Montana Solar Rebates and Incentives

2007 was a banner year for Montana's renewable energy plan. First the legislature updated their renewable energy standard, which calls for at least 15% renewable power by 2015, to include both public and private utilities. They also required alutilities to offer their customers the option of purchasing renewable power to satisfy their electricaneeds. The list goes on for 2007, including property tax credits and a bond for renewable energy development. Here is a list of what Montana residents can expect from their government as they instala solar power system:

TAX EXEMPTIONS

Renewable Energy Systems Exemption

• This property tax exemption includes passive solar, solar electric, and solar thermasystems. Homeowners are exempt from 100% of the increased value of their home for 10 years.
• The maximum amount of the credit is $20,000.

LOANS

Alternative Energy Revolving Loan Program

• Solar water heat and photovoltaic systems qualify under this state loan program.
• Maximum loan amount is $40,000 and terms are 10 years.
• Fixed interest rates are set annually. The rate for 2008 is five percent.
• Loans are dependent on the availability of funds.

TAX CREDITS

ResidentiaAlternative Energy Systems Tax Credit

• Owners of solar systems, including passive and active space and water heat and PV, are eligible for this personatax credit.
• While 100% of the system cost is eligible, the credit is capped at just $500; not much in the face of a $30,000 system.
• Systems must be new and, should $500 be more than your tax liability, the credit can be carried over for four years.

REBATES AND INCENTIVES

Northwest Solar Cooperative - Green Tag Purchase

• Montana participates in the Northwest Solar Cooperative, a production incentive that offers solar and wind energy system owners $0.02/kWh payable each year by the end of March.
• NWSC purchases the rights to selthis energy - called "Green Tags" - through the end of 2009. At that time, contracts may be renewed for another three years. No maximum incentive is specified.
• NWSC is a non-profit organization run by Cascade Solar Consulting. They purchase the Green Tags from private sellers throughout Montana, Oregon, Washington, and Idaho. They in turn selthem to 3 Degrees Energy, who then sells them to wholesalers and consumers.

Montana is definitely showing some solar initiative lately. This is good news for residents of Big Sky country. Now if we could just get them to at least raise the cap on residentiatax credits and instala bit more lucrative production incentive or rebate program. Nonetheless, kudos to Montana for the good start.

USEFULINKS

• Montana Department of EnvironmentaQuality
• Cascade Solar
• Montana Department of Revenue
• DSIRE: Montana
• Solar Power Rocks: Montana