What Xcel Energy pays in Minnesota
Every card below names where the number came from. A card marked "Confirm status" means we could not read a current page that states the amount.
Cold-climate heat pump
The 2024 to 2026 rebate sheet lists $2,000 for homes that use Xcel gas and $1,500 for homes with Xcel electric only. The unit must keep working well in cold weather and be installed by a contractor in Xcel's partner network. Ask your contractor for the exact figure.
Standard heat pump and mini-split
Same sheet. A mini-split is a small wall-mounted heat pump with no ducts. You may install a mini-split yourself and still apply.
Ground source heat pump
A ground source heat pump pulls heat from underground. A heating ton is a size measure, so a bigger system earns more.
Heat pump water heater
A smart model can join Xcel's demand program, which earns the higher amount. Units over 80 gallons do not qualify.
Attic, wall and air sealing
Up to $600 for air sealing, $1,200 for attic insulation and $1,200 for wall insulation. A $600 bonus follows if you add a qualifying heat pump within two years.
Electric panel upgrade
The rebate covers the full project cost up to the limit. The new panel must carry more amps than the old one.
Gas furnace and boiler
For Xcel natural gas customers. A 97 percent efficient furnace in an existing home earns $400. A 95 percent efficient gas boiler earns $400.
Rooftop solar (Solar*Rewards)
Xcel pays you for each kilowatt hour your panels make, once a year for ten years. Income-qualified homes also get $3.00 per watt up front. Xcel's page shows a limited budget and a queue, and we did not read the budget page, so we cannot say whether money is left.
Smart thermostat
For Xcel electric customers with central air conditioning. The live page shows no amount, so we list the figure from the rebate sheet and mark it unconfirmed.
Xcel also sells a visit called the Home Energy Squad. The basic visit costs $70 and the longer one with an air leak test costs $100. Income-qualified customers can get free visits.
How the heat pump rebate works
Xcel's heat pump page does not print a dollar figure. It says you get a project quote from a contractor in its Trade Partner Network, and that quote lists the rebates you qualify for. Your contractor then files the paperwork, and the rebate is either mailed as a check or taken off your invoice. The page says the work must be finished and invoiced by December 31, 2026, and that applications are accepted through September 30, 2027.
The only public list of dollar amounts we could open was the 2024 to 2026 rebate summary. It lists $2,000 for a cold-climate heat pump in a home that uses Xcel gas, and $1,500 where Xcel provides electricity only. A newer sheet dated July 24, 2025 is linked from the live page, but the file would not open for us. We also saw one place where the live page and the old sheet disagree: the gas boiler rebate is $400 on the page and $250 on the sheet. So treat the heat pump amounts as likely, not final.
A lower electric rate for heat pump homes
Xcel also offers a reduced electric rate if your main heat is electric, and a heat pump counts. The rate is $0.06537 per kilowatt hour from October 1 through May 31 and $0.13069 from June 1 through September 30. It applies to all the electricity at your home, not only the heat. If you got a heat pump rebate and are not yet on the rate, Xcel says you can enroll through your online account starting in September 2026.
This matters for your running costs more than the one-time rebate does. Before you sign, ask your contractor to estimate your winter bill on the reduced rate and compare it with what you pay now for gas.
Gas customers and electric customers get different things
Look at your Xcel bill. Some homes buy both gas and electricity from Xcel. Others buy only one, and many homes get gas from CenterPoint Energy and electricity from Xcel. The gas furnace, gas boiler and gas water heater rebates need an Xcel gas account. The heat pump water heater, panel and thermostat rebates need an Xcel electric account. The heat pump rebate is open to customers of either kind, and the sheet pays more to homes that use Xcel gas.
If your gas comes from CenterPoint, read our CenterPoint Energy Minnesota rebate guide. It has a heat pump rebate of its own for homes that keep a gas furnace as backup.
Rooftop solar: paid by the kilowatt hour
Xcel's Solar*Rewards program does not take money off the price. It pays you $0.03 for each kilowatt hour your system makes, by check each January or February, for ten years. You also get net metering, which means extra power you send to the grid shows up as a credit on your bill. To apply, you must own the home and the name on the application must match the Xcel account. The system must be sized so that its expected output, with any other solar on the property, is no more than 120 percent of your past twelve months of use.
The page says the 2026 program began taking applications on January 7, 2026, and that the 2025 queue did not carry over. It also points to a separate page with budget figures, which we did not read. That is why we mark this card as unconfirmed. If you want solar, call a solar installer and ask whether Xcel still has money in the residential block for this year. Do not start building before Xcel approves the application, because the page warns against it.
What the insulation rebate asks of you
The insulation rebate is the most detailed one. A contractor from Xcel's list must do all the work, and you cannot do it yourself. The contractor tests the house for air leaks before and after with a blower door, a fan that sits in a doorway. Air leaks must fall by at least 15 percent. Attic insulation must start at a low level and end at a high one, and wall insulation counts only if the wall was empty. New homes, additions, mobile homes and buildings with more than four units do not qualify. You may receive one attic, one wall and one air sealing rebate per year.
How to claim an Xcel Energy rebate in Minnesota
- Check your bill. Note whether Xcel provides your gas, your electricity or both.
- For a heat pump, insulation or panel job, pick a contractor from Xcel's partner lists and ask for a written quote that shows the rebate.
- For a water heater or furnace, you can ask your contractor to file, or fill in the form yourself.
- Keep the invoice. The model numbers on it must match the form exactly.
- Send the application by September 30 of the year after the work. Xcel says to allow up to eight weeks for a check.
Our pages for Xcel Energy Minnesota customers
- Minneapolis: Xcel Energy and CenterPoint Energy rebates, plus the city's Green Cost Share rebate.
- Saint Paul: Xcel Energy and CenterPoint Energy rebates for older Saint Paul homes.
Guides
- Minneapolis heat pump rebates
- Minneapolis insulation rebates
- CenterPoint Energy Minnesota rebates
- Save Energy Minnesota state programs
- Minnesota rebate hub
- Minnesota smart thermostat rebates
Common questions
How much does Xcel Energy pay for a heat pump in Minnesota?
Xcel's 2024 to 2026 rebate sheet lists $1,500 to $2,000 for a cold-climate heat pump, depending on whether the home uses Xcel gas. Xcel's live page shows no amount and says your contractor's quote lists what you get, so confirm before you sign.
When must the work be finished?
Xcel's heat pump page says installations and invoices must be done by December 31, 2026. Applications are accepted through September 30, 2027.
Can I install a heat pump myself?
Only a non-ducted mini-split. You must send the efficiency certificate, the cold-climate proof for the model and your receipt.
Do I need to use an Xcel contractor?
For heat pumps, insulation, and air sealing, yes. Insulation work by anyone not on the list is denied, and self-installed insulation does not qualify.
Is there a rebate if I only have Xcel electric and heat with gas from another company?
Yes. The heat pump, water heater and panel rebates are tied to the Xcel electric account. Gas appliance rebates need Xcel gas.
By Sam Menard. Sources, last read October 6, 2026: Xcel Energy Minnesota home rebates, Xcel Energy Minnesota heat pumps, Xcel Energy 2024 to 2026 Minnesota rebate summary, Xcel Energy insulation and air sealing, Xcel Energy electric space heating rate. All rebate programs →