Going solar is an investment, and like all investments, it should generate a return. Cashing in on solar power incentives can help ensure that you’re profiting from your panels, creating a wider margin between your power bill and monthly financing payment. While installing solar systems in Montana will typically save you money out of the box, residents of the Treasure State have plenty of incentive programs to choose from when they switch their energy source.
What Are the Montana Solar Incentives?
Montana’s solar incentives are Net Metering, the Federal Energy Investment Tax Credit, and the Montana Property Tax Exemption for Buildings Using Renewable Energy, among others. If you want to generate a dragon’s hoard of savings with relatively little lift, these are the Montana solar incentives you’ll want to keep track of:
[su_table responsive=”yes”]
Net Metering |
Net Metering is one of the most-cited solar power incentives available. While it isn’t unique to the state, Montana’s Net Metering program is a major benefit for residents that want to lower their power bills, allowing them to earn credit for the excess energy their solar system produces. NorthWestern Energy has lobbied to end Net Metering in Montana but has been unsuccessful thus far. The program will likely face further challenges in the future but is currently an important fixture for solar customers across the country. |
Investment Tax Credit |
The Federal Solar Investment Tax Credit (ITC) is a 30% tax credit for individuals that install solar panels on their homes. The ITC is partially responsible for the rapid growth of the solar industry across the United States, helping thousands of citizens invest in renewable systems without breaking the bank. |
Property Tax Exemption |
The Montana Property Tax Exemption for Buildings Using Renewable Energy grants a 10-year property tax exemption to certain buildings that use “non-fossil forms of energy generation equipment,” such as solar energy. Single-family homes qualify for a $20,000 exemption, while multi-family dwellings qualify for a $100,000 exemption. |
[/su_table]
Notably, most solar power incentives are reflected in tax benefits rather than receiving a check. Because of how complex tax codes can be, you’ll want to work with your tax preparation service to ensure that you’re claiming all the benefits you’re eligible for. While we aren’t tax professionals, this is what the process generally looks like for the 30% solar tax credit:
It’s possible that the incentives will change in the near future, though the current state of solar incentives in Montana is good. The climate is perfect for creating energy-efficient solar power systems, and the government has worked to protect the solar industry across the state.
In addition to these three programs, Montana residents may be eligible for a few specialized incentives depending on their situation.
What Is the USDA Rural Energy for America Program?
The USDA Rural Energy for America Program (REAP) is designed to help agricultural producers and small business owners purchase renewable energy improvements. If you install renewable energy equipment, like solar panels, on your business, REAP program grants can cover up to 50% of the total system cost, up to a $1 million maximum system cost (so, a $500,000 grant).
Montana residents may also qualify for incentive programs through a local solar installer like Purelight Power. Purelight offers $0 down financing options to qualifying customers, which helps Montana homeowners save money on both their power bills and solar system installs. Click the image below to see if you qualify.
Alternative Energy Revolving Loan Program
The Montana Alternative Energy Revolving Loan Program (AERLP) provides low-interest loans to Montana residents and increases the amount of money being invested into renewable energy sources. The program is designed to be evergreen; as long as few people default on the loans, the fund should exist in perpetuity. Essentially, new loans are approved as old loans are repaid, which is what makes the program “revolving. The loan program features a fixed interest rate, a maximum loan amount of $40,000, and a 10-year term.
The program has provided more than $17 million in funding for alternative energy systems to date. Funding for AERLP is primarily sourced from air quality penalties collected by the DEQ, so it’s an all around great program for Montana residents that want to install solar panels on their home or business.
Upcoming Montana Solar Incentives
Montana solar incentives are slated to change. In 2025, the New Clean Electricity Investment Credit will give for-profit businesses and tax-exempt entities access to a reduced federal income tax liability. The credit covers a percentage of the cost of a solar system that is installed during the tax year and replaces the Energy Investment Tax Credit, which will be phased out in 2024. According to Montana’s state website, organizations that don’t pay federal taxes can take advantage of the tax credits through either direct pay or a transfer of credit.
Are There Any Local Solar Power Incentives?
While there (typically) aren’t solar power incentives at a city level, working with a local solar installer in Montana can you help get the best possible system for your home. Local solar companies will have a firm understanding of the climate and conditions your immediate area is subject to, which will help them guide you to a system that’s large enough to meet your energy needs without breaking the bank. Basically, you might not be able to find anything specific for solar installations in Helena, but a reputable solar installer will do its best to get you the most affordable system possible.
At Purelight, we strive to do exactly that. Our solar experts craft efficient solar systems that leverage high-quality materials, adding value to our customers’ homes and backing our work with a 10-year workmanship guarantee. If you want to start saving on your energy bill, take our 30-second survey to see if you qualify for our $0 down solar program.
