Estimated Savings for a Typical Minnesota Home
2,000 sq ft home switching from electric-resistance heating
Installed Cost
$18,000
State Rebate
-$3,000
Net Cost
$15,000
Current Heating Cost/yr
$4,371
Heat Pump Cost/yr
$1,987
Annual Savings
$2,384
Payback Period
6.3 yrs
15-Year Savings
$30,669
CO₂ Avoided/yr
13,693 lbs
Minnesota Heat Pump Rebates
✕
Federal 25C Tax Credit (Expired Dec 31, 2025)
The federal Energy Efficient Home Improvement Credit (up to $2,000 for heat pumps) ended December 31, 2025. Heat pumps installed in 2026 do not qualify for it.
Up to $3,000
Minnesota State/Utility Rebate
Minnesota utility and state programs (Xcel, CenterPoint) offer heat-pump rebates commonly $3,000+.
Up to $8,000
HEEHRA Federal Rebate (Income-Qualified)
Households at or below 150% of area median income can receive up to $8,000 toward a heat pump through the federal HEEHRA program, administered by Minnesota. View full rebate detail →
Heat Pump Costs by City in Minnesota
| City | Annual Savings | Payback (yrs) | Population ↓ | Utility |
|---|---|---|---|---|
| Minneapolis | $2,491 | 6 | 429,954 | Xcel Energy MN |
| Saint Paul | $2,819 | 5.3 | 311,527 | Xcel Energy MN |
| Rochester | $2,698 | 5.6 | 121,395 | Rochester Public Utilities |
| Duluth | $2,732 | 5.5 | 90,872 | Minnesota Power |
| Bloomington | $2,790 | 5.4 | 89,987 | Xcel Energy MN |
| Brooklyn Park | $2,886 | 5.2 | 81,175 | Xcel Energy MN |
| Plymouth | $2,741 | 5.5 | 79,928 | Xcel Energy MN |
| Maple Grove | $2,211 | 6.8 | 76,000 | Xcel Energy MN |
| Woodbury | $2,743 | 5.5 | 75,102 | Xcel Energy MN |
| St. Cloud | $2,679 | 5.6 | 68,228 | Connexus Energy |
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Quick Facts: Minnesota
- 🌡️ Climate: Very Cold (8,400 HDD)
- ⚡ Avg electricity: $0.148/kWh
- 🔥 Natural gas: $1.05/therm
- 🏭 Top utility: Xcel Energy MN