Which Xcel Energy and CenterPoint Energy rebates apply to my HVAC project in 2026?
Furnace and boiler rebates come from your gas utility and AC and heat pump rebates from your electric utility: in Minneapolis, CenterPoint for gas and Xcel for electricity; in Saint Paul, Xcel for both. Both furnace programs let you pick the installer; Xcel's AC and most heat pump rebates need an Xcel-enrolled contractor.
Key points
- Your gas bill decides the furnace rebate; your electric bill decides the AC and heat pump rebate.
- CenterPoint furnace rebates: a licensed heating dealer of your choice, applied for in the same calendar year.
- Xcel gas furnace rebates: any contractor, apply by September 30 of the following year.
- Xcel AC and heat pump rebates: participating or Trade Partner Network contractor, except DIY mini-splits.
- The federal 25C credit ended after December 31, 2025; Minnesota's HEAR rebates haven't launched.
HVAC rebates in the Twin Cities follow the fuel. The furnace or boiler rebate comes from whoever sells you gas, and the AC and heat pump rebates come from whoever sells you electricity. In Minneapolis that's CenterPoint Energy for gas and Xcel Energy for electricity; in Saint Paul, Xcel supplies both. The contractor rules differ more than most people expect: both gas furnace programs let you pick the installer, while Xcel's AC rebates and most of its heat pump rebates run only through contractors enrolled with Xcel.
This page is a map, not a price list. We leave rebate amounts out on purpose, because they change every year, and Xcel's cooling rebate page says its programs may be cancelled with 30 days' notice. The hubs are Xcel Energy's Minnesota heating and cooling page and CenterPoint Energy's efficiency page. Each program named below has its own page linked from those hubs, and that page has this year's amounts.
How do you find out which utilities serve your home?
Your bills are the only reliable guide. Look at who sends the gas bill and who sends the electric bill:
- Minneapolis: CenterPoint Energy for gas, Xcel Energy for electricity.
- Saint Paul: Xcel Energy for both.
- Suburbs and outlying towns: it depends on your address. Gas may come from CenterPoint, Xcel, Minnesota Energy Resources or another utility, and electricity from Xcel, a co-op such as Connexus Energy, Dakota Electric or Wright-Hennepin, or a municipal utility. Co-op programs run on their own rules; our Dakota County rebate walkthrough covers Dakota Electric's.
- Propane homes: there's no gas utility rebate for the furnace, but your electric utility's heat pump rebates may still apply.
- Western Wisconsin: different programs, including Focus on Energy, so this map doesn't apply there.
For the rebate picture in each city alongside what the equipment costs, see our pages on HVAC costs in Minneapolis and HVAC costs in Saint Paul.
The 2026 map
| Equipment | Program | Who can install it | Deadline |
|---|---|---|---|
| Gas furnace or boiler, CenterPoint gas | CenterPoint residential heating rebates | Licensed heating dealer of your choice | Apply in the same calendar year as the install |
| Gas furnace or boiler, Xcel gas | Xcel Heating Equipment Rebates | Any contractor | Apply by Sept. 30 of the year after the install |
| Central AC, Xcel electric | Xcel Residential Cooling Rebates | Participating contractor, who tests and submits | Paid after the startup test |
| Heat pump, Xcel electric | Xcel Heat Pump Rebates | Trade Partner Network contractor; DIY for mini-splits only | Install by Dec. 31, 2026; apply by Sept. 30, 2027 |
| Heat pump added to a gas furnace, CenterPoint gas | CenterPoint Ducted Air Source Heat Pump Rebates | Heating dealer of your choice | Apply by Dec. 31 of the install year |
| Smart thermostat | CenterPoint thermostat rebates; Xcel smart thermostat rebate for AC Rewards models | Xcel: you or any contractor; CenterPoint: check its page | Xcel: by Sept. 30 of the year after the install |
So a furnace and AC replacement in Minneapolis means two applications under two sets of rules: CenterPoint for the furnace, with the dealer of your choice and a same-year deadline, and Xcel for the AC, through a participating contractor who runs the startup test. In Saint Paul both go to Xcel, but they're still two different programs with different contractor rules and deadlines.
Furnaces and boilers: the two gas programs differ
CenterPoint tiers its furnace rebates by AFUE, starting at 92%, and pays more for replacements than for new construction. It also lists standard and condensing boilers and combination systems; a furnace rated as a combination system needs the dealer to submit the rebate online. You pick the dealer, and CenterPoint suggests getting more than one bid, but the application needs an invoice from a licensed heating dealer, so a furnace you install yourself doesn't qualify. The equipment must be AFUE-verified on the AHRI or ENERGY STAR listings, the invoice must show the brand and complete model number, and a proposal or estimate doesn't count as proof of purchase. Our CenterPoint furnace rebate guide walks through the paperwork.
Xcel's gas furnace tiers start higher, at 95% AFUE, and it lists a 95% AFUE hot water boiler rebate. Its page says the equipment can be installed by any contractor, efficiencies are verified through the AHRI directory, and the model numbers on the invoice and the rebate form must match exactly. The deadline is more forgiving: September 30 of the year after the install. Rentals qualify too; a tenant who pays the gas bill can sign the rebate over to the owner.
