Minnesota Heat Pump Rebates in 2026: What's Available Now
Minnesota's state heat pump rebates still haven't launched. What's available in 2026 from Xcel, CenterPoint and the co-ops, and the rules for getting it.
Read the guideRebates Guides
Utility rebates, what changed with federal credits, and the paperwork.
Rebates change every year, and a lot of what's still online is out of date. The federal 25C credit ended for equipment installed after 2025, and Minnesota's IRA home energy rebates had not launched as of mid-2026. What remains is mostly utility programs: CenterPoint Energy, Xcel Energy, Dakota Electric, Connexus and others, each with its own rules.
These guides explain which programs exist, what kind of equipment they cover, and whether a rebate needs a registered contractor. We don't quote rebate amounts because they change; we link you to the program page to check current terms before you buy. See also heat pumps and furnace replacement.
Dakota County HVAC Rebates and Programs: Where to Start
In Dakota County, HVAC rebates depend on who's on your meter: Dakota Electric or Xcel, plus your gas utility. What each offers, and the county loan program.
Read the guideThe IRA HVAC Tax Credits Ended: What Minnesota Homeowners Can Still Get
The federal 25C and 25D credits ended for equipment placed in service after December 31, 2025. What Minnesota homeowners can still get in 2026, and from whom.
Read the guideXcel Energy AC Rewards: Is It Worth Enrolling?
How Xcel Energy's AC Rewards works in Minnesota, who can enroll, how to sign up, how it compares with Saver's Switch, and which houses feel summer events.
Read the guideCenterPoint Energy Furnace Rebates: How the 2026 Program Works
How CenterPoint Energy's 2026 furnace and boiler rebates work in Minnesota: who qualifies, why 96% vs 97% AFUE matters, and paperwork that gets them denied.
Read the guideXcel Energy and CenterPoint HVAC Rebates in 2026: Which Utility Covers What
A 2026 map of Xcel Energy and CenterPoint HVAC rebates: which utility covers your furnace, AC, heat pump and thermostat, contractor rules and deadlines.
Read the guideRebates questions
How do you decide what size furnace or AC I need?
We do a Manual J load calculation, the industry-standard method for working out a house's heating and cooling needs room by room. It accounts for insulation, windows, air leakage, which way the house faces and the local design temperature. We don't just match the old nameplate, because the old unit may never have been sized right, and an oversized system short-cycles and handles humidity poorly.
Are there rebates for a new furnace, AC or heat pump?
Often, through your utility. Xcel Energy, CenterPoint Energy, Minnesota Energy Resources and many electric co-ops and municipal utilities run rebate programs, and Focus on Energy covers Wisconsin. Amounts and rules change every year, so check your utility's current program instead of trusting an old number. We help with the rebate paperwork on qualifying installs. Our rebate guide has more.
Has the federal tax credit for heat pumps and furnaces ended?
Yes. The federal 25C Energy Efficient Home Improvement Credit ended for equipment placed in service after December 31, 2025, under a law signed in July 2025. It used to cover heat pumps, central air, furnaces and boilers. The 25D credit for geothermal and other residential clean energy ended at the same time. Utility rebates are a separate thing and still run, so check your utility for this year's program.
Should I switch from an 80% furnace to a 96% furnace?
With a heating season as long as Minnesota's, the extra efficiency pays back faster than it would farther south. The catch is venting: a 96–98% furnace vents through PVC out a side wall or the roof, needs a condensate drain, and can leave a gas water heater orphaned in the old chimney. Installed, an 80% furnace runs roughly $4,500–$6,000 and a 96–98% model $6,500–$9,500. See AFUE explained.
Do I need a permit to replace my furnace or air conditioner?
Normally, yes. Replacing a furnace, boiler, air conditioner or heat pump usually requires a mechanical permit from the city, or from the county or state where the city has no building department of its own. The permit brings an inspection, which is a second set of eyes on the gas piping, venting and electrical work. Our permit guide has more.
What refrigerant do new air conditioners use?
New residential central air and heat pump systems now ship with lower-GWP refrigerants, mainly R-454B or R-32, under the EPA's AIM Act rules. They replace R-410A, which is still in a lot of working systems and can still be repaired and recharged. The refrigerants aren't interchangeable, so a new R-454B or R-32 outdoor unit needs an indoor coil built for that refrigerant.
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