Montana provides an excellent opportunity for property owners to cut costs in their electrical bills by investing in a solar energy system. Although situated in the country's north, the Treasure State receives a typical amount of sunlight of about 3,847 kJ/m² annually. What's more, there are substantial solar incentives and rebates that property owners can take advantage of in going solar.
Solar energy is a superb supply of sustainable energy since the established solar power in Montana is 122.7 MW, sufficient to supply energy beyond 16,000 properties. Solar energy system also offers a reliable power source that is self-sufficient to the rise and fall of the electric rates from utility companies.
To learn more about how Montana dedication to solar energy systems can benefit a property owner in the long run, check out below.
Montana Renewable Portfolio Standards (RPS) were initially enacted in 2005. They mandated all utility companies in Montana to generate 15% of all their energy from renewable sources by 2015 and continue the 15% level each year. Montana already met its Renewable Portfolio Standards. States give a goal, such as to generate 25% of their required power from renewable sources by a specific year. Montana has already met its purpose, and the RPS is no longer needed to drive progress.
The law requires net metering in Montana, making connecting a solar system to the public grid easier. This system allows customers to earn credits for excess energy produced and offset utility costs. If a solar system has more energy than is needed, the extra power is sold back to the grid. Property owners benefit from this arrangement since the utility company compensates them for the excess energy.
Most property owners hope for an open, streamlined, reasonable, and foreseeable scheme for connecting to the grid. Montana has statewide and transparent interconnection standards that dictate the requirements for plugging solar and other electrical generation systems into the grid. These standards simplify installation and often reduce costs, making net metering more dependable.
Although Montana does not hold a committed state rebate for the solar energy system, selected manufacturers to provide their solar incentives and rebates. NorthWestern Energy offers a strong state solar incentives and rebate program, assisting their clientele to become better cost-effective in the solar energy system.
Montana property owners who invest in solar panels don't have a sales tax, so all solar installations are exempt from sales tax in the Treasure State. Now, that is one real solar incentives treasure worth holding onto!
Montana provides a property tax exemption for property owners who invest in a solar energy system. A property tax exemption means that the increased value of your home after a solar energy system is installed will not raise your property tax. You continue to pay the exact property tax you would have paid without the system.
Montana State provides an Alternative Energy Revolving Loan Program (AERLP) with a low-interest rate. For one, the Clearwater Credit Union provides a 3.9% interest rate with a term of up to 15 years. At the same time, the City of Helena offers a Residential Energy Efficiency and Renewable Energy Loan Program, in which a property owner can avail of 0% interest loans with a 10-year term.
On top of the many solar incentives and rebates available in Montana, the Federal government provides a substantial tax credit called the Solar Investment Tax Credit (ITC). This credit is worth 26% of the total cost of your solar system and can be deducted from your Federal income tax. It's essential to note that the credit goes to the system's owner, so buying the system with cash or a loan is recommended instead of leasing it. If you lease the system, the incentives will go to the third-party owner, not you.
Moreover, in 2023, the tax credits for solar installations will reduce to 22%, which makes it essential to act quickly to take advantage of the current tax benefits.
And if you invest in a solar panel by the end of 2032, the federal tax credit is 30% of the price of your solar panel system. This means 30% off the system's total cost, including equipment, labor, and permitting.
Sample Calculation: Assuming a solar energy system costs $20,000, the Federal government's solar Investment Tax Credit (ITC) is worth $6,000, equivalent to 30% of the system cost.
By 2033, the federal tax credit will fall to 26%.
Montana property owners wanting to invest in the solar energy system can appreciate the minimal installation expense in the state, and added to that are the tons of benefits mentioned. So now is the best time to go solar!
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