Either way, the rebate is a reason to check the exact model's AHRI rating before you sign, not a reason to buy more furnace than the house needs. Our furnace installation page covers sizing and venting.
What does Xcel require for a central AC rebate?
Xcel's central AC rebates require a participating contractor, who starts the system, tests it and submits the paperwork. Many of those tests need an outdoor temperature of at least 55°F, so a fall or winter install may wait until spring for its rebate. The lowest tier starts at 13.4 SEER2 with a quality installation, and the higher tier needs 15.2 SEER2 and 12.0 EER2. Those ratings come from the AHRI certificate for the whole installed package, meaning the outdoor unit, the indoor coil or air handler, and the furnace, so a new condenser on an old coil or a mismatched furnace may not reach the tier you expected. Xcel also says rebate qualifications and amounts can change at any time. Our AC installation page explains how we match equipment.
Heat pumps: two utilities, two approaches
Xcel pays heat pump rebates through its Trade Partner Network, whose contractor files the application for you, or directly to you for a non-ducted mini-split you install yourself. A DIY application needs the AHRI certificates, NEEP details showing the unit is cold-climate listed, and the invoice or receipts. Xcel says its heat pump rebates can't exceed the installation cost; our heat pump installation cost guide covers what the install itself runs. Xcel also offers a reduced space-heating rate for customers who heat mainly with a heat pump, plus electrical panel upgrade rebates and bonus rebates when insulation and air sealing come first. Its heat pump page still mentions federal tax incentives, but the federal tax credit for heat pumps ended for equipment placed in service after December 31, 2025.
CenterPoint's heat pump rebate only applies to a ducted heat pump working with a 92%+ AFUE gas furnace, listed as a system with its HSPF2 verified by AHRI, and with the switchover set at 40°F or lower. Our Minnesota heat pump rebate update covers both in more depth, along with the co-ops.
Which thermostat rebates do CenterPoint and Xcel offer?
CenterPoint offers a rebate on basic programmable, Wi-Fi and smart thermostats. Xcel's smart thermostat rebate is tied to the models eligible for AC Rewards, its summer demand-response program, which pays an enrollment incentive and an annual reward. Our AC Rewards review covers whether that trade suits your house, and our thermostat service page covers wiring and installation.
How to line up the paperwork
- Read both bills and note which utility supplies each fuel.
- Get a written quote with exact model numbers for every piece of equipment, and ask for the AHRI certificate for the matched system.
- Check each program's contractor rule before you sign: any contractor, dealer of your choice, or enrolled with Xcel.
- Check the invoice. It should show the brand and complete model numbers, matching the application exactly.
- Mark the deadlines: CenterPoint in the same calendar year as the install; Xcel gas and thermostat rebates by September 30 of the following year; Xcel heat pumps installed by December 31, 2026.
- Keep copies and expect weeks. CenterPoint says to allow up to 10 weeks for processing, and Xcel says a thermostat rebate check takes about eight.
Which HVAC incentives are no longer available?
The federal 25C credit ended for equipment placed in service after December 31, 2025, and some utility pages still mention federal incentives that no longer apply. Minnesota's IRA-funded HEAR and HOMES rebates hadn't launched as of mid-2026, so don't count on them for a 2026 project. Our post on the federal credits that ended and the state rebates still waiting covers both.
What to do next
Get a written quote with exact model numbers for every piece of equipment, then check each program's contractor rule before you sign. We help with utility rebate paperwork where the program allows it; for Xcel's AC and heat pump rebates, ask whether the rebate needs a registered contractor before you count on it. Call 612-429-3465, open 7 days, 7am–9pm.
Questions
I live in Minneapolis. Which utility pays for a new furnace and AC?
In Minneapolis, CenterPoint Energy supplies natural gas and Xcel Energy supplies electricity. So a furnace rebate comes from CenterPoint, where you can use the heating dealer of your choice, and a central AC rebate comes from Xcel, which requires a participating contractor and a startup test. One project, two applications, two sets of rules.
I live in Saint Paul. Is it all Xcel?
For most Saint Paul homes, yes: Xcel Energy supplies both gas and electricity. Xcel's gas furnace and boiler rebates allow any contractor, with the application due by September 30 of the year after installation. Its central AC and heat pump rebates run on different contractor rules, so check each one before you sign.
Why hasn't my Xcel AC rebate been paid?
Xcel doesn't pay central AC rebates until the contractor has tested the unit, and many of those tests need an outdoor temperature of at least 55°F. If your AC went in during late fall or winter, Xcel says the rebate may not arrive until spring. Check with the contractor that the test and paperwork were submitted.
Do Xcel or CenterPoint give rebates for tune-ups?
We didn't find a tune-up rebate on Xcel's or CenterPoint's Minnesota residential pages for 2026. Some electric co-ops do offer one; Dakota Electric, for example, lists a central AC tune-up rebate that any contractor can perform. Funds and terms change each year, so check your utility's current page before you book.
Sources
- Xcel Energy's Minnesota heating and cooling page mn.my.xcelenergy.com
- CenterPoint Energy's efficiency page centerpointenergy.com
- ENERGY STAR energystar.gov
- AHRI Directory of Certified Product Performance ahridirectory.org
- NEEP Cold Climate Air Source Heat Pump List ashp.neep.org