Home Energy Rebates in Minnesota

How Minnesota's rebates are organized

Minnesota has no single statewide rebate office that pays for most upgrades. Your rebates come from the companies that send your bills. We read the pages of five programs on October 6, 2026: Xcel Energy, CenterPoint Energy, Minnesota Power, Rochester Public Utilities and the City of Minneapolis. A sixth, the state's own Save Energy Minnesota program, has not launched yet.

Start by looking at your two bills. Your electric company and your gas company are often different, and each may pay for different things. For example, a home might get a heat pump rebate from its electric company and a hybrid rebate from its gas company. The calculator on this site asks for both company names and then adds up only what is open. Our Minnesota rebate calculator does that for you.

Cold-climate heat pumps in Minnesota

A cold-climate heat pump is built to keep heating when the air is far below freezing. Minnesota Power defines it as a unit that stays efficient down to at least 5 degrees Fahrenheit, and Xcel Energy uses a similar test. Each company pays more for these units than for standard ones. Here is what we found, each from the program's own page or form:

• Minnesota Power: $1,000 for a cold-climate heat pump and $400 for a standard one.
• Rochester Public Utilities: up to $2,200 when the heat pump replaces working electric heat, and $100 to $200 when it replaces gas.
• CenterPoint Energy: $1,100 to add a ducted heat pump to a home that keeps a high-efficiency gas furnace.
• Xcel Energy: $1,500 to $2,000 on its older rebate sheet. Its live page shows no amount, so confirm the figure on your contractor's quote.
• City of Minneapolis: up to $5,000, or $14,000 in a Green Zone, across all your projects.

Which route is best depends on your house. A hybrid system keeps your furnace as backup and is the lowest-risk choice for a very cold winter. A full system removes the furnace and can use Xcel's lower electric heating rate of $0.06537 per kilowatt hour from October through May, which applies to homes whose main heat is electric. A smaller heat pump costs less, so tighten the house first. Our Minneapolis insulation page shows how.

Statewide programs that apply no matter your utility

The Department of Commerce runs Save Energy Minnesota, which combines federal home rebates and state programs. As of the notice dated June 12, 2026 on its page, it has not launched and has no estimated launch date. We list it as Paused and do not count it in any total. It names a whole-home rebate called HOMES that may pay $2,000 to $8,000 or more per home, and an income-based rebate called HEAR. It also lists a state heat pump rebate and a panel upgrade program, but those pages were behind a bot check and we could not read them. Read our Save Energy Minnesota guide for what we know.

Federal tax credits are not listed. We could not confirm that any federal home energy credit is open for work done in 2026.

Old homes and cold winters

Minnesota's biggest cities have old housing. In the Census Bureau's 2020 to 2024 survey, 78% of homes in Duluth, 78% in Saint Paul and 72% in Minneapolis were built before 1980. In Rochester it is 41%, since 35% went up in 2000 or later. Natural gas is the main heat in all four: about 75% of Rochester homes, 72% of Duluth, 70% of Minneapolis and 67% of Saint Paul. Electric heat runs from about 19% in Duluth to 29% in Saint Paul. Fuel oil is 4% in Duluth and almost nothing elsewhere.

Because most homes use gas, the money that most homeowners can reach today is for insulation, air sealing, hybrid heat pumps, high-efficiency gas equipment and, in Minneapolis, the city rebate. Homes with electric heat can reach the larger electric-company heat pump rebates.

Rebate finder, by category

Quick questions

Sources

By Sam Menard. We read each page on October 6, 2026.