What heat pump rebates pay in Duluth
These amounts are for 2026 purchases. Minnesota Power says the rebate cannot be more than 75 percent of the cost of product and labor, and the offer can be withdrawn without notice.
Cold-climate heat pump, ducted or ductless
The system must stay efficient down to at least 5 degrees Fahrenheit. Reconditioned or resale equipment does not qualify.
Standard heat pump, ducted or ductless
Same rules, for a unit that is not cold-climate rated.
Heat pump tune-up
For servicing an existing heat pump.
Ground source heat pump
Open or closed loop. Hookups to an existing non-electric heating system qualify from April 1, 2026.
Dual Fuel electric rate
For electric heat with a backup. Standard and Plus versions.
State heat pump rebate
The state lists a program, but its page was behind a bot check.
Working it out
A $14,000 cold-climate system earns $1,000, because 75 percent of the cost is $10,500, which is far higher than the rebate. A ground source system of 4 tons earns 4 x $800 = $3,200, or 4 x $1,000 = $4,000 with a Master Installer.
Duluth homes and heating fuel
The Census Bureau's American Community Survey for 2020 to 2024 counts 39,978 homes in Duluth. About 72% heat with natural gas from a utility line, 19% with electricity, 4% with fuel oil and 3% with bottled gas. About 78% were built before 1980 and 43% before 1940. Fuel oil and bottled gas are about 7% of homes together, and these are the homes most likely to see a big drop in their heating bill from a heat pump. The census table does not give prices, so we cannot say how much any home would save.
What counts as cold-climate
Minnesota Power explains that a cold-climate heat pump is a newer kind that gives heat at high efficiency in subzero temperatures. Its rebate rule is simple: the system must keep working efficiently down to at least 5 degrees Fahrenheit. The company says to ask a participating contractor which models qualify. You can still choose a standard unit and take $400, but it may not carry you through a deep cold snap.
Whatever you choose, ask the contractor to show the unit's heating output at the coldest temperatures where you live, and to size the system to the heat your house loses, not to the size of the old furnace.
Backup heat
Keep a backup for the coldest days unless the contractor shows in writing that the heat pump alone can do it. Many homes keep the furnace or boiler. The Dual Fuel rate pairs well with that. You get a lower electric price and accept brief interruptions when electricity is scarce and expensive. The page says you must be ready to heat with a non-electric backup, or have enough stored heat, during interruptions.
Check the details
Purchases must be made and installed by December 31, 2026. The contractor must be a participating contractor, and the company lists them on its site. Allow eight to ten weeks for the check. If you give a valid email address on the application, extra payment choices such as a prepaid card may appear. For help with the status of a rebate, the company gives a toll-free phone line on its page.
How to claim a Duluth heat pump rebate
- Confirm Minnesota Power or a participating utility sends your electric bill.
- Get quotes from participating contractors for a cold-climate system.
- Ask each contractor to show the cold-weather rating and to size the unit to your home.
- Have the system installed by December 31, 2026.
- Let the contractor file the rebate for you, and wait eight to ten weeks.
Common questions
How much does Minnesota Power pay for a heat pump in Duluth?
$1,000 for a cold-climate model, ducted or ductless, and $400 for a standard model.
Is there a cap?
Yes. Minnesota Power says the rebate cannot be more than 75 percent of project cost including product and labor.
Can I use the rebate with a gas furnace?
The page does not exclude it. A heat pump with a furnace backup is common. Ground source systems tied to an existing non-electric system qualify from April 1, 2026.
Is the state rebate open?
We could not confirm it, and the state's federal rebates say they have not launched.
What to do next
If you also need hot water, see the Duluth water heater page, or return to the Duluth rebate hub. The Minnesota Power guide lists everything the company pays.
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 Dual Fuel rate, ACS housing facts (Census Bureau). All Duluth rebates → Every Minnesota Power rebate →