Residential Energy Efficiency Rebates

No, rebates associated with the Home Efficiency Rebate Program and the Home Electrification and Appliance Rebate Program are not yet available.

DEQ's Energy Bureau has received Early Administrative funding from the U.S. Department of Energy (DOE) for initial design and development of the energy rebate programs. DEQ has posted a competitive solicitation for a program contractor that will help engage stakeholders, apply for the full body of rebate funding from DOE, and then implement the programs.

The Energy Bureau will provide updates to the program rollout timeline as the planning and application process moves forward.

Home Energy Rebate Program details and timelines are dependent on individual states, so the best resource for information is the Montana DEQ website and these FAQ’s. Rebate information from national sources like Rewiring America and others can provide general information on the programs and what they may offer but can also add confusion because they are not reflective of individual state’s program design.

The best option for program rollout timeline information is to suggest customers register for the Rebate Programs e-mail list. DEQ will send timeline information out to the e-mail list registrants as it becomes available.

Contractors will play an important role in rebate programs because cost reductions will be provided at the consumer’s point of sale. While details on the specific role of contractors will be forthcoming, the program rules require some form of “Montana Rebate Programs, Approved Contractor” process. To become an approved contractor, contractors will need to participate in trade-specific, baseline technical proficiency validation and/or training offerings, as well as a Rebate Programs administrative orientation process where details on invoicing processes and the contractor’s role in them will be clearly communicated. DEQ is working to prioritize simplicity and expediency in the invoicing process in our program design.

No, DBA and BABA do not apply to Home Energy Rebate Programs.

No, projects under the Home Efficiency Rebate Programs (based on the percentage of energy savings of the whole-house project) must be installed by an approved program contractor.

States have flexibility to allow households to receive a rebate for a qualified project under the Home Electrification and Appliance Rebate Programs as part of new construction. However, states are not required to provide rebates for new construction. The determination to allow new construction projects to receive rebates has not yet been made for Montana.

New construction is not eligible under the Home Efficiency Rebate Program.

Rebate eligibility and amounts for both programs are based on Area Median Income (AMI).

The Home Efficiency Rebate Program incentive amounts will be tiered based on whether your gross household income falls above or below 80% AMI with no income cap. You will receive a higher rebate amount if your income is under 80% AMI, and households with income at or above 80% AMI will receive a lower rebate amount.

The Home Electrification and Appliance Rebate Program incentives are tiered based on whether your gross household income is under 80% AMI, or between 80% and 150% of AMI. Eligibility is capped at 150% AMI. You will receive a higher rebate amount if your income is under 80% AMI and a lower rebate amount if your income is between 80% and 150% AMI. You will not be eligible for rebates under the Home Electrification and Appliance Rebate Program if your gross household income exceeds 150% AMI.

You can find AMI amounts by county and number of household members on the Housing and Urban Development (HUD) website. Note that the 80% AMI dollar amounts are listed by county on the “low income” line in the tables and you can calculate the 150% amounts from there.

Please note AMI amounts vary by year and there is an allowance for flexibility in the Rebate amounts available at a given AMI. The HUD website should only be used as general guidelines for program eligibility until the rebate programs are available.

The rebate programs contain core baseline aspects that are firmly based in federal statute but allow state-based discretion outside of those core requirements. Because of this, Montana has yet to determine final rebate program rules and must work through stakeholder engagement, program design, and submittal of a Montana-specific application for funding to DOE for approval before finalizing program details.

Potential Home Efficiency Rebate Amounts and Type: Please note that the Home Efficiency Rebate Program may be implemented using a measured savings approach, a modeled savings approach, or a combination of both. DEQ’s Energy Bureau has not made a determination on the approach that will be utilized. Please see page 12 – 14 of the Home Energy Rebates program requirement document from DOE to view what the rebate levels could be: Home Energy Rebate Programs Requirements & Application Instructions.

To view potential Home Electrification and Appliance Rebate amounts and measures, please see page 51 of the Home Energy Rebates program requirement document from DOE: Home Energy Rebate Programs Requirements & Application Instructions.

Rebates for the Home Appliance and Electrification Program will not be available retroactively.

Rebates for the Home Efficiency Rebate Program may be available retroactively in limited circumstances when all necessary preconditions are met. Updated program guidance from the Department of Energy, released October 13, 2023, makes some allowances for limited retroactive applicability for projects initiated on or after August 16, 2022. The final requirements and pre-conditions for projects to receive a retroactive rebate are still being determined. To get a sense of what could be eligible for a retroactive rebate, please see page four of the Retroactivity Fact Sheet and Eligibility Checklists.

