ELECTRIFY MISSOULA
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financing & incentives. 

: resources and information to help you make the switch!
This page offers information for Residents pursuing electrification projects (homeowners and renters). Information for non-residential entities (including developers, business owners, and non-profit organizations) is coming soon!
Financing info for
non-residential Entities
(Coming soon)

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.*
*Note: Financing and tax programs frequently change. Consult your installer or tax professional for the most up-to-date information. Also, be sure to confirm that your appliance model qualifies. 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 often stacked with existing utility rebate programs and state or private low-interest loan options. Your household's financial situation (and other factors) will determine which incentives you can use.

​Ready to dive in?
​
  • For more on clean energy incentives and rebates in the IRA, we recommend Rewiring America's Electric Explainer. They also have an amazing CALCULATOR and information to help you know what to do and when (though beware that cost estimates might be low -- prices are rising for appliances and installation). 
  • Want to know even more about IRA? Here's a great summary on how to plan, plus a deeper dive on Climate Smart Missoula's website.
  • Check out this interactive explainer where you can explore a virtual house and learn more about what to electrify and IRA tax incentives.
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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:
  • heat pumps for space heating/cooling
  • heat pump water heaters
  • insulation, air sealing and efficient windows & doors
  • solar energy systems
  • electric vehicles & charging
  • electrical panel upgrades

These tax credits are not fully refundable, but can be carried over to future years. Residents without enough tax liability to claim these credits may be eligible for direct rebates that lower the up-front costs of these projects (coming soon - see right).

The Montana DEQ has great information on federal tax credits here.

Rebates

Local rebate programs - available now
  • Heat Pump Water Heater rebate through Missoula City & County. 
  • NorthWestern Energy has rebate programs for Electric and Gas customers that cover heat pumps, insulation & weatherization, smart thermostats, air purifiers and more. (Make sure to select Montana as your state.)
  • Missoula Electric Cooperative offers rebates that cover heat pumps, water heaters, insulation & weatherization, Energy Star washers and dryers and more.

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.
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. 
  • Current rates: 3.5% (4% APR) for a maximum $40,000 and 10-year term
MT AERLP Website
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.
  • Loan terms are 8% APR for up to $10,000 and 6 years

Home Solar Loans: unsubsidized loan for solar panels that can be reamortized after getting state or federal incentives to lower monthly payments.
  • 4.9% APR for maximum $75,000 loan and 15 year term
Clearwater Credit Union
Home Energy Loans
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Financial Resources by System Type

Browse below to find the financing resources that can best assist in electrifying your home or business!​

Resource

Requirements

Link

Ground source heat pumps (Space Heating)
NorthWestern Energy customers qualify for a rebate of up to $2,500 per system.
  • ​ENERGY STAR rated split system
  • ≥ 17.1 EER, ≥ 3.6 COP- with desuperheater to Supplement DHW Heating
NWE E+ Efficiency Program

Missoula Electric Cooperative customers may qualify for an incentive for installing a new ground source heat pump.
  • ENERGY STAR qualified as determined by the PTCS call center personnel
MEC incentive

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:
  • Insulation
  • High-efficiency windows
  • Energy-efficient appliances
MT AERLP WEBSITE

ENERGY STAR-rated ground source heat pumps qualify for the Federal Energy Efficient Home Improvement Credit of 30% of equipment and installation costs, up to $2000.
  • Primary residence or second home
  • Existing home or new construction
IRS Guidance on Energy Efficient
Home improvement Tax Credit

Later in 2023 or early 2024: Stay tuned for details about 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)
NorthWestern Energy customers qualify for ENERGY STAR-rated Air Source Heat Pumps rebates, $125/ton on existing homes.
  • ENERGY STAR Rated
  •  ≥ 15 SEER and ≥ 8.5 HSPF
NWE E+ Efficiency Program

Missoula Electric Cooperative customers may qualify for a monetary incentive for installation of a new Air Source Heat Pump. 
  • HSPF rating of 9.0 
  • Minimum SEER of 14
  • Must be installed by Performance Tested Comfort Systems (PTCS) certified technician (directory available on website)
MEC heat pump info

ENERGY STAR-rated air source heat pumps qualify for the Federal Energy Efficient Home Improvement Credit of 30% of equipment and installation costs, up to $2000.
  • Primary residence or second home
  • Existing home or new construction
IRS Guidance on Energy Efficient
Home improvement Tax Credit

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:
  • Insulation
  • High-efficiency windows
  • Energy-efficient appliances
MT AERLP Website

Later in 2023 or early 2024: Stay tuned for details about 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
Missoula Electric Cooperative customers are eligible for a rebate of $300 – $600 for qualified installations of heat pump water heaters which replace existing electric storage water heaters.

