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Minnesota: the utilities pay; the federal rebates have not started.
Minnesota’s federal HOMES and HEAR rebates have not launched, and neither have the state heat pump rebate and panel grant tied to them. What pays today is your utility: Xcel Energy, CenterPoint Energy, Minnesota Power, Otter Tail and the gas and co-op utilities each run their own list, and Minneapolis adds a bonus on top. Here is each program, read off its own pages.
Updated . The federal rebates, weatherization, Xcel Energy, CenterPoint Energy, Minnesota Energy Resources, Minnesota Power, Otter Tail Power and Minneapolis, with co-ops and city utilities in a table; see “Not covered yet” for the rest.
The short version
HOMES and HEAR have not launched
Commerce says Save Energy Minnesota is waiting for federal approval and has no launch date. HEAR is set to pay up to $14,000 below 80% of area median income, but not for anything bought before launch.
source · verified 13 October 2026
CenterPoint pays $1,000 for a 97% furnace
CenterPoint Energy pays $1,000 to replace a furnace with a 97% one in 2026, not the $400 contractor guides quote, and $1,100 for a heat pump kept with the furnace.
source · verified 13 October 2026
Weatherization: up to $71,999 for four
Free weatherization uses the higher of 200% of poverty or 50% of state median income.
source · verified 13 October 2026
Statewide
The federal rebates and weatherization.
Your electric utility
Heat pump money in Minnesota comes from the utility that delivers your electricity.
| Utility | Heat pump rebate | Worth knowing |
|---|---|---|
| Xcel Energy | $1,600 or $2,000 per mini-split outdoor unit; up to $1,500 for a panel | Insulation 40% of cost when Xcel supplies the heating fuel; $600 bonus for insulating before a heat pump |
| Minnesota Power | $1,000 cold-climate, $400 standard | Capped at 75% of project cost |
| Otter Tail Power | $800 a ton ducted cold-climate, $600 ductless | Plus $200 a ton with a Quality Installation contractor |
| Connexus Energy (co-op) | Up to $1,000 for an air-source heat pump; $500 ductless | Submitted by the installer; credited to your bill; not for CEE-financed equipment |
| Rochester Public Utilities | Air-source heat pumps from $100; heat pump water heater $400 | Amounts on its 2026 forms |
Connexus and Rochester figures are from their own pages; other co-ops and city utilities are not covered yet.
source · verified 13 October 2026
Your gas utility
Gas utilities pay for furnaces and insulation, and CenterPoint pays for a heat pump added to a gas furnace.
| Gas utility | Furnace | Heat pump | Insulation |
|---|---|---|---|
| CenterPoint Energy | $1,000 (97%, replacing) | $1,100 with a 92% furnace kept | $1,300 attic with air sealing; $1,500 walls |
| Minnesota Energy Resources | $500 (97%); $300 bonus to 15 November 2026 | None listed | Rebates listed; amounts not read |
| Xcel Energy (gas) | $200 to $400 | Its electric rebates | 40% of cost when Xcel heats the home |
CenterPoint’s 2026 rebates must be submitted by 31 December 2026.
source · verified 13 October 2026
In Minneapolis
A city bonus on top of the utility rebates.
Which income line applies
Minnesota programs use different yardsticks. Figures are for a household of four.
| Program | Income test | Family of four | Status |
|---|---|---|---|
| Weatherization | 200% of poverty or 50% of state median income, whichever is greater | $71,999 | Open |
| HEAR | Below 150% of area median income; higher amounts below 80% | By county | Not launched |
| HOMES | Any income; higher rebates below 80% and 150% of area median income | By county | Not launched |
| State panel grant | At or below 150% of area median income | By county | Not launched |
source · verified 13 October 2026
What closed, and what you will still be told to apply for
- Federal Energy Efficient Home Improvement Credit (25C) — ended for improvements after 31 December 2025. What it paid.
- Federal Residential Clean Energy Credit (25D) — ended for solar, batteries and geothermal placed in service after 31 December 2025. What it paid.
- Save Energy Minnesota (HOMES and HEAR) — not launched; waiting for federal approval with no launch date. What it would pay.
- Minnesota Residential Heat Pump Rebate and Electrical Panel Upgrade Grant — not launched; they start with or after Save Energy Minnesota.
Not covered yet
The federal and state rebates, weatherization, the big utilities and Minneapolis are here. Still missing:
- Great River Energy’s member co-ops other than Connexus, Dakota Electric and most municipal utilities.
- Xcel Energy’s current 2026 ducted heat pump amounts (its summary sheet would not load) and its income-qualified programs.
- CenterPoint’s window, laundry, fireplace and thermostat rebates, and Minnesota Energy Resources’ insulation amounts.
- Saint Paul and other city programs, and CEE’s loan rates.
Questions people in Minnesota actually ask
How much is the heat pump rebate in Minnesota in 2026?
It depends on your electric utility. Xcel Energy pays $1,600 for a mini-split heat pump and $2,000 for a cold-climate one; Minnesota Power pays $1,000 for a cold-climate heat pump and $400 for a standard one; Otter Tail Power pays $800 a ton for a ducted cold-climate unit. CenterPoint Energy adds $1,100 for a ducted heat pump kept with a gas furnace. The federal and state heat pump rebates have not launched.
Are the HOMES and HEAR rebates available in Minnesota?
No. Commerce says Save Energy Minnesota has not launched, is waiting for federal approval and has no estimated launch date (update of 12 June 2026). HEAR cannot pay for anything bought before the launch. The state’s $4,000 heat pump rebate and panel grant wait on the same launch.
Who qualifies for free weatherization in Minnesota?
Owners and renters with income up to the higher of 200% of the poverty guidelines or 50% of state median income: $71,999 a year for a family of four on the 2026 table. Households on TANF or SSI in the last 12 months also qualify. You apply on the Energy Assistance form.
What does CenterPoint Energy pay for a new furnace in Minnesota?
$1,000 for a furnace of 97% AFUE or higher that replaces an existing one, $400 at 96% and $200 at 92%, for equipment installed in 2026, applied for by 31 December 2026. New homes get less.
Does Minneapolis have its own home energy rebate?
Yes. The Minneapolis Bonus Rebate Program, run by CEE, adds up to $20,000 in Green Zones and $6,000 elsewhere to Xcel Energy and CenterPoint Energy rebates, for one- to four-unit homes, paid after the work is finished.
Does Xcel Energy pay for insulation in Minnesota?
Its 2024-2026 sheet pays 40% of the cost, up to $1,200 for attic or wall insulation and $600 for air sealing, when Xcel supplies your heating fuel, through a participating contractor. With Xcel electricity and central air but another heating supplier, it pays $120, $75 and $45. Insulating before a heat pump adds a $600 bonus.