DEQ's Energy Bureau will develop systems of implementing point-of-sale rebates and income verification during the design phase of the home energy rebate programs. Those details have not been finalized at this time.

Tax Credits are filed annually at year-end and individuals that owe taxes are eligible for a credit against their tax liability for eligible expenditures per the relevant tax code. In the case of low to moderate income households and individuals on fixed incomes that may have little to no tax liability, or insufficient funds to pay for the full cost of eligible improvements upfront, tax credits can be of limited use.

Rebates are intended to offset upfront costs of equipment and installation of measures that are included in the Rebate Programs. Rebates are helpful because they reduce the upfront cash required for eligible equipment or installation of measures (versus paying the full cost and receiving a credit at year-end) and are available to individuals that may have limited, or no tax liability.

Yes, a project or appliance that qualifies for rebates can also receive a federal tax credit under the Energy Efficient Home Improvement Credit (25C) or other qualifying credits. Be sure to verify that the measure and appliance being installed qualifies for both. The tax credit basis would be for the portion of eligible costs that the individual is responsible for paying out of pocket (i.e. not the portion of the cost covered by the rebate).

Yes, households looking for immediate home energy retrofit assistance may be eligible for other local, state, and federal programs including tax credits, Weatherization Assistance Programs, and utility programs.

Utility Rebates

• NorthWestern Energy – NorthWestern Energy has rebates available for both electric and natural gas customers. Available measures will vary depending on if you are an electric or natural gas customer and rebates must meet certain requirements. For more information please visit: Efficiency Rebates and Incentives for Homeowners (northwesternenergy.com).

• Montana-Dakota Utilities – Montana-Dakota Utilities offers rebates for furnace replacements, programmable thermostats, and LED lighting. For more information please visit: Savings for Your Home - Montana-Dakota Utilities Company.

• Electric Cooperatives – Montana electric co-ops often have rebate programs available to their members. Please visit your co-op’s website to determine if a program exists in your area.

Heat Pump Water Heater Pilot Rebate Programs

• Bozeman – The City of Bozeman is offering a $500 rebate program for water customers who install a qualifying electric heat pump water heater. For more information please visit: Heat Pump Water Heater Rebate | City Of Bozeman.

• Missoula – The City of Missoula and Missoula County are partnering to offer a local $500 rebate for heat pump water heaters for projects completed in Missoula County. For more information please visit: Heat Pump Water Heater Rebates | Missoula, MT - Official Website.

Federal Energy Efficiency Tax Credits

• Tax credits for various measures including air source heat pumps, heat pump water heaters, insulation, and more are currently available. Tax credit eligible measures must meet certain efficiency ratings. Please consult with your accountant or tax Preparer to see if you qualify for a tax credit. For more information please visit: Tax Credits for Homeowners | ENERGY STAR and About Form 5695, Residential Energy Credits | Internal Revenue Service (irs.gov).

Weatherization Assistance Program

• The Weatherization Assistance Program helps participants improve the heating efficiency of their homes, reduce their energy consumption, and lower energy bills. Participation is dependent on family size and income. The program is managed by the Montana Department of Health and Human Services (DPHHS), which also manages programs assisting with winter energy bills and water bills. For general program information, visit: DPHHS Weatherization Assistance Program. To find your local eligibility office, visit: DPHHS Local and Tribal Weatherization Offices.

Alternative Energy Revolving Loan Program

• The Energy Bureau provides low-interest loans for projects investing in alternative energy systems and energy conservation measures in Montana. For more information on project qualifications and financing, visit: MT Alternative Energy and Revolving Loan Program.

• The Montana Energy Savers Guidebook was created to help Montanans identify energy conservation measures to save on energy costs in their homes. The guidebook provides information on where to look for energy savings and how to complete the upgrades. It is a great place to start in developing a plan for residential energy conservation work that may qualify for the existing incentives covered above, in addition to rebate program incentives once available. To view the guidebook please visit: Montana_Energy_Savers_Guidebook_2024.pdf (mt.gov).

• To learn more about heat pump technology and whether it might be a fit for your home, please visit: Heat Pump Systems | Department of Energy.

• To learn more about heat pump water heater technology and whether it might be a fit for your home, please visit: Heat Pump Water Heaters | Department of Energy.

• To read additional FAQs from the Department of Energy, please visit: Home Energy Rebates Frequently Asked Questions | Department of Energy.