There are no current incentives for heat pump water heaters for NorthWestern Energy customers.
  • NA
MEC Residential
Energy Efficiency Programs
MEC hpwh page

ENERGY STAR-rated heat pump water heaters qualify for the Federal Energy Efficient Home Improvement Credit of 30% of equipment and installation costs, up to $2000.
  • Primary residence or second home
  • Existing home or new construction
IRS GUIDANCE ON
ENERGY EFFICIENT HOME
IMPROVEMENT CREDIT

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:
  • Insulation
  • High-efficiency windows
  • Energy-efficient appliances
MT AERLP Website

Later in 2023 or early 2024: Stay tuned for details about 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
NorthWestern Energy customers qualify for rebates up to $100 for various ENERGY STAR and highly energy-efficient home appliances, including washers, thermostats and air purifiers. 
  • ENERGY STAR Rated
NWE E+ Efficiency Program

Missoula Electric Cooperative customers qualify for up to $50 rebates for ENERGY STAR-rated washers and dryers. 
  • ENERGY STAR Rated
MEC Energy Star Appliance
& REbate info

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:
  • Insulation
  • High-efficiency windows
  • Energy-efficient appliances
MT AERLP WEBSITE

Later in 2023 or early 2024: Stay tuned for details about 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
NorthWestern Energy customers may qualify for incentives of up to $1.00/sq.ft for various insulation types and investments. 
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NWE E+Efficiency Programs

Missoula Electric Co-op offers rebates for insulation and window replacement.
  • Home must be electrically heated
  • other space limitations apply
MEC Insulation Rebates

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:
  • Insulation
  • High-efficiency windows
  • Energy-efficient appliances

MT AERLP WEBSITE

The Federal Energy Efficient Home Improvement Credit covers 30% of equipment and installation costs (up to $1200 annually). This includes:
  • Efficient windows and doors
  • Air sealing, insulation & weatherization
  • Primary residence or second home
  • Existing home or new construction
IRS Guidance on Energy Efficient
Home improvement Tax Credit

Later in 2023 or early 2024: Stay tuned for details about rebates that will reduce the up-front cost for low- and moderate-income families for insulation, air sealing, and efficient windows and doors.

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.
​Annual household income limits apply, depending on household size
Eligibility for weatherization assistance
HRC's weatherization assistance page
phone - (406) 728-3710
Electrical Service & Panel upgrades
Electrifying older homes may require upgrading your electrical service and/or electrical panel to accommodate increased electricity usage.

The Federal Energy Efficient Home Improvement Credit covers 30% of the cost of upgrading your electrical panel, up to $600, when done in conjunction with another energy efficiency upgrade under the same credit (e.g., heat pump or heat pump water heater).

If upgrading electrical service in conjunction with installing solar panels, this 30% credit is uncapped.

See Rewiring America's information on Electrical Panel upgrades for more details.

Later in 2023 or early 2024: Stay tuned for details about rebates that will reduce or fully cover the up-front cost for low- and moderate-income families for electrical panel upgrades.
Electrify Missoula is a collaboration between Missoula County, Climate Smart Missoula and the City of Missoula.
This website is intended for informational purposes only. Be sure to consult a professional before making your plan for electrification.
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This website is created and updated by Climate Smart Missoula. 
Learn more about all of our local climate efforts at
missoulaclimate.org
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  • Home
  • Why electrify?
    • The Movement
    • The Health Connection
    • The Local Connection
  • What to Electrify
    • Space Heating
    • Water Heaters
    • Cooking and Laundry
    • Solar
    • Transportation
  • How to Electrify
    • Make a plan >
      • Homeowners
      • Renters
      • Businesses
      • Non-Profits
    • Financing >
      • Local Rebates
    • Contractors & Installers
    • Local Resources
    • FAQs
    • Connect with Us
  • Electrify Stories