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financing & incentives.
Resources and information to help you make the switch!
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Getting Started
Various funding resources are available to help you electrify your home. Rebates, tax credits, and loans can often be combined when you make a purchase of a new energy-efficient system or appliance, making it easier to offset the initial cost and shortening the payback time. Head to our Technology page to read about different types of systems and make your own plan for electrification.
*Note: Financing and tax programs frequently change. Consult your installer or tax professional for the most up-to-date information. Keep in mind that many installers may not yet know about all available incentives -- we're working to help them too.
Incentives: reduce the cost of electrification projects
The Inflation Reduction Act of 2022 (IRA) included new and expanded federal tax credits and up-front rebates for electric appliances, energy efficiency and clean energy! These incentives can be stacked with existing utility rebate programs and state or private low-interest loan options. Which incentives to take advantage of depends on your household's financial situation and other factors.
- Rewiring America's IRA calculator is a great place to start for better understanding which kinds of federal incentives are applicable to your situation.
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Tax credits - available now!
Federal tax credits worth 30% of project costs (up to certain annual limits depending on the technology) apply to:
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Rebates
Utility rebate programs - available now
Income-qualified rebates - coming soon For low- and moderate-income households, the IRA includes rebates that cover up to 100% of the up-front costs for certain energy efficiency and electrification projects, plus electric appliances such as induction stoves/cooktops and heat pump clothes dryers (up to certain annual limits). Rebate programs will be administered at the state level; details are still being finalized, with availability anticipated by the end of 2023 or early 2024. |
Financing Options
If paying the full upfront cost of electrification is not in the cards, there are several local low-interest loan options to affordably finance your project.
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Montana Alternative Energy Revolving Loan Program (AERLP)
The Montana Department of Environmental Quality's AERLP provides low-interest loans to individuals, small businesses and nonprofit organizations. This loan program is primarily intended to finance renewable energy (e.g. rooftop solar), but can also be used to finance energy efficiency & electrification projects that are completed in conjunction with or at about the same time as a renewable energy system. This includes insulation, high-efficiency windows, and energy-efficient appliances including heat pumps, water heaters, electric stoves, washers/dryers and more. This is a great option for combining solar and energy efficiency/ electrification projects under a single low-interest loan.
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Clearwater Credit Union's Home Energy Efficiency & Home Solar Loans
Clearwater Credit Union offers two loan products that support electrification and clean energy projects. Home Energy Efficiency Loan: covers upgrading HVAC (including heat pumps for space heating), windows, doors, and insulation. Note - this loan does not cover other energy efficient appliances or water heaters.
Home Solar Loans: unsubsidized loan for solar panels that can be reamortized after getting state or federal incentives to lower monthly payments.
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The 2022 Inflation Reduction Act: Key programs in the IRA and what they mean for you
1| HEEHRA - rebates
The High Efficiency Electric Home Rebate Act (HEEHRA) includes $4.5 billion in direct rebates for low- and moderate-income households that install new, efficient, electric appliances (and follow a specific framework). For instance, a low income household will receive a rebate covering the full cost of a heat pump installation for space heating, up to a cap of $8,000. This household could receive up to $1,750 for a heat pump water heater, $840 for an electric stove, and $840 for an electric clothes dryer. If required, this household can also receive up to $4,000 for an upgraded breaker box, $2,500 for upgraded electrical wiring, and $1,600 for insulation, ventilation and sealing. For moderate income households, the same rebates are available to cover 50% of the costs. See Rewiring America's personalized calculator .
2| Tax Deductions for Electric Upgrades
2| Renewable Energy
The Residential Clean Energy credit, or 25D, re-ups an existing program allowing households installing solar to deduct 30% of the cost of the project from their taxes. This credit is guaranteed for 10 years (through 2032), and now also includes residential battery storage systems.
The High Efficiency Electric Home Rebate Act (HEEHRA) includes $4.5 billion in direct rebates for low- and moderate-income households that install new, efficient, electric appliances (and follow a specific framework). For instance, a low income household will receive a rebate covering the full cost of a heat pump installation for space heating, up to a cap of $8,000. This household could receive up to $1,750 for a heat pump water heater, $840 for an electric stove, and $840 for an electric clothes dryer. If required, this household can also receive up to $4,000 for an upgraded breaker box, $2,500 for upgraded electrical wiring, and $1,600 for insulation, ventilation and sealing. For moderate income households, the same rebates are available to cover 50% of the costs. See Rewiring America's personalized calculator .
2| Tax Deductions for Electric Upgrades
- The Energy Efficient Home Improvement credit, or 25C, allows households to deduct from their taxes up to 30% of the cost of upgrades to their homes, including installing heat pumps, insulation and, importantly, upgrading their breaker boxes to accommodate additional electric load. Upgrade costs include both equipment and installation/labor costs. These deductions are limited to $600 per measure, up to $1,200 per household per year—with one notable exception. Households can deduct 30% of the costs for buying and installing a heat pump water heater or a heat pump for space heating and cooling, up to $2,000.
- The New Energy Efficient Home credit, or 45L, has received a substantial boost, providing up to $5,000 to developers to build homes that qualify for the Department of Energy’s Zero Energy Ready Homes standard. This applies to new single-family, multifamily and manufactured homes, as well as existing homes that undergo a deep retrofit.
