Minnesota Heat Pump Rebates · 2026
MN heat pump rebates, Xcel incentives & federal tax credits.
Homeowners in Duluth, Hermantown, Cloquet, and the surrounding Twin Ports can stack a federal tax credit of up to $2,000 with utility rebates of $1,000–$1,500 from Minnesota Power and Xcel Energy when they install a qualifying cold-climate heat pump. Twin Ports Heating & Cooling specs systems to hit the rebate thresholds and handles the paperwork on every install.
What's available in Minnesota & Wisconsin
Programs change yearly and funding can run out — these are the active programs we use most often for Twin Ports installs. We confirm current eligibility on your free estimate.
Program
Federal 25C Energy Efficient Home Improvement Credit
Up to $2,000
30% of total project cost, capped at $2,000/year for qualifying cold-climate heat pumps. Claimed on your federal taxes.
Program
Minnesota Power Heat Pump Rebate
Up to $1,200
Tiered rebate based on system efficiency (HSPF2/SEER2) and whether the heat pump is the primary or supplemental heat source.
Program
Xcel Energy Cold-Climate Heat Pump Rebate
Up to $1,200
Cold-climate ASHPs and ductless mini-splits, with bonuses for replacing electric resistance heat.
Program
Comfort Systems / WPPI Energy
Varies
Wisconsin utility rebates for Superior-area homes. Available on qualifying high-efficiency systems.
Program
MN Energy Efficient Mortgage / HEER (when funded)
Varies
State rebate programs that periodically open additional funding for income-qualified households. We'll tell you if you're eligible.
Why cold-climate heat pumps actually work in Duluth
- Modern cold-climate ASHPs deliver rated capacity down to ~5°F and continue operating below -15°F.
- Dual-fuel pairing (heat pump + gas furnace) cuts heating bills for 60–80% of the heating season.
- Ductless mini-splits are ideal for additions, finished attics, and homes without ductwork.
- Rebate-eligible equipment is identified by AHRI number — we match the install to the program.
We handle the rebate paperwork
- Step 1
Free estimate
We design a system that meets the rebate program's minimum HSPF2/SEER2 ratings — not just the cheapest unit on the truck.
- Step 2
Documentation
We pull the AHRI certificate, model and serial numbers, and submit the rebate paperwork on your behalf.
- Step 3
Tax credit prep
You get a Manufacturer Certification Statement and itemized invoice so your tax preparer can claim the 25C credit.
- Step 4
Follow-up
Most utility rebates pay out in 4–10 weeks. We track yours and follow up if it stalls.
See what you qualify for.
Free in-home estimate. We size the system, identify the rebates you qualify for, and put it all in writing before you decide.
Request a free estimate