Montana offers challenging solar economics with low electricity rates from hydroelectric sources and limited state incentives.
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Montana presents solar challenges: With 11¢/kWh electricity rates and 4.2 daily peak sun hours, Big Sky Country offers modest solar conditions. NorthWestern Energy serves much of the state, but low electricity costs from hydroelectric sources limit solar's economic appeal.
For Billings and Missoula residents, solar systems typically take 11-13 years to pay back. Low electricity rates and limited state incentives make solar less compelling than in higher-rate states.
| Incentive | Amount | Status |
|---|---|---|
| Federal ITC | 30% of system cost | Active |
| NorthWestern Energy Net Metering | Avoided cost rate | Limited |
| Property Tax Exemption | Not available | None |
| Sales Tax Exemption | Not available | None |
| System size | Gross cost | After ITC | Annual savings | Payback |
|---|---|---|---|---|
| 6 kW | $17,400 | $12,180 | ~$980/yr | ~12.4 years |
| 8 kW | $23,200 | $16,240 | ~$1,310/yr | ~12.4 years |