This page offers info for Residents (homeowners, renters). Info for non-residential entities (developers, business owners, nonprofit organizations) can be found here.

Getting Started

Most tax credits for electrification and clean energy projects ended December 31, 2025. However, there are some local incentives that can be often stacked. Read on to learn more about utility rebates and state or private low-interest loan options. Your household's financial situation (and other factors) will determine which incentives you can use.
  • If you completed an electrification project in 2025, make sure your tax professional claims the appropriate tax credit. Here's a miniguide to help them out.
  • Note: as of January 5, 2026, the IRS's website did not reflect the July 2025 legislative changes to the IRA tax credit timelines. The site states credits are available through 2032; however, Congress chose to expire these credits early, at the end of 2025, with minor exceptions primarily for geothermal and business-scale projects. (More on those exceptions coming soon.)
Rebates

Local rebate programs - available now
  • ​NorthWestern Energy has a rebate program 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.
*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 know about all available incentives - we're working to help them too.

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
Clearwater Credit Union Energy Efficiency & Solar Loans

Clearwater Credit Union offers two loan products that support home electrification and clean energy projects. Interest rates are subject to change; see Clearwater website for most updated rates and loan terms.

Home Energy Efficiency Loan: Eligible projects include upgrading HVAC, windows, doors, appliances, air and ground source heat pumps, mini splits, EV wiring, and insulation.
  •  Loan terms: up to $25,000 and 10 year term

Home Solar Loans: unsecured loan for solar panels; can be reamortized after receiving state or federal incentives to lower monthly payments.
  • Loan terms: up to $75,000 and 20 year term

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
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
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
Air source heat pumps (Space Heating)
NorthWestern Energy customers qualify for ENERGY STAR-rated Air Source Heat Pumps rebates of between $100-$150/ton for existing homes.
  • ENERGY STAR Rated
  •  ≥ 15 SEER and ≥ 8.5 HSPF
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)
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
Heat Pump Water heaters
Missoula Electric Cooperative customers are eligible for a rebate of $600 – $900 for qualified installations of heat pump water heaters which replace existing electric storage water heaters.

NorthWestern Energy customers are eligible for a $3,000 incentive to cover costs if switching from an existing electric water heater to a heat pump water heater.
  • N/A



  • Contractor must enroll and apply on behalf of customer.
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
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
Missoula Electric Cooperative customers qualify for up to $50 rebates for ENERGY STAR-rated washers and dryers. 
  • ENERGY STAR Rated
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
wEATHERIZATION & Efficiency
NorthWestern Energy customers may qualify for incentives of up to $1.00/sq.ft for various insulation types and investments. 
Missoula Electric Co-op offers rebates for insulation and window replacement.
  • Home must be electrically heated
  • other space limitations apply
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
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
Electrical Service & Panel upgrades
Electrifying older homes may require upgrading your electrical service and/or electrical panel to accommodate increased electricity usage.

There are currently no financial resources for this work.

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.
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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