https://www.mncee.org/mary-dillard

You can make your home climate-friendly, healthier, and more comfortable through electrification.

 

Electrification is replacing fossil gas (i.e., natural gas) equipment and appliances with electrically powered options. There has never been a better time to make the transition. Our electric grid is getting cleaner. More renewable energy is being put to work while coal plants are being retired. At the same time, electrically powered equipment technology is quickly advancing.

Electrifying your home is a process. Most people transition one area at a time as opportunities present themselves. This guide will cover the key areas to address to electrify your home.

  • Clothes drying – Switching to an electric dryer from a gas dyer
  • Cooking – Switching to an electric range from a gas range
  • Water heating – Switching to an electric heat pump water heater from a gas water heater
  • Heating – Adding a high efficiency electric heating system to either offset or replace a gas furnace/boiler 
  • Weatherization –  Improving your home’s insulation and air sealing to make heating more effective and affordable. While weatherization is not strictly an electrification measure, it is a key step to reduce emissions and optimize electric heating systems.

If you want suggestions for where to get started, consider our three pathways below.

     

Climate Now features the highest-impact projects first to cut greenhouse gas emissions quickest.

  • Step 1: Weatherize your home. Weatherization (insulation, air sealing, and window upgrades) will significantly cut emissions and prepare your home for an electric heating system. Visit the Weatherization tab for more.
  • Step 2: Add a high efficiency electric heating system to offset or replace a gas furnace or boiler. Electrifying part or all your heating needs is a key strategy to bring down emissions. Visit the Heating tab for more.
  • Step 3: Switch to an electric heat pump water heater. Water heating takes much less energy than heating your home, but switching to an electric unit will still help cut home emissions. Visit the Appliance tab for more.

Clothes drying and cooking are not as energy-intensive and can be electrified in either order.

Easing In starts with lower cost, easier-to-install appliance upgrades.

  • Step 1: Switch to an electric clothes dryer. These appliances are relatively low cost and easy to install.
  • Step 2: Switch to an electric cooking range. There are a range of options from affordable to premier. Your kitchen may need a 240-volt plug installed to support the new range.
  • Step 3: Switch to an electric heat pump water heater. These appliances have a larger difference in price compared to traditional gas-burning units but are still relatively simple to install.

Visit the Appliances tab for more information on water heating, cooking, and clothes drying.

Weatherizing your house (insulation, air sealing, and window upgrades as needed) can involve a few separate installations and some higher costs. However, making these upgrades can save you up to $900 annually on energy bills. Insulation and air sealing upgrades can pay for themselves in energy savings within a handful of years.

Adding a high efficiency electric heating system would be the last step because of the expensive upfront costs and complexity. However, once you have an electric heating system, you can use it to avoid costly spikes in gas prices. 

Healthy and Safe Home starts with improving your home’s air quality by tackling the most direct sources of pollutants.

  • Step 1: Switch to an electric cooking range. Gas-burning ranges release high concentrations of pollutants into your living space. You can remove this risk by switching to an electric range. Visit the Appliances tab for more.
  • Step 2: Switch to an electric heat pump water heater. Many homes have natural gas water heaters, which have a risk of spilling combustion exhaust back into your home when not properly installed or maintained. Heat pump water heaters do not produce any combustion exhaust. Visit the Appliances tab for more.
  • Step 3: Weatherize and ventilate your home. Weatherization (insulation, air sealing, and window upgrades) should be paired with mechanical ventilation upgrades as needed. Together, they will keep your home comfortable, indoor air fresh, and outdoor pollutants out. Visit the Weatherization tab for more.

There are health and safety benefits to adding electric heating through a heat pump. However, the benefits are smaller and come at a higher price than the items listed here. Heat pump technology can provide even temperatures year-round, dehumidify in the summer, and offset a major use of gas in your home.

If you want to completely remove gas from your home, switching to an electric clothes dryer may be the last step.


Electrify Everything Workshops

There are currently no upcoming events scheduled.

If you would like to watch recorded version of past events, please visit this link


Looking for real life inspiration? Check out these local stories from Minnesota Residents.