- The Commercial Buildings Energy Efficient credit, or 179D, has been significantly expanded, offering $2.50 to $5.00 per square foot for businesses achieving 25% to 50% reductions in energy use over existing building performance standards. In addition, $30 billion is available as a production tax credit to accelerate U.S. manufacturing of solar panels, wind turbines, batteries and critical minerals processing in the U.S., and another $10 billion is allocated as an investment tax credit for building new facilities that manufacture these technologies.
2| Renewable Energy
The Residential Clean Energy credit, or 25D, re-ups an existing program allowing households installing solar to deduct 30% of the cost of the project from their taxes. This credit is guaranteed for 10 years (through 2032), and now also includes residential battery storage systems.
More Resources & Information
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Montana C-PACE Financing:
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Curious about how your energy bill will be affected by switching to Energy Star high efficiency appliances? Check out Energy Star's Savings Calculator Tool.
Financial Resources by System Type
Browse below to find the financing resources that can best assist in electrifying your home or business!
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Requirements |
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Ground source heat pumps (Space Heating)
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Montana's Alternative Energy Revolving Loan Program (AERLP) provides low-interest loans to increase investments in alternative energy systems and energy conservation measures in Montana. It may be used by individuals, small businesses and nonprofit organizations.
This is a great option for combining solar and energy-efficiency/electrification projects under a single low-interest loan! |
The AERLP loan program is primarily meant to finance renewable energy (e.g. rooftop solar), but can also be used to finance energy conservation projects that are completed in conjunction with or at about the same time as an alternative energy system, with the intention of reducing the size of that system. This includes:
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Later in 2023 or early 2024: Stay tuned for details about federal rebates that will reduce the up-front cost for low- and moderate-income families for energy-efficient appliances, including heat pumps for space and water heating.
Air source heat pumps (Space Heating)
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Montana's Alternative Energy Revolving Loan Program (AERLP) provides low-interest loans to increase investments in alternative energy systems and energy conservation measures in Montana. It may be used by individuals, small businesses and nonprofit organizations.
This is a great option for combining solar and energy-efficiency/electrification projects under a single low-interest loan! |
The AERLP loan program is primarily meant to finance renewable energy (e.g. rooftop solar), but can also be used to finance energy conservation projects that are completed in conjunction with or at about the same time as an alternative energy system, with the intention of reducing the size of that system. This includes:
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Later in 2023 or early 2024: Stay tuned for details about federal rebates that will reduce the up-front cost for low- and moderate-income families for energy-efficient electric appliances, including heat pumps for space and water heating.
Heat Pump Water heaters
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Montana's Alternative Energy Revolving Loan Program (AERLP) provides low-interest loans to increase investments in alternative energy systems and energy conservation measures in Montana. It may be used by individuals, small businesses and nonprofit organizations.
This is a great option for combining solar and energy-efficiency/electrification projects under a single low-interest loan! |
The AERLP loan program is primarily meant to finance renewable energy (e.g. rooftop solar), but can also be used to finance energy conservation projects that are completed in conjunction with or at about the same time as an alternative energy system, with the intention of reducing the size of that system. This includes:
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Later in 2023 or early 2024: Stay tuned for details about federal rebates that will reduce the up-front cost for low- and moderate-income families for energy-efficient electric appliances, including heat pumps for space and water heating.
aPPLIANCES
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Montana's Alternative Energy Revolving Loan Program (AERLP) provides low-interest loans to increase investments in alternative energy systems and energy conservation measures in Montana. It may be used by individuals, small businesses and nonprofit organizations.
This is a great option for combining solar and energy-efficiency/electrification projects under a single low-interest loan! |
The AERLP loan program is primarily meant to finance renewable energy (e.g. rooftop solar), but can also be used to finance energy conservation projects that are completed in conjunction with or at about the same time as an alternative energy system, with the intention of reducing the size of that system. This includes:
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Later in 2023 or early 2024: Stay tuned for details about federal rebates that will reduce the up-front cost for low- and moderate-income families for energy-efficient appliances, including heat pump clothes dryers, electric induction stoves & cooktops.
wEATHERIZATION & Efficiency
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Montana's Alternative Energy Revolving Loan Program (AERLP) provides low-interest loans to increase investments in alternative energy systems and energy conservation measures in Montana. It may be used by individuals, small businesses and nonprofit organizations.
This is a great option for combining solar and energy-efficiency/electrification projects under a single low-interest loan! |
The AERLP loan program is primarily meant to finance renewable energy (e.g. rooftop solar), but can also be used to finance energy conservation projects that are completed in conjunction with or at about the same time as an alternative energy system, with the intention of reducing the size of that system. This includes:
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Later in 2023 or early 2024: Stay tuned for details about federal rebates that will reduce the up-front cost for low- and moderate-income families for insulation, air sealing, and efficient windows and doors.
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Low-income families may qualify for the Department of Energy's Low Income Weatherization Assistance Program, which in Missoula county is administered by the Human Resource Council. This program allows approved applicants to have qualified professionals conduct energy audits and weatherization improvements on their residences, free of charge.
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Annual household income limits apply, depending on household size
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