Xcel & CenterPoint HVAC Rebates 2026 Guide
Current 2026 Xcel Energy and CenterPoint Energy rebates for Minnesota HVAC — furnaces, heat pumps, AC, smart thermostats, and how to claim them.
Key takeaways
The 30-second version
- Xcel Energy 2026 rebates: $200–$600 on qualifying high-efficiency furnaces and AC; up to $1,500 on cold-climate heat pumps.
- CenterPoint Energy 2026 rebates: $150–$500 on 96%+ AFUE gas furnaces and smart thermostats.
- Rebates require a participating contractor (we are) and a Trade Ally form filed at install. The rebate check arrives 6–10 weeks later.
- Federal 25C tax credit stacks: 30% of project cost, up to $2,000 for heat pumps, $600 for furnaces and ACs.
- Combined utility + federal incentives often total $3,000–$5,000 off a qualifying heat pump install in Minnesota.
If you're spending $7,000–$15,000 on a new HVAC system in 2026, leaving $500–$2,500 in rebates on the table because you didn't ask is one of the most common mistakes we see. Here's the current Minnesota rebate landscape and how to make it work for you.
Who's paying
Most Twin Cities homes are served by two utilities: CenterPoint Energy (natural gas) and Xcel Energy (electricity). Both run rebate programs funded by Minnesota's Conservation Improvement Program (CIP). Rebate amounts shift annually — these figures are current as of early 2026.
CenterPoint Energy — natural gas furnaces
- High-efficiency furnace (95–96% AFUE): $200 rebate
- High-efficiency furnace (97%+ AFUE): $400 rebate
- ECM blower motor (variable-speed): $100 additional
You qualify only if your contractor is a CenterPoint Trade Ally and submits the paperwork (we are; we do). The rebate arrives as a check to you 6–10 weeks after install. See our furnace replacement cost guide for how this lands in the total cost math, and the 96% vs 98% AFUE comparison for whether the higher tier earns the rebate gap.
Xcel Energy — central AC and heat pumps
- Central AC (16+ SEER2): $150 rebate
- Central AC (18+ SEER2): $300 rebate
- Cold-climate air-source heat pump: $400–$800 (depending on capacity and HSPF2 rating)
- Ductless mini-split heat pump: $200–$500 (depending on configuration)
- Smart thermostat (ENERGY STAR certified): $50
Xcel rebates also require a participating contractor and proper documentation. Cold-climate heat pumps get the most generous treatment because they reduce winter electric heating load — see our Minnesota heat pump deep dive for whether your home qualifies.
Federal 25C tax credit (separate from utility rebates)
This is the big one most homeowners miss. The Inflation Reduction Act's Section 25C credit gives you up to $2,000 in federal tax credit on qualifying cold-climate heat pump installs and up to $600 on high-efficiency furnaces and ACs. It's a tax credit, not a rebate — you claim it on Form 5695 with your 2026 return. You can stack 25C on top of utility rebates.
What a fully-stacked install looks like
Real example, December 2025, Plymouth: a dual-fuel install (96% AFUE furnace + 3-ton CCHP) landed at $17,400 gross.
- CenterPoint furnace rebate: $200
- Xcel CCHP rebate: $600
- Xcel smart-stat rebate: $50
- Federal 25C credit (heat pump): $2,000
Net cost to the homeowner: $14,550. That's a ~16% reduction by paperwork alone.
How to actually claim
- Ask your contractor in writing whether they are a CenterPoint Trade Ally and an Xcel Approved Contractor. (We are both. If yours isn't, the rebate vanishes.)
- Confirm equipment model numbers are on the current Qualifying Products List — your installer should print this with the quote.
- Sign the rebate application at install. We file it for you.
- For the 25C federal credit, save your invoice and the manufacturer's certificate (we include both) and file with your taxes.
What disqualifies you
- DIY installs (no licensed contractor signature)
- Equipment not on the QPL
- Installs not permitted with the city (yes, they check)
- Multi-family or commercial buildings (different program)
Programs that change every year
Rebate amounts, eligible equipment, and bonus offers shift annually — sometimes mid-year if a program hits its budget cap. The reliable answer: confirm current amounts with your installer the week of your install, not from a blog post. We re-check the tables before every quote.
Quote includes rebate math in writing — no surprises at install.
— Step-by-step
How to claim Xcel & CenterPoint HVAC rebates in Minnesota
Step-by-step procedure for capturing every dollar of available 2026 Xcel Energy and CenterPoint Energy HVAC rebates after a qualifying install.
Tools you'll need
- Computer or smartphone
- Installer invoice with AHRI number
- Utility account number
Supplies
- Manufacturer model & serial numbers
- AHRI certificate (issued by installer)
- Photo of installed equipment nameplate
Estimated time: 45 min
Confirm the equipment qualifies before you buy
Check the Xcel rebate catalog and CenterPoint program tier sheet for the current AFUE / SEER2 / HSPF2 thresholds. Have your installer confirm in writing that the proposed model is on the qualifying list — not just "high efficiency".
Get the AHRI certificate at installation
Ask your installer for the AHRI certificate of matched-system performance the day they commission the system. Without it, neither utility will issue payment.
Photograph the equipment nameplates
Snap a clear photo of the model and serial number plate on both the indoor and outdoor units. Save the invoice PDF alongside the photos in a single folder so everything is together when the application asks.
Submit the Xcel Energy application
Log into your Xcel account and open the Rebates portal. Pick the appropriate program (Air Source Heat Pump, Central AC, or Smart Thermostat), upload the invoice, AHRI certificate, and nameplate photos, and submit within 60 days of the install date.
Submit the CenterPoint Energy application
Open the CenterPoint Conservation Improvement Program portal, choose the High-Efficiency Furnace or Smart Thermostat rebate, upload the invoice and AHRI certificate, and submit within 60 days. CenterPoint pays by mailed check.
Stack the federal 25C tax credit
For heat pumps and qualifying furnaces, save the invoice and Manufacturer Certification Statement for your tax return. The federal 25C credit is claimed on IRS Form 5695 the following April and stacks on top of utility rebates.
Track and confirm payment
Xcel typically pays as a bill credit within 4–6 weeks; CenterPoint mails a check in 6–8 weeks. If you do not see the credit by week 8, call the program contact number on the confirmation email — applications occasionally need a second nameplate photo.
— Frequently asked
Quick answers on rebates
Do I have to apply for the rebate myself?
No — your installer files the paperwork as a Trade Ally. We submit Xcel and CenterPoint forms on every qualifying install; the rebate check is mailed directly to you 6–10 weeks after work is complete.
Can I stack federal tax credits with utility rebates?
Yes. The 25C federal tax credit (30% of project cost, up to $2,000 for heat pumps) is independent of utility rebates. You claim the credit on your federal tax return; the rebate arrives as a check.
Do the rebates cover repairs or just installs?
Only new equipment installs qualify. Repairs and tune-ups do not. A repair-bound furnace can still earn a rebate if you decide to replace before the part is ordered.
— Tags
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