Montana solar incentives are few, and none of them is a rebate. The main one is a credit on your electric bill. Your utility counts the extra solar power you send out and takes it off the power you buy later. Once a year, any credits you have not used go to the utility for free. You choose the month when that happens. The state also has a property tax break and a low-interest loan. Both need an application.
Now and next: the state solar loan is taking applications October 1 to October 30, 2026. NorthWestern Energy’s price for power went down on October 1, 2026, so each credit now saves a little less. Its next price change is due on January 1, 2027.
What are the solar incentives in Montana, and who gets each one?
Three things are open to a new home system. None of them pays cash.
| Incentive | What you get | Who can get it | What you must do | Status |
|---|---|---|---|---|
| Net metering bill credits | One kWh off a later bill for each extra kWh, until the yearly reset | Customers of NorthWestern Energy and Montana-Dakota Utilities, with a system of up to 50 kW | Apply to your utility before switch-on and pick a reset month | Open. Set in state law. |
| Property tax exemption | Up to $20,000 of system value not taxed for 10 years | Any Montana homeowner | Send Form AB-14 by March 1 | In force. No end date. |
| State solar loan | A loan of up to $40,000 at 3.5% for up to 10 years | Montana residents who apply before the work is done | Apply in a quarterly window. Open now: October 1 to October 30, 2026 | Open. More applicants than money. |
None of these lowers the purchase price. A typical 7.25 kW system costs $20,373. The federal tax credit is not on the list: it ended for systems installed after December 31, 2025.
When do Montana net metering credits reset, and which month should you pick?
Net metering in Montana is set by state law (Montana Code 69-8-603). In a month when your panels send out more power than you buy, the extra kWh move to your next bill as a credit. No dollar figure is attached. A credit is simply a kWh you do not have to buy.
So a credit is worth whatever a kWh costs when you use it. That price moves. Since October 1, 2026, NorthWestern’s price for the power itself is lower, which cuts a monthly bill by $8.57, or 6.58%, for a home that uses 750 kWh a month. The next change is due on January 1, 2027.
The catch is the reset. Your credit year lasts 12 months. The law lets you start it on January 1, April 1, July 1 or October 1. When the year ends, any credit you have left goes to the utility. You are paid nothing for it.
NorthWestern calls this your Annual Settle-up month. You choose it on Exhibit A of the application your installer files. You can change it once, and after that it is permanent.
Watch out: Credits do not move with you. NorthWestern says any balance left when your agreement ends or the home changes owner goes to the utility with no payment.
Which reset month loses the least
Pick the month when your credit balance is usually lowest. Many Montana homes build up credits in summer and use them in winter. For those homes a spring reset leaves little to lose. A fall reset can take a summer of credits just before winter.
Your home may differ. Your NorthWestern bill shows a graph of your last 12 months of power use. Look at it before the form is filled in.
Source: NorthWestern Energy, Net Metering and Private Generation
Do not buy more panels than your home uses
A typical Montana system is 7.25 kW and makes about 10,223 kWh a year. Power beyond your own yearly use is never paid for. Example: your panels make 11,000 kWh in a year and your home uses 10,000 kWh. Then at least 1,000 kWh are left at the reset, and the utility gets them for free.
Could the rule change?
For new systems, it could. A 2017 law lets the Public Service Commission, the state’s utility regulator, set a separate rate for solar homes after a utility rate case. NorthWestern’s rules showed no separate solar rate when we checked.
The same law protects earlier systems. A new rate applies only to systems connected on or after the commission’s final order. Homes connected before that keep the current rule unless they choose to switch.
Source: Montana Code 69-8-612
Does your Montana utility follow the state net metering law?
The law covers the two regulated utilities. It does not cover electric co-ops (Montana Code 69-8-605). A co-op is owned by its members and writes its own solar rules.
Utility | Share of Montana homes | Extra power | Yearly reset | Ask about |
|---|---|---|---|---|
NorthWestern Energy | about 59% | Credited 1 kWh for 1 kWh | A month you pick: January, April, July or October | The $200 application fee and your reset month |
Montana-Dakota Utilities | about 3.5% | Credited 1 kWh for 1 kWh | A date you pick, under the same state law | Its own application. The rate sheet is Rate 92 |
Flathead Electric Co-op | about 11% | Banked as kWh credits for later use | Not stated in the co-op’s bill guide | Its written policy, any size limit and when credits expire |
Yellowstone Valley Electric Co-op | about 4% | Banked as kWh credits for up to 12 months | Set by the co-op, not by you | The demand charge that net metered accounts pay |
Other co-ops and Mission Valley Power | The rest | Set by each utility | Set by each utility | The net metering terms, in writing, before any design work |
Shares are calculated from federal data for 2024. A demand charge is a fee based on the most power your home draws at one moment. At Flathead Electric, credits do not lower the basic charge or the demand charge.
