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Energy Rebates in Minnesota
Minnesota residents can access a range of federal energy tax credits, state-specific incentive programs, and local utility rebates to help offset the cost of energy-efficient home improvements. This page covers the key programs available in Minnesota, including heat pump rebates, solar incentives, EV charger credits, weatherization assistance, and more. Each program listed below includes eligibility details and links to official sources.
Federal Programs in Minnesota for 2026
- Federal home energy tax credits (25C and 25D) ended after 2025: The 25C Energy Efficient Home Improvement Credit does not apply to property placed in service after December 31, 2025, and the 25D Residential Clean Energy Credit (solar, batteries, geothermal) does not apply to expenditures made after December 31, 2025 (IRS). Work completed in 2025 or earlier can still be claimed on IRS Form 5695.
- HOMES & HEAR Rebates: Minnesota had not launched the HOMES or HEAR rebate programs as of the NASEO tracker updated September 30, 2026. Funding and eligibility change, so confirm with the state energy office before starting work. HEAR can provide up to $14,000 per income-qualified household; see our HEAR and HOMES guides.
- 30C EV Charger Credit (ended): Does not apply to chargers placed in service after June 30, 2026.
- Weatherization Assistance Program (WAP): Free weatherization services for low-income households, generally at or below 200% of the federal poverty level.
Minnesota Energy Rebate Overview
Minnesota households have access to a combination of federal, state, and local utility incentives designed to make energy-efficient home upgrades more affordable. Minnesota had not launched the HOMES or HEAR rebate programs as of the NASEO tracker updated September 30, 2026. Funding and eligibility change, so confirm with the state energy office before starting work. The Minnesota Department of Commerce - Division of Energy Resources coordinates state-level energy programs and can provide the latest information on available incentives.
HOMES & HEAR Program Status in Minnesota
Minnesota has launched HOMES and HEAR programs through the Minnesota Department of Commerce. The state received approximately $80 million in IRA funding for energy efficiency and electrification rebates, complementing existing Conservation Improvement Programs (CIP) run by utilities.
Income Eligibility for Minnesota Rebates
For a family of four in the Minneapolis-St. Paul metro area, 80% AMI is approximately $80,200. Under federal HOMES rules, low-income households can receive the largest rebates where the state runs the program; states set the exact amounts.
For a family of four in the Minneapolis-St. Paul metro area, 150% AMI is approximately $150,375. Moderate-income households can receive smaller, partial HOMES rebates where the program is available.
Minnesota State Tax Credits
Minnesota Solar Energy Sales Tax Exemption
Amount: 100% exemption from state sales tax on solar energy systems
Eligible items: Solar PV systems, solar thermal systems, and associated equipment
Minnesota exempts solar energy equipment from the state sales tax (6.875%) and local sales taxes. This effectively reduces the cost of a solar installation by the sales tax amount. No application required; the exemption is applied at point of sale.
Minnesota Solar Energy Production Incentive (Xcel Energy)
Amount: Performance-based incentive of approximately $0.08/kWh for 10 years (program now has a waitlist/limited availability)
Eligible items: Solar PV systems installed by Xcel Energy customers in Minnesota
Xcel Energy's Solar*Rewards program provides production-based incentives. The program has been very popular and may have limited availability or waitlists. Check with Xcel Energy for current program status and rates.
Minnesota State Rebate Programs
Minnesota Conservation Improvement Programs (CIP)
Administered by: All Minnesota utilities under Department of Commerce oversight
Amount: Varies by utility: $50-$3,000+ depending on measure
Eligible items: Insulation, air sealing, HVAC systems, heat pumps, smart thermostats, ENERGY STAR appliances, LED lighting, water heaters
Minnesota law requires utilities to invest at least 1.5% of gross operating revenue in energy conservation programs. Each utility offers its own suite of rebates and programs. This is one of the most comprehensive statewide efficiency program mandates in the country.
Minnesota Weatherization Assistance Program
Administered by: Minnesota Department of Commerce / Community Action Agencies
Amount: Average of $8,000+ per home
Eligible items: Insulation, air sealing, furnace repair and replacement, water heater replacement, health and safety improvements
Available to households at or below 200% of the federal poverty level. Minnesota's program is among the most active in the nation given the cold climate.
