Minnesota headline: Up to $10,500 in combined rebates with cold-climate bonus. Heat pumps work below 0°F with NEEP-certified equipment plus backup heat.
Active programs
Xcel Energy heat pump rebates
Xcel covers most metro Minneapolis-St. Paul and much of central MN.1
| Equipment | Xcel rebate |
|---|---|
| Cold-climate ducted heat pump | $1,500-$2,500 |
| Ductless mini-split | $500-$1,000 per indoor unit |
| Geothermal | $2,500+ |
Minnesota HEEHRA
Administered by the Minnesota Department of Commerce.2
| Income tier | Cap |
|---|---|
| ≤80% AMI | $8,000 |
| 80-150% AMI | $4,000 |
Cold-climate bonus
Minnesota’s HEEHRA implementation includes additional incentives for NEEP-certified cold-climate equipment in addition to the federal HEEHRA cap. Total state-side stack reaches $10,500 in some configurations.
Other utilities
| Utility | Program |
|---|---|
| CenterPoint Energy | Gas-to-heat-pump conversion incentive ~$500-$1,500 |
| Minnesota Power | Heat pump rebate $500-$1,500 |
| Otter Tail Power | Heat pump rebate $300-$1,000 |
Cold-climate critical points
In Minnesota’s design heating temperature (often -10 to -15°F):
- Pick from NEEP cold-climate list. Mitsubishi H2i, Daikin Aurora, Fujitsu Halcyon XLTH, Bosch IDS.3
- Hybrid with existing gas furnace backup is the recommended setup.
- Don’t accept a contractor’s claim that “this heat pump works fine in cold weather” without NEEP certification documentation.
How to apply
- Confirm your utility (Xcel vs CenterPoint vs MN Power).
- Find an approved contractor through the utility’s site.
- Pre-apply for HEEHRA if income-eligible.
- Install (winter installs are common in MN despite the cold).
Realistic example
Minneapolis home replacing 18-year-old gas furnace with cold-climate hybrid:
- Equipment + install: $18,000
- Xcel cold-climate rebate: $2,500
- HEEHRA at 80-150% AMI: $4,000
- Cold-climate bonus: $500
- Net cost: $11,000
What to do next
For broader context, see the 2026 heat pump rebate guide and cold climate heat pumps.
The 30-second summary:
- Up to $10,500 stacked rebates with cold-climate bonus.
- NEEP cold-climate certified equipment essential in MN.
- Hybrid (heat pump + gas furnace backup) is the recommended setup.
- Xcel is the dominant utility; CenterPoint covers gas-to-heat-pump conversions.