MT incentive guide
Montana solar incentives in 2026
Last updated · every MT program below is verifiable against the sources at the foot of this page.
The most valuable solar incentive in Montana right now is Property tax exemption. Overall, the state's incentive stack rates as limited compared with the rest of the country.
The federal credit is gone — start here
The 30% federal residential clean energy credit (Section 25D) ended for systems installed after December 31, 2025. If you are buying a system in Montana this year, there is no federal credit. That is a roughly $8,040 swing on an $26,800 system compared with 2025 pricing, and it is why state programs matter more now than they did a year ago.
What Montana offers at a glance
| Incentive | Available? | Details |
|---|---|---|
| State income tax credit | No | — |
| Rebate or performance payment | No | — |
| SREC market | No | — |
| Sales tax exemption | No | — |
| Property tax exemption | Yes | The value solar adds to the home is excluded from property tax assessment. |
| Federal tax credit | No | Section 25D ended for systems installed after December 31, 2025. |
Reviewed September 2026. Incentive programs change frequently and several are funding-capped — verify current status with the administering agency or DSIRE before relying on any figure.
Montana solar tax credit
There is no Montana solar tax credit in 2026, and no federal one either — Section 25D ended for systems installed after December 31, 2025. What Montana does offer on the tax side is property tax exemption, covered below.
Montana solar rebates and grants
Montana runs no statewide solar rebate or grant program in 2026. Individual utilities and municipalities sometimes do, and those are rarely advertised well — ask your utility directly what they pay toward a residential install.
Montana’s state residential energy credit was repealed in 2021 tax reform. Property tax exemption for renewable systems remains.
Net metering and export rates in Montana
Montana requires net metering from NorthWestern Energy for systems up to 50 kW with retail-value credits and annual netting; co-ops set their own rules.
Compare this with net metering in every other state.
Export rules deserve to be read as an incentive. In a retail net metering state, every exported kilowatt-hour is worth the full retail rate; under net billing or avoided-cost compensation, the same kilowatt-hour can be worth a third of that. For a Montana home at an assumed $0.12/kWh, that difference compounds across a 25-year system life.
What this means for your numbers
A typical 8 kW system in Montana costs roughly $20,400–$26,800 installed before incentives, producing about 10,640 kWh a year and saving around $1,052 in year one — a simple payback near 19–25 years with no incentives applied. Anything in the table above shortens that.
Frequently asked questions
What are Montana solar tax credits worth in 2026?
Montana offers no residential solar income tax credit in 2026, and the 30% federal credit ended for systems installed after December 31, 2025. What remains on the tax side is property tax exemption, which lower cost indirectly rather than paying you back.
Does Montana have solar rebates?
No. Montana has no statewide solar rebate or upfront grant program in 2026. Individual utilities and municipalities occasionally run their own, so it is worth asking your utility directly.
Is there a Montana solar property tax exemption?
Yes. Montana excludes the value solar adds to a home from property tax assessment, so a system that raises your home's value does not raise your annual tax bill.
What solar incentives are available in Montana in 2026?
Montana’s state residential energy credit was repealed in 2021 tax reform. Property tax exemption for renewable systems remains. Because the federal Section 25D credit ended for systems installed after December 31, 2025, these state, local and utility programs are now the entire incentive picture for a purchased system.
Is there still a 30% federal solar tax credit in Montana?
No. The 30% federal residential clean energy credit (Section 25D) ended for systems installed after December 31, 2025 under the One Big Beautiful Bill Act. Any quote or website still applying 30% to a 2026 purchased installation is out of date. Leased and PPA systems can still benefit indirectly, because the third party that owns the system may claim the commercial 48E credit through 2027 and pass some of the value through in pricing.
Does Montana have net metering?
Montana requires net metering from NorthWestern Energy for systems up to 50 kW with retail-value credits and annual netting; co-ops set their own rules. Export rules are effectively an incentive — often the largest one — because they set what every kilowatt-hour you do not use on site is worth.
How much do incentives change the cost of solar in Montana?
Before incentives, a typical 8 kW system in Montana runs roughly $20,400–$26,800. With no state credit or rebate available, that figure is close to what you would actually pay. See our full Montana cost breakdown for payback math.
Verify before you rely on any of this
Incentive programs open, close, deplete their funding and change their caps — often mid-year. This page is a starting point reviewed September 2026, not tax advice. Confirm with: