What Minnesota Power pays in 2026
All of these are for purchases made from January 1 through December 31, 2026. Minnesota Power says its rebate cannot be more than 75 percent of the project cost for heat pumps.
Cold-climate heat pump
For a ducted or ductless system that stays efficient down to at least 5 degrees Fahrenheit. A participating contractor must install it and files the paperwork for you.
Standard heat pump
The same rules, for a heat pump that is not rated for cold weather. A tune-up of an existing heat pump earns $25.
Ground source heat pump
$1,000 per ton if the installer is a Master Installer certified by the state's geothermal association. A system tied into an existing non-electric heating system qualifies if installed on or after April 1, 2026.
Heat pump water heater
For an ENERGY STAR certified model. Apply online, by mail with the receipt, or in store at a partner retailer. Mailed forms must be postmarked by January 15, 2027.
Smart thermostat
For a low-voltage Wi-Fi thermostat in a home whose main heat is electric.
Dual Fuel electric rate
A cheaper electric rate for electric heat that the company may pause on very high demand days. You need a backup heat source and a second meter.
Minnesota Power also lists rebates for appliances, windows and other items. We read only the pages for the amounts above, so we do not list the others here.
Why this utility pays so much for cold-climate models
Winters in northeastern Minnesota are long and cold. A standard heat pump can lose much of its output when the air falls well below freezing, and a cold-climate model is built to keep working. Minnesota Power pays $1,000 for that kind of model and $400 for the plain kind, which is more than double. The page defines the cold-climate type as one that stays efficient down to at least 5 degrees Fahrenheit, and tells you to ask a participating contractor which units qualify. It also excludes reconditioned or resale equipment.
A heat pump alone may not cover every winter day in a cold place. Many homes keep a furnace, boiler or wood stove as backup. The Dual Fuel rate below is built for that setup.
The Dual Fuel rate
Dual Fuel is a rate, not a rebate. Minnesota Power cuts your price per kilowatt hour on electric heat in return for the right to briefly turn that load off when electricity is both scarce and expensive. It comes in two versions. Standard has a small discount and short interruptions. Plus has a bigger discount and potentially longer interruptions, and it is only for electric heat with a proper non-electric backup. The service needs its own meter socket and a separate panel that feeds only the interruptible equipment.
The size of the discount is shown in a chart image on the company's page that we could not read, so we cannot give a number. Call the company and ask for the current price per kilowatt hour before you decide.
Use a participating contractor
For heat pumps, the page says you must use a participating contractor to qualify, and the contractor completes the paperwork. A contractor lookup tool is on the company's site. For the water heater and thermostat rebates, you can file the form yourself with the receipt. The company asks you to allow eight to ten weeks for a check. If you give a valid email address, other payment choices may appear, such as a prepaid card.
Minnesota Power and some city-owned electric companies share these programs. The page lists them as participating utilities, so check the list if your electric company is not Minnesota Power.
Stacking with other help
The terms on the water heater page say it cannot be combined with another offer from Minnesota Power or its participating utilities for the same item. They do not say other companies' offers are blocked. If your home also uses gas, ask your gas company what it pays. We did not read any gas company's page for this region and we do not list its amounts.
How to claim a Minnesota Power rebate
- Look at your electric bill to confirm you are a Minnesota Power customer or a customer of a participating city utility.
- For a heat pump, pick a participating contractor from the company's lookup tool.
- Buy and install the equipment by December 31, 2026.
- Have the contractor file, or file the water heater and thermostat form yourself with the receipt.
- Wait eight to ten weeks for the check.
Our pages for Minnesota Power customers
- Duluth: The largest city on Minnesota Power's electric lines.
Guides
- Duluth heat pump rebates
- Duluth water heater rebates
- Xcel Energy Minnesota rebates
- Save Energy Minnesota state programs
- Minnesota rebate hub
- Minnesota smart thermostat rebates
Common questions
How much does Minnesota Power pay for a heat pump?
$1,000 for a cold-climate model, either ducted or ductless, and $400 for a standard model. The rebate cannot be more than 75 percent of project cost.
What counts as a cold-climate heat pump?
The company defines it as a system that stays efficient down to at least 5 degrees Fahrenheit. Ask a participating contractor for the models that qualify.
Is the water heater rebate open now?
Yes, for purchases from January 1 to December 31, 2026. It pays $300 on an ENERGY STAR certified heat pump water heater.
Can I use a ground source heat pump on a home with a gas furnace?
Yes. Connection to an existing non-electric heating system is eligible when installed on or after April 1, 2026.
Does Minnesota Power serve Duluth?
Minnesota Power is a Duluth-based company, but check your own electric bill to be sure which company serves your address.
By Sam Menard. Sources, last read October 6, 2026: Minnesota Power heat pump rebates, Minnesota Power cold-climate ductless rebate, Minnesota Power ground source heat pump rebate, Minnesota Power heat pump water heater rebate, Minnesota Power Dual Fuel rate. All rebate programs →