Solar panels in Montana: cost, payback and the rules that matter
Montana homes pay 14.0¢ per kWh for electricity, the 41st highest of 51, up 11.3% in a year. A typical home needs 18 panels. With no federal tax credit they pay for themselves in about 15.4 yrs.
Four facts that decide solar in Montana
1. The sun. One kilowatt of panels makes about 1,416 kWh a year in the median Montana city, from 1,295 in Missoula to 1,438 in Billings.
2. The price of electricity. Every kWh your panels make is worth what you would otherwise pay: 14.0¢ in Montana today.
3. What your utility pays for exports. Most Montana utilities still credit exported solar close to the retail rate, but rules differ by utility and change often.
4. Incentives. The 30% federal Residential Clean Energy Credit (IRC §25D) ended for systems whose installation is completed after December 31, 2025 (One Big Beautiful Bill Act, P.L. We don't know of a statewide income-tax credit for home solar in Montana.
Montana's homes
458,859 households; 69.2% own their home. 279,215 owner-occupied single-family houses: the main market for rooftop solar. The median home was built in 1981; 27.3% heat with electricity.
ACS 2020–2024 5-year estimates, U.S. Census Bureau.
Plan a specific Montana home
Solar in every Montana city with 50,000+ people
| City | Sun hrs/day | kWh per kW | Best tilt | Typical kW | Payback (NM) | Payback (NB) | Solar ¢/kWh |
|---|---|---|---|---|---|---|---|
| Billings | 5.0 | 1,438 | 41° | 7.6 | 15.1 yrs | 24.6 yrs | 11.1 |
| Missoula | 4.6 | 1,295 | 38° | 8.4 | 16.5 yrs | 25+ yrs | 12.1 |
| Great Falls | 4.9 | 1,415 | 42° | 7.6 | 15.4 yrs | 24.8 yrs | 11.3 |
| Bozeman | 4.9 | 1,416 | 41° | 7.6 | 15.2 yrs | 24.7 yrs | 11.2 |
NM = exports credited at retail (net metering); NB = exports at ~30% of retail (net billing). Systems sized to the Montana average home. $3.00/W, cash, 25 years.
Rule changes that affect Montana
All changes and deadlines →- Federal: In-service deadline for the lease/PPA solar credit · Tax credits
- Federal: National data: solar prices fell to a median $3.60 per watt · Prices
- Federal: Construction-start deadline passed for the lease/PPA credit · Tax credits
- Federal: The 30% homeowner solar tax credit is gone · Tax credits
Questions about solar in Montana
How much do solar panels cost in Montana?
A 7.6 kW system, the size the average Montana home needs, costs about $19,000 to $28,500 before incentives in 2026.
Is solar worth it in Montana?
In the median Montana city, solar pays for itself in about 15.4 yrs if exported power earns the retail rate, or 24.8 yrs if it earns about 30% of retail. Most utilities here still offer some form of net metering; check yours.
Is there a solar tax credit in Montana?
We know of no statewide income-tax credit for home solar in Montana; utilities and cities sometimes offer rebates. The 30% federal credit ended for homeowner systems installed after December 31, 2025.
How many solar panels does a Montana home need?
About 18 panels of 420 watts for the state-average 852 kWh a month. Sunnier cities need fewer: Billings gets 1,438 kWh per kW a year, Missoula 1,295.