Get quotes that name your utility
Your ZIP code starts a quote request with installers who serve your area. Ask each one whether your utility follows the state rule or a co-op policy.
- Your utility sets the rulesNorthWestern Energy credits 1 kWh for 1 kWh. A co-op may not.
- No cost, no pressureRequesting quotes is free, and you never have to sign.
- Shared only with matched installersYour details go to the installers you are matched with.
Does Montana offer a solar tax exemption or a tax credit?
One exemption, for property tax. You have to ask for it.
Property tax: up to $20,000 of value exempt for 10 years
Solar panels add value to a home, and that value would normally be taxed. Montana exempts up to $20,000 of the appraised value of a home solar system for 10 years after it is installed. Appraised value is the value the state sets for tax. For apartment buildings and other buildings the limit is $100,000. The law is Montana Code 15-6-224.
It is not automatic. You send Form AB-14, with proof of what the system cost, to your local Department of Revenue field office. It must arrive by March 1 to count for that tax year. The department may visit to look at the system.
Example: a typical system costs $20,373. If the department values it at that price, $20,000 is exempt and $373 is taxed.
Watch out: The exemption stops after 10 years. The law does not name batteries. Ask the field office before you count a battery in.
Sales tax and income tax
Montana has no general sales tax. So no sales tax is added to solar equipment, and there is nothing to exempt.
Montana’s 2025 list of income tax credits (Form 2, Schedule III) lists no credit for home solar. Its old credit for alternative energy systems was repealed in 2021. A quote that still counts it is out of date.
How does the Montana DEQ solar loan work?
The Department of Environmental Quality (DEQ) runs the Alternative Energy Revolving Loan Program. It lends up to $40,000 for up to 10 years. The 2026 interest rate is 3.5%, fixed for the whole loan. There is no down payment, no application fee and no penalty for paying early.
There are closing costs. The origination fee, a one-time charge for setting up the loan, is $250 or 2% of the loan, whichever is greater. Other fees come to about $200. Example: on a $20,000 loan the origination fee is $400. With fees counted in, DEQ puts the yearly cost at 4.023% APR.
- When to apply: DEQ takes applications four times a year. The current window is open now: October 1 to October 30, 2026. Mailed applications must be postmarked by October 27. DEQ plans to score and fund that round on December 1, 2026. The window after that is January 1 to January 29, 2027.
- Who can apply: Montana residents who will own the system and use its power themselves. Net metered systems qualify.
Watch out: Apply before the work is done. A project finished before funding no longer qualifies. Demand has been higher than the money available in every quarter since April 2023, so DEQ ranks the applications. One that is not funded can stay in the pool for up to 12 months. Do not sign a contract that only works if this loan comes through.
When a Montana home misses out
- A co-op sends your bill. The state net metering law does not apply. Each co-op sets its own terms. Get them in writing first.
- Your system makes more than you use in a year. Leftover credits go to the utility unpaid at each reset. Size the system to your own yearly use.
- You miss March 1, or never send Form AB-14. The property tax exemption is given only on application.
- You install first and ask for the DEQ loan after. The loan is only for work that is not yet done. Even in time, it is ranked against other applications.
- Your battery charges from the grid, or your homeowners association restricts panels. At NorthWestern a battery counts toward the 50 kW limit and may only store power from your panels. We found no Montana law that stops an association from restricting solar. Read your covenants before you sign.
Montana solar paperwork, from utility form to Form AB-14
- Before you sign: find out whose rules apply. Your utility’s name is on your electric bill. If it is a co-op, ask for its net metering policy in writing.You.
- Want the DEQ loan? Apply before any work starts. The current window is October 1 to October 30, 2026. The one after that is January 1 to January 29, 2027.You.
- Your installer files the interconnection request. This is the utility’s form for permission to connect. At NorthWestern it is the Level 1 Small Generator Interconnection Request. It comes with a $200 fee that is not refunded. Your reset month goes on Exhibit A, so tell your installer which month you want.Your installer. You sign.
