In short: Montana power is cheap, about 15 cents per kWh in July 2026 (EIA), but the grid is long and exposed. Customers lost about 5.9 hours of power in 2024. NorthWestern Energy can shut off lines in wildfire weather, and FEMA rates winter weather very high. Low-interest state loans and good wind make off-grid and hybrid systems more realistic here than in most states.
Montana at a glance
- Residential electricity price: 14.99¢/kWh in July 2026, about 18% below the U.S. average of 18.31¢. A year earlier it was 14.27¢, and the January to July 2026 average was 13.95¢ (EIA Electric Power Monthly, September 2026; preliminary).
- Outages (2024): 352 minutes per customer with major events and 157 without. Customers averaged 1.62 interruptions, or 1.16 without major events (EIA-861).
- Solar resource: Billings averages 4.12 kWh/m² a day and the center of the state 4.0 (NASA POWER, 2001–2020). That is roughly 1,200 kWh per installed kW a year, our estimate for Billings.
- Net metering: required for NorthWestern Energy and Montana-Dakota Utilities customers with systems up to 50 kW. Surplus is credited at retail and credits roll over for about 12 months. Co-ops offer it voluntarily. A 2025 bill to raise the limit to 100 kW (HB 811) died in committee (Montana DEQ).
- Plug-in (balcony) solar law: none as of October 2026.
- EVs and charging: 6,900 battery EVs and 4,200 plug-in hybrids through 2025. The state had 481 public ports at 158 locations, and 262 of them, more than half, are DC fast (AFDC, October 3, 2026).
- Main utilities: NorthWestern Energy serves 69% of customers, Flathead Electric Cooperative 13%, then Montana-Dakota Utilities and Yellowstone Valley Electric Co-op (EIA-861, 2024).
- Weather hazards (FEMA NRI, December 2025): winter weather is rated very high and cold wave relatively high. Wildfire is relatively moderate. Ice storm, tornado, strong wind and heat wave are relatively low, and hurricane does not apply.
- Planned shutoffs (PSPS): yes. NorthWestern Energy’s Wildfire Mitigation Plan includes Public Safety Power Shutoffs. It entered a monitoring stage in July 2024 and notified about 30,000 customers in higher-risk areas.
Backup power in Montana
Montana’s grid covers great distances with few customers per mile, and the outage numbers show it. Ordinary days alone added up to about 2.6 hours per customer in 2024, and major events more than doubled that to 5.9. The average outage lasted around three and a half hours, by our arithmetic on EIA’s figures. Montana has two distinct outage seasons:
- Winter: FEMA’s very high winter weather and relatively high cold wave ratings mean outages can come in deep cold. Most furnaces, boilers and well pumps need electricity. A generator on propane or natural gas, connected through a transfer switch, is the long-duration answer. A home battery covers short gaps quietly. Size either one with the generator sizing tool or the battery backup calculator.
- Fire season: if you live in one of NorthWestern’s higher-risk areas, a planned shutoff can last until crews inspect the lines. When a shutoff is announced ahead of time, a battery or portable power station charged in advance keeps the fridge, well pump controls, phones and medical devices going.
Rural Montana homes often depend on a well, so add the well pump’s starting surge when you size a generator. It is usually the biggest load in the house. Run any generator outdoors only, at least 20 feet from the house, with the exhaust pointed away from doors, windows and vents, and never in a garage or shop, even with the door open (Consumer Product Safety Commission). Fit battery-powered CO alarms. In fire season, keep the generator on gravel or bare ground, clear of dry grass. A licensed electrician should install the transfer equipment.
Solar in Montana
Montana’s low power price limits the bill savings. Each installed kW in Billings makes roughly 1,200 kWh a year by our estimate. At 14.99¢ that is worth about $180 a year (an estimate), and a 6 kW system’s 7,200 kWh would be worth about $1,080. Net metering helps: for NorthWestern and MDU customers up to 50 kW, surplus is credited at retail and rolls over for about a year, so summer production can cover winter bills. If a co-op serves you, ask first whether and how it offers net metering.
Montana’s confirmed state help works on the cost side, not the price side. Check each program page before you sign, because amounts change:
- Alternative Energy Revolving Loan Program (AERLP): low-interest DEQ loans for solar, small wind and other alternative energy. The 2026 rate is fixed at 3.5% on 10-year terms. Applications are taken quarterly (July, October, January, April). Demand exceeds funds, so applications are ranked.
- Property tax exemption (MCA 15-6-224): up to $20,000 of appraised value on a single-family home ($100,000 for multifamily or nonresidential) is exempt for 10 years after installation.
Montana’s old $500 residential alternative energy tax credit was repealed in 2021, and the federal 25D credit ended for systems completed after December 31, 2025. Count neither in a 2026 quote. Check your inputs with the solar potential tool and the solar cost guide, read how net metering works, and see the solar hub and incentives. There is no plug-in solar law. EIA counted 9,151 residential net-metered systems in Montana in 2024.
