Questions about solar in Montana
Is solar worth it in Montana in 2026?
For a typical Montana home, solar is not worth it. A 3.9 kW system costing about $12,860 after state incentives saves about $690 in the first year and pays back in about 19.6 years. Your result depends on your roof, usage, utility and price, so run the calculator for your address.
How much do solar panels cost in Montana?
A reasonable cash price is around $2.90 per watt before incentives, or roughly $9,600 to $13,600 for a 3.9 kW system.
Does Montana have net metering?
NorthWestern Energy customers get kWh-for-kWh net metering for systems up to 50 kW. Excess kWh roll forward monthly but are zeroed out (forfeited) at the annual anniversary.
Is there a solar tax credit in Montana?
The 30% federal credit for homeowners ended for systems installed after 2025. Montana does not offer a state income tax credit for solar that we're aware of. Solar may be exempt from property tax.
How do I check a solar installer's license in Montana?
Construction contractor registration (Dept. of Labor & Industry) plus Montana electrical contractor license for PV electrical work.. Look up any installer with the state's license search at https://ebiz.mt.gov/pol/.
Policy research current as of October 2026; sources include utilitydive.com, programs.dsireusa.org. Electricity data: EIA, through July 2026. Found something out of date? Tell us.