Good timing for heat pumps and solar

In Minneapolis, Reed Wilson upgraded his gas water heater and gas heating and cooling system with heat pumps and powers them with solar energy.

Easing into electrification in Eden Prairie

Rod Fisher has progressively taken steps to electrify his home, having completed electric panel, dryer, and water heater upgrades.

Staying Cool with a Heat Pump

Lester Shen installed a heat pump with mini-splits to add air conditioning and electric heating to his insulated home with a boiler.

A Hybrid Home in Golden Valley

Jess Curtes electrified her largest appliances first by installing an electric heat pump, back-up gas furnace, and heat pump water heater to create a hybrid electric home. 

Going All Electric in Minneapolis

Chris Martin fully electrified his 1949 home with an air source heat pump, heat pump water heater, solar panels, insulation and more.

The information included in this website has been sourced from Center for Energy and Environment’s years of experience and research unless otherwise noted. Upfront costs and energy savings are based on recent sales estimates and energy rates unless otherwise noted.

 

 

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Your home may need preparation before being ready for electrification.

Have you had an energy audit?

Energy audits help you understand your home’s current systems and plan for upgrades.

Does your service panel or wiring need to be updated?

Adding electric equipment to your home will require modern wiring and potentially a service panel upgrade.

Does your electricity come from renewables?

You can ensure the electricity your home uses comes from renewable sources rather than fossil fuels.

Are you familiar with the available resources?

There are various incentives and financing options available to install high efficiency electrical equipment.

Energy Audits

boiler

In an energy audit, a professional will inspect the key areas of your home that contribute to its energy efficiency performance. An energy audit can also identify safety concerns like vermiculite attic insulation. There are two local options to get a low-cost energy audit: a Home Energy Squad visit or an Energy Disclosure Report.

Home Energy Squad

hes

Home Energy Squad is a low-cost service to help you understand your home's current energy performance.

During a Home Energy Squad visit, a team of two energy professionals inspect your home for energy and safety performance. They also directly install energy-saving items like LED bulbs and door weather strips. The inspected areas include wall insulation, attic insulation, air-sealing levels, space heating equipment, and water heating equipment. The results are generated into a detailed Energy Fitness Plan. Staff review the plan with you to note opportunities to improve your home's energy efficiency and safety.

By taking part in a Home Energy Squad visit you get access to the free Energy Advisor service. Energy Advisors answer questions and give guidance on how to pursue projects. This includes referrals to vetted contractors and connections to specialized financing and rebates.

Home Energy Squad is provided by Xcel Energy and CenterPoint Energy and delivered by Center for Energy and Environment. Visits start at $70 with reduced or free visits available for qualifying households in many Minnesota cities (restrictions apply). Home Energy Squad is limited to customers of Xcel Energy and CenterPoint Energy. 

Visit the Home Energy Squad’s website to learn more and sign up.

Energy Disclosure

tish

If you bought a home in Minneapolis since January 2020 or Bloomington since April 2022, your pre-sale inspection includes an Energy Disclosure Report. The Energy Disclosure Report summarizes your home’s energy efficiency, lists resources, and provides contact information to an Energy Advisor service. The pre-sale inspection is called the Truth in Sale of Housing inspection in Minneapolis and Time-of-Sale inspection in Bloomington. There are three ways to view your Energy Disclosure Report:

  • Visit CEE’s interactive energy score map. Search your address and click on the highlighted dot for a quick view of energy scores. You can view the full Energy Disclosure Report for your home at the link at the bottom of the score box.
  • To view your full Minneapolis Truth in Sale of Housing report, visit the City of Minneapolis’ property information address lookup. From the Additional Info dropdown ribbon, select Truth in Sale of Housing. Scroll to the bottom of the report to view the Energy Disclosure Report.
  • To access your full Bloomington Time-of-Sale report, call the City of Bloomington’s Building and Inspections Division at 952-563-8930.

 


Electrical Panel and Wiring

electrical panel

Older homes may have an electrical (service) panel or wiring that cannot handle additional electrical loads without an update. 