Minnesota Fix-Up Fund / Home Energy Loans
Administered by: Minnesota Housing Finance Agency
Amount: Low-interest loans up to $50,000 for home improvements including energy efficiency
Eligible items: Energy efficiency improvements, HVAC systems, windows, insulation, solar PV, and other home improvements
Below-market interest rate loans available through participating lenders. Income limits apply. Can be combined with utility rebates.
Solar Net Metering in Minnesota
Minnesota requires all utilities to offer net metering for systems up to 1 MW. Customers receive credit at the retail rate for excess generation. Minnesota also has a strong community solar garden program, particularly through Xcel Energy, allowing subscribers to receive bill credits for their share of a community solar project.
Utility Rebate Programs in Minnesota
Minnesota residents may qualify for additional rebates from their local utility company. Here are programs from major utilities serving the state:
Xcel Energy (Northern States Power)
Xcel Energy Home Energy Squad
Amount: $50-$100 for a comprehensive visit; free for income-qualified customers. Includes direct installation of efficiency measures.
Eligible items: LED lighting, programmable thermostats, insulation assessment, blower door testing, water heater blankets, showerheads
Xcel Energy Residential Heating and Cooling Rebates
Amount: $200-$2,500 depending on equipment type and efficiency level
Eligible items: Air source heat pumps, ground source heat pumps, ductless mini-splits, high-efficiency furnaces, central air conditioners, smart thermostats
Xcel Energy Solar*Rewards Program
Amount: Performance-based incentive; rates vary by program year and availability
Eligible items: Solar PV systems installed on homes in Xcel Energy service territory
CenterPoint Energy Minnesota
CenterPoint Energy Home Energy Rebates
Amount: $50-$1,500 depending on measure
Eligible items: High-efficiency furnaces, boilers, water heaters, insulation, air sealing, smart thermostats
CenterPoint Energy Home Energy Squad (co-delivered with Xcel)
Amount: $50-$100 for comprehensive visit; free for income-qualified
Eligible items: Direct install of efficiency measures, energy assessment, insulation recommendations
Minnesota Power (ALLETE)
Minnesota Power Residential Energy Efficiency Rebates
Amount: $50-$1,000 depending on measure
Eligible items: Heat pumps, insulation, LED lighting, smart thermostats, ENERGY STAR appliances
Get Personalized Minnesota Rebate Guidance
Enter your ZIP code below to chat with our AI about rebates specific to your area in Minnesota. The AI will check federal, state, and utility programs and give you a personalized breakdown of what you may qualify for and how to apply.
Frequently Asked Questions About Minnesota Rebates
What energy rebates are available in Minnesota?
With the federal 25C and 25D tax credits ended after 2025, Minnesota residents should look to state, utility and HOMES/HEAR programs. State-level programs include Minnesota Conservation Improvement Programs (CIP), Minnesota Weatherization Assistance Program, Minnesota Fix-Up Fund / Home Energy Loans. Minnesota had not launched the HOMES or HEAR rebate programs as of the NASEO tracker updated September 30, 2026. Funding and eligibility change, so confirm with the state energy office before starting work.
Has Minnesota launched the HOMES and HEAR rebate programs?
Minnesota has launched HOMES and HEAR programs through the Minnesota Department of Commerce. The state received approximately $80 million in IRA funding for energy efficiency and electrification rebates, complementing existing Conservation Improvement Programs (CIP) run by utilities.
What are the income limits for energy rebates in Minnesota?
For a family of four in the Minneapolis-St. Paul metro area, 80% AMI is approximately $80,200. Under federal HOMES rules, low-income households can receive the largest rebates where the state runs the program; states set the exact amounts. For a family of four in the Minneapolis-St. Paul metro area, 150% AMI is approximately $150,375. Moderate-income households can receive smaller, partial HOMES rebates where the program is available.
Does Minnesota have net metering for solar panels?
Minnesota requires all utilities to offer net metering for systems up to 1 MW. Customers receive credit at the retail rate for excess generation. Minnesota also has a strong community solar garden program, particularly through Xcel Energy, allowing subscribers to receive bill credits for their share of a community solar project.
How do I apply for energy rebates in Minnesota?
Start by entering your ZIP code on Rebate Atlas to get personalized guidance. If you completed qualifying work in 2025 or earlier, claim the 25C or 25D credit on IRS Form 5695 for that tax year (both ended for 2026 work). For state programs, contact the Minnesota Department of Commerce - Division of Energy Resources. For utility rebates, check with your local utility provider directly.
Explore Nearby States
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