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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

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).

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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.

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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.

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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.

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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

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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

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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

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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

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Flathead Electric Cooperative

Flathead Electric Efficiency Rebates

Amount: $50-$300 depending on measure

Eligible items: Heat pumps, ENERGY STAR appliances, LED lighting, smart thermostats

Learn more

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.

Or ask the AI about Montana rebates directly.

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.

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