This page may contain affiliate links. If you use a partner link, we may earn a referral commission at no extra cost to you. See our privacy policy.
Energy Rebates in Montana
Montana residents can access a range of federal energy tax credits, state-specific incentive programs, and local utility rebates to help offset the cost of energy-efficient home improvements. This page covers the key programs available in Montana, including heat pump rebates, solar incentives, EV charger credits, weatherization assistance, and more. Each program listed below includes eligibility details and links to official sources.
Federal Programs Available in Montana
- 25C Energy Efficient Home Improvement Credit: Up to $3,200/year for heat pumps, insulation, windows, doors, electrical panels, and home energy audits. Covers 30% of costs.
- 25D Residential Clean Energy Credit: 30% tax credit for solar panels and battery storage with no dollar cap. Available through 2032.
- HOMES & HEAR Rebates: Income-qualified point-of-sale rebates up to $14,000 for heat pumps, water heaters, electrical panels, and other electrification upgrades.
- 30C EV Charger Credit: Up to $1,000 for home EV charging equipment in eligible census tracts.
- Weatherization Assistance Program (WAP): Free weatherization services for low-income households at or below 200% of the federal poverty level.
Montana Energy Rebate Overview
Montana households have access to a combination of federal, state, and local utility incentives designed to make energy-efficient home upgrades more affordable. Montana has not yet launched the HOMES and HEAR rebate programs under the Inflation Reduction Act, but federal tax credits are available now to all homeowners regardless of state program status. The Montana Department of Environmental Quality - Energy Bureau coordinates state-level energy programs and can provide the latest information on available incentives.
HOMES & HEAR Program Status in Montana
Montana's HOMES and HEAR programs are pending launch. The Montana Department of Environmental Quality is developing program guidelines and implementation plans using approximately $30 million in IRA funding allocated to the state.
Income Eligibility for Montana Rebates
For a family of four in Billings, 80% AMI is approximately $56,950. Low-income households will qualify for the highest rebate levels under HOMES when the program launches.
For a family of four in Billings, 150% AMI is approximately $106,800. Moderate-income households will qualify for partial rebates under HOMES when the program launches.
Montana State Tax Credits
Montana Alternative Energy System Tax Credit
Amount: Up to $1,000 for residential alternative energy systems (credit equals the lesser of $1,000 or the taxpayer's income tax liability)
Eligible items: Solar PV, wind, geothermal, and other qualifying alternative energy systems installed on residential properties
Non-refundable state income tax credit. Can be carried forward for up to 4 years if the credit exceeds the tax liability. Must be for the taxpayer's primary residence. The system must be new (not used equipment).
Montana Property Tax Exemption for Renewable Energy
Amount: Reduces the taxable value of a property with a new renewable energy system for 10 years following installation
Eligible items: Solar PV, solar thermal, wind, geothermal, and other renewable energy systems
For the first 5 years, the property is assessed as if the system were not there. For years 6-10, the exemption is gradually phased out. Applies to both residential and commercial properties.
Montana State Rebate Programs
Montana Weatherization Assistance Program
Administered by: Montana Department of Public Health and Human Services / Human Resource Development Councils
Amount: Average of $7,000+ per home
Eligible items: Insulation, air sealing, furnace repair and replacement, duct sealing, window and door repairs, water heater replacement
Available to households at or below 200% of the federal poverty level. Administered by local Human Resource Development Councils (HRDCs) across Montana.
Montana Alternative Energy Revolving Loan Program
Administered by: Montana Department of Environmental Quality
Amount: Low-interest loans up to $40,000 for residential projects
Eligible items: Solar PV, solar thermal, wind, geothermal, biomass, and energy efficiency improvements
Provides below-market interest rate loans for residential and commercial alternative energy installations. The program is funded through a revolving loan fund.
Solar Net Metering in Montana
Montana requires investor-owned utilities (NorthWestern Energy) to offer net metering for systems up to 50 kW. Excess generation is credited at the retail rate. Monthly excess credits roll over, and the annual surplus is credited at the utility's avoided cost rate. Net metering is available for solar, wind, and hydroelectric systems.
Utility Rebate Programs in Montana
Montana residents may qualify for additional rebates from their local utility company. Here are programs from major utilities serving the state:
NorthWestern Energy
NorthWestern Energy E+ Home Rebates
Amount: $50-$1,500 depending on measure
Eligible items: Insulation, air sealing, heat pumps, smart thermostats, ENERGY STAR windows, high-efficiency furnaces, water heaters
NorthWestern Energy Net Metering Program
Amount: Monthly retail-rate credits for excess solar or wind generation
Eligible items: Solar PV, wind, and qualifying renewable energy systems up to 50 kW
NorthWestern Energy Low-Income Weatherization
Amount: Free weatherization for income-qualified customers
Eligible items: Insulation, air sealing, furnace repair, LED lighting for qualifying low-income households
Montana-Dakota Utilities
Montana-Dakota Utilities Energy Efficiency Rebates
Amount: $50-$500 depending on measure
Eligible items: High-efficiency furnaces, boilers, water heaters, smart thermostats, insulation
Flathead Electric Cooperative
Flathead Electric Efficiency Rebates
Amount: $50-$300 depending on measure
Eligible items: Heat pumps, ENERGY STAR appliances, LED lighting, smart thermostats
Get Personalized Montana Rebate Guidance
Enter your ZIP code below to chat with our AI about rebates specific to your area in Montana. The AI will check federal, state, and utility programs and give you a personalized breakdown of what you may qualify for and how to apply.
Frequently Asked Questions About Montana Rebates
What energy rebates are available in Montana?
Montana residents can access federal tax credits including the 25C Energy Efficient Home Improvement Credit (up to $3,200/year) and the 25D Residential Clean Energy Credit (30% for solar and battery storage). State-level programs include Montana Weatherization Assistance Program, Montana Alternative Energy Revolving Loan Program.
Has Montana launched the HOMES and HEAR rebate programs?
Montana's HOMES and HEAR programs are pending launch. The Montana Department of Environmental Quality is developing program guidelines and implementation plans using approximately $30 million in IRA funding allocated to the state.
What are the income limits for energy rebates in Montana?
For a family of four in Billings, 80% AMI is approximately $56,950. Low-income households will qualify for the highest rebate levels under HOMES when the program launches. For a family of four in Billings, 150% AMI is approximately $106,800. Moderate-income households will qualify for partial rebates under HOMES when the program launches.
Does Montana have net metering for solar panels?
Montana requires investor-owned utilities (NorthWestern Energy) to offer net metering for systems up to 50 kW. Excess generation is credited at the retail rate. Monthly excess credits roll over, and the annual surplus is credited at the utility's avoided cost rate. Net metering is available for solar, wind, and hydroelectric systems.
How do I apply for energy rebates in Montana?
Start by entering your ZIP code on Rebate Atlas to get personalized guidance. For federal tax credits (25C and 25D), you claim them when you file your federal income tax return using IRS Form 5695. For state programs, contact the Montana Department of Environmental Quality - Energy Bureau. For utility rebates, check with your local utility provider directly.
Explore Nearby States
Compare energy rebate programs in neighboring states: