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Home solar in Montana

NorthWestern Energy still credits exported solar kWh for kWh under net metering, but extra credits are lost each year, the state solar tax credit is gone, and there is no community solar.

Facts checked 2026-11-01, each with a source link below. Programs change often: confirm with your utility, installer and a tax professional before you sign.

15.6¢average home price per kWh (EIA, August 2026)
Solar can workNet metering is still in place at NorthWestern Energy and home solar gets a 10-year property tax break, but power costs about 16 cents/kWh and there are no state rebates or tax credits.

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Net metering Net metering available

With net metering, each kWh you export offsets a kWh you buy. If you export more than you use in a month, the extra kWh roll to the next bill. You pick a 12-month period (starting January, April, July or October); at the end, unused credits go to the utility with no payment. Co-ops set their own rules. Source

Solar credits (SRECs) No market

Montana has no SREC market for homes. Source

Rebates and incentives

Residential Alternative Energy System Credit

Was up to $500 per taxpayer

Homeowners; repealed in the 2021 session

ended tax credit Source

Taxes

Property tax: Partial: up to $20,000 of the added value of solar on a single-family home is exempt from property tax for 10 years after install (MCA 15-6-224).
Sales tax: None needed: Montana has no general sales tax. Source

Solar laws

  • Net metering billing, MCA 69-8-603 (2017). Sets kWh-for-kWh net metering with monthly rollover and a 12-month period after which unused credits go to the utility. Source
  • HB 760, solar consumer protection (2025). Signed 5-13-2025. Gives solar buyers cancellation rights and sales protections. Source
  • Community solar bill (Montana Solar Shares Act) vetoed (2025). The governor vetoed a bill that would have created community solar in June 2025. Source

Community solar

No: Montana has no community solar program; a 2025 bill to create one was vetoed.

Timeline

  1. Montana net metering law enacted
  2. 10-year property tax exemption for home renewable systems enacted
  3. PSC rejects NorthWestern's plan to end net metering for a separate solar rate class
  4. Legislature repeals the $500 alternative energy tax credit (last claimable on 2021 returns)
  5. Solar consumer protection law (HB 760) signed
  6. Governor vetoes community solar bill
  7. Federal 30% homeowner tax credit (25D) ends

Federal tax credits

The 30% federal tax credit for homeowners who buy solar (Section 25D) ended for systems placed in service after December 31, 2025, so buying no longer earns a federal credit. If you lease or sign a power purchase agreement (PPA), the panels belong to a company that may still claim a business credit under federal deadlines that tighten through 2027. Ask your installer whether that savings is in your price.

Sources

Last checked 2026-11-01. Incentives are not guaranteed and can change or run out. Confirm every figure with your utility, installer and a tax professional before you sign. This page is general information, not tax, legal or financial advice.

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