Minnesota

Heat pump incentives in Minnesota

No statewide rebate program

verified 2026-07

Incentives run through your utility

No single statewide program. Cold-climate air-source heat pumps qualify for utility rebates: Xcel Energy Minnesota up to $2,000 (largest), CenterPoint up to $1,500 for hybrid conversions, Minnesota Power up to $1,200. A homeowner claims ONE utility program. Cold-climate equipment required statewide.

Program source: mn.gov/commerce

Utility programs in Minnesota

These are the named utility and ratepayer rebates on file for Minnesota. You claim the one that serves your address, not the total. Each card carries the program’s own terms: what equipment qualifies, who is eligible, what the cap actually is, and whether it stacks.

Xcel Energy Minnesota

xcelenergy.com

$2,000

maximum

You claim it after installFlat amount

Cold-climate air-source heat pump up to $2,000; +$600 insulation. Largest single Minnesota utility rebate.

Equipment that qualifies: Cold-climate air-source heat pump; confirm SEER2/HSPF2 tier.
Who qualifies, and the cap: Xcel Energy Minnesota electric customers. Up to $2,000.
Stacking: Add-on: +$600 insulation on the same project. Largest single Minnesota utility HP rebate.

CenterPoint Energy

centerpointenergy.com

$1,500

maximum

You claim it after installFlat amount

Ducted air-source heat pump up to $1,500 in a hybrid setup with a high-efficiency gas furnace (switchover <=40F); installed 2026.

Equipment that qualifies: Ducted air-source heat pump in a dual-fuel/hybrid setup with a high-efficiency gas furnace (switchover <=40F).
Who qualifies, and the cap: CenterPoint Energy Minnesota customers; hybrid dual-fuel configuration; installed 2026. Up to $1,500.
Stacking: Hybrid HVAC rebate; confirm additional CenterPoint gas measures.

Minnesota Power

mnpower.com

$1,200

maximum

You claim it after installFlat amount

Cold-climate ducted/ductless heat pump; enhanced $1,200 for installs Apr 1-Jun 30, 2026; participating contractor.

Equipment that qualifies: Cold-climate ducted or ductless heat pump; confirm SEER2/HSPF2 tier.
Who qualifies, and the cap: Minnesota Power residential customers; participating contractor; seasonal enhanced window.
Stacking: Enhanced $1,200 for installs Apr 1 to Jun 30, 2026; confirm base-period amount.

Connexus Energy

connexusenergy.com

Varies

by measure

You claim it after installVaries by measure

Connexus Energy (largest Minnesota electric co-op, 147,000+ members, Great River Energy member): cold-climate air-source heat pump rebate; specific amount not published here. Confirm the current figure. Applications by 12/31/2026.

Equipment that qualifies: ENERGY STAR rated or AHRI-listed cold-climate air-source heat pump; confirm SEER2/HSPF2 tier.
Who qualifies, and the cap: Connexus Energy members (eight counties north of the Twin Cities). Installing contractor must be registered (hvacredu.net/natex.org). Apply by 12/31/2026. Confirm current amount.
Stacking: Limit one rebate per member account; confirm additional Connexus measure rebates.

Dakota Electric Association

dakotaelectric.com

$600

maximum

You claim it after installTiered by efficiency

Dakota Electric Association (MN co-op, Great River Energy member) Energy Wise rebates: ductless mini-split air-source heat pump $400 (>=14.3 SEER2 / 7.5 HSPF2) up to $600 (CEE Tier 1, 16 SEER2); ducted air-source heat pump <=5 tons $600 (>=14.3 SEER2 / 7.5 HSPF2). First-time dual-fuel enrollment adds $300; +$100/ton if installed by a master installer. Downstream.

Equipment that qualifies: Ductless >1 ton at 14.3 SEER2 / 7.5 HSPF2 ($400) up to CEE Tier 1 16 SEER2 ($600); ducted <=5 tons at 14.3 SEER2 / 7.5 HSPF2 ($600).
Who qualifies, and the cap: Dakota Electric members (Dakota County and south metro MN). Registered contractor required; applications only through registered contractors.
Stacking: Dual-fuel load-management enrollment adds $300 (first-time) and $100 per ton for a master installer; HPWH is a separate Energy Wise measure.

Wright-Hennepin Cooperative

whe.org

$675

maximum

You claim it after installTiered by efficiency

Wright-Hennepin Cooperative Electric Association (MN, Great River Energy member): ducted air-source heat pump $580 (SEER2 >14.3 / HSPF2 >7.5); premium $630 (2025 CEE Tier 1 Path B, SEER2 >16 / HSPF2 >8); up to $675 via the ESP tier. Downstream.

Equipment that qualifies: Ducted air-source $580 at SEER2 >14.3 / HSPF2 >7.5; $630 at CEE Tier 1 Path B (SEER2 >16 / HSPF2 >8); up to $675 ESP tier.
Who qualifies, and the cap: Wright-Hennepin members (Wright and Hennepin counties, MN). Efficiency-tiered; registered contractor.
Stacking: Rebate scales by efficiency tier; dual-fuel enrollment and HPWH are separate measures.

What your system should be sized for

A heat pump in Minnesota should carry the house on the coldest design day, not the average one. These are the winter design temperatures our engine sizes against, in AHRI heating region V (7,500 heating degree days at the Minneapolis reference metro).

City	Design temp	Climate zone	Basis
Minneapolis	-11°F	6A	estimated
Duluth	-19°F	7	estimated
Rochester	-14°F	6A	estimated

Rebate amounts are estimates and subject to change. Verify current program terms and eligibility before quoting a final net price.
Eligibility varies by income, equipment efficiency, utility territory, and program funding availability.
State and utility programs only. Federal 25C/25D tax credits expired 12/31/2025 and the DOE HEAR/HOMES rebate programs ended 5/29/2026; neither is included.
After-install rebates are claimed by the homeowner after installation and are not guaranteed at the point of sale.