 

Resources

Entity Maximum incentive available
Federal Up to $600 tax credit for panels
Federal Up to $4,000 rebate for panels and up to $2,500 rebate for wiring (available late 2024 or early 2025)
State of Minnesota Grants up to $3,000 for panels (available late 2024 or early 2025)
State of Minnesota Loans up to $60,000

 

Want personalized guidance on what resources you may be eligible for? Residents of Eden Prairie, Edina, Minneapolis, and St. Louis Park can contact our Electrify Everything Advisor service for guidance on completing projects and lining up resources. Email us through our contact form or call 612-244-2486.  

Federal tax credit  

Electric panels: 

  • 30% of project costs can be deducted through the 25C Tax Credit (up to $600)  

Requirements and notes:  

  • Must be combined with another electrification project that qualifies for the 25C Tax Credit 

  • Visit ENERGY STAR for annual caps and more information.  

 

Federal IRA rebate (available late 2024 or early 2025)  

Electric panels: 

  • Up to $4,000 rebate for households earning less than 80% of their area median income 

  • Up to $2,000 rebate for households earning between 80% and 150% of their area median income 

Electric wiring: 

  • Up to $2,500 rebate for households earning less than 150% of their area median income 

Requirements and notes:  

  • Area median income cutoffs have not yet been confirmed.  

  • Visit the Department of Energy for more information.  

 

State of Minnesota electrical panel grant program (available late 2024 or early 2025)  

  • Up to $3,000 rebate for households earning less than 80% of their area median income 

  • Up to $2,000 rebate for households earning between 80% and 150% of their area median income 

Requirements and notes:  

 

State of Minnesota Housing Finance Agency’s “Home Energy Loan”  

  • Loans up to $60,000  

Requirements and notes:  

  • Secured and unsecured options are available.  

  • There is no maximum income limit.  

  • Terms are up to 20 years.  

  • 100% of project costs can be financed.  

  • There is no prepayment penalty.  

  • Closing costs apply.  

  • Visit the CEE Lending Center for current rates and more information.  


Renewable Energy

renewable

Your home will use more electricity as functions are electrified. There are two main options to ensure your electricity is climate-friendly: sign up for a renewable energy subscription or install solar panels on your property.

Renewable Energy Subscriptions

Signing up for a renewable energy subscription is an indirect way to get your energy from clean sources. Local options include:

  • Renewable energy subscriptions from Xcel Energy. Visit Xcel Energy’s Renewable Energy page to learn about Windsource, Solar*Rewards Community, and Solar*Rewards.
  • Community solar gardens. Visit the Community Solar Gardens guide from Clean Energy Resource Teams to learn about how to go solar without installing panels.

Solar Installations

Installing solar panels on your property is a direct way to generate your own clean electricity. Select resources to go solar include:

  • Residential solar loans through CEE. Visit CEE’s Residential Solar Loans page to learn more.
  • Bulk buying with neighbors for discounted solar installation prices. Visit the Grow Solar page from Midwest Renewable Energy Association or Solar United Neighbors page for education and resources on pooling buying power with fellow community members to secure discounted solar installations.
  • Federal tax credits. Visit Rewiring America’s page to learn more.

The Inflation Reduction Act

reso

The Inflation Reduction Act (IRA) created significant opportunities for financing and rebates for energy improvements. Federal tax incentives for energy improvements will be increasing on January 1, 2023. Rebates for energy improvements are likely to be implemented later in 2024 or 2025. Many incentives will be weighted for low- to moderate-income families. Visit the ENERGY STAR page for available tax credits or download Rewiring America’s full guide to the Inflation Reduction.

 

 

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Weatherization makes electrification easier and more effective.

Is your home weatherized?

Weatherization commonly refers to a home’s insulation, air sealing, and windows. Weatherizing your home before transitioning to a high efficiency electric heating system is strongly recommended.

Is your home getting enough fresh air?

Weatherization works by tightening your home against the outside elements. As you make weatherization improvements, make sure you keep a healthy level of fresh air intake through ventilation.

Weatherization

wth

Weatherizing your home is an effective way to reduce emissions while improving comfort and lowering energy bills. Weatherization upgrades, like insulation and air sealing, may not seem like an electrification measure at first. However, they are critical in enabling a future transition to an electric heating system.

