Heat Pump Installation Cost in Minnesota (2026)
A ducted heat pump installed by us in Minnesota costs $7,500–$14,500; ductless runs $4,200–$12,500. See what moves the price and which rebates still run.
Read the guide
A heat pump installed in a Scandia house runs about $7,500–$14,500, quoted in writing at a flat rate. Most homes sit past the gas mains or on propane, so the usual plan is a dual-fuel heat pump with a propane or gas furnace carrying the coldest days.
Scandia is mostly large rural parcels, and most of the housing went up after 1970. Gas comes from Xcel Energy where its mains reach, and Minnesota Energy Resources serves a small area, so many houses beyond the mains heat with propane or electricity. Electric service is split between two utilities, which changes the rebate rules from one address to the next. On Connexus Energy's dual-fuel rate the furnace carries the house alone whenever the co-op interrupts the heat pump, so we set up automatic changeover.
The 1970s ramblers and split-levels have worn out a furnace or two, and some still send the water heater up a masonry chimney after a switch to a condensing furnace. That chimney needs a liner. Seasonal cabins turned year-round homes may have too little duct space, and for those we look at ductless.
Updated October 27, 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. The price depends on the address: past the gas mains, a propane furnace and Connexus's dual-fuel rate shape the quote, and rebate rules differ between Scandia's two electric utilities. See the heat pump cost guide.
Xcel's heat pump rebates generally need a Trade Partner Network installer, so confirm that before you buy. Connexus Energy members get heat pump and AC rebates and a lower heating rate for heat pumps with automatic backup. Programs change every year.
Our guides: Xcel and CenterPoint rebates, heat pump rebates.
Symptom guides: Blowing cold air · Running constantly · Defrost cycle · Signs a heat pump makes sense for your house
The co-op can turn the heat pump off during peak demand for up to 12 hours, and the furnace carries the house alone for that time. Keep the propane tank well above empty before cold weather and have the furnace checked in the fall. We set the changeover to be automatic so you do not have to do anything.
It depends on your electric rate and propane price. A heat pump carries the mild months and shoulder seasons while the propane furnace covers the coldest days, which can cut propane use. If the AC is the only thing failing and the furnace is old, we price both ways and tell you plainly if a straight AC swap is the better value.
A ducted heat pump installed by us in Minnesota costs $7,500–$14,500; ductless runs $4,200–$12,500. See what moves the price and which rebates still run.
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.