Insulation Rebates in Minnesota (2026)

The federal HOMES and HEAR rebates have not launched in Minnesota, so no federal insulation rebate can be claimed there today. This page sets out what the programmes will pay once they open, alongside the state and utility rebates that are available now.

These rebates have not launched yet. 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. DOE has issued new rules that change how the HEAR and HOMES rebates will work in Minnesota, so the federal amounts shown on this page may change before launch. No Minnesota HEAR or HOMES rebate can be claimed today, and rebates are not issued retroactively for work completed before launch. Official updates and the newsletter sign-up are on the Save Energy Minnesota page, and questions go to residential.rebates.comm@state.mn.us. The department also warns that unexpected calls, texts, emails or door-to-door offers about this program are likely scams: wait for official updates from the Minnesota Commerce Department before responding to any offer or submitting an application.

Programme status and income limits on this page were last checked against official state and federal sources on 31 July 2026. These programmes change without notice.

Varies Max HEAR Rebate

Conditional: partially approved, no funds awarded, not launched HOMES Status (MN)

Awarded but not launched HEAR Status (MN)

1 Utility Programs

HEAR Insulation Rebate in Minnesota

Status: Awarded but not launched

Minnesota has not launched its HEAR programme, so no insulation rebate can be claimed there today, and rebates are generally not paid for work completed before launch.

HOMES Rebate for Insulation in Minnesota

Status: Conditional: partially approved, no funds awarded, not launched

Minnesota's HOMES programme is not available today. When it launches, a insulation installed as part of a whole-home retrofit could qualify for rebates up to $8,000.

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Insulation in Minnesota: What’s Available in 2026

Insulation and air sealing are eligible for up to $1,600 in HEAR rebates and play a critical role in whole-home energy efficiency. Better insulation reduces the workload on your heating and cooling system, and when combined with other upgrades, can help you qualify for larger HOMES program rebates based on total energy savings.

Insulation Rebates in 2026

The HEAR program allocates up to $1,600 for insulation, air sealing, and ventilation improvements. This is a combined category, so the $1,600 cap covers all weatherization work together rather than each type individually.

For households at or below 80% AMI, the full cost is covered up to $1,600. For households between 80-150% AMI, 50% of the cost is covered up to the cap. Given that attic insulation typically costs $1,500-$3,500 and wall insulation runs $2,000-$6,000, the rebate covers a meaningful portion of most projects.

Insulation is also one of the most impactful upgrades for the HOMES program. Since HOMES rebates are based on whole-home energy savings (up to $8,000 for low-income households), adding insulation can push your total home improvement past the energy savings thresholds needed to unlock larger rebates. Many energy auditors recommend insulation as the first step in any home performance upgrade.

Types of Insulation That Qualify

Several insulation methods qualify for the HEAR rebate. The right choice depends on your home's construction, existing insulation levels, and where the biggest air leaks are:

Blown-in attic insulation: The most common and cost-effective upgrade. Cellulose or fiberglass is blown into the attic floor to reach R-38 to R-60 levels. Typical cost: $1,500-$3,000.
Wall cavity insulation: Dense-pack cellulose or injection foam can be added to existing walls through small holes. Important for older homes with little or no wall insulation.
Spray foam insulation: Open-cell or closed-cell spray foam provides both insulation and air sealing. More expensive but highly effective for rim joists, crawl spaces, and cathedral ceilings.
Air sealing: Caulking, weatherstripping, and sealing around penetrations (pipes, wires, ducts) often delivers the highest return per dollar spent. Frequently done alongside insulation.
Duct sealing and insulation: Leaky ductwork can waste 20-30% of conditioned air. Sealing and insulating ducts in unconditioned spaces significantly improves system efficiency.

A home energy audit can identify where insulation upgrades will have the greatest impact. Many state programs offer free or subsidized energy audits as part of the HEAR rollout.

Weatherization Assistance Programs

Beyond HEAR, the federal Weatherization Assistance Program (WAP) provides free insulation and energy efficiency improvements for low-income households. WAP has been operating for decades and received additional funding through the Inflation Reduction Act.