Home batteries in Montana
Only 205 of those 9,151 solar homes had a battery in 2024 (about 2%, EIA). With retail-rate net metering, a battery doesn’t add bill savings for most NorthWestern customers. Its case is backup: PSPS events, winter storms and long rural repair times. Away from the grid, a battery is essential. The AERLP loan covers “other alternative energy” systems, so ask DEQ whether a battery paired with solar qualifies. Compare costs on the battery cost page and the batteries hub. Lithium batteries need a space kept above freezing in a Montana winter.
EV charging in Montana
Montana’s public network is small (481 ports) but built for distance. More than half of the ports are DC fast chargers, about 14 battery EVs per port overall. At home, about 30 kWh per 100 miles (a fueleconomy.gov-style assumption) at 14.99¢/kWh comes to about $4.50 per 100 miles, roughly $540 for 12,000 miles a year (an estimate). Cold weather and long highway speeds raise consumption. Run your numbers with the EV charging cost calculator.
Drive on another fuel? See every alternative fuel station in Montana: hydrogen, propane, natural gas, E85 ethanol, biodiesel and renewable diesel.
The federal 30D credit ended September 30, 2025, and 30C ended for chargers placed in service after June 30, 2026. Level 2 charging needs a 240 V circuit from a licensed electrical contractor. See the EV charging hub.
Off-grid, small wind and micro-hydro
This section matters more in Montana than in most states. Cabins, ranches and outbuildings far from a line are common, and Montana has wind. NASA’s 50 m average is about 7.0 m/s at the center of the state and 6.4 m/s around Billings, comfortably above the Department of Energy’s rough 4.5 m/s threshold for grid-tied turbines and 4 m/s for off-grid hybrids. Our hint is “good at open rural sites” (an estimate). Measure at your site, because ridges, valleys and trees change everything. A solar-plus-wind hybrid with a battery and a backup generator is a sensible off-grid setup. The AERLP loan and the property tax exemption both cover small wind. We have no state micro-hydro data. Read our off-grid guide, wind energy and hydroelectric power.
Licensing and permits in Montana
Electrical work in Montana is licensed by the Montana State Electrical Board (Department of Labor & Industry). Contractors also register through DLI’s Construction Contractor Registration. There is no separate state solar license, so solar wiring requires a licensed electrical contractor. Check licenses on the state’s license lookup. Permits and inspections come from the state or your city or county, depending on where you live. Grid-tied systems need interconnection approval from NorthWestern, MDU or your co-op.
Local guides in Montana
Utilities, rates, outage records, permit offices and local programs for each area:
Where we cover in Montana
- Billings: Billings, Laurel
- Missoula: Missoula
- Bozeman: Bozeman, Belgrade
- Flathead Valley: Kalispell, Whitefish
- Great Falls: Great Falls
- Also on our list: Helena, Butte
Local pages will follow as we verify local information and installers.
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Montana energy FAQ
Does Montana have net metering?
Yes, for NorthWestern Energy and Montana-Dakota Utilities customers with systems up to 50 kW. Surplus is credited at retail and rolls over for about 12 months (Montana DEQ). Co-ops such as Flathead Electric offer net metering voluntarily, on their own terms. A 2025 bill to raise the limit to 100 kW died in committee.
Is there a Montana solar tax credit in 2026?
No. Montana’s $500 residential alternative energy credit was repealed in 2021, and the federal 25D credit ended after 2025. What remains is the property tax exemption (up to $20,000 of appraised value on a home, for 10 years) and DEQ’s 3.5% Alternative Energy Revolving Loan, which ranks applications because funds are limited.
What is a NorthWestern Energy Public Safety Power Shutoff?
It is a planned outage in high fire-risk weather, under NorthWestern’s Wildfire Mitigation Plan. The utility entered a PSPS monitoring stage in July 2024 and notified about 30,000 customers in higher-risk areas. If you received a notice, keep a battery or power station charged during fire season, and plan for the well pump.
Is small wind worth it in Montana?
It can be on open rural land. NASA’s average at 50 m is about 7 m/s at the center of the state, above the DOE’s 4.5 m/s grid-tied rule of thumb (an estimate). Home turbines sit lower and terrain matters a lot, so measure at your site first. The state loan and property tax exemption both cover small wind.
Sources
Prices: EIA Electric Power Monthly, Tables 5.6.A and 5.6.B, September 2026 release (July 2026, preliminary). Reliability, utilities and solar counts: EIA-861, 2024. Sunlight and wind: NASA POWER, 2001–2020. Hazards: FEMA National Risk Index, December 2025. EVs and chargers: AFDC, registrations through 2025 and stations read October 3, 2026. State programs: Montana DEQ (renewable energy and AERLP pages), Montana Code Annotated 15-6-224, Montana Department of Revenue, State Electrical Board, and NorthWestern Energy’s wildfire safety page, all checked October 3, 2026. Small wind: U.S. DOE Small Wind Guidebook.