Montana Solar Incentive Programs

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Montana experiences a diverse climate with around 200 sunny days annually, providing a reasonable amount of sunlight for solar energy initiatives. While it may not have as many sunny days as some other states, Montana’s weather conditions still present opportunities for viable solar power projects. The state offers a variety of solar incentives and rebates to help residents save money on their solar energy systems. Here are some of the incentives available to Montana home and business owners:

Residential Energy Efficiency Rebates:

The Home Efficiency Rebate Program provides rebates for energy efficiency improvements based on the percentage of energy savings of the whole-house project. Eligible costs may include a combination of energy saving measures such as appliance and HVAC system upgrades, adding insulation, air sealing, and associated electrical panel and/or wiring upgrades. The Home Efficiency Rebate Program will require applicants to demonstrate savings by comparing energy consumption before and after the energy conservation project.

The Home Electrification and Appliance Rebate Program provides point-of-sale rebates for stand-alone home electrification and energy efficiency upgrades. Upgrading to high-efficiency electric appliances, HVAC system efficiency improvements, adding insulation, air sealing, ventilation, and upgrading in-home electrical panels are all examples of measures that may be included in Montana’s Home Electrification and Appliance Rebate Program.

Federal Solar Investment Tax Credit (ITC):

Homeowners that qualify for the Solar ITC can take advantage of a tax credit for 30% of the total purchase price of their solar system, no matter the system size or cost. This credit applies to all solar projects that begin construction in 2023 and will last through 2033, at which point it will drop to 26%.

Incentive and Rebates

Montana offers a 35% tax credit to residential, commercial, and industrial customers. There is also an additional $500 credit for residences. For solar production and manufacturing facilities there is 50% tax abatement for 15 years, and an additional corporate tax reduction for 10 years for generating facilities. The Inflation Reduction Act authorized funding for two distinct home energy rebate programs:

1) The Home Efficiency Rebate Program

2) The Home Electrification and Appliance Rebate Program.

Both home energy rebate programs will be administered through Montana’s Energy Bureau at the Department of Environmental Quality. The Home Efficiency Rebate Program provides rebates for energy efficiency improvements based on the percentage of energy savings of the whole-house project. The Home Electrification and Appliance Rebate Program provides point-of-sale rebates for stand-alone home electrification and energy efficiency upgrades.

Net Metering:

Solar energy systems under 1 megawatt (MW) in size are eligible to participate in net metering, which allows you to send your extra electricity back into the grid and get credits on your electric bill. When your panels aren’t producing all the electricity you need, you can use your credits instead of having to pay for electricity from your utility.

Further information and programs can be found at the Programs.Dsireusa.org