Cost of Solar Panels in Montana: Local Solar Installation Prices (2022)
Here’s a quick look at the estimated cost of solar in Montana:
- Average Cost Per Watt: $2.54
- Cost of Average System: $16,916*
- Cost of Energy Without Solar: $38,049
- Payback Period: 13 Years**
- Lifetime Savings of Going Solar: $15,189
*Average system size is calculated using data from the Energy Information Administration. This price is after tax credit.
**Payback period is calculated assuming the system is purchased in cash.
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Find Cost Savings on Solar in Montana
As a homeowner in Montana, you may be wondering: How much do solar panels cost in your area? In this article, we’ll discuss the average cost of a solar installation, how much that can save you on energy for your home and what incentives are available in your region. If you want to jump straight to getting a quote for an installation, you can follow the links below to speak with a verified professional.
Jump to Section:
- Cost of Solar Panels in Montana
- Solar Panel System Installation Cost in Montana
- What Determines the Cost of Solar Panels in Montana
- Montana Solar Incentives
- Montana Installed Solar System Costs For Panels
- FAQ: Solar Panel Cost Montana
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OnSite Energy
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Cost of Solar Panels in Montana
The average cost of solar panels in Montana is $2.54 per watt, which is less than the national average of $2.66 per watt. In Montana, the typical homeowner needs a 9-kilowatt system to offset the average monthly electric bill of $96 per month. Using these figures, in Montana, a typical solar panel installation would cost $16,916 after claiming the 26% federal solar tax credit.
Solar Panel System Installation Cost in Montana
For most homeowners, the point of incorporating solar energy is to eliminate or drastically reduce their electric bills. With this goal in mind, heavy emphasis falls on the size of the system, which determines whether you can achieve that goal. The chart below offers a quick overview of system costs based on varying system sizes.
| Size of Solar Panel System | Montana Solar Panel Cost | Cost After Federal Tax Credit |
| 6 kW | $15,240 | $11,278 |
| 7 kW | $17,780 | $13,157 |
| 8 kW | $20,320 | $15,037 |
| 9 kW | $22,860 | $16,916 |
| 10 kW | $25,400 | $18,796 |
| 11 kW | $27,940 | $20,676 |
| 12 kW | $30,480 | $22,555 |
Ready to find the best solar companies in Montana that offer consistently high-quality and affordable systems? Click here.
What Determines the Cost of Solar Panels in Montana?
Calculating the cost of solar panel systems for your Montana home requires input from multiple areas. Three primary categories contribute to the cost of your system: the type of equipment you choose, your solar financing selection, and the solar installation company that handles your project.
Solar Equipment
The solar equipment you choose plays a considerable role in the final cost of your system. Solar panels range in quality, like most other products. For example, some solar panels are high-wattage and high-efficiency. These panels tend to be substantially pricier than less-efficient or lower-wattage models.
Some Montana homeowners don’t mind the extra upfront cost of getting the best solar panels. Those working with limited installation space may opt for these panels since fewer are needed to produce the same amount of power. Or, homeowners who have multiple power-hungry appliances or electric vehicles may choose high-efficiency options to meet their higher energy needs.
Ultimately, the best option for you falls to your particular needs, but the type of equipment you choose will impact the final price you pay for the system.
Solar Financing
When you buy a solar solution for your home, you usually have a few options for payment. Most solar providers offer three main options: cash purchases, solar loans and solar leases or power purchase agreements (PPAs).
The option you choose can impact the price you pay overall. How? Consider a solar loan. More often than not, you’ll accrue interest on your loan as time passes. So, when everything is said and done, you’ll have paid more for the system than you would have if you paid cash up front.
Since many homeowners can’t afford a $15,000+ purchase out of pocket, solar loans are an excellent option. With cash purchases and solar loans, you can take advantage of incentives like the federal tax credit, local rebates, increased home value and more.
If you choose a solar lease, you can’t use these financial incentives. Generally, a solar lease/PPA isn’t the best choice for residents looking to save money on energy costs.
Solar Installation Company
Finally, the solar installation company that handles your solar project can also impact the final price of your solar solution. As you sift through local and national solar providers servicing your area, you’ll probably notice some degree of pricing variation from one option to another.
The variation is usually due to different overhead costs that each company contends with. Companies that have higher quotes may also offer more personalized service, longer warranties or higher-quality equipment, which reflects in the price you pay.
The added price doesn’t make the company more or less worth it, but it might be something to consider. You should always choose a reputable company that you feel comfortable with and look for the best value rather than the cheapest installation.
