Montana solar incentives in 2026
This is the list of solar incentives a Montana homeowner or small business can actually use in 2026, checked against government sources and dated. The short version: the 30% federal residential credit is gone, a 3.5% state loan and a ten‑year property‑tax exemption still stand, and farms and rural businesses have a USDA program we have used before. The next AERLP window opens October 1, 2026.
The AERLP loan (Montana DEQ)
The Alternative Energy Revolving Loan Program is the workhorse now. The 2026 rate is 3.5% fixed for the loan term (4.023% APR on DEQ’s example: $25,000, 10 years, $625 closing costs). Loans run up to $40,000 with terms up to 10 years. Down payment: none required. DEQ’s eligible list: individuals, small businesses (100 or fewer employees), local governments, university‑system units, nonprofits. There’s no application fee and no penalty for paying early.
Apply before the system goes in; DEQ does not finance a finished project, so we schedule the install around your window. The next window runs October 1 to 30, 2026.
Applications are taken in quarterly windows and scored about two months later. The current cycle:
| Applications open | Scored |
|---|---|
| October 1 to 30, 2026 | December 1, 2026 |
| January 1 to 29, 2027 | March 1, 2027 |
| April 1 to 30, 2027 | June 1, 2027 |
Worth knowing: Demand has exceeded available funds every quarter since April 2023; applications are ranked when funds are short. Funding subject to availability. Apply early in a window. We help with AERLP paperwork as part of the job.
Verified September 24, 2026 against Montana DEQ’s AERLP program page.
The property‑tax exemption (MCA 15‑6‑224)
Montana exempts renewable-energy equipment from property tax for 10 years after installation: the first $20,000 of appraised value on a single‑family home, $100,000 on a multifamily or nonresidential building. Solar electric systems qualify under the statute’s definition. There’s no quarterly window here; the exemption simply runs from the installation date.
Verified September 24, 2026 against MCA 15‑6‑224 and the Montana Department of Revenue exemption list.
What ended: the federal residential credit
Through 2025, Section 25D let homeowners take 30% of a system’s cost off their federal taxes, and most solar quotes leaned on it. The IRS now says:
“The credit is not available for any property placed in service after December 31, 2025.”
So for a home system paid in cash or financed and finished in 2026, there is no federal credit. Edge cases exist around what “placed in service” means; confirm yours with your tax professional before you count on anything. Whether solar still pencils without the credit is the subject of its own guide.
Verified September 24, 2026 against the IRS Residential Clean Energy Credit page.
REAP, for farms and rural small businesses
USDA’s Rural Energy for America Program pays a share of a farm or rural business’s solar project. As of March 31, 2026, USDA has paused new grant awards until new rules take effect, and anyone who applied before the pause can reapply when grants reopen. The guaranteed‑loan side of REAP is open now and can back a loan for up to 75 percent of eligible project costs. When USDA publishes its new grant rules, we’ll tell you what they mean for solar and have your application ready to file. Northstone has carried REAP projects through before, including the Better Beef ranch job and the 78‑panel array at Nelson’s Ace Hardware in Whitefish, and writes the applications. More on agricultural solar here.
Bank financing
Clearwater Credit Union’s Energy Resilience Loan is the private financing route named in Northstone’s own proposals, and we have also worked with Whitefish Credit Union and Glacier Bank. Rates and terms are the lender’s to quote, so get current numbers from them directly, or start with a free consultation and we’ll lay out AERLP against a credit-union loan for your project. The full financing picture lives on our financing page.
What’s not on this list
You may see other incentives advertised around the internet. If a program isn’t on this page, we couldn’t verify it for 2026. That’s the standard here: a claim earns its spot with a source and a date, or it waits. If you find one that looks real, bring it to the consultation and we’ll run it down.
Fair questions
Is there still a federal tax credit for home solar?
Not for home systems placed in service after December 31, 2025. The IRS states this directly on its Residential Clean Energy Credit page. Businesses and farms are different: a business‑owned solar system placed in service by December 31, 2027 can still qualify for the federal clean electricity investment credit (IRS Notice 2025‑42). Confirm the details for your project with your tax professional.
What does the AERLP loan cost in 2026?
The rate is 3.5% fixed for the loan term (4.023% APR on DEQ’s example: $25,000, 10 years, $625 closing costs). Loans run up to $40,000 for up to 10 years with no down payment. Applications are taken in quarterly windows, and demand regularly outruns the funding, so file early in a window.
Does Montana give a property‑tax break for solar?
Yes. MCA 15‑6‑224 exempts the first $20,000 of a residential system’s appraised value, or $100,000 on a multifamily or nonresidential building, for 10 years after installation.
How current is this page?
Every program above was checked against its source, and each section shows the date it was last verified. Rules change. If you’re reading this long after those dates, ask us and we’ll re‑check before you decide anything.
Sources: IRS (irs.gov, including Notice 2025-42), Montana DEQ (deq.mt.gov), MCA 15‑6‑224, USDA, Clearwater Credit Union. Each section above shows the date it was verified. Tax outcomes vary; confirm yours with your tax professional.