Montana residential solar energy incentives

  • Residential Alternative Energy System Tax Credit
    • 100% tax credit of the cost and installation of a non-fossil form of energy installed in a home is offered to residential Montana taxpayers up to $500.
      • The tax credit may be carried over for four taxable years after the energy system is installed.
    • Eligible systems and technologies include; Passive Solar Space Heat, Solar Water Heat, Solar Space Heat, Photovoltaics, Wind, Biomass, Geothermal Heat Pumps, Low-Emission Wood Stoves, Small Hydroelectric, Fuel Cells using Renewable Fuels.
    • Systems must be new and meet all performance and safety standards.
  • Northwest Solar Cooperative - Green Tag Purchase
    • Through December 31, 2009, the Northwest Solar Cooperative offers to purchase “Green Tags” (the rights to the environmental attributes) derived from grid-connected photovoltaic or wind energy for $0.02 per kilowatt-hour.
      • At the start of December 2009 these contracts may be renewed for another three-year term.
    • Residential and non-residential owners who install PV and wind-energy systems are eligible to participate in the Green Tag Purchase Program.
      • Other states aside from Montana that are eligible to participate in this program include; Washington, Idaho and Oregon.
    • An agreement with NWSC must be signed by participants. The agreement includes the following;
      • Participants agree to sell their Green Tags, report system malfunctions or failures, and submit meter readings of AC production every year.
      • The NWSC will pay the participants by March 31 the following year of the Green Tag production.
  • Alternative energy revolving loan program
    • This program provides loans to people who install solar and wind energy systems, fuel cells using renewable fuels and biomass technologies to generate energy for their own personal use.
    • The maximum loan amount for this program is $40,000 and has a maximum repayment period of ten years.
    • The current interest rate for loans on this program are 3.5%.
  • Renewable Energy Systems Exemption
    • This is a property tax exemption for Montana residents who use recognized non-fossil forms of energy generation such as solar photovoltaics, passive solar, wind. Other exemptions include; decomposition of organic wastes, geothermal, non-hydrocarbon fuel cells, small hydropower plants, and low-emission wood or biomass combustor systems.
    • An exemption up to $20,000 in value is allowed for single-family residential household and $100,000 for multi-family residential household or a nonresidential structure.
  • NorthWestern Energy - USB Renewable Energy Fund
    • NorthWestern Energy provides funding to its customers for renewable energy projects periodically.
    • Solar PV installation incentives of $3.00/watt are offered to residential customers up to a maximum of $6,000 per customer. The incentive for wind is $2.00/watt up to $10,000 per customer.
  • Residential Renewable Energy Tax Credit
    • This personal tax credit allows the taxpayer to claim a credit of 30% of expenditures including labor costs and installation of qualified residential solar-electric systems, solar water heating systems or fuel cells. Small wind-energy systems and geothermal heat pumps can also be accredited for.
    • Solar-electric systems and solar water heaters have a maximum incentive of $2,000 if placed in service before 2009. There is no maximum incentive for systems placed after 2008.
    • The excess amount of the federal tax credit may be carried forward to the next taxable year if it exceeds tax liability.
      • This can be carried forward until 2016, but after that, it is unknown if the unused credit will be able to be forwarded.
  • Residential Energy Conservation Subsidy Exclusion
    • This is a personal exemption of 100% of energy conservation subsidies provided by public utilities.
    • The value of a purchase or installation of any energy conservation measure by a customer such as solar water heat, solar space heat or photovoltaics will not be included in the customer’s gross income.
    • Customers of an electric utility company, who participate in the utility’s energy conservation program, may receive a rate reduction of electricity furnished or a nonrefundable credit against the purchase price of the electricity on each monthly electric bill.
  • Energy-Efficient Mortgages
    • This is a federal loan program where homeowners can use EEM (energy-efficient mortgages) to finance renewable energy technologies in a home.