Montana Alternative Energy Revolving Loan Program (DEQ)
Low-interest state loans for residential renewable energy projects, applied for through DEQ. Funded by repayments rather than federal appropriation, so it keeps operating.
Program detailsMontana home energy costs & incentives
Not available yet — but Montana runs a state loan fund that has been quietly financing renewable projects for years.
Prices pulled August 16, 2026
What energy costs here
12.98¢
per kWh, residential electricity
25% below the national average of 17.3¢. 46th most expensive of 51.
Up 16% since 2021 (3.7% a year), against 27% nationally.
$0.87
per therm, residential natural gas
$8.99 per thousand cubic feet, 2025 annual. National average $1.48/therm.
Up 1% since 2021 (0.4% a year).
Heat pump vs. gas furnace — Close call
Montana's electricity-to-gas price ratio works out at 4.4-to-1. At these prices the two land near each other on running cost, which puts the decision on installation cost, whether your AC also needs replacing, and how cold your winters get.
Below roughly 3.5-to-1 a heat pump usually wins on running cost; above roughly 5-to-1 a furnace may be cheaper through winter. How that comparison works · run it with these rates
State averages from the U.S. Energy Information Administration (electricity, gas), pulled 2026-08-16. Real bills vary substantially by utility within a state, and by rate plan within a utility — check a recent bill for your own numbers before relying on any of this. The heat pump verdict above follows from these averages, so it moves if your rates differ.
What's different in Montana
Montana DEQ has a conditional federal award and says plainly that the programme is not currently available, with final approval of the implementation award required before rollout. There is no date and nothing to apply for.
What Montana does have is the Alternative Energy Revolving Loan Program — low-interest state loans for residential renewable energy projects, applied for through DEQ. Revolving means it is refilled by repayments rather than depending on a federal appropriation, which is exactly why it has kept running while the rebates have not.
Weatherization and heating bill assistance share a single combined paper application submitted to your local or Tribal eligibility office. Weatherization takes applications year round; the heating assistance window runs from October to April, so the autumn application covers both.
Montana winters are long and severe, and much of the state heats with natural gas, propane or wood. In the high-altitude and eastern plains communities, design temperatures are low enough that cold-climate heat pump specification genuinely matters — a unit rated at 47°F tells you almost nothing about what you will get at −10°F, and the capacity tables at your actual design temperature are the numbers to ask for.
Check with the administrator before you sign anything. Program budgets run out, terms change without notice, and most require approval before work starts — a rebate you apply for afterwards is usually a rebate you don't get. Treat this page as a starting point for your own call, not as confirmation that you qualify. We last checked these programs on August 16, 2026.
Montana programs
Montana Weatherization and LIHEAP (DPHHS)
Income-qualified weatherization and heating bill assistance share one combined application to your local or Tribal eligibility office. Weatherization is year round; heating assistance runs October to April.
Program detailsThe federal position — the same everywhere
- Residential Clean Energy Credit (Section 25D)Ended
Ended. No credit for expenditures made after 31 December 2025.
- Energy Efficient Home Improvement Credit (Section 25C)Ended
Ended. No credit for property placed in service after 31 December 2025.
Full detail, sources and changelog on the national incentive tracker.
Where to check for your address
- Montana DEQ — Energy efficiency programs
- Montana DPHHS — Energy assistance and weatherization
- DSIRE — search state, local and utility programs by ZIP
- ENERGY STAR Rebate Finder
- U.S. DOE — Home Energy Rebates, by state
Your own utility is worth checking separately — utility rebates are often the largest remaining incentive and rarely appear in any central listing.
Not tax advice
Everything here is general information gathered from public sources. It is not tax, financial or engineering advice, and it cannot account for your utility, your income, your equipment or your return. Energy prices are state averages that move; program terms and budgets change without notice. Confirm anything you plan to budget around directly with the program administrator, your utility and a licensed professional before you commit money.
If you find something on this page that is out of date, tell us at minchangyi@me.com and we will correct it.
Run the numbers for your house
These open with Montana's average rates already filled in. Correct them from a recent bill before you rely on the result — state averages hide a lot of variation between utilities.
Guides behind these numbers
- Heat Pump vs. Gas Furnace: The Real 2026 Cost ComparisonUpfront cost, operating cost, and total cost of ownership for heat pumps vs. gas furnaces in 2026 — with the trade-offs most guides skip.HVAC · 6 min read
- The Gas-to-Heat-Pump Rebate Is Gone. The Electric-to-Heat-Pump One Isn't.DOE Program Notice 26-2 removed fuel switching from the HEAR rebates. Here's exactly what changed, who is still eligible, and what to do if your project is already underway.HVAC · 6 min read
- How to Tell If Your HVAC System Is Properly Sized (Manual J Explained)An oversized or undersized HVAC system wastes money and comfort. Here's what proper sizing means and how to know if yours is right.HVAC · 4 min read
- Insulation vs. HVAC Upgrades: Which Should You Prioritize First?Before spending on a new HVAC system, it's often smarter to fix your home's envelope first. Here's how to decide the right order.HVAC · 3 min read
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