Montana Solar Incentives
From the federal solar tax incentive to local rebates, residents of the Big Sky State have several financial incentives at their disposal to mitigate the overall cost of their solar energy systems. Here are a few of the highlights:
| Montana Solar Incentive | How it Affects the Cost of Solar Panels in Montana |
| Renewable Energy Systems Exemption | This property tax exemption ensures you won’t have to pay extra property taxes because of your solar energy system, even though it adds value to your home |
| Net Metering | Through net metering programs, you can get utility credits for the energy you send back to the grid when your system produces more than you use. Not all states mandate that these credits be valued at the retail rate of electricity, but Montana does, which is good news for residents trying to reduce their energy bills to $0 per month. |
| Local Solar Rebates & Incentives | Many utility companies and municipalities offer their own rebates and incentives for renewable energy systems. Your solar installer should be able to help you identify these, but make sure to research them on your own, too, to make sure you don’t miss out on any money-saving opportunities. |
| Federal Solar Tax Credit | The federal solar investment tax credit (ITC) is available to homeowners who install solar electric systems across the country, including in Montana. This credit on your federal income taxes is valued at 26% of the total system cost, which, in Montana, comes out to an average of $5,944. |
It’s worth clarifying that Montana used to offer a Renewable Energy Systems Tax Credit that was worth $500. However, this state tax credit was repealed by the state legislature in 2021.
Montana Installed Solar System Costs For Panels
Solar photovoltaic panels are available from a diverse array of brands, which is another component that affects the cost of your solar solution. While it’s difficult to pinpoint exact, all-encompassing costs of each solar panel brand, we can offer a general idea. The table below gives a price comparison for a few of the best solar panels in Montana.
| Solar Panel Brand | Average Cost Per Watt ($-$$$$$) |
| LG Solar | $$$ |
| Canadian Solar | $$ |
| JA Solar | $$ |
| Mission Solar | $$ |
| Panasonic | $$ |
| Q Cells | $$ |
| REC | $$$ |
| Silfab | $$$ |
| SunPower | $$$$$ |
| Tesla | $$ |
| Trina Solar | $$$ |
People Also Ask
EcoWatch FAQ: Solar Panel Cost Montana
From rural homeowners who want to go off-grid to residents of cities like Bozeman and Helena, we get questions about solar energy from many Montanans. Here are some of the most common queries, as well as our answers:
The cost of a solar energy system for your Montana home hinges on various factors, including how many kilowatt-hours of energy you use per month, the solar installer that handles the project, and the particular equipment you choose to install. For this reason, giving an exact figure for the cost of installation is tricky.
However, we can provide a general idea of what the solar array system may cost. Considering the average system size in Montana is 9 kW, and the cost per watt is $2.54, we can calculate that the typical cost of solar in Montana is $22,860 before the federal tax credit, or $16,916 once the credit is taken into account.
Again, keep in mind that the actual cost of your solar power system may be higher or lower depending on factors unique to you.
Yes, solar panels will increase your home value in Montana. According to Zillow, homes with solar energy systems sell about 4.1% more than those without solar. Certain areas and markets boast higher percentages of increased home value, such as New York City or Los Angeles.
Using this figure, the median-valued home in Montana ($428,294 at the time of publication) gains about $17,560 in value.3 This can benefit homeowners who sell their homes before noticing a significant return on the original investment. Although the added value may not cover the entire cost of the solar PV system, it can offset a considerable chunk.
Of course, the added value is only applicable if you own the system outright. Panels don’t add any value to your home if you lease them, as you don’t technically own them.
Solar installers typically offer three primary options for payment: a cash purchase, solar financing, or solar lease. Buying the solar system outright is always the best option when feasible. You can buy the system in one of two ways, either with a cash purchase or a solar loan.
Paying cash is generally the most cost-effective route. With a solar loan, you’ll usually accrue interest over the payback period, which drives up the overall cost of the system. When you buy the system with cash, you avoid the interest altogether.
Regardless of whether you buy with cash or take out a solar loan, you’ll be eligible for all of the benefits of system ownership, including the federal solar tax credit and local rebates and tax breaks. In addition, the value of your house will go up with the addition of solar panels.
If you choose a solar lease, you cannot take advantage of the federal solar tax credit, and your home doesn’t gain additional value. Leasing the solar panels makes sense for some residents, like those who are only concerned with helping the environment and aren’t switching to save on the cost of electricity. Leases are usually the least cost-effective option for homeowners.
No, solar panels aren’t free in Montana. Some solar providers advertise free solar panels to catch the attention of potential customers. The caveat of the “free panels” is that you’ll have to sign a lease or PPA.
While leasing solar panels is a sensible option for some residents, it’s usually not the best, most cost-effective option for homeowners looking for a permanent solar solution. Before committing to something like this, ensure you know exactly what you’re getting yourself into. Complete thorough research on the company in question to ensure it’s reputable.
Cost isn’t always the most important aspect to consider when buying solar panels, but it may be at the forefront of considerations in some cases.
For instance, some homeowners prioritize aspects like warranty length or company reputation. These customers may not focus on cost as a primary consideration but instead on finding the best, most comprehensive warranty available or an installer with hundreds of positive reviews.
