Minnesota Energy Rebates 2026
Minnesota homeowners in 2026 can access federal HEAR and HOMES rebates administered by the Minnesota Department of Commerce, plus utility conservation improvement programs (CIPs) funded by Xcel Energy, CenterPoint Energy, and other utilities. Minnesota law requires utilities to spend a percentage of revenues on energy efficiency — making utility rebates more generous than average. The 25C and 25D federal tax credits expired December 31, 2025.
HOMES Rebate Program in Minnesota
| Income Level | Max Rebate | Cost Coverage |
|---|---|---|
| Low income (≤80% AMI) | Up to $8,000 | 80% of project cost |
| Moderate income (80-150% AMI) | Up to $4,000 | 50% of project cost |
| Above 150% AMI | Not eligible | N/A |
HOMES rebates are administered by the Minnesota Department of Commerce. Provides up to $4,000 for 20–35% whole-home energy savings and up to $8,000 for 35%+ savings. Income-qualified households (≤80% AMI) receive doubled amounts. Contact the MN Dept. of Commerce or a BPI-certified contractor to start with a qualifying energy audit.
HEAR (HEEHRA) Rebates in Minnesota
| Equipment | Max Rebate |
|---|---|
| Heat Pump HVAC | Up to $8,000 |
| Electrical Panel | Up to $4,000 |
| Wiring Upgrade | Up to $2,500 |
| Heat Pump Water Heater | Up to $1,750 |
| Insulation & Weatherization | Up to $1,600 |
| Electric Stove/Cooktop | Up to $840 |
Maximum total: $14,000 per household (low-income, ≤80% AMI). Moderate income (80-150% AMI) can receive up to $7,000.
Minnesota State Incentive Programs
Xcel Energy Conservation Improvement Program (CIP)
Xcel Energy is required by Minnesota law to invest in customer energy efficiency. Xcel's CIP offers rebates for qualifying heat pumps, smart thermostats, insulation, and other efficiency improvements. These rebates are available to Xcel residential customers regardless of income and can be stacked with federal HEAR rebates.
Learn moreCenterPoint Energy Conservation Programs
CenterPoint Energy (natural gas) offers rebates for high-efficiency gas furnaces, water heaters, and home energy audits. For customers converting from gas to electric heat pumps, CenterPoint's program can help with the gas system tune-up side while federal HEAR covers the heat pump installation.
Learn moreMinnesota Weatherization Assistance Program
DOE-funded weatherization delivered through local Community Action Agencies. Provides free insulation, air sealing, heating repairs, and health/safety improvements for income-qualified households (at or below 200% of federal poverty level). Minnesota receives significant WAP funding given its cold climate and heating costs.
Learn moreUtility Rebate Programs in Minnesota
Area Median Income (AMI) in Minnesota
HOMES and HEAR rebate amounts depend on your household income relative to the Area Median Income in your area. AMI varies by county and household size.
| Area | 80% AMI (Family of 4) | 150% AMI (Family of 4) |
|---|---|---|
| Minneapolis-St. Paul MSA | $86,640 | $162,450 |
| Duluth MN-WI MSA | $67,200 | $126,000 |
| Rochester MSA | $82,320 | $154,350 |
Frequently Asked Questions
What energy rebates are available in Minnesota in 2026?
Minnesota homeowners in 2026 can access: (1) Federal HEAR rebates for heat pumps (up to $8,000), heat pump water heaters ($1,750), insulation ($1,600), and electrical panels ($4,000) for income-qualified households (≤150% AMI); (2) HOMES whole-home performance rebates up to $8,000; (3) Xcel Energy CIP rebates for heat pumps, thermostats, and efficiency upgrades (income-independent); (4) Weatherization Assistance (free, income-qualified). The 25C and 25D federal tax credits expired December 31, 2025.
Are federal tax credits still available in Minnesota?
No. The One Big Beautiful Bill Act (OBBBA, P.L. 119-21, signed July 4, 2025) terminated the Section 25C and 25D federal energy tax credits for installations after December 31, 2025. If you installed qualifying equipment before that date, you can still claim the credit on your 2025 tax return. For 2026 installations, HEAR, HOMES, and Xcel Energy CIP rebates are the primary incentive paths.
Are cold-climate heat pumps eligible for HEAR rebates in Minnesota?
Yes. Cold-climate heat pumps — which maintain high efficiency at temperatures down to -13°F or lower — qualify for the full HEAR heat pump rebate (up to $8,000 for income-qualified households). Given Minnesota's severe winters, cold-climate heat pumps are the recommended choice and are widely available from Minnesota HVAC contractors. Check that the specific model meets ENERGY STAR cold-climate requirements.
Why does Minnesota have strong utility rebates compared to other states?
Minnesota law requires electric and gas utilities to spend a percentage of gross revenues on conservation improvement programs (CIPs). This mandatory investment means utilities like Xcel Energy and CenterPoint Energy must continuously fund rebate programs, resulting in above-average rebate availability. These utility CIP rebates are available regardless of income and can be stacked with federal HEAR and HOMES rebates.
How do HEAR income limits work in the Minneapolis-St. Paul area?
HEAR eligibility uses Area Median Income (AMI) which varies by location. In the Minneapolis-St. Paul MSA, the 4-person household 80% AMI is approximately $86,640 and 150% AMI is approximately $162,450. Many middle-income Twin Cities families qualify for at least partial HEAR rebates (the 50% coverage tier for 80–150% AMI). Use our calculator with your specific location to estimate your eligibility.
How to Claim Your Minnesota Rebates
