What heat pump rebates are available in Minnesota in 2026?
In 2026, Minnesota heat pump rebates come from utilities such as Xcel Energy, CenterPoint Energy, Dakota Electric and Connexus. Each sets its own contractor rules. The state program hasn't launched, and the federal credit ended after 2025. Our heat pumps run $7,500–$14,500 installed.
Key points
- Save Energy Minnesota, the state's HEAR, HOMES and heat pump rebate program, hadn't launched as of mid-2026.
- Xcel's heat pump rebates need a Trade Partner Network contractor, except DIY mini-splits.
- CenterPoint's heat pump rebate only covers a ducted heat pump paired with a gas furnace, with the switchover set to CenterPoint's rule.
- Electric co-ops run their own heat pump rebates and dual-fuel rate programs.
- Programs judge the matched system's AHRI rating, so get exact model numbers.
In 2026 the heat pump money in Minnesota comes from utilities, mainly Xcel Energy, CenterPoint Energy and electric co-ops such as Dakota Electric and Connexus, each with its own contractor rule. The state program has not launched and the federal credit ended after 2025, so neither can be counted on. This page covers each program and the rules that decide whether you get paid. We leave rebate amounts out on purpose: they change every year, and the program pages are the place to confirm them.
Why hasn't Minnesota's state heat pump rebate launched?
The state version of the federal Home Energy Rebates, called Save Energy Minnesota, had not launched as of mid-2026, and the federal heat pump credit ended after 2025. Commerce warns that unexpected calls, texts or door-to-door offers about the program are likely scams, so if your furnace or AC is failing, don't wait on it. Our post on what happened to the IRA HVAC credits explains the federal and state status in full.
Where does heat pump rebate money come from in 2026?
Utilities. Each one has its own rules, so start with who is on your electric and gas bills. CenterPoint Energy supplies gas in Minneapolis and much of the metro, Xcel Energy supplies gas and electricity in Saint Paul and electricity across much of the metro, and co-ops such as Connexus, Dakota Electric and Wright-Hennepin serve many other towns.
| Program | What it covers | Contractor rule | Deadline |
|---|---|---|---|
| Xcel Energy heat pump rebates | Ducted and ductless air-source heat pumps, including cold-climate models, and ground-source | Trade Partner Network contractor; DIY allowed for mini-splits only | Check Xcel's current page |
| CenterPoint Energy ducted heat pump rebate | Ducted air-source heat pump paired with a gas furnace, switching over under CenterPoint's rule | Dealer of your choice | Check CenterPoint's current page |
| Dakota Electric Energy Wise Rebates | Air-source heat pumps with quality installation, ductless heat pumps, ground-source, dual-fuel enrollment, heat pump tune-ups | Registered contractor for quality-installation rebates | Limited funds, first-come, first-served |
| Connexus Energy | Air-source and ductless heat pumps, ground-source, a dual-fuel demand-response rate | Ask Connexus; we haven't confirmed its contractor rule | Check its current page |
Other co-ops and city utilities run their own programs, so if your bill comes from one, read its program page before choosing equipment. Our Dakota County guide walks through how the Xcel and Dakota Electric programs differ, and our Xcel and CenterPoint rebate map covers the furnace, AC and thermostat programs.
Which rebate details matter more than the headline amount?
Xcel's reduced heating rate. Xcel says electric customers who heat mainly with a heat pump can get a reduced space-heating rate. Over a Minnesota winter, that can matter as much as a one-time rebate.
Xcel's extras. Xcel's heat pump page also points to electrical panel upgrade rebates for customers adding a heat pump, and to bonus rebates when insulation and air sealing come first. Its rebates can't exceed the installation cost.
CenterPoint's switchover rule. CenterPoint's rebate is built for dual fuel: the technician has to program the switchover to CenterPoint's current rule, so the heat pump heats the house above that temperature and the gas furnace takes over below it. The system has to be listed as a matched system with an HSPF2 rating verified in the AHRI directory. CenterPoint notes that operating costs depend on your electric rate. Our dual-fuel guide explains how that setup runs.
The matched system rating. Programs judge the heat pump by the AHRI rating of the indoor and outdoor units together, including HSPF2. A quote that names only the outdoor unit isn't enough to know what you qualify for.
