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 Falcon Heights, MN
Installed heat pumps in Falcon Heights cost $7,500–$14,500, quoted in writing before work starts, on Xcel Energy gas and electric. With Xcel supplying both gas and electricity, the right setup depends on your house: a ducted dual-fuel system in the postwar blocks, something different in University Grove.
Heat pump work in Falcon Heights homes
Falcon Heights has three housing groups that call for three approaches. The postwar houses northeast of Snelling and Larpenteur usually have a basement furnace, a few returns and ducts sized for heat. A cold-climate heat pump can share those ducts and keep the gas furnace as backup, so the first job is checking the airflow and the panel.
University Grove is the opposite. With 103 houses designed one at a time, University Grove has no standard duct plan to copy. We walk the house before suggesting anything, and in some Grove houses a ductless heat pump is a cleaner fit than extending the original ductwork.
In the 1920s houses with chimney-vented gas equipment, a heat pump can take over cooling and some heating, which leaves the furnace running less often. Because Xcel is the only utility here, one conversation covers the rate and rebate questions.
Updated November 10, 2026
What affects the price of a heat pump in Falcon Heights?
Our $7,500–$14,500 installed price comes as a written flat-rate quote, with a 2-year labor warranty on top of the manufacturer's parts warranty. Pricing splits by neighborhood: postwar blocks near Snelling need airflow and panel checks before a ducted dual-fuel unit, while University Grove's one-off layouts call for individual designs. See the heat pump cost guide.
Are there rebates for a heat pump in Falcon Heights?
A high-efficiency gas furnace can earn an Xcel rebate, and Xcel's heat pump rebates generally run through its Trade Partner Network contractors, so ask about that first. Rebate programs change every year, so check the utility's current terms before you buy.
Our guides: Xcel and CenterPoint rebates, heat pump rebates.
Heat pumps in Falcon Heights: questions
Does a heat pump change my Xcel bill in Falcon Heights?
Possibly. Xcel lists a reduced space-heating rate for electric customers who heat mainly with a heat pump, but most Minnesota installs keep a gas furnace as backup, so check the rules for your situation. Xcel also runs heat pump rebates through its Trade Partner Network. Ask whether the rebate needs a registered contractor before you pick an installer.
Can a heat pump work in a University Grove home?
It can, but each house is different. Some have ductwork that suits a ducted system, and others have layouts where ductless heads fit better. We look at the plan, the ductwork and the electrical panel in person, then give a written quote. We would rather say a house suits ductless than force a duct design that never fit it.
More in Falcon Heights
- Furnace repair in Falcon Heights
- Furnace replacement in Falcon Heights
- AC repair in Falcon Heights
- AC replacement in Falcon Heights
- Mini-splits in Falcon Heights
- Boiler service in Falcon Heights
- Tune-ups in Falcon Heights
- All HVAC service in Falcon Heights
Heat pump installs near Falcon Heights
- Roseville, MN heat pumps · 1 mi
- St. Anthony, MN heat pumps · 3 mi
- Minneapolis, MN heat pumps · 4 mi
- Saint Paul, MN heat pumps · 5 mi
- Little Canada, MN heat pumps · 5 mi
- New Brighton, MN heat pumps · 5 mi
Brands we install and service
Guides on heat pumps
Heat Pump Defrost Cycle: What's Normal in a Minnesota Winter
Steam, a whoosh and a stopped fan usually mean a normal heat pump defrost.
Read the guideDo Heat Pumps Work in Minnesota Winters?
Cold-climate heat pumps keep working below zero, but output drops as it gets colder. How to read 5°F specs, plan backup, and budget $7,500–$14,500 installed.
Read the guideContact Us
Heat out? AC quit? Call or send a request.