Switching From Propane to a Heat Pump in Rural Minnesota
Adding a heat pump to a propane-heated Minnesota home: keep the furnace as backup, compare gallons to kilowatt-hours, and ask your co-op the right questions.
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Heat Pump Installation in Eagan, MN
Heat pumps from us cost $7,500–$14,500 installed in Eagan, sized by load calculation and priced in writing. Before quoting, we confirm who delivers your electricity and gas, because Eagan is split between Dakota Electric and Xcel Energy for power, with three gas utilities, and each sets its own rebate rules.
Heat pumps calls in Eagan homes
Most Eagan homes buy electricity from Dakota Electric Association, and that shapes heat pump planning here. Dakota Electric's rebate list includes air-source heat pumps installed to its quality-installation standard, but that rebate requires a registered contractor, who files the application. It also lists a first-time dual-fuel program enrollment. Ask about both before you choose equipment. Addresses in northern Eagan on Xcel Energy fall under Xcel's program, which runs through its Trade Partner Network.
The houses themselves are good candidates. A 1980s or 1990s two-story is often still running an original or early condenser, and when an old R-22 unit fails, a heat pump on the existing furnace makes a dual-fuel system. Gas comes from CenterPoint Energy, Minnesota Energy Resources or Xcel depending on the address, which affects where we set the switchover. Single-zone two-stories need the upstairs airflow sorted too, or the heat pump inherits the same hot bedrooms the AC had.
Updated September 23, 2026
How much does a heat pump cost in Eagan?
An installed heat pump from us runs about $7,500–$14,500 in Eagan, with a written flat-rate quote. Same prices in Eagan as in every town we serve. See the heat pump cost guide. For what drives a quote locally, see HVAC cost in Eagan.
Are there rebates for a heat pump in Eagan?
Eagan takes two bills to sort out. Most homes are on Dakota Electric Association, whose Energy Wise Rebates cover heat pumps, ductless systems and AC tune-ups, with quality-installation rebates that need a registered contractor; part of northern Eagan is on Xcel Energy instead. Gas comes from CenterPoint Energy, Minnesota Energy Resources or Xcel Energy, each with its own programs, and CenterPoint lets you use any dealer for its furnace rebates. Which programs apply depends on your address. Rebate programs change every year, so check the utility's current terms before you buy.
Our guides: Xcel and CenterPoint rebates, heat pump rebates.
When to call us about a heat pump
- Your central AC is due for replacement anyway
- You heat with propane and dread the delivery bills
- Electric baseboard or an electric furnace is your only heat
- Your heat pump blows cold air in heating mode
- The outdoor coil stays caked in ice that defrost doesn't clear
- Aux or emergency heat runs far more than it used to
- Snow buries the outdoor unit every winter
More detail on our heat pumps page.
Symptom guides: Aux vs emergency heat · Blowing cold air · Running constantly · Defrost cycle · Extreme cold
Heat pumps in Eagan: questions
Our Eagan townhome has its furnace in a utility closet. Can it have a heat pump?
Often, yes. The indoor side is a coil on top of the furnace, which fits in the same closet if there's height for it. The harder questions are outside: where the association allows the outdoor unit, how the line set gets there and whether the unit can sit high enough above drifting snow. Get us the association's rules early, since approval can take longer than the install.
Will a heat pump fix the hot upstairs bedrooms in our Eagan two-story?
Not by itself. The heat pump delivers cooling through the same ducts the old AC used, so if those ducts starve the bedrooms, they still will. A variable-speed heat pump helps some, running long and slow so air keeps moving. The bigger gains come from an upstairs return, a higher cooling blower speed or zoning. We look at the ductwork while quoting the heat pump so both get solved together.
Guides on heat pumps
HSPF2 and COP: Heat Pump Ratings That Matter in a Minnesota Winter
HSPF2 is a heat pump's seasonal heating average; COP is its efficiency at one temperature. What matters at 5°F, and how to read a spec sheet or NEEP list.
Read the guide8 Heat Pump Buying Mistakes Minnesota Homeowners Make
Eight heat pump buying mistakes Minnesota homeowners make, from shopping by SEER2 to ground-level outdoor units and outdated rebates, and how to avoid them.
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Heat pumps in Eagan? Call or send a request.