How a utility rebate works, step by step
- Confirm your utilities. Check both bills. The electric utility usually runs the heat pump rebate, while CenterPoint's applies only if it supplies your gas.
- Match the contractor rule. Xcel wants a Trade Partner Network contractor unless you install a mini-split yourself. CenterPoint lets you use any dealer. Dakota Electric's quality-installation rebates need a registered contractor.
- Get the matched system in writing. The exact indoor and outdoor model numbers and the AHRI reference number.
- Settle the controls. The switchover temperature, the backup heat and the thermostat, before the install.
- Install before the deadline. Check the utility's current program page for the deadline. Keep the final invoice, the AHRI certificate and any startup paperwork together.
- Apply. For an Xcel contractor install, the contractor completes the application; for a DIY mini-split, you apply online. For CenterPoint, ask your dealer whether they submit online or hand you a paper application.
Which heat pumps keep up in a Minnesota winter?
In Minnesota, look at cold-climate models. They keep producing heat well below zero, though capacity drops as it gets colder; Mitsubishi, for example, rates its Hyper-Heat line to run down to -13°F. Saint Paul's inspection department lists the metro's winter design temperature as -15°F, which is why most installs here keep a backup, either a gas furnace or electric resistance heat. The NEEP cold-climate heat pump list is the reference most programs and installers use, and our cold-climate heat pump guide covers how they behave in January.
If you heat with propane, the case for a heat pump is stronger than with natural gas, and our post on switching from propane to a heat pump runs through it. For rooms without ducts, a ductless mini-split is the usual route, and it's the one Xcel lets you install yourself.
Size it with a Manual J load calculation that includes the heating load, not just the old AC's tonnage.
How much does a heat pump cost before rebates?
A rebate reduces what you pay only after you qualify and apply, so budget for the full installed price first. A heat pump installed by us runs $7,500–$14,500 and a ductless mini-split $4,200–$12,500, each quoted in writing at a flat rate before work starts. Our heat pump installation cost guide explains what moves the price, and the same ranges apply to heat pumps in Minneapolis and heat pumps in Saint Paul.
What to do next
Ask every installer three questions: which rebates this exact system qualifies for, whether each one needs a registered contractor, and who files the paperwork. We don't claim Trade Partner Network or registered-contractor status with any utility, so ask which rebates need one before you count on them. Our heat pump page has our installed range and what an install includes. Call 612-429-3465 for a written quote.
Common questions about rebates
Can I get the Minnesota state heat pump rebate now?
No. Save Energy Minnesota, the state program that combines the IRA-funded HEAR and HOMES rebates with state-funded heat pump and panel rebates, hadn't launched as of mid-2026, per the Department of Commerce. Utility heat pump rebates are available now and are separate.
Can I install a mini-split myself and still get an Xcel rebate?
Xcel's heat pump page says yes for non-ducted mini-splits: you can install it yourself and apply online. Ducted heat pumps go through a contractor in Xcel's Trade Partner Network. Check Xcel's current page for the install and application deadlines. Keep the invoice and model numbers for the application.
Does CenterPoint Energy offer a heat pump rebate?
Yes, for a ducted air-source heat pump paired with a natural gas furnace, for Minnesota customers who get gas from CenterPoint. You can use the dealer of your choice, and CenterPoint's current page lists the application deadline.
Do I need a cold-climate heat pump to qualify?
It depends on the program, and some pay more for cold-climate models. Xcel's rebate summary lists separate lines for cold-climate air-source and cold-climate mini-split heat pumps. The NEEP cold-climate heat pump list is the usual reference. In Minnesota we'd recommend a cold-climate model for comfort anyway, since it keeps heating further below zero.
Sources
- State of Minnesota: Save Energy Minnesota mn.gov
- CenterPoint Energy centerpointenergy.com
- NEEP Cold Climate Air Source Heat Pump List ashp.neep.org
- AHRI Directory of Certified Product Performance ahridirectory.org
- Xcel Energy Minnesota heating and cooling rebates mn.my.xcelenergy.com
- Dakota Electric Energy Wise rebates dakotaelectric.com