What heat pump rebates pay in Minneapolis
Three kinds of money can apply: the city, your electric company, and your gas company. We list each one by what it says on its own page. We could not read the state's heat pump page, so it is marked unconfirmed.
City of Minneapolis Green Cost Share
The rebate covers air source heat pumps, heat pump water heaters, insulation, and gas furnaces or boilers that are paired with a heat pump. It is for single-family homes and buildings with two to four units. You apply through a city partner, the Center for Energy and Environment, after the work is done.
Xcel Energy cold-climate heat pump
From Xcel's 2024 to 2026 rebate sheet, which lists the higher amount for homes that use Xcel gas. Xcel's own page shows no amount, so confirm it on your contractor's quote.
CenterPoint hybrid heat pump
For a ducted heat pump added to a home with a high-efficiency gas furnace that stays as backup. CenterPoint gas customers only.
Xcel panel upgrade
Covers the cost of a bigger electric panel if you need one to carry the heat pump. A licensed electrician must do the work.
Xcel reduced electric rate
Not a rebate, but a lower price for all electricity at homes whose main heat is electric. A heat pump counts.
State heat pump rebate
The Department of Commerce lists a residential heat pump rebate. Its page was behind a bot check and its federal sister programs say they have not launched.
A way to think about it
We cannot add these into one number for your house, because the city amount depends on the work and on where your home sits, and the Xcel amount depends on your contractor's quote. What we can say is that a Minneapolis home may get money from three places for one project. Ask for each one in writing before you sign.
What Minneapolis homes look like
The Census Bureau's American Community Survey for 2020 to 2024 counts 209,080 homes in Minneapolis. About 52% of households rent and 48% own. Only 40% of homes are detached houses, and about 12% sit in buildings of two to four units. A big share is old: 72% were built before 1980 and 43% before 1940. About 18% were built in 2000 or later.
Heating fuel matters for your rebate. About 70% of Minneapolis homes heat with natural gas from a utility line, and about 25% heat with electricity. That means most homes are choosing between keeping a gas furnace as backup (the hybrid path) and removing it. Homes that already heat with electricity can use Xcel's lower electric heating rate.
If you rent, the rebate usually belongs to the person who pays for the project. The city's partner programs are open to owners of one to four unit properties, so a landlord who owns a duplex can apply.
Hybrid or full heat pump?
A hybrid system keeps a gas furnace and adds a ducted heat pump. CenterPoint pays $1,100 for that, and the heat pump is set to hand off to the furnace when the outdoor temperature falls to the switchover point at 40 degrees Fahrenheit or lower. A full system uses a cold-climate heat pump as the main heat, which is where Xcel's higher amount and the electric rate come in. The city's list of eligible projects includes heat pumps and gas furnaces that are paired with a heat pump, so it supports both.
With a gas furnace left in place, you keep a backup for the coldest nights. Without it, you rely on the heat pump and maybe electric strips. Minneapolis winters are cold enough that you should ask a contractor for a written heating load calculation, which shows how many British thermal units of heat your home loses on a design day, and the heat pump's output at that temperature.
How the city rebate works
The city says the program, called Green Cost Share, helps home and property owners pay for energy improvements, and that the Climate Legacy Initiative funds it. You can apply directly through the Center for Energy and Environment if you finished an eligible project or bought eligible equipment within the last 60 days. A free energy visit through the Home Energy Squad is recommended but not required. After the work is done, the center sends a rebate check. The page says you can receive up to $14,000 in a Green Zone and up to $5,000 elsewhere. The city has a tool on its site to check whether your address is in a Green Zone.
We did not read the per-item amounts on the Center for Energy and Environment pages, so we do not list how much a heat pump earns inside the cap. Ask them before you buy.
Loans, if the rebate does not cover enough
For households with income under 150% of the area median, the city's partners offer a loan with 0% interest, up to $20,000, for up to 10 years. For a household of four, the city's table puts 150% at $198,600. The loan can pay for heat pumps, heat pump water heaters, attic, wall and rim joist insulation, and health and safety repairs that block weatherization, such as old wiring.
How to claim Minneapolis heat pump rebates
- Look at your bills. Note who sends your electric bill and who sends your gas bill.
- Check on the city's site whether your home is in a Green Zone.
- Book a Home Energy Squad visit if you want an expert to plan the work. It is not required.
- Hire a contractor from Xcel's partner list if you want Xcel's rebate. Ask for the rebate on the quote.
- Finish the work, then apply to the city through the Center for Energy and Environment within 60 days.
- File with Xcel or CenterPoint by their deadlines. Xcel wants invoices by December 31, 2026.
Common questions
How much can I get for a heat pump in Minneapolis?
The city rebate pays up to $5,000, or up to $14,000 in a Green Zone, for all the projects together. On top of that, Xcel's rebate sheet lists $1,500 to $2,000 and CenterPoint pays $1,100 for a hybrid system. Not every amount stacks, so check each program.
Do I need to be low income for the city rebate?
The rebate page asks only that your home is in Minneapolis and is a single-family home or a building with two to four units. The loan has an income limit of 150% of the area median.
Can I do the work first and apply later?
The city says to apply through the Center for Energy and Environment if you finished an eligible project or bought eligible equipment within the last 60 days.
Is the state heat pump rebate open?
We could not confirm it. The state's main program page says its federal rebates have not launched, and the heat pump page was behind a bot check.
Does Xcel pay if my gas comes from CenterPoint?
Xcel's heat pump page is open to electric or gas customers, and CenterPoint pays its own hybrid rebate. Each company has its own form.
What to do next
Next, read our Minneapolis insulation rebate page, since better insulation lets you buy a smaller heat pump, or return to the Minneapolis rebate hub. If your gas bill comes from CenterPoint, the CenterPoint Energy Minnesota guide lists every gas rebate.
By Sam Menard. Sources, last read October 6, 2026: City of Minneapolis residential energy efficiency rebates, City of Minneapolis residential funding partners, Xcel Energy Minnesota heat pumps, CenterPoint Energy ducted heat pump rebate, ACS housing facts (Census Bureau). All Minneapolis rebates → Every Xcel Energy Minnesota rebate →