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 in Montana for 2026
- Federal home energy tax credits (25C and 25D) ended after 2025: The 25C Energy Efficient Home Improvement Credit does not apply to property placed in service after December 31, 2025, and the 25D Residential Clean Energy Credit (solar, batteries, geothermal) does not apply to expenditures made after December 31, 2025 (IRS). Work completed in 2025 or earlier can still be claimed on IRS Form 5695.
- HOMES & HEAR Rebates: Montana had not launched the HOMES or HEAR rebate programs as of the NASEO tracker updated September 30, 2026. Funding and eligibility change, so confirm with the state energy office before starting work. HEAR can provide up to $14,000 per income-qualified household; see our HEAR and HOMES guides.
- 30C EV Charger Credit (ended): Does not apply to chargers placed in service after June 30, 2026.
- Weatherization Assistance Program (WAP): Free weatherization services for low-income households, generally 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 had not launched the HOMES or HEAR rebate programs as of the NASEO tracker updated September 30, 2026. Funding and eligibility change, so confirm with the state energy office before starting work. 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 had not launched the HOMES or HEAR rebate programs as of the NASEO tracker updated September 30, 2026. Funding and eligibility change, so confirm with the state energy office before starting work. 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. Under federal HOMES rules, low-income households can receive the largest rebates where the state runs the program; states set the exact amounts.
For a family of four in Billings, 150% AMI is approximately $106,800. Moderate-income households can receive smaller, partial HOMES rebates where the program is available.
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?
With the federal 25C and 25D tax credits ended after 2025, Montana residents should look to state, utility and HOMES/HEAR programs. State-level programs include Montana Weatherization Assistance Program, Montana Alternative Energy Revolving Loan Program.
Has Montana launched the HOMES and HEAR rebate programs?
Montana had not launched the HOMES or HEAR rebate programs as of the NASEO tracker updated September 30, 2026. Funding and eligibility change, so confirm with the state energy office before starting work. 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. Under federal HOMES rules, low-income households can receive the largest rebates where the state runs the program; states set the exact amounts. For a family of four in Billings, 150% AMI is approximately $106,800. Moderate-income households can receive smaller, partial HOMES rebates where the program is available.
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. If you completed qualifying work in 2025 or earlier, claim the 25C or 25D credit on IRS Form 5695 for that tax year (both ended for 2026 work). 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: