Electric Heat Reaches 27% of Montana Homes
HVAC contractors and utilities serving Montana should expect electric and heat pump demand to keep rising as gas's share falls.
Updated on Nov. 5, 2026 in Utilities
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Electricity has become the primary heating source for nearly 27% of occupied Montana homes in 2025, up from 16% in 2000. Operators in Montana's utility, HVAC, and home-services sectors face a shifting fuel mix.
Why it matters
The growth in electric heating reflects rebates, tax incentives, and improved heat pump performance in cold climates, making electric systems more appealing to homeowners. Gas still heats a majority of homes, but its share fell from about 72% to 64% over the same 25 years.
Electric heating now serves 130,000 Montana homes, up from 58,000 in 2000, and gas serves 310,000 homes, up from 257,000. Fuel oil and kerosene heat just 0.7% of occupied homes, down from 3.1%, and about 3,500 residences use no heating fuel.
The details
Montana's heating shift is measured by the primary fuel reported in census survey data, which compares 2000 census long-form results with later American Community Survey figures. An earlier study found that only 2% of new single-family homes in its sample had electric heating systems in 2012, while a 2025 study put that share at 13.5%. The growth in electric heating is tied to rebates, tax incentives, and heat pump technology that now performs in cold climates, which lowers the barrier for homeowners who might otherwise choose gas.
Timeline
2000: Electric heating held a 16% share of occupied Montana homes.
2012: An earlier study found 2% of sampled new single-family homes used electric heating.
2019: Electric heating reached 26.2% of occupied homes.
2025: Electric heating reached nearly 27% of occupied homes, and gas fell to 64%.
Market Landscape
Montana's electric heating share has climbed steadily through the Census series, from 16% in 2000 to 26.2% in 2019 and nearly 27% in 2025. The trend moves the state's heating mix toward electricity while gas remains the majority fuel at 64%.
Utilities and HVAC contractors serving Montana should watch the growing demand for electric and heat pump systems as rebates and tax incentives widen the appeal of electric heating. Operators with gas-dependent service lines may want to reassess their mix of installation and maintenance work as the fuel share shifts.
The takeaway
Montana's shift toward electric heating is measurable across 25 years of census data and is still rising, so operators should track the electric share in their service areas. Consider reviewing your heat pump and electric system offerings against the state's current fuel mix.
Further reading
For context on how heating choices shape demand, see the Utilities coverage on Montana's energy sector.
Source note: This article includes information reported by Montana Free Press.
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