
Solar Panel Cost in Montana
Updated 2026 guide to solar panel prices, savings, and payback period in Montana.
Estimated Solar Savings
Solar Panel System Costs in Montana
Below are estimated costs for different solar panel system sizes in Montana, including the 30% federal solar tax credit.
| System Size | Cost Before Incentives | Federal Tax Credit (30%) | Net Cost | Est. Annual Production |
|---|---|---|---|---|
| 4 kW | $12,200 | -$3,660 | $8,540 | 6,570 kWh |
| 6 kWMost Popular | $18,300 | -$5,490 | $12,810 | 9,855 kWh |
| 8 kW | $24,400 | -$7,320 | $17,080 | 13,140 kWh |
| 10 kW | $30,500 | -$9,150 | $21,350 | 16,425 kWh |
| 12 kW | $36,600 | -$10,980 | $25,620 | 19,710 kWh |
What Affects Solar Panel Cost in Montana?
The average cost of solar panels in Montana is $305/watt before incentives. For a typical 6kW residential system, that means a total cost of about $18,300 before the federal tax credit.
After applying the 30% federal Investment Tax Credit (ITC), your net cost drops to approximately $12,810.Montana homeowners typically see a payback period of 10 years and save an estimated $25,000 over 25 years.
Montana solar costs have fallen about 37% over the past decade. While the state has strong solar resources, the small market means fewer installer options.
Factors that affect your cost:
- System size: Larger systems cost more but have a lower cost per watt
- Equipment quality: Premium panels and inverters cost more but offer better efficiency
- Roof complexity: Steep roofs, multiple levels, or shading can increase installation costs
- Local labor rates: Installation costs vary by region within Montana
- Incentives: State and local programs can significantly reduce your out-of-pocket cost

Solar Incentives in Montana
Federal Solar Investment Tax Credit
30% Federal Tax Credit (ITC)
Montana homeowners can claim the 30% federal ITC along with a state tax credit for solar installations.
State & Local Incentives
Montana Alternative Energy System Tax Credit
Tax CreditMontana offers a state income tax credit for residential alternative energy systems including solar.
Property Tax Exemption
Property TaxMontana exempts solar energy equipment from property taxes for 10 years after installation.
Net Metering
Montana requires NorthWestern Energy and other utilities to offer net metering for residential solar customers with systems up to 50 kW.
AvailableSRECs
Montana does not have an SREC market, though the state has a Renewable Portfolio Standard.
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Solar Panel Cost FAQ - Montana
The cost of solar panels in Montana typically ranges from $2.50 to $3.50 per watt before incentives. For a standard 6 kW residential system, homeowners in Montana can expect to pay between $15,000 and $21,000 before the federal tax credit. After applying the 30% federal Investment Tax Credit, the net cost drops to approximately $10,500-$14,700. Actual costs vary based on your specific roof, chosen equipment, and installer. We recommend getting at least three quotes from local Montana solar installers to find the best price.
The average solar payback period in Montana depends on local electricity rates, available incentives, and sun exposure. Most Montana homeowners see a payback period between 6 and 10 years. After the payback period, you essentially enjoy free electricity for the remaining 15-20+ years of your system's life. Higher local electricity rates and additional state incentives can shorten the payback period significantly. A qualified Montana solar installer can calculate your specific payback period based on your energy usage and roof characteristics.
Montana homeowners who install solar panels typically save between $20,000 and $50,000 over 25 years, depending on system size, electricity rates, and available incentives. These savings come from reduced or eliminated electricity bills, net metering credits, and any applicable SREC income. As electricity rates in Montana continue to rise (historically averaging 2-3% annually), your savings grow each year. The combination of the 30% federal tax credit and any Montana-specific incentives helps maximize your return on investment.
The right solar system size for your Montana home depends on your electricity consumption, roof space, and budget. The average Montana home uses approximately 10,000-11,000 kWh per year, which typically requires a 6-8 kW solar system. To determine your ideal size, review your annual electricity usage on recent utility bills. Factors like Montana's average peak sun hours, your roof orientation, and any shading will affect how many panels you need. A professional Montana solar installer will use satellite imagery and your usage data to recommend the optimal system size.
Yes, solar is generally worth the investment for Montana homeowners in 2025. With solar panel costs at historic lows, the 30% federal tax credit still available, and electricity rates continuing to rise, the financial case for solar in Montana is strong. Most Montana homeowners who go solar see positive returns within 6-10 years, followed by 15-20+ years of significant savings. Additionally, solar panels increase your home value, provide energy independence, and protect against future electricity rate increases. The best way to determine if solar is right for your Montana home is to get a free, customized quote from a qualified local installer.
Solar Panel Costs by City in Montana
Solar in Nearby States

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