Minnesota Department of Commerce — residential energy programs
Residential heat pump rebates, storage incentives, weatherization, bill assistance, and electrical panel upgrade help. These run independently of the federal rebates.
Program detailsMinnesota home energy costs & incentives
A broad state offering — but the federally funded rebates have not launched, and Commerce is warning about scams that claim otherwise.
Prices pulled August 16, 2026
What energy costs here
15.82¢
per kWh, residential electricity
9% below the national average of 17.3¢. 23rd most expensive of 51.
Up 17% since 2021 (4% a year), against 27% nationally.
$1.06
per therm, residential natural gas
$10.98 per thousand cubic feet, 2025 annual. National average $1.48/therm.
Up 17% since 2021 (4% a year).
Heat pump vs. gas furnace — Close call
Minnesota's electricity-to-gas price ratio works out at 4.4-to-1. At these prices the two land near each other on running cost, which puts the decision on installation cost, whether your AC also needs replacing, and how cold your winters get.
Below roughly 3.5-to-1 a heat pump usually wins on running cost; above roughly 5-to-1 a furnace may be cheaper through winter. How that comparison works · run it with these rates
State averages from the U.S. Energy Information Administration (electricity, gas), pulled 2026-08-16. Real bills vary substantially by utility within a state, and by rate plan within a utility — check a recent bill for your own numbers before relying on any of this. The heat pump verdict above follows from these averages, so it moves if your rates differ.
What's different in Minnesota
Read this before you talk to anyone selling you on Minnesota's rebates. Save Energy Minnesota — the state's name for the federally funded Home Energy Rebates — has not launched. The Commerce Department's own notice says the state is waiting on formal approval from the Department of Energy and that there is no estimated launch date, and that federal rules have recently changed how the two tracks will work here.
Commerce goes further and tells households to wait for official updates before responding to offers or submitting anything, warning that unexpected calls, emails, texts, online ads or door-to-door visits about the program are likely scams. That is an unusually blunt thing for a state agency to publish, and it is worth taking literally: nobody can enrol you in a program that is not open. We have written up how to tell a real rebate offer from a fake one.
What Minnesota does run separately is genuinely broad. The Commerce Department lists a Residential Heat Pump Rebate Program, energy storage incentives, weatherization assistance, bill assistance, and help with electrical panel upgrades — none of which depend on the federal rebates launching.
The electrical panel upgrade assistance is worth knowing about specifically. Panel capacity is the hidden cost that derails electrification projects — people budget for the heat pump and discover the service can't carry it. A state that helps with the panel is removing the obstacle most likely to stop your project.
Check with the administrator before you sign anything. Program budgets run out, terms change without notice, and most require approval before work starts — a rebate you apply for afterwards is usually a rebate you don't get. Treat this page as a starting point for your own call, not as confirmation that you qualify. We last checked these programs on August 16, 2026.
Minnesota programs
Save Energy Minnesota (HEAR and HOMES) — not launched
Awaiting DOE approval with no estimated launch date. Commerce warns that unsolicited offers relating to this program are likely fraudulent.
Program detailsThe federal position — the same everywhere
- Residential Clean Energy Credit (Section 25D)Ended
Ended. No credit for expenditures made after 31 December 2025.
- Energy Efficient Home Improvement Credit (Section 25C)Ended
Ended. No credit for property placed in service after 31 December 2025.
Full detail, sources and changelog on the national incentive tracker.
Where to check for your address
- Minnesota Department of Commerce — Energy for consumers
- Minnesota Commerce — Home Electrification and Appliance Rebate (HEAR)
- DSIRE — search state, local and utility programs by ZIP
- ENERGY STAR Rebate Finder
- U.S. DOE — Home Energy Rebates, by state
Your own utility is worth checking separately — utility rebates are often the largest remaining incentive and rarely appear in any central listing.
Not tax advice
Everything here is general information gathered from public sources. It is not tax, financial or engineering advice, and it cannot account for your utility, your income, your equipment or your return. Energy prices are state averages that move; program terms and budgets change without notice. Confirm anything you plan to budget around directly with the program administrator, your utility and a licensed professional before you commit money.
If you find something on this page that is out of date, tell us at minchangyi@me.com and we will correct it.
Run the numbers for your house
These open with Minnesota's average rates already filled in. Correct them from a recent bill before you rely on the result — state averages hide a lot of variation between utilities.
Guides behind these numbers
- Heat Pump vs. Gas Furnace: The Real 2026 Cost ComparisonUpfront cost, operating cost, and total cost of ownership for heat pumps vs. gas furnaces in 2026 — with the trade-offs most guides skip.HVAC · 6 min read
- The Gas-to-Heat-Pump Rebate Is Gone. The Electric-to-Heat-Pump One Isn't.DOE Program Notice 26-2 removed fuel switching from the HEAR rebates. Here's exactly what changed, who is still eligible, and what to do if your project is already underway.HVAC · 6 min read
- How to Tell If Your HVAC System Is Properly Sized (Manual J Explained)An oversized or undersized HVAC system wastes money and comfort. Here's what proper sizing means and how to know if yours is right.HVAC · 4 min read
- Insulation vs. HVAC Upgrades: Which Should You Prioritize First?Before spending on a new HVAC system, it's often smarter to fix your home's envelope first. Here's how to decide the right order.HVAC · 3 min read
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