What heat pump rebates are available in Minnesota in 2026?
Utility rebates are what's available: Xcel Energy, CenterPoint Energy and electric co-ops such as Dakota Electric and Connexus run heat pump programs, each with its own contractor and deadline rules. Minnesota's state program, Save Energy Minnesota, hasn't launched and has no launch date, and the federal heat pump tax credit ended after 2025.
Key points
- Save Energy Minnesota, the state's HEAR, HOMES and heat pump rebate program, hadn't launched as of its June 12, 2026 update.
- 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 92%+ AFUE gas furnace, set to switch over at 40°F or lower.
- 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 rebates you can actually get in Minnesota come from utilities: Xcel Energy, CenterPoint Energy and electric co-ops such as Dakota Electric and Connexus Energy. Each program has its own rules on contractors, equipment and deadlines. The state's own program, Save Energy Minnesota, still hasn't launched and has no launch date, and the federal heat pump tax credit ended for equipment placed in service after December 31, 2025. We leave rebate amounts out on purpose: they change every year, and the program pages are the place to confirm them.
When this page was first written, Minnesota households were told state heat pump rebates were about to arrive and could be stacked with a federal credit. Neither turned out that way. This update covers what's available for a heat pump in Minnesota now, and the rules that decide whether you get it.
The state program: still not launched
Minnesota's share of the Inflation Reduction Act's Home Energy Rebates runs through the Department of Commerce as Save Energy Minnesota. It combines HEAR, the electrification rebates that would cover heat pumps, and HOMES, the whole-home efficiency rebates, with two programs the Legislature funded in 2023: a state heat pump rebate and an electrical panel upgrade program, designed to stack with the federal money. Eligibility is income-based, at 80% and 150% of area median income.
As of the page's June 12, 2026 update, the program has not launched. Minnesota is waiting for formal approval from the U.S. Department of Energy, there is no estimated launch date, and Commerce says new DOE rules will change how HEAR and HOMES work in Minnesota. Commerce also warns that unexpected calls, texts, online ads or door-to-door offers about the program are likely scams. If your furnace or AC is failing, don't wait on it.
For the federal side of the story, see what happened to the IRA HVAC credits.
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 | Timing |
|---|---|---|---|
| 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 | Install by Dec. 31, 2026; apply by Sept. 30, 2027 |
| CenterPoint Energy ducted heat pump rebate | Ducted air-source heat pump in a home with a 92%+ AFUE gas furnace, switching over at 40°F or lower | Dealer of your choice | Apply by Dec. 31 of the install year |
| 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 municipal utilities across the area run their own programs. If your bill comes from one, check its program page before you choose equipment. Our Dakota County guide walks through how the Xcel and Dakota Electric programs differ for homes on either side of that territory line, and our Xcel and CenterPoint rebate map covers the furnace, AC and thermostat programs too.
Details that matter more than the headline rebate
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 40°F switchover rule. CenterPoint's rebate is built for dual fuel: the technician has to program the switchover at 40°F or lower, 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. 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. CenterPoint allows up to 10 weeks to process.
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 comes off the price only after you qualify and apply, so plan on the full installed price. Installed with us, a heat pump runs $7,500–$14,500 and a ductless mini-split $4,200–$12,500, each with a written flat-rate quote first. 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 help with utility rebate paperwork where the program allows it, but we don't claim Trade Partner Network or registered-contractor status with any utility. Our heat pump page has our installed range and what an install includes. Call 612-429-3465, open 7 days, 7am–9pm.
Questions
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 the Department of Commerce's June 12, 2026 update. The state is waiting for formal approval from the U.S. Department of Energy and gives no launch date. 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. For 2026, invoices and installs must be finished by December 31, 2026, and applications are accepted through September 30, 2027. Keep the invoice and model numbers for the application.
Does CenterPoint Energy offer a heat pump rebate?
Only for a ducted air-source heat pump working with a natural gas furnace of at least 92% AFUE, for Minnesota customers who get gas from CenterPoint. The system must be AHRI-listed with verified HSPF2, and the technician has to set the switchover at 40°F or lower. You can use the dealer of your choice, and the application is due by December 31 of the install year.
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
- Save Energy Minnesota mn.gov
- NEEP cold-climate heat pump list ashp.neep.org
- U.S. Department of Energy energy.gov
- AHRI Directory of Certified Product Performance ahridirectory.org