Find out if solar panels are right for your home in Montana.
Solar Panels are sweeping the nation! Making even less sunny states like Montana a viable option for the renewable energy alternative. Price drops, competition, improved manufacturing, better efficiency, and incentives are all making solar panels more accessible to everyone.
Through large-scale projects, you can see the greater impact on capacity. The South Mills Solar site in Hardin produces 4.2 MW. Magpie Solar in Lavina produces 4.1 MW of electricity. Combined, they can power about 1,200 homes.
Though the state ranks 40th nation-wide in solar and only 0.52% of the state’s electricity comes from solar, there is growing capacity.
Montana solar is expected to grow 831 MW over the next 5 years and $338 million invested so far.
The average price for a home solar panel system in Montana is $$17,010 for a 6kW system or about $2.83 per watt. Systems will vary depending on the solar installation company the types of solar panels you choose and the size of your system. When shopping for solar panels you should consider getting multiple quotes from various installers.
| Average Cost 6 kW System | Average Cost 10 kW System | Estimated Tax Credit (10 kW System) | Average Cost/Watt | |
|---|---|---|---|---|
| U.S.Average | $18,771 | $31,285 | $9,385.50 | $3.13 |
| Montana | $26,220 | $43,700 | $13,110 | $4.37 |
| U.S.Average | $18,771 | $31,285 | $9,385.50 | $3.13 |
| Most Costly State(Michigan) | $22,680 | $37,800 | $11,340 | $3.78 |
| Least Costly State(Arizona) | $14,640 | $24,400 | $7,320 | $2.44 |
For most, the ideal solar system size is the sweet spot between price and capacity. The goal is to generate enough electricity to cover your home's demand while keeping overall costs low as possible.
I.E. Get the best bang for your buck.
| System Size | System Cost | Cost After Federal Tax Credit |
|---|---|---|
| 5 kW | $21,850 | $8,785 |
| 6 kW | $26,220 | $10,542 |
| 7 kW | $30,590 | $12,299 |
| 8 kW | $34,960 | $14,056 |
| 10 kW | $43,700 | $17,570 |
Like any decision it is important to consider all your benefits and risks because nothing is perfect - including solar.
To avoid buyer's remorse, you should think about all the pros and cons associated with installing solar equipment on your home. Then weigh them against each other to decide if it makes sense for you.
Everyone has their own opinion on how to interpret and weigh the pros and cons against each other. Our goal is to present the most common pros and cons and let you make your own choice.
Although Montana doesn’t rank high in the national rating for solar, there is still a lot of potential and untapped opportunities. This isn’t just about joining the green energy movement; it’s a practical, long-term investment for homeowners.
Montana's Department of Environmental Quality (DEQ) says that its solar potential is approximately 26% greater than the national average! Eastern Montana being the best region for solar. Even the cloudiest regions in Western Montana receive a good amount of sunlight, making solar feasible, especially in the summer months.
On the flip side, Montana has a lower electricity rate than the national average. This could result in lower dollar savings. Residents may also have to consider additional robust and efficient solutions to account for the varying weather in the state, which could result in high upfront costs.
All in all, considering your own financial situation and roofs location is crucial in determining whether it’s a good financial investment. If your priorities are reducing your carbon footprint and becoming energy independent, then solar panels could be the right choice for you.
If you are on the fence you can use this tool to get an accurate cost breakdown for your home based on your historical energy usage.
There are several ways you can purchase and/or finance your solar panel installation in Montana. Your goals and financial situation will dictate which option is best for you.
The most straightforward option. You pay upfront for the entire cost of the rooftop solar system. No interest, and fewer headaches, but many people are hesitant about spending several tens of thousands of dollars out of pocket.
The most common method for buying solar systems. Like many other types of large purchases, you can finance your solar system through a bank or solar loan provider.
This sounds great, and many other solar loan salespeople will leverage the low payment to justify the costs. You will likely hear something like "You pay $250 a month on your electric bill, with a solar loan you will pay $200 and have free electricity."