WAP eligibility is based on the federal poverty level rather than area median income. Households at or below 200% of the federal poverty level may qualify for fully funded weatherization services including insulation, air sealing, furnace repair or replacement, and other efficiency measures.

WAP services are delivered through a network of local community action agencies. Wait times can be long (months to over a year in some areas), but the work is done at no cost to qualifying households. Contact your state's WAP provider to apply.

If you qualify for both WAP and HEAR, you may be able to use both programs for different improvements. For example, WAP might cover insulation and air sealing while HEAR covers a heat pump installation. Coordination between programs varies by state, so ask your state energy office about how to maximize both.

Minnesota State Programs for Insulation

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

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Minnesota 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

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Xcel 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.

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CenterPoint 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.

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Minnesota 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.

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Utility Insulation Rebates in Minnesota

These utility companies in Minnesota may offer additional rebates for insulation installations. Utility rebates can typically be stacked with HEAR and HOMES rebates.

Xcel Energy

Income Eligibility for Insulation Rebates in Minnesota

Your eligibility for the maximum insulation rebate depends on your household income relative to the Area Median Income (AMI) in your area.

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

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Before 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 programmes 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 programmes also refuse to pay for work completed before their launch date.

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, tell us and we will correct it.

Frequently Asked Questions

How much can I get for a insulation in Minnesota?

Nothing yet. HEAR is awarded but not launched in Minnesota, so no federal insulation rebate can be claimed there today, and rebates are generally not paid for work completed before a programme launches. Once it opens, the federal framework allows up to varies for households at or below 80% of Area Median Income, and 50% of the cost up to the same cap for households between 80% and 150% AMI. Utility rebates may be available now regardless.

Is the HEAR program open in Minnesota for insulation rebates?

The HEAR status in Minnesota is: Awarded but not launched. No application is possible today. Check the official programme page rather than relying on a contractor telling you otherwise.

Can I combine insulation rebates with other incentives in Minnesota?

Not yet. Neither HEAR nor HOMES has launched in Minnesota, so there is no federal rebate to stack there today. Once they open you will typically be able to combine them with each other, with state programmes like Minnesota Residential Heat Pump Rebates (state funded), and with utility rebates. Combined incentives generally cannot exceed 100% of the project cost, and the same measure cannot always be claimed twice.

What income qualifies for the maximum insulation rebate in Minnesota?

To qualify for the maximum rebate, your household income must be at or below 80% of Area Median Income (AMI) for your county in Minnesota. For example, in Hennepin County (Minneapolis), 80% AMI for a family of 4 is $105,200. Households between 80% and 150% AMI receive 50% of costs up to the cap.

How much is the insulation rebate under HEAR?

The HEAR program provides up to $1,600 for insulation, air sealing, and ventilation combined. Households at or below 80% AMI get 100% of costs covered up to the cap. Households at 80-150% AMI get 50% of costs covered. This is separate from any utility or state incentives you may also qualify for.

Does air sealing count as insulation for the rebate?

Yes. Air sealing, insulation, and ventilation improvements are grouped together under the same $1,600 HEAR rebate cap. This means a project that includes both blown-in insulation and air sealing would draw from the same $1,600 allowance.

Should I insulate before or after installing a heat pump?

Ideally, insulate first. A well-insulated home allows you to install a smaller, less expensive heat pump that doesn't have to work as hard. Better insulation also improves the energy savings calculations for HOMES rebates. Many energy auditors recommend addressing the building envelope (insulation and air sealing) before upgrading HVAC equipment.

Can I do the insulation work myself and still get the rebate?

HEAR rebates are generally designed to be applied at point of sale through participating contractors. DIY installations may not qualify for the HEAR rebate in most states, though policies vary. However, some utility rebate programs do accept DIY work with proof of purchase. Check your state's specific HEAR program rules and your utility's rebate requirements.

What is the Weatherization Assistance Program and am I eligible?

The Weatherization Assistance Program (WAP) is a federally funded program that provides free energy efficiency improvements, including insulation, to low-income households. You may qualify if your household income is at or below 200% of the federal poverty level. WAP is administered by local community action agencies and services are provided at no cost. Contact your state's WAP provider to apply.