Dual-Fuel Heating in Minnesota: Heat Pump Plus Furnace
How a dual-fuel heat pump and furnace system works in Minnesota, and how to set the switchover temperature from your own gas and electric bills.
Read the guide
Heat pump installation in Inver Grove Heights runs $7,500–$14,500, flat-rate in writing, for north-end 1940s homes and south-end acreage. The city covers a lot of ground, from 1940s houses on the north end to acreage in the south, and which fuel you burn changes what makes sense.
Three kinds of houses, three different jobs. In the north end, the 1940s and 50s story-and-a-half houses have small basements, steep stairs and low doorways, and the furnace shares a chimney with the water heater. A heat pump needs only an outdoor unit and a coil on the furnace, so little has to come down those stairs, but we measure the doorways before we promise a day.
In the middle of the city, the 1970s-to-1990s split-entries and townhome associations usually have one return and original central air. Replacing the AC with a heat pump is the easy upgrade, and the gas furnace stays as backup.
South of the built-up area, homes on acreage may be beyond the gas mains and run on propane. A heat pump can cut propane use sharply, and that is where it can make the biggest difference.
Updated November 10, 2026
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 depends on the house: a north-end story-and-a-half with narrow stairs needs doorway measuring, while acreage in the south weighs fuel choice. See the heat pump cost guide.
Xcel customers have heat pump and AC rebates through its Trade Partner Network. Propane homes in the south can look at their electric utility's heat pump rebates. Rebate programs change every year, so check the utility's current terms before you buy.
Our guides: Xcel and CenterPoint rebates, heat pump rebates.
Symptom guides: Refrigerant change · Blowing cold air · Defrost cycle · Signs a heat pump makes sense for your house
It often is, because propane is an expensive fuel to burn for heat. A cold-climate heat pump can carry much of the season, with the propane furnace as backup for the coldest nights. We compare your propane price per gallon with your electric rate before quoting, and we tell you if the numbers favor leaving things as they are.
Not as long as the furnace stays. In a dual-fuel setup the furnace keeps venting through the chimney it shares with the water heater. If the furnace is later replaced with a PVC-vented model, the water heater's vent needs a look. We check the chimney and the draft before quoting and put any venting work in writing.
How a dual-fuel heat pump and furnace system works in Minnesota, and how to set the switchover temperature from your own gas and electric bills.
Read the guideEight heat pump buying mistakes Minnesota homeowners make, from shopping by SEER2 to ground-level outdoor units and outdated rebates, and how to avoid them.
Read the guideHSPF2 is a seasonal average; COP is efficiency at one temperature. For a Minnesota winter, compare capacity and COP at 5°F. Our heat pumps run $7,500–$14,500.
Read the guideHeat out? AC quit? Call or send a request.