Do your due diligence before you sign on the dotted line. There are many horror stories of variable loan terms, ballooning interest rates, and harsh missed payment penalties.
Leasing solar panels generally involves less money out of pocket upfront. But, it's important to note - you do not own your solar energy system. You essentially renting the solar system. A solar provider will install the equipment and charge you a fixed monthly fee.
Most solar lease contracts last for a couple of decades, during which time the provider will keep an eye on the system's hardware and performance. At the end of your lease, you can choose to:
Solar leases can be complicated. Not all are bad, but in many cases the lease terms in not in favor of the buyer. Before you decide on a solar lease make sure to read your contract thoroughly. If you don't understand something, ask an expert.
A power purchase agreement (PPA) is a financial agreement where a solar company will design and install a solar system on your home or business with little or no cost upfront. Instead of paying a monthly fee like a lease, the agreement includes a fixed price per kilowatt-hour (kWh) of electricity generated.
For example, you agree to pay $0.12 per kWh of electricity generated for the next 20 years. The solar company will install and maintain your system and sell the power back to you that you use. They may also collect payment for any additional energy they put back into the grid.
Just like a lease, you do not own the panels. When the contract is up, they will either be removed or your contract may have other terms for you to buy or renew your power purchase agreement.
Power purchase agreements can be complicated. Before you sign make sure you review the contract and if possible have an expert in power purchase agreements review the details.
In Montana, alongside the 30% Federal Solar Tax Credit, you might find additional solar incentives to significantly lower the cost of your solar panel installation.
At the time of this writing 2023, there aren’t many options to choose from. That’s not to say there won’t be more as solar continues to become more popular. Incentives can vary; some are available statewide, while others are more localized. They change all the time.
In Montana, incentives might be offered by your city, utility company, or other local entities, or rebates by the solar installers themselves. So be sure to ask!
The table below outlines the incentives currently available in Montana. However, this list isn't exhaustive. For other potential incentives, it's a good idea to check with your local utility provider. They might offer additional benefits for solar installations that aren't widely advertised.
| Name | State | Category | Type |
|---|---|---|---|
| Lincoln Electric Cooperative - Net Metering | MT | Regulatory Policy | Net Metering |
| Mandatory Utility Green Power Option | MT | Regulatory Policy | Mandatory Utility Green Power Option |
| Net Metering | MT | Regulatory Policy | Net Metering |
| Montana Electric Coops - Net Metering | MT | Regulatory Policy | Net Metering |
| Renewable Energy Systems Exemption | MT | Financial Incentive | Property Tax Incentive |
| Montana Solar and Wind Easements | MT | Regulatory Policy | Solar/Wind Access Policy |
| Residential Alternative Energy System Tax Credit | MT | Financial Incentive | Personal Tax Credit |
| Renewable Resource Standard | MT | Regulatory Policy | Renewables Portfolio Standard |
| Corporate Property Tax Reduction for New/Expanded Generating Facilities | MT | Financial Incentive | Property Tax Incentive |
| Fuel Mix and Emissions Disclosure | MT | Regulatory Policy | Generation Disclosure |
There are hundreds of solar companies in Montana. From solar installers to solar loan providers, and manufacturers. Each is a piece of the puzzle to help you get outfitted with solar panels.
To make things simple, EnergyBot works directly with 3 of the largest solar companies to give you a comprehensive view of the market.
The solar companies we partner with:
We believe comparing these three names in the solar industry will give you the info you need to decide if solar panels are right for you.
Just because solar is a popular discussion right now, doesn’t mean it makes sense for everyone. It is still a large and expensive decision. Installing solar has great financial and environmental benefits but it won’t feel beneficial if you run into issues. Along with studying a 20-year cost comparison for your home, read some more tips to keep in mind when mulling over your decision on your installer, system design, and financial plan.
The Coal Industry is deeply rooted into the fabric of Montana’s landscape. It is no surprise to most of us that despite national growing trends towards renewable energy, Montana is not letting go of coal. The state's historical and economic ties to coal mining are strong. The state has authorized an expansion of the coal mine feeding the plant, and NorthWestern Energy, Montana's largest power company, has increased its stake in the plant. The power plant is a major greenhouse gas emitter, yet it is central to the local economy. Local ranchers and tribal officials have long fought against coal development to protect the land and water.
