Montana Heat Pump Rebates
Through the NorthWestern Energy Heat Pump Water Heater Program, Montana heat pump rebates reach up to $3,000. Flathead Electric Cooperative pays $920 for a qualifying ductless heat pump, and so does Missoula Electric Cooperative, for home heating.
Find the Montana rebates for your ZIP code
If you have no JavaScript, look for your state in the program table.
Who sends your electric bill?
What are you putting in?
- Largest standard rebate available
- $920 Flathead Electric Cooperative heat pump rebates, open to customers of Flathead Electric Coop Inc
- HEAR appliance rebates
- Paused Run by DEQ. Official page
- HOMES whole-home rebates
- Paused Paid on the energy saved by a whole-home upgrade. Official page
- Tax credit under federal 25C
- Ended No credit for heat pumps installed after 31 December 2025
Rebates for heat pumps in Montana
Check your electric utility and system type to learn which open rebate fits your home.
| Program | Who can get it | Central heat pump | Ductless mini-split | Heat pump water heater | Status | Apply |
|---|---|---|---|---|---|---|
| Montana program from NorthWestern Energy: Residential Electric, Existing Home Program | Served by NorthWestern Energy LLC | $450.00 per unit | None | None | Open | Official page |
| NorthWestern Energy Heat Pump Water Heater (HPWH) Program | Served by NorthWestern Energy LLC | None | None | Up to $3,000 | Open | Official page |
| Flathead Electric Cooperative heat pump rebates | Served by Flathead Electric Coop Inc | None | $920 | None | Open | Official page |
| Missoula Electric Cooperative ductless heat pump rebate | Served by Missoula Electric Coop, Inc | None | $920 | None | Open | Official page |
Claiming Montana Heat Pump Rebates Step by Step
Rules on who installs the equipment and when paperwork goes in come from your electric utility.
- An enrolled installer who has completed program training is required for the water heater discount from NorthWestern Energy of up to $3,000. First, your installer files a Project Eligibility Form, waits for confirmation within three working days, and then submits the final project details.
- In existing homes, NorthWestern Energy's $450.00 rebate for a central heat pump can be claimed with either a hired contractor or your own installation. Choose an ENERGY STAR unit, or one that meets 15.2 SEER2 for cooling efficiency plus 8.5 HSPF2 for heating efficiency. Materials must be purchased no earlier than August 1, 2026, and you must apply by June 30, 2027 with a recent bill included.
- Members of Flathead Electric Cooperative and Missoula Electric Cooperative need electric heat to get the $920 ductless rebate. A professional installer is required by Missoula Electric Cooperative, while members of Flathead Electric Cooperative use its online rebate form to apply.
State Rebate Status and Income-Qualified Discounts
Federal rebate programs across the state are on hold, but members of electric cooperatives can still apply for extra help today.
Applications are not being taken right now, as the Montana Home Energy Rebates Program sits paused. Planning was paused in February 2025 by the Montana Department of Environmental Quality while it awaited new federal rules. After June 1, 2026, when the revised federal guidance comes in, state officials will update their November 2024 application and submit it again. Once the program launches, rebates will be based on Area Median Income, which is the midpoint income among families where you live. The appliance discounts will end at 150% of that midpoint, but households below 80% will receive more.
Meanwhile, low-income members of Flathead Electric Cooperative can earn higher rebates by filling out the optional income section. Qualifying members can also turn to Missoula Electric Cooperative, which runs the Income-Qualified Energy Efficiency Rebate Program, a separate option.
Tax Credits, Fuel Rules, and Free Weatherization in Montana
What you can claim statewide depends on heating fuel and tax laws.
- If your household earns no more than 200% of the federal poverty level, you can apply to the Montana Weatherization Assistance Program. One combined application covers weatherization and heating bill help through the Montana Department of Public Health and Human Services.
- Electric cooperatives fund only certain switches: away from an electric furnace or from electric resistance heat, such as baseboards. So the fuel you heat with now matters. Natural gas heating makes a home ineligible. Montana-Dakota Utilities limits its rebates to furnaces, to programmable thermostats, and to LED lighting.
- For home conservation projects, the Montana Department of Environmental Quality Energy Bureau provides low-interest Alternative Energy Revolving Loans.
- State and federal tax credits are both gone. After 2021, Montana repealed the energy and geothermal tax credits, and the federal 25C tax credit no longer applies after December 31, 2025.
Common Questions About Montana Heat Pump Rebates
Are any heat pump tax credits available in Montana in 2026?
Tax credits from the state and federal government are closed in 2026. The federal credit was ended by Congress under Public Law 119-21, signed on July 4, 2025. The rules were confirmed by the Internal Revenue Service in Fact Sheet FS-2025-05 on August 21, 2025. The Energy Conservation Installation and Geothermal System credits were also repealed by state lawmakers during the 2021 Montana Legislative Session.
Is this the year Montana heat pump rebates disappear?
State programs have not closed; they are just waiting to launch, and utility rebates are still active. Conditional whole-home funding went to the state in January 2025, but a revised plan must be approved by federal officials before it can be spent. After approval, point-of-sale discounts will come from the High Efficiency Electric Home Rebate Program through a third-party implementer.
How will my heat pump cost be affected by rules on new construction and incentives for contractors?
In the NorthWestern Energy Heat Pump Water Heater Program, contractors have to finish one continuing education unit. Each qualifying water heater a trained installer puts in also earns them a $500 bonus. For space heating, rebates from NorthWestern Energy and from Missoula Electric Cooperative are not open to newly built homes.
If I replace an older heat pump in Montana, can I still get a rebate?
The electric utility serving your home decides your eligibility. The ductless rebate will not be paid by Flathead Electric Cooperative when an existing heat pump is being replaced. The cooperative does have separate rebates, though, for ground source and air source heat pumps. Households that qualify for the Low Income Home Energy Assistance Program also get Energy Education automatically.
Get Montana installer quotes with the rebates taken off
Most rebates on this page are paid through the installer or need the installer's paperwork, so the quote is where the money is settled. Tell us the ZIP code and what you want installed, and installers who work with these programs send a written price with the rebates taken off.