Fix First HomeWhat home-upgrade rebates actually pay — and who you apply to.

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Minnesota Power heat pump rebates open

Administered by Minnesota Power (ALLETE), through participating HVAC contractors.

Minnesota Power pays $1,000 for a cold-climate air-source heat pump, ducted or ductless, $400 for a standard one, $400 a ton for an air-to-water heat pump and $800 to $1,000 a ton for a ground-source heat pump in northeastern Minnesota, with the customer's rebate capped at 75% of the project cost. Heat pump water heaters get $300 in 2026.

source · verified 13 October 2026 · amounts in US dollars

What it pays

Minnesota Power's 2026 residential HVAC rebates, paid to the customer
UpgradeConditionAmount
Cold-climate air-source heat pump, ductedHSPF2 8.1, SEER2 15.2, COP 1.75 at 5°F$1,000
Cold-climate air-source heat pump, ductlessHSPF2 8.5, SEER2 15.2, COP 1.75 at 5°F$1,000
Air-source heat pump, ducted or ductless2023 ENERGY STAR$400
Ground source heat pump, per tonMNGHPA Master System Installer; $800 a ton otherwise$800–$1,000
Air-to-water heat pump, per tonCOP 1.7 at A5W110$400
Ground source heat pump desuperheaterNew construction or replacing an electric water heater$400
Heat or energy recovery ventilatorElectric primary heat$300
Heat pump water heaterENERGY STAR; 1 January to 31 December 2026$300
Smart thermostatControls an electric heat source$50

Participating contractors also get their own incentive: $100 per heat pump, plus $25 for each additional condenser, and $300 for a new ground source system.

Who is eligible

who
Minnesota Power residential electric customers in northeastern Minnesota.
installer
Contractors apply online through Minnesota Power's portal; use its Participating Contractor Lookup to find one.
cap
The customer's rebate cannot exceed 75% of the total project cost, product and labor.
new homes
Cold-climate heat pumps in new construction may get more through the Residential New Construction program.

Where the application goes

Hire a participating contractor, who submits the online residential HVAC rebate form; water heater rebates are claimed by the customer.

Where the application goes
If this is youApply here
HVAC rebate summarymnpower.com
Rebatesmnpower.com
Phone1-855-669-8196

The thing most pages get wrong

Minnesota Power's heat pump rebate is a flat amount per system, not per ton, for air-source heat pumps: $1,000 for a cold-climate unit and $400 for a standard one. The per-ton rates are for ground-source and air-to-water heat pumps.

Cold-climate means the 5°F test

To get $1,000, the heat pump needs a coefficient of performance of at least 1.75 at 5°F as well as the SEER2 and HSPF2 minimums; otherwise it is the $400 standard rebate.

75% of cost

Rebates cannot exceed 75% of the project's cost, including labor, which matters for small ductless systems.

Sources