SD Rebate Program

Montana-Dakota Utilities (Gas) - Residential Energy Efficiency Rebate Program

Administered by Montana-Dakota Utilities Co.

AI summary · 7/12/2026

Replace your natural gas furnace with a high-efficiency model (95% AFUE or higher) and receive a $300 rebate; you can also get $15 for a programmable thermostat with the furnace or $60 for a Wi-Fi thermostat on its own. To apply, fill out the Natural Gas Heating Incentive Application Form and mail it with your dealer sales invoice to Montana-Dakota Utilities; allow 4–6 weeks for processing, and note that rebates are available only for existing homes and funding is limited each plan year (January–December in South Dakota).

Offer customers $300 for high-efficiency furnace replacements (95% AFUE+) and $15 for Tier 1 programmable thermostats installed alongside qualifying furnaces, or promote the $60 Tier 2 Wi-Fi thermostat which doesn't require furnace pairing. You must ensure the furnace and thermostat meet the specifications (Tier 1 must have ≥4 daily time periods and 5-1-1 or 5-2 scheduling; Tier 2 must be Wi-Fi-connected), document the sale with invoices, and help customers complete and submit the application; remember that funding is limited and processed first-come, first-served, so early submission improves approval odds.

This rebate program incentivizes residential natural gas heating upgrades—$300 for furnaces at 95% AFUE or greater, $15 for Tier 1 programmable thermostats (with specified scheduling features) paired with qualifying furnaces, and $60 for Tier 2 Wi-Fi thermostats standalone—targeting existing-home replacements only (no new construction or fuel conversions). Funding operates on an annual calendar-year basis in South Dakota with applications processed in order received; once depleted, no further incentives are paid that year. Homebuilders are capped at 25 furnace and thermostat incentives annually, and incentive payments are issued by check within 4–6 weeks of application completion.

Program details

Program ID
3918
Last updated
6/17/2025

Eligibility

Sectors
residential
Technologies
furnaces programmable thermostats

Program summary

Montana-Dakota Utilities offers rebates to residential natural gas customers who upgrade their heating equipment. Customers can receive $300 for replacing an existing furnace with a high-efficiency model rated at 95% AFUE or higher. There are also thermostat rebates: $15 for a Tier 1 programmable thermostat (with at least four daily time settings and a 5-1-1 or 5-2 schedule, installed with a qualifying furnace), and $60 for a Tier 2 Wi-Fi thermostat that can be controlled remotely. These rebates are only for existing homes—not new construction or fuel conversions—and funding is limited each year. Applications are processed in the order they’re received, and rebates are not guaranteed once funds run out. See website for additional details.

Contact & resources

Please verify current program details with the administering agency before making any financial decisions.

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