Minnesota Energy Rebates 2026
Minnesota's HEAR and HOMES rebates are run by the Minnesota Department of Commerce under the Save Energy Minnesota banner, and as of the department's June 12, 2026 update they have not launched: the state is waiting on formal approval from the US Department of Energy and gives no estimated launch date. Two state-funded programs, the Residential Heat Pump Rebates and the Residential Electrical Panel Upgrades, are designed to stack with the federal rebates and are waiting on the same launch. What is available in Minnesota today are the utility conservation improvement programs (CIPs) funded by Xcel Energy, CenterPoint Energy and other utilities, plus the Weatherization Assistance Program. The 25C and 25D federal tax credits expired December 31, 2025.
Program status and income limits on this page were last checked against official state and federal sources on . These programs change without notice.
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 is administered by the Minnesota Department of Commerce. DOE partially approved Minnesota's HOMES application in late 2024 but did not award funds, and the program has not launched. Commerce submitted all pre-launch documents to DOE in September 2025 and is waiting on formal approval, with no estimated launch date. DOE has since issued new rules that change how HOMES will work in Minnesota, so the amounts in the table above are the federal framework and may change before launch. Commerce describes the eventual Minnesota rebate as ranging from $2,000 to $8,000 or more per home, varying with the energy savings achieved and household income. Programs are set to run through 2031 or until funds are used, whichever comes first.
Official HOMES Program PageHEAR (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.
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Minnesota State Incentive Programs
Minnesota Residential Heat Pump Rebates (state funded)
A state-funded rebate approved by the Minnesota Legislature in 2023 and designed to be stacked with the federal rebates. Read the amount carefully: it is a top-up, not a flat $4,000 added on top. The rebate is the lesser of $4,000, or the total cost to purchase and install the heat pump minus the rebate amount from the federal Home Energy Rebate and other rebate programs. The equipment must be an ENERGY STAR certified, cold-climate rated air-source heat pump. Applicants must own and live in the Minnesota home, must have had an energy audit within the previous 18 months by a certified Building Analyst Technician, and must have completed the recommended insulation and air sealing or have the auditor confirm the existing measures are sufficient. Installation must be done by a contractor from the approved contractor list, which will be released before launch. Heat pumps for water heating or clothes drying are excluded. The program has not launched.
Amount: The lesser of $4,000, or the installed cost minus the federal Home Energy Rebate and other rebates
Learn moreMinnesota Residential Electrical Panel Upgrade Grants (state funded)
A state-funded grant set out in Minn. Stat. Sec. 216C.45, also designed to be stacked with the federal rebates. Owners of single-family homes qualify at or below 150% of Area Median Income; multifamily buildings qualify when at least 50% of units are occupied by households at or below 150% AMI. Eligible work covers raising the panel rating to at least 200 amperes, or to whatever rating lets the building meet all its energy needs with electricity alone under the National Electrical Code as adopted in Minnesota, or installing a smart panel. Work must be done by a contractor from the approved contractor list, to be released before launch. Roughly $5.8 million is available. Grants are issued only after launch and never retroactively, so a panel replaced before then does not qualify. Commerce expects this program to begin at the same time as, or after, the federal HEAR program. Commerce also advises against delaying a needed panel repair while waiting.
Amount: $3,000 below 80% AMI, $2,000 between 80% and 150% AMI, multifamily capped at $50,000 per building
Learn moreXcel Energy Conservation Improvement Program (CIP)
Available now. 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. See the Xcel Energy rebate guide for current amounts and how to stack with state programs.
Learn moreCenterPoint Energy Conservation Programs
Available now. 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 side of the job.
Learn moreMinnesota Weatherization Assistance Program
Available now. DOE-funded weatherization delivered through local Community Action Agencies. Provides free insulation, air sealing, heating repairs, and health and safety improvements for income-qualified households (at or below 200% of the 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) |
|---|---|---|
| Hennepin County (Minneapolis) | $105,200 | $197,200 |
| Ramsey County (Saint Paul) | $105,200 | $197,200 |
| Olmsted County (Rochester) | $106,800 | $200,200 |
| Stearns County (St. Cloud) | $85,700 | $160,700 |
| Blue Earth County (Mankato) | $85,200 | $159,800 |
| St. Louis County (Duluth) | $80,900 | $151,700 |
| Most non-metro counties (Beltrami, Cass, Crow Wing, Cook and others) | $78,400 | $147,000 |
Minnesota sets eligibility by county, not by metro area. The figures above are for a 4-person household and come from the Minnesota Department of Commerce 2026 Area Median Income look-up table, updated June 1, 2026. Thresholds rise with household size, are lower for smaller households, and are updated every year. Check your own county and household size in the official 2026 Area Median Income look-up table (PDF).