Legislatively, Montana has enacted laws to bolster the fossil fuel industry and limit climate change initiatives. For example, there's resistance to a proposed methane gas plant by NorthWestern Energy near the Yellowstone River, faced with legal challenges over environmental concerns.
On the flip side, the state possesses significant renewable energy potential, particularly in wind and solar. However, the transition to these cleaner energy sources is slowed by economic and political factors, with coal still seen as a key driver of local economies and state revenue.
The situation in Montana mirrors a larger national and global challenge of shifting from fossil fuel reliance to sustainable energy while considering local economic impacts.
We have helped thousands of customers find electricity plans for their home or business. And we are pretty darn good at it, with over 1,000 5-Star reviews we know how to help you stay powered up.
Now using the same one-of-kind technology and platform we are helping consumers in Montana decide if solar is right for them. You will notice that sometimes our numbers make solar look less attractive. That's not by accident. We believe you should have full transparency during the solar purchasing process.
We aren't here to sell you something. We are here to help you make the best energy decision for your home or business.
The cost of solar panel installation in Montana can vary significantly based on a number of factors, including the size and type of the system, the complexity of the installation, your solar installer, and the specific location. However, the average cost of solar panels in the U.S. was about $3.13 per watt, before any incentives or tax credits.
A typical residential solar system is usually around 8 kilowatts (8,000 watts), but varies based on energy use and the size of the house. The US average cost for a 6 kW system is $18,771 and the US average cost for a 10 kW system is $31,285, before incentives. The average price for a home solar panel system in Montana is $17,010 for a 6kW system or about or about $2.83 per watt.
The number of solar panels you would need depends on a variety of factors such as:
To give you a rough estimate, let's say you live in a location that receives about 5 hours of peak sunlight per day, your solar panels have an efficiency of 20%, and each panel has a power rating of 300 watts. If your home uses about 10,400 kWh per year, you would divide this by 365 to get your daily energy use (about 28.5 kWh). You would then divide this by the hours of peak sunlight (5 hours), to get your required power output per hour (about 5.7 kW). If each solar panel produces 300 watts (or 0.3 kW), you would divide 5.7 kW by 0.3 to get the number of solar panels you need, which would be about 19 panels.
The installation process for solar panels can take anywhere from a few days to a few weeks, depending on the size of the system and the complexity of the installation.
Your installer should be able to give you an estimated timeline based on your specific project.
Solar panels generally require very little maintenance. However, it's a good idea to have them inspected every few years to ensure they are working properly and to clean off any debris or dirt that may have accumulated on the panels. Most solar panel installers offer maintenance services for an additional fee.
Some skilled DIYers may be able to save some solar installation costs by installing solar equipment themselves. But, any solar installation will require a foundational knowledge of wiring and electricity. There's is a lot that can go wrong, posing a potentially deadly hazard.
Before you try to DIY your system we would recommend getting a quote from a solar installer. You may find that the labor costs of your install is relatively small compared to the cost of the solar equipment itself.
There are two main types of solar panels: Monocrystalline and Polycrystalline. There are pros and cons to both. Either type can produce enough solar power for your home. We recommend getting a recommendation from a solar installer for your home. Depending on your budget, location, and other factors they can recommend the most efficient solar panels for your home.
At the end of their lifespan, solar panels can be recycled. Many components of the panels, such as glass and metal, can be reclaimed and reused. Some companies specialize in solar panel recycling.
Western Montana - Characterized by cooler temperatures and more precipitation due to the influence of the Rocky Mountains.
Central Montana - Experiences a mix of weather patterns from the west and east. It can have variable weather conditions, including fluctuations in temperature and precipitation.
Eastern Montana - Drier and experiences more extreme temperatures, both in summer and winter. This region generally has more clear days.
Mountainous Areas - More snowfall and potentially less direct sunlight due to mountain shadows.
