State Banner

Discover the Power of Solar Energy in Montana!

Welcome to Montana, a state renowned for its vast open spaces and stunning natural beauty, and now emerging as a key player in the solar energy landscape. Despite its reputation for cold winters, Montana enjoys abundant sunshine, particularly during the long summer days, making it an ideal location for solar power generation. This untapped resource presents an exciting opportunity for residents and businesses to embrace clean, renewable energy solutions. With incentives available to offset initial costs and a growing interest in sustainability, Montana is primed for a solar revolution. Explore how harnessing solar energy can brighten your property, lower energy expenses, and promote a greener environment right here in the Treasure State. Join us in capturing the power of the sun and take a step towards a brighter, more sustainable future in Montana.

Solar State Incentives

Montana State Solar Incentives

Net Metering
Montana's net-metering law allows customers of investor-owned utilities to generate electricity using solar, wind, or hydropower. Unused credits are granted to the utility annually.
Property Tax Abatement for Production and Manufacturing Facilities
Montana offers property tax abatement for new renewable energy production and manufacturing facilities, and R&D equipment, reducing taxable value by 50% for up to 19 years.
Alternative Energy Investment Tax Credit
Montana offers up to 35% tax credit on alternative energy investments of $5000 or more, against income generated by the investment. Restrictions apply.
Generation Facility Corporate Tax Exemptions
Montana offers a five-year property tax exemption for new facilities of up to 1MW capacity using renewable energy sources such as solar, wind, geothermal.
NorthWestern Energy - USB Renewable Energy Fund
NorthWestern Energy provides funding for renewable energy projects through a Universal System Benefits program, which generated over $10 million in 2021. Customers can apply for these funds twice a year.
Interconnection Standards
In 2010, Montana's Public Service Commission adopted rules allowing small generators up to 10MW to interconnect with all electric utilities under its jurisdiction.
Alternative Energy Revolving Loan Program
The Alternative Energy Revolving Loan Program offers loans for alternative energy systems, funded by air quality penalties and the American Recovery Act. Eligible technologies include wind, solar, and others.
Corporate Property Tax Reduction for New/Expanded Generating Facilities
Montana offers a tax reduction incentive for energy plants producing 1MW or more using renewable sources, reducing local mill levy for the first nine years of operation.
Universal System Benefits Program
Montana's Universal System Benefits Program, established in 1997, supports energy conservation, low-income weatherization, renewable-energy projects, and energy research.
Renewable Resource Standard
Montana's Renewable Portfolio Standard (RPS), enacted in 2005, required utilities and electricity suppliers to obtain a percentage of their retail electricity from renewable resources. However, it was repealed in 2021.
Montana Solar and Wind Easements
Montana's solar and wind easement provisions allow property owners to create easements for sunlight and wind access. These easements, enacted in 1979 and 1983 respectively, must be written and meet specific requirements.
Renewable Energy Systems Exemption
Montana offers a 10-year property tax exemption for non-fossil energy generation and low emission biomass combustion devices, up to $20,000 for single-family homes and $100,000 for multi-family or non-residential buildings.
Mandatory Utility Green Power Option
Montana's solar incentive mandates utilities to offer electricity from renewable sources, promoting green energy and sustainable options.

Federal Solar Incentives

USDA - Rural Energy for America Program (REAP) Grants
REAP, administered by USDA, provides financial aid to small rural businesses and agricultural producers for sustainable energy projects. Grants cover 25% of the project cost, up to $25 million.
Interconnection Standards for Small Generators
New FERC order mandates small generators under 20 MW to maintain operation during abnormal frequency and voltage events, enhancing interconnection efficiency.
USDA - Rural Energy for America Program (REAP) Loan Guarantees
The Rural Energy for America Program (REAP) supports agricultural producers and rural businesses in the US by providing financial aid for renewable energy projects and energy efficiency improvements.
Clean Renewable Energy Bonds (CREBs)
Clean Renewable Energy Bonds (CREBs) were used by public entities to fund renewable energy projects. They were repealed in 2017.
Qualified Energy Conservation Bonds (QECBs)
Qualified Energy Conservation Bonds (QECBs) financed energy projects by local governments. Discontinued in 2018, they offered tax credits as interest to bondholders.
Office of Indian Energy Policy and Programs - Funding Opportunities
The DOE's Office of Indian Energy Policy and Programs aids tribes in attaining energy self-sufficiency and economic growth through renewable energy and energy efficiency technologies.
Fannie Mae Green Financing – Loan Program
Fannie Mae's Green Financing offers loans for multifamily properties aiming for energy and water efficiency improvements. Eligible properties can access favorable rates and additional loan proceeds.
Energy-Efficient Mortgages
Energy efficient mortgages (EEM) allow homeowners to finance energy-saving renovations or purchase new energy-efficient homes. These loans, insured by the U.S. government, aim to promote energy efficiency.
Green Power Purchasing Goal for Federal Government
The Energy Policy Act of 2005 set a goal for federal buildings to use 7.5% renewable energy by 2013. This target was increased to 30% by 2025 but later rescinded in 2018.
USDA - High Energy Cost Grant Program
USDA's grant program, enhancing energy generation in rural areas, concluded its latest application period on July 6, 2021. Updates can be found on the program website.
Residential Energy Conservation Subsidy Exclusion (Personal)
US law exempts energy conservation subsidies provided by utilities from taxation but requires adjustments for federal tax credits. IRS guidance on solar rebates is unclear.
Residential Renewable Energy Tax Credit
H.R. 5376 extends tax credit for energy storage systems and excludes biomass heaters, with credit amounts varying by technology type and installation date.
U.S. Department of Energy - Loan Guarantee Program
The Inflation Reduction Act has allocated $11.7 billion to the LPO for new loans, boosting loan authority by $100 billion, and setting up the Energy Infrastructure Reinvestment Program.
Business Energy Investment Tax Credit (ITC)
The Inflation Reduction Act of 2022 updates the federal Business Energy Investment Tax Credit, introducing new eligibility criteria, bonus credits, and transitions the tax credit to a new section.
Renewable Electricity Production Tax Credit (PTC)
The Inflation Reduction Act of 2022 introduces changes to the federal renewable electricity production tax credit, introducing new bonus credits and eligibility criteria.
Residential Energy Conservation Subsidy Exclusion (Corporate)
U.S. energy conservation subsidies provided by public utilities are tax-exempt, but this does not extend to certain electricity-generating systems. Tax credits can't be claimed for unsubsidized expenses.
Modified Accelerated Cost-Recovery System (MACRS)
The Tax Cuts and Jobs Act of 2017 allows 100% depreciation for qualified assets, impacting renewable energy technologies. MACRS classifies these technologies for depreciation purposes.
Energy and Emissions Goals and Standards for Federal Government
President Biden's Executive Order 14057 sets ambitious sustainability goals for the US, including 100% carbon-free electricity by 2030 and a fully zero-emission federal fleet by 2035.