Program Overview
The Inflation Reduction Act has residential energy efficiency and electric appliance rebates through the Home Energy Performance-Based, Whole House Rebates (HOMES) and High-Efficiency Electric Home Rebate Act (HEEHRA) programs.
Both rebate programs will be administered through Montana’s energy program at the Department of Environmental Quality.
Upgrading to high-efficiency electric appliances, adding insulation, air sealing, ventilation, and upgrading in-home electrical panels are eligible for rebates under the HEEHRA program. The HEERHA program will offer rebates at the point-of-sale for individual items.
HOMES provides energy efficiency rebates determined by energy savings of the whole house that include a combination of measures such as appliance upgrades, weatherization and electrical upgrades. HOMES will require applicants to demonstrate savings by comparing energy consumption before and after the projects.
Rebate qualification for both programs is based on Area Median Income (AMI). Income verification will be required to determine the total qualified rebate. Appliances must also meet certain efficiency standards. Both programs can be utilized for single-family, multi-family, and manufactured housing.
Information on how to apply for the rebates will be coming soon from DEQ. In the meantime, more information on both programs can be found on the Department of Energy’s website:
U.S. Department of Energy Home Energy Rebate Program Webpage
Residential Energy Efficiency Rebates Contacts
Energy Engineer
Vacant
Energy Resource Professional
Meranda Bass (406) 444-6586
High-Efficiency Electric Home Rebate Program (HEEHRA)
- Maximum rebate amounts for individual measures based on income qualification:
- Heat pump water heater: Up to $1,750
- Heat pump for space heating and cooling: Up to $8,000
- Electric stove, cooktop, range, or oven: Up to $840
- Heat pump clothes dryer: Up to $840
- Electrical load service center upgrade: Up to $4,000
- Insulation, air sealing, and ventilation: Up to $1,600
- Electric wiring: Up to $2,500
- Maximum rebate per building is $14,000 with percentage caps varying by income and building type.
- Single family at 80-150% area median income: 50% of project costs or 50% of maximum
- Single family at less than 80% area median income: 100% of project costs or 100% of maximum
- Multifamily with 50% of occupants at 80-150% area median income: 50% of project costs or 50% of maximum
- Multifamily with 50% of occupants at less than 80% area median income: 100% of project costs or 100% of maximum
- Additional qualifications
- Efficiency Standards: Must meet Energy Star
- Available through 12/31/2032
Home Energy Performance Based, Whole-House Rebates (HOMES)
- Rebate information
- Participating homes will undergo comprehensive retrofits that could include a combination of measures listed under HEEHRA (appliance upgrades, insulation, air sealing)
- Energy savings must be verified through “modeled” or “measured” methods. Complete guidance is being developed by the U.S. Department of Energy on qualifying for each method.It’s advised to seek consultation from professionals when participating in HOMES
- Rebate amount
|
Energy Savings |
Rebate Amount |
|||
|---|---|---|---|---|
|
Single Family Home |
Single Family Home |
Multifamily Homes |
Multifamily Homes |
|
|
Modeled Savings Methodology |
||||
|
20% - 35% |
Lesser of $2,000 or 50% of project costs |
Lesser of $4,000 or 80% of project costs |
$2,000 per dwelling unit, maximum $200,000 per building |
Lesser of $4,000 per dwelling unit or 80% of project costs |
|
35% or more |
Lesser of $4,000 or 50% of project costs |
Lesser of $8,000 or 80% of project costs |
$4,000 per dwelling unit, maximum $400,000 per building |
Lesser of $8,000 per dwelling unit or 80% of project costs |
|
Measured Savings Methodology |
||||
|
15% or more |
50% of project cost or $100 per 1% reduction from average single family home energy use |
80% of project cost or $200 per 1% reduction from average single family home energy use |
50% of project cost or $100 per 1% reduction from average multi- family home energy use |
80% of project cost or $200 per 1% reduction from average multi- family home energy use |
Are home energy rebate funds currently available?
No. Rebates associated with the HOMES and HEEHRA programs are not yet available.
The U.S. Department of Energy (DOE) is currently developing program guidance and timelines for fund distribution to state and Tribal offices. Purchases and projects in 2023 will not qualify for HOMES or HEEHRA until funds are made available by DOE and a program is administered by DEQ’s Montana Energy Bureau.
U.S. DOE expects households to be able to access rebates in late 2023 or early 2024. The Montana Energy Bureau will provide updates to the timeline as more details develop.
Will home energy rebate funds be available retroactively?
According to the U.S. Department of Energy, the law does not authorize states to offer Home Electrification Rebates retroactively.
How will point-of-sale rebates and income verification be implemented?
Guidance on income verification and point-of-sale rebates is being developed by the U.S. Department of Energy. Information will be added here as it becomes available. Area median income values are estimated at: https://www.huduser.gov/ portal/datasets/il.html
Can HEEHRA and HOMES rebates be stacked with federal tax credits?
Yes. A project or appliance that qualifies for HEEHRA or HOMES rebates can also receive a federal tax credit under the Energy Efficiency Home Improvement Credit (25C) or other qualifying credits. However, tax credits may have higher efficiency requirements than HEEHRA and HOMES. So, make sure the measure or appliance qualifies for both.
Are other programs currently available for home energy projects?
Yes. Households looking for more immediate home energy retrofit assistance may be eligible for other state and federal programs including tax credits, Weatherization Assistance Programs, and utility programs.
Federal Tax Credits
Energy efficiency, renewable energy, electric vehicle (EV), and EV charging tax credits have been increased and are effective January 1, 2023, for the current tax year 2023 and beyond.
More information on tax credit opportunities, visit:
For Homeowners - Federal Income Tax Credits and Incentives for Energy Efficiency
Alternative Energy Revolving Loan Program
The Montana Energy Bureau provides low-interest loans for projects investing in alternative energy systems and energy conservation measures in Montana.
More information on project qualifications and financing, visit:
MT Alternative Energy and Revolving Loan Program
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
Find your local eligibility office:
DPHHS Local and Tribal Weatherization Offices
Utility Programs
Local utilities may also provide electric, fuel-source, or energy efficiency rebate programs for ratepayers.
Check your utility’s website or the following database for incentives: