Have you ever considered installing solar panels on your Montana home or business? As a long-time solar technology enthusiast here in the Treasure State, I‘ve crunched the numbers, and the financial case for going solar just keeps getting better and better. In this comprehensive guide, I‘ll overview everything you need to know about solar costs, savings, and incentives available to residents all across Big Sky Country. Buckle up!
Solar Panel Costs in Montana
First, let‘s level-set on what it costs to go solar in Montana using averages across the state. According to the latest data from EnergySage, you can expect to pay roughly $2.42 per Watt for a solar panel system as of 2022. This factors in everything – the panels, inverters, racks and installation labor too. So for a robust 6 kW system, that comes out to around $14,520 total.
TO ADD: Cost overview data table
Now $14 grand might sound like a lot up front, especially when your monthly electricity bills from NorthWestern Energy are pretty reasonable. But solar prices have dropped a whopping 89% over the last decade, and they keep decreasing thanks to better technology and economies of scale.
Plus, there are plenty of incentives to lower that starting price tag…but more on that later!
First, let‘s take a closer look at how much juice your home actually consumes and where solar power can help slash your bills over the long run.
Calculating Your Solar Panel Needs
Statewide, the average Montana household uses about 10,300 kilowatt-hours (kWh) of electricity per year. Your personal usage is shown on your monthly bills from your utility.
Given our long, freezing winters, it‘s no surprise Montana electricity consumption is almost 20% higher than the national average. Running that forced-air heating nonstop eats up power!
Now to right-size a solar array, you simply take your annual usage and divide it by your location‘s yearly average peak sun hours. This tells you how many kWs worth of solar panels you need to offset 100% of your electricity needs.
For example, Missoula sees ~4.3 peak hours per day while sunnier cities like Billings get 5.5. Using Billings figures and 12,000 kWh annual usage (high), the math looks like this:
- 12,000 kWh yearly usage
- 5.5 peak hours x 365 days = 2,007 sunlight hours
- 12,000 kWh / 2,007 hours = 6 kW solar panel system
Make sense? Easy stuff. Your installer will take care of these calculations, but it‘s good to understand how it works.
And if you‘re feeling spicy, you can even oversize your system to power an electric vehicle charging station too!
Montana Solar Panel Installers
Alright, time to call in the professionals! With over 20 active solar companies operating in Montana today, you have plenty of qualified installers to choose from near you.
I recommend staying local when possible to support regional solar job growth. Two of my top picks statewide are:
OnSite Energy – Family-owned installer based in Bozeman since 2011. They use premium equipment and Monocrystalline solar panels paired with reliable Enphase microinverters. Plus, they give back to conservation efforts as a certified B-Corp!
GRID Alternatives Montana – If saving money is your #1 priority, check out this nonprofit. They leverage volunteer labor and donations to offer reduced pricing. GRID specializes in low-income solar installations too.
When shopping around, look for:
- Years of experience
- Licensed & insured
- High customer ratings
- Robust equipment & labor warranties (10-25 years)
- Local office for post-sale support
A reputable Montana solar company checks all those boxes and more! Feel free to drop me a line if you have any specific installer questions too.
TO ADD: Table comparing top 2-3 installers
Solar Panel Payback Period
"Okay cool Adam, but be straight with me…how many years will it take to pay off my solar panel system?"
Another fantastic question! Let‘s walk through the solar payback period using our previous 6 kW example.
At the average Montana electricity rate of $0.103 per kWh, that 12,000 kWh yearly consumption costs about $1,236 annually to power your home.
Given a 6 kW solar system cost of roughly $14,520 after accounting for the 30% federal tax credit, your payback period comes out to 12 years.
So just under your loan term in most cases. And residential solar panels still produce clean energy for 15-25 years post-install! That means you can pocket some serious savings after paying off your array.
There are also financing options like PPAs that get your out-of-pocket investment down to $0 upfront. We‘ll cover all the creative solar financing mechanisms later on.
But first, let‘s boost your savings even more through rebates and incentives!
TO ADD data table with costs, savings, payback figures
Montana Solar Rebates & Incentives
Alright last section, I promise! Let‘s quickly cover the icing on the cake: sweet solar incentives offered here in Big Sky Country.
At the federal level, the solar Investment Tax Credit (ITC) remains at 26% of your capital costs through 2032. And many utilities like NorthWestern Energy throw in extra rebates when you install solar panels.
The State of Montana also exempts 100% of solar array value from property taxes. Plus we offer net metering, allowing you to sell excess power back to the grid.
Between slashed equipment costs, electricity savings over time, and bonus incentives?
Solar panels just make sense for most Montana homeowners in 2022!
Let me know if you have any other questions about the process or want help modeling potential cost savings for your property. I‘m always happy to chat solar!
Stay powered,
Adam
