What Rochester homes can get in 2026
These amounts come from the utility's own form. You must be connected to an active electric account with Rochester Public Utilities.
Heat pump replacing working electric heat
The most money goes to cold-climate models that replace electric heating. The rebate cannot be more than half of the equipment cost.
Ducted heat pump with backup heat
Heating and cooling together, with a backup that takes over at 30 degrees Fahrenheit or lower.
Ground source heat pump
Plus a bonus for efficiency above the minimum.
State HOMES and HEAR rebates
The state says it has no launch date, so we do not count them.
What Rochester homes look like
The Census Bureau's American Community Survey for 2020 to 2024 counts 54,492 homes in Rochester. About 65% of households own and 35% rent, a higher share of owners than in the Twin Cities. 59% of homes are detached houses and 7% are in buildings of two to four units. Rochester is newer than Minneapolis, Saint Paul or Duluth in this census table: only 41% of homes were built before 1980 and 8% before 1940, while 35% were built in 2000 or later. About 75% heat with natural gas from a utility line, 21% with electricity and 2% with bottled gas.
That mix changes the advice. Newer homes are often tighter, so a heat pump may be the better first project than insulation. Gas heat is the majority, and Rochester Public Utilities pays much less when a heat pump replaces gas, so the electric rebate fits electric-heat homes best.
How the city utility sets its amounts
The utility's form pays by what your heat pump replaces. Replacing working electric heat earns $900 to $2,200. Replacing an older heat pump earns $125 to $500. Replacing gas or another fuel earns $100 to $200. A new build or a failed system earns $800 to $2,000. This makes sense for a utility that sells electricity: a heat pump that takes the place of electric heat saves the most electricity. Our Rochester heat pump page works through the table.
Rules you should know before you shop
Rebates of $500 or less are credited to your utility bill. Larger rebates are credited unless you tick the box asking for a check. Rebates will not exceed the purchase price. The utility can apply a rebate to a past-due account. Equipment replaced under warranty does not qualify. Applications for 2026 purchases must arrive by March 31, 2027. The utility says it can end the offer at any time, and it takes applications in the order received. If money runs out, it will not pay a rebate for items installed after the stop date that year.
The form also says your information may be shared with the Minnesota Department of Commerce and the utility's co-op partners.
If your home uses gas
Rochester Public Utilities sells electricity. If a gas company serves your home, that company may have its own rebates for furnaces, water heaters and insulation. We did not read a gas company's page for Rochester, so we do not list amounts. Ask your gas company, and ask your contractor to work out whether a heat pump or a new furnace costs less to run for your house.
Every rebate guide for Rochester
- Water Heater rebates in Rochester
- Heat Pump rebates in Rochester
- Minnesota smart thermostat rebates (all utilities side by side)
How to get started in Rochester
- Confirm your home is on an active electric account with Rochester Public Utilities.
- Decide which upgrade you want and read its row in the 2026 form.
- Get the contractor's efficiency certificate and a complete invoice.
- Send the form by email or mail, as soon as the work is done.
- Expect a bill credit for $500 or less, or tick the check box for a larger rebate.
Common questions
Does Xcel Energy serve Rochester?
Rochester has its own city-owned electric company, Rochester Public Utilities. Look at your bill to see who sends it.
What is the biggest rebate?
Up to $2,200 for a cold-climate heat pump that replaces working electric heat.
Is the money guaranteed?
No. The utility handles applications first come, first served and can withdraw the offer without notice.
When is the deadline?
For 2026 purchases, applications must be received by March 31, 2027.
What to do next
Go deeper with the Rochester heat pump page or the heat pump water heater page, or read the full Rochester Public Utilities guide.
By Sam Menard. Sources, last read October 6, 2026: Rochester Public Utilities 2026 equipment rebate form, Rochester Public Utilities residential rebates, City of Rochester energy efficiency programs, ACS housing facts (Census Bureau). All Rochester rebates → Every Rochester Public Utilities rebate →