Heat pump water heater rebates in Minnesota

Every figure links to its official source · verified 2026-07-06.

A heat pump water heater is the cheapest way into heat-pump economics: several Minnesota utilities pay rebates today, and the pending HEAR program adds up to $1,750 more for income-qualified households.

Live now — verified amounts

Xcel Energy: Heat pump water heater$400–$500

$400 standard; $500 if demand-management enabled (CTA-2045). Apply by September 30 of the year after installation.

Official source · verified 2026-07-06 · all Xcel Energy rebates

Minnesota Power: Heat pump water heaterup to $300

$300 for ENERGY STAR heat pump water heaters replacing an electric water heater (or new construction). Purchases Jan 1–Dec 31, 2026.

Official source · verified 2026-07-06 · all Minnesota Power rebates

CenterPoint Energy: Efficient gas water heatingamount varies

Amount varies — confirm on the official page.

Official source · verified 2026-07-06 · all CenterPoint Energy rebates

Connexus Energy: Heat pump water heateramount varies

Amount varies — confirm on the Connexus rebate page.

Official source · verified 2026-07-06 · all Connexus Energy rebates

Not with one of these utilities? Most Minnesota co-ops and munis run similar rebates that aren't centrally published — look up your utility's page for contacts.

Coming — Save Energy MN money for water heater

HEAR's published caps include up to $1,750 for a heat pump water heater for income-qualified households.

HEAR — Home Electrification and Appliance Rebates (Save Energy Minnesota): Heat pump water heaterup to $1,750 (planned)

Up to $1,750, same income rules and $14,000 household cap.

These amounts are provisional and the program has not launched. HEAR cannot pay retroactively, and the state cannot guarantee earlier projects will qualify for HOMES — don't sign a contract that depends on unlaunched money.

Get a water heater estimate from a contractor who knows the rebates

Free to you — one licensed Minnesota contractor gets your request and quotes the project with the rebate stack applied. Participating contractors pay to receive estimate requests; that never changes your price.

Get one email the day the $14,000 rebates launch

Save Energy Minnesota has no launch date, and starting work early can forfeit the money — HEAR can't pay retroactively, and the state can't guarantee earlier HOMES projects will qualify. We watch the Commerce page so you don't have to — you'll know the day it goes live, with your tier and the official link. We never sell your email.

Cold-climate heat pump rebates →

Ductless mini-split heat pump rebates →

Insulation rebates →

Air sealing rebates →

Verify before you sign. Rebate amounts are set by program sponsors and change on calendar years; every figure above shows its verification date and official source. This page is consumer education, not legal or tax advice, and a rebate pitched to you by a door-knocker, caller, or ad should be checked against the official source first — see the scam shield.