- Wait for the net meter and the welcome letter. NorthWestern does not allow the system to be switched on before both. A meter swap can take up to 20 business days. Power sent out before the net meter is in place is billed as if you had used it.Your utility.
- By March 1: send Form AB-14. Add proof of the installation cost. It goes to the Department of Revenue field office for your county.You.
Compare Montana quotes sized to your yearly use
Enter your ZIP code to request quotes from installers in your area. Ask each one which reset month it plans to put on the utility form, and why.
The form asks about your home first, then your contact details. EcoGen or its installer partners may contact you.
- A quote request, nothing moreThe form asks installers near you for quotes. It does not apply for the loan or the tax exemption.
- Home questions firstYou answer a few questions about your home. Your name, email and phone come last.
- Free, and your choiceComparing quotes costs nothing. You decide if you go ahead.
More Montana solar guides
Montana solar incentive questions
Does Montana Have a Solar Tax Credit?
No. Montana’s 2025 list of income tax credits (Form 2, Schedule III) lists no credit for home solar, and its old credit for alternative energy systems was repealed in 2021. The federal credit ended for systems installed after December 31, 2025. What remains is a property tax exemption on up to $20,000 of system value for 10 years.
Does Montana Have Net Metering?
Yes, for customers of NorthWestern Energy and Montana-Dakota Utilities with a system of up to 50 kW. Extra kWh move to your next bill, 1 for 1. Electric co-ops are outside the state law and set their own terms.
When Do Montana Solar Credits Expire?
Once a year. Your credit year lasts 12 months and starts on January 1, April 1, July 1 or October 1, whichever you choose. When it ends, unused credits go to the utility with no payment.
Do Solar Panels Raise Property Taxes in Montana?
Not on the first $20,000 of system value for 10 years, if you send Form AB-14 by March 1. Value above that limit can be taxed. So can the whole system once the 10 years are over.
Is There Sales Tax on Solar Panels in Montana?
No. Montana has no general sales tax.
Does Montana Have a Solar Rebate or a Battery Incentive?
We found none. The state has no rebate for panels. We also found no battery rebate in the state programs or on NorthWestern Energy’s net metering page. At NorthWestern a battery counts toward the 50 kW limit and may only be charged by your panels.
Sources (18)
- Montana Code Annotated 2025, 69-8-603, net energy measurement calculation (checked September 30, 2026): mca.legmt.gov
- Montana Code Annotated 2025, 69-8-103, definition of a net metering system (checked September 30, 2026): mca.legmt.gov
- Montana Code Annotated 2025, 69-8-605, co-ops outside the net metering law (checked September 30, 2026): mca.legmt.gov
- Montana Code Annotated 2025, 69-8-612, new classifications of service and grandfather clause (checked September 30, 2026): mca.legmt.gov
- NorthWestern Energy, Net Metering and Private Generation (checked September 30, 2026): northwesternenergy.com
- NorthWestern Energy, Level 1 Small Generator Facility Interconnection Request (checked September 30, 2026): northwesternenergy.com
- NorthWestern Energy, Montana Electric Bill Rates (checked September 30, 2026): northwesternenergy.com
- Montana-Dakota Utilities, rates and tariffs, Rate 92 (read September 29, 2026): montana-dakota.com
- Flathead Electric Cooperative, My Bill Explained (read September 29, 2026): flatheadelectric.com
- Yellowstone Valley Electric Cooperative, Net Metering (read September 29, 2026): yvec.com
- Montana Code Annotated 2025, 15-6-224, property tax exemption for nonfossil energy generation (checked September 30, 2026): mca.legmt.gov
- Montana Department of Revenue, Form AB-14, Property Tax Exemption Application for Installation of an Alternative Energy System (checked September 30, 2026): revenuefiles.mt.gov
- Montana Department of Revenue, Sales Tax Guidance for Montana Business and Residents (checked September 30, 2026): revenue.mt.gov
- Montana Code Annotated 2025, 15-32-201, tax credit for installing an alternative energy system, repealed (checked September 30, 2026): mca.legmt.gov
- Montana Department of Environmental Quality, Alternative Energy Revolving Loan Program (checked September 30, 2026): deq.mt.gov
- Montana Code Annotated 2025, Title 70, chapter 17, part 3, solar easements (checked September 29, 2026): mca.legmt.gov
- IRS, Residential Clean Energy Credit (checked September 30, 2026): irs.gov
- U.S. Energy Information Administration, Form EIA-861, 2024 data, Sales to Ultimate Customers (checked September 30, 2026): eia.gov
