|
financing & incentives.
: resources and information to help you make the switch!
|
|
This page offers info for Residents (homeowners, renters). Info for non-residential entities (developers, business owners, nonprofit organizations) can be found here.
|
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.
Incentives: reduce the cost of electrification projects
Bipartisan legislation passed in 2022 included new and expanded federal tax credits and rebates for electric appliances, energy efficiency and clean energy. However, the duration of these credits was significantly shortened in July 2025 with the "One Big Beautiful Bill" legislation. Most credits now sunset at the end of 2025. If you're able, take advantage of them ASAP!
There are other incentives, too, that can be often stacked, including 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.
There are other incentives, too, that can be often stacked, including 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.
Tax Credits - Expiring Soon!
Federal tax credits worth 30% of project costs (up to certain annual limits depending on the technology) apply to projects completed before Dec 31, 2025, including:
Qualifying electric vehicles must be acquired before Sept 30, 2025 to qualify for a tax credit; EV charging infrastructure must be placed in service before June 30, 2026. Ready for a tax miniguide to share with your contractor or tax professional (including the recent July 2025 updates)? Click here. Rebates
Local rebate programs - available now
Income-qualified rebates - TBD While these rebates were officially allocated under the 2022 Inflation Reduction Act, the program launch date remains uncertain. |
Check out the federal incentive calculator below! |
*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.
|
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.
Home Solar Loans: unsecured loan for solar panels; can be reamortized after receiving state or federal incentives to lower monthly payments.
|
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)
|
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:
|
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)
|
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:
|
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. |
|
|
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:
|
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
|
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:
|
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
|
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:
|
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
|
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.
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.