Use Our Calculator to Check EligibilityBefore you spend money on this
Energy Rebate Calculator is an independent website. It is not affiliated with, endorsed by, or operated by the U.S. Department of Energy, Minnesota, or any other government agency, and nothing on this page is an offer, an application, or a promise of payment.
Federal and state rebate programs launch, pause, change their amounts and run out of funds without notice, and eligibility rules differ by county, household size, housing type and sometimes by region within a state. Most programs also refuse to pay for work completed before their launch date. Figures here are published to help you understand roughly where you stand, not to be relied on as the final word.
Confirm your eligibility and the current terms directly with the administering agency, and get written confirmation, before you sign a contract or buy equipment. Where this page cites an official source, that source governs. If you spot something out of date on this page, tell us and we will correct it.
Data vintage. The rebate data on this page was last updated on . We publish this date so you can judge for yourself how current the figures are.
Frequently Asked Questions
Can I get a HEAR or HOMES rebate in Minnesota right now?
No. As of the Minnesota Department of Commerce update dated June 12, 2026, Save Energy Minnesota has not launched. The state is waiting on formal approval from the US Department of Energy and there is no estimated launch date. Rebates are not issued retroactively, so work completed before launch will not qualify. What is available today in Minnesota: Xcel Energy and CenterPoint Energy conservation improvement program rebates, which have no income limits, and the Weatherization Assistance Program for households at or below 200% of the federal poverty level.
When will Minnesota's HEAR and HOMES rebates launch?
There is no estimated launch date. The timeline so far: Commerce received DOE planning funds in mid 2023; submitted the HEAR application in late 2024, which DOE approved and funded; DOE partially approved the HOMES application in late 2024 without awarding funds; Commerce hired an implementation contractor in early 2025 and submitted all pre-launch documents to DOE in September 2025. DOE has since issued new rules that change how the rebates will work in Minnesota, and Commerce is still assessing the impact. Once launched, the programs run through 2031 or until funds are used, whichever comes first. The Department of Commerce runs a Consumer Announcements newsletter for updates.
Can Minnesota state rebates be combined with the federal ones?
Yes, that is how they were designed. The Minnesota Legislature approved state funding for two related programs in 2023, the Residential Heat Pump Rebates and the Residential Electrical Panel Upgrades, and Commerce states they are designed to be stacked with the federal rebates to lower the overall project cost. Note how the heat pump one is calculated: it is the lesser of $4,000, or the installed cost minus the federal Home Energy Rebate and other rebates. It tops the federal rebate up toward the project cost rather than adding a flat $4,000 on top.
How do Minnesota AMI income limits work?
Eligibility is set by county and household size, not by metro area. For a 4-person household in 2026, the 80% AMI threshold is $105,200 in Hennepin and Ramsey counties, $106,800 in Olmsted County, $80,900 in St. Louis County, and $78,400 across most non-metro counties. The 150% caps for the same household size are $197,200, $200,200, $151,700 and $147,000 respectively. Thresholds rise with household size. The Department of Commerce publishes the full table for all 87 counties, updated June 1, 2026.
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 in Minnesota, utility CIP rebates are the main incentive available today, with HEAR, HOMES and the two state programs to follow once they launch.
Will cold-climate heat pumps be eligible in Minnesota?
Yes. The state heat pump rebate requires an ENERGY STAR certified, cold-climate rated air-source heat pump, sized as recommended by an auditor or contractor, and heat pumps used for water heating or clothes drying are excluded. Applicants will also need an energy audit within the previous 18 months by a certified Building Analyst Technician, will need the recommended insulation and air sealing done first, and will have to use a contractor from an approved list that Commerce will publish before launch. Given Minnesota winters, cold-climate models are the sensible choice regardless of the rebate.
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). That mandatory investment means utilities like Xcel Energy and CenterPoint Energy must continuously fund rebate programs, which is why rebate availability is above average. These utility rebates are available regardless of income and are the practical option while the federal and state programs wait on launch.
How to Claim Your Minnesota Rebates
