Montana House Bill 760: Protecting Solar Energy Consumers

Bottom Line: Montana's House Bill 760 establishes comprehensive consumer protection laws for residential solar purchases, providing homeowners with essential rights to cancel contracts and ensuring fair dealing in the rapidly growing solar market.

What It's About

Montana House Bill 760, enacted by the 69th Legislature in 2025, creates the state's first comprehensive solar consumer protection framework. The legislation establishes "solar consumer protection laws" and provides "a solar buyer's right to cancel" with specific timelines and definitions.

The bill recognizes that electricity demand is projected to increase over 30% west of the Continental Divide and over 20% in the Western Interconnection region over the next years, making solar energy increasingly important for Montana's energy future.

Key Legislative Intent: The Legislature aims to "establish laws that promote fair dealing, honesty, and transparency between solar energy contractors, solar sales agents, and solar buyers".

Key Definitions and Scope

The legislation defines two critical terms:

• Solar buyer: "A person or entity who purchases or considers to purchase a solar energy system located on a residential property that is owned or leased"

• Solar energy system: "An assembly of equipment and components that has the primary purpose of converting sunlight into electricity by photovoltaic effect for a resident's use for personal, family, or household purposes. The term includes battery storage"

The law specifically covers residential solar installations, focusing on protecting homeowners and renters who are considering solar investments.

Major Changes and Protections

Consumer Rights Established

The legislation introduces several groundbreaking protections for Montana solar customers:

Right to Cancel: The bill establishes a solar buyer's right to cancel solar contracts within specified timeframes, providing crucial breathing room for homeowners who may feel pressured by aggressive sales tactics.

Transparency Requirements: Sales agents and contractors must accurately represent "total cost, equipment and materials, financing terms, and any relevant permitting fees to support customers in making an informed decision".

Property Rights Protection: The law affirms that "Montanans have the right to install, interconnect, and use energy generation and storage systems on their property in order to meet their electricity needs, manage their electricity production and consumption, and enhance the reliability and efficiency of the electric grid".

Industry Accountability

The legislation places clear responsibilities on solar industry professionals to maintain honest business practices and provide complete information to potential customers.

Why You Should Care

For Homeowners

• Financial Protection: The cancellation rights protect you from high-pressure sales tactics and give you time to thoroughly review contracts

• Informed Decision-Making: Mandatory disclosure requirements ensure you receive complete cost and financing information

• Legal Recourse: The law provides a framework for addressing disputes with solar contractors

For the Solar Industry

• Market Credibility: Consumer protection laws help legitimize the industry and build customer trust

• Level Playing Field: Honest contractors benefit from regulations that eliminate bad actors

• Long-term Growth: Consumer confidence drives sustainable market expansion

For Montana's Energy Future

• Grid Resilience: Solar systems help "enhance the reliability and efficiency of the electric grid"

• Energy Independence: More solar adoption reduces reliance on external energy sources

• Economic Development: A regulated, trustworthy solar market attracts investment and jobs

  
  

Economic and Environmental Impact

Montana's solar market has significant growth potential. Montana currently ranks 43rd in the country, with 321 MW installed as of Q4 2024, according to the Solar Energy Industries Association. The consumer protection framework created by HB 760 should help accelerate adoption by building customer confidence.

The timing is particularly important given broader energy market trends. Recent federal policy uncertainty has already led to "$14 billion worth of new factories and other projects — clean energy, electric vehicle related plants, solar projects, wind projects, battery projects — $14 billion worth of business investment canceled in America".

Next Steps

For Consumers

1. Review Existing Contracts: If you're currently considering solar, understand your new rights under HB 760

2. Research Contractors: Look for installers who proactively comply with the new transparency requirements

3. Know Your Rights: Familiarize yourself with the cancellation timelines and required disclosures

4. Get Multiple Quotes: Use the protection framework to confidently shop around

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For Industry Professionals

1. Update Business Practices: Ensure sales processes comply with new disclosure requirements

2. Review Contracts: Modify agreements to include required cancellation provisions

3. Train Staff: Educate sales teams on transparency obligations and consumer rights

4. Embrace Compliance: Use adherence to HB 760 as a competitive advantage

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For Policymakers

1. Monitor Implementation: Track how effectively the law protects consumers

2. Enforcement Mechanisms: Develop clear processes for addressing violations

3. Complementary Policies: Consider how HB 760 works with other energy initiatives like Senate Bill 188, which enables community solar projects

4. Regular Review: Assess whether additional protections or modifications are needed as the market evolves

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Looking Forward

Montana HB 760 represents a significant step toward balancing solar energy growth with consumer protection. As electricity demand continues rising and solar technology becomes more accessible, having strong consumer safeguards ensures that Montana's clean energy transition benefits both individual homeowners and the broader grid.

The law's immediate effective date means these protections are available now for Montana residents considering solar investments. This timing is crucial as the state works to meet growing electricity demand while maintaining grid reliability and protecting consumer interests.

The success of HB 760 will ultimately be measured by whether it achieves its stated goal of promoting "fair dealing, honesty, and transparency" while supporting Montana's transition to a more resilient and sustainable energy future.