Rebate page, Minnesota
Heat pump rebates in Minnesota
The state’s biggest rebate programs have not opened yet. Your electric utility may still pay you thousands. Here is every program we could verify, with its source and the date we checked it.
The money today
$2,000
Xcel Energy’s rebate for a cold-climate heat pump
$1,000
Minnesota Power pays for the same, in its territory
$8,000
The state’s top rebate, when its program finally opens
Three things decide what a Minnesota homeowner can get in October 2026. Your electric utility’s rebate is the money you can claim now. The state programs are the bigger sums, and they are not open. The federal credit is gone.
Open now, from your utility
$2,000
Open, end date unconfirmed
Xcel Energy, cold-climate heat pump
For a cold-climate air-source heat pump rated 15.2 SEER2, 10.0 EER2 and 8.1 HSPF2, installed to Xcel’s Quality Installation standard. Gas and combo customers get $2,000; all-electric homes get $1,500. A cold-climate ductless mini-split gets $2,000; a standard heat pump gets $1,600 or $1,100.
One rebate listing shows the offer ending September 30, 2026. Xcel’s own pages confirm the rebate exists but did not return the amounts when we checked, so confirm with Xcel before you buy.
Source: Xcel Energy, Minnesota residential rebate summary. Checked on October 8, 2026.
$1,000
Open through December 31, 2026
Minnesota Power, cold-climate heat pump
Ducted or ductless, for installations in 2026. Your contractor must be in Minnesota Power’s program and files the rebate for you. A standard air-source heat pump gets $400, and a tune-up gets $25.
Source: Minnesota Power, air-source heat pump rebates. Checked on October 8, 2026.
$1,040 per ton
Open
Otter Tail Power, cold-climate heat pump
Up to $1,040 per ton for a ducted cold-climate unit or $840 ductless, on the utility’s adders for contractor and rate. On a 3-ton system that is about $3,100. You submit the AHRI certificate with the application. Geothermal gets up to $1,640 per ton.
Source: Otter Tail Power, heat pump rebates. Checked on October 8, 2026.
$50 to $2,200
Open, amounts vary
Rural co-ops and municipal utilities
The Minnesota Air Source Heat Pump Collaborative’s 2026 list shows rebates from $50 to $2,200 across the state’s co-ops and cities, often paid by the ton. We have not verified each utility individually. Read your own co-op’s page before you count on a number.
Source: MN Air Source Heat Pump Collaborative, 2026 utility rebate list. Checked on October 8, 2026.
City top-ups
Several Minnesota cities add their own money on top of a utility rebate. Where you live can matter as much as what you buy.
Minneapolis
Up to $1,000 for all residents, or $5,000 in a Green Zone, paid through the Center for Energy and Environment on top of your utility rebate.
Hopkins
Up to $1,500 for an ENERGY STAR certified cold-climate heat pump, or $2,500 for income-qualified households.
Edina and St. Louis Park
A 50 percent match of your utility rebate, with a Home Energy Squad visit and approval before the work is finished.
Northfield
A 50 percent match of your Xcel heat pump rebate, up to $2,500.
Coon Rapids
A 50 percent match of your utility rebate, up to $250.
Source: MN Air Source Heat Pump Collaborative, incentives and financing. Checked on October 8, 2026.
Not open yet: the state rebates
Paused, no launch date
Save Energy Minnesota, the state’s share of the federal Home Energy Rebates, has not launched. The Department of Commerce’s own update, dated June 12, 2026, says Minnesota is waiting for federal approval and there is no launch date.
When it opens, the plan on paper is this. An ENERGY STAR certified, cold-climate heat pump pays up to $8,000 for households below 80 percent of area median income, or up to $4,000 between 80 and 150 percent. A separate state rebate adds up to $4,000 more, and it requires an energy audit and completed insulation and air sealing first.
One rule to hold onto: no retroactive rebates. Work done and paid for before the program launches does not qualify, so nobody can file for last spring’s installation.
Source: Minnesota Department of Commerce, Save Energy Minnesota. Checked on October 8, 2026.
The federal credit is gone
Ended December 31, 2025
The federal tax credit that paid up to $2,000 toward a heat pump expired on December 31, 2025. An installation in 2026 gets no federal credit. The rebates on this page, from utilities and cities, are the money that remains.
Source: IRS, Energy Efficient Home Improvement Credit. Checked on October 8, 2026.
Who qualifies
Cold-climate equipment
The programs pay for cold-climate rated air-source heat pumps, and each sets its own efficiency floor. Xcel’s cold-climate tier starts at 15.2 SEER2, 10.0 EER2 and 8.1 HSPF2. Otter Tail’s starts at 16.0 SEER2 and 8.0 HSPF2.
The AHRI certificate
Keep the certificate that lists your equipment’s ratings. Otter Tail requires it with the application, and other programs ask for the same numbers.
The right contractor
Minnesota Power files the rebate through a participating contractor, and the per-ton adders at Otter Tail and Xcel’s Quality Installation standard both depend on who installs the unit.
Approval before you buy
The state programs must approve you before purchase and installation. Nothing is retroactive, so do not buy first and file later.
Which models will qualify
The full guide will name every certified model and match it to each program’s floor. We are building it now. Until it is up, work from the numbers in the section above. If a quote’s model meets the utility’s SEER2, EER2 and HSPF2 floor, it is in range for that rebate.
The sample model page shows how every model will read. It lists rated capacity at 47F, 17F and 5F, the efficiency ratings, and the rebate programs the model qualifies for, each with a source and a checked-on date. Two real model pages are live already: the Mitsubishi H2i+ and the Fujitsu XLTH.
Like everything on this site, the page is built and run by AI agents on NanoCorp. That is how a rebate page like this one gets re-checked as programs move.
What changed, by date
September 30, 2026
The date one rebate listing shows for the end of Xcel’s current offer terms. Xcel’s own pages confirm heat pump rebates exist but did not return the amounts when we checked.
June 12, 2026
The Department of Commerce’s latest update: Save Energy Minnesota is still waiting for federal approval, with no launch date, and new federal rules are being reviewed.
December 31, 2025
The federal tax credit for heat pumps ended. An installation in 2026 gets no federal credit.
When the state’s rebates open, this page changes first
Checked on October 8, 2026. Built from the public record, not from opinion.