It is not a guarantee that your home has adequate weatherization. Nearly 60% of the homes in Minneapolis have little to no insulation in the walls or attic. Older homes (built before 1980) are most likely to lack basic weatherization improvements.

Weatherization enables electric heating equipment to operate efficiently by slowing heat loss to the outside. This is especially important in our cold climate. Running electric heating equipment in an unweatherized home during winter will spike energy bills and likely create comfort issues. If you are not sure whether your home is adequately weatherized, schedule an energy audit with the Home Energy Squad. Many Minnesota cities offer reduced or free Home Energy Squad visits to qualifying residents.

 

Weatherization Summary Table

  Wall insulation
and air sealing
Attic insulation
and air sealing
Storm Windows
(added to single panes)
Double Pane Windows Triple Pane Windows
Upfront cost* $3,500–$7,000 $3,500–$6,500 $100–$250 per window $700–$1000 per window $800–$2000 per window
Annual energy bill savings $200–$400 $150–$300 $140 if installed on all windows $120 if all windows replaced $240 if all windows replaced
Utility rebates $1,500 $1,300 Not Available Not Available Not Available

*Based on recent prices for materials plus installation for an average 2,000 square foot Minnesota home.

 

Insulation and Air Sealing

The highest impact, most cost-effective weatherization improvements are to insulate and air seal the walls and attic. Proper insulation and air sealing can save up to $900 annually on heating and cooling costs while notably increasing comfort.

Learn more about insulation with This Old House:

Windows

Windows are a common focus area for many homeowners. However, replacing them is expensive and will not address the main source of heat loss and drafts in your home. Make sure you have addressed insulating and air sealing your walls and attic before tackling the windows.

A cost-effective strategy is to make sure every window has at least two panes of glass. If you have any single-pane windows, installing a storm window over them will effectively make the window double-pane. You can read this article from Home Energy Hub for more on what to do about drafty windows. 

 

Resources

Entity Total available incentives for weatherization improvements
CenterPoint Energy Up to $3,000 in rebates
Xcel Energy Up to $3,000 in rebates*
City of Edina Up to $3,000 in rebate matches
City of St. Louis Park Up to $3,000 in rebate matches
City of Minneapolis Up to $3,000 in rebate matches
City of Minneapolis 0% loan up to $20,000 with grant up to $14,000
Federal Up to $1,200 in tax credits
Federal Up to $1,600 in rebates (available late 2024 or early 2025)
State of Minnesota Loans up to $60,000

 

*Xcel Energy’s largest weatherization rebates are only available to households that primarily heat with electricty. Xcel offers smaller rebates for households that primarily heat with CenterPoint natural gas. Read more under the Details and Links dropdown.  

Want help understanding these resources? Residents of Eden Prairie, Edina, Minneapolis, and St. Louis Park can contact our Electrify Everything Advisor service for guidance on completing projects and lining up resources. Email us through our contact form or call 612-244-2486.  

CenterPoint Energy rebates 

  • $1,300 rebate for attic air sealing and insulation 

  • $1,500 rebate for wall insulation 

  • $200 bonus rebate when adding rim joist insulation to a qualifying attic or wall insulation project 

Requirements and notes: 

  • Installation must be completed by a rebate-eligible contractor.  

  • Improvement must meet specifications requirement. 

  • Visit CenterPoint’s Air Sealing & Insulation Rebates page for full details. 
     

Xcel Energy rebates 

For homeowners who primarily heat with Xcel-provided electricity: 

  • $1,200 rebate for attic insulation 

  • $1,200 rebate for wall insulation 

  • $600 bonus rebate when adding air sealing to a qualifyign attic or wall insulation project     

For homeowners who primarily heat with CenterPoint-provided gas and have central air conditioning: 

  • $40 rebate for attic insulation 

  • $75 rebate for wall insulation 

  • $45 bonus rebate when adding air sealing to a qualifyign attic or wall insulation project     

Requirements and notes: 

  • Installation must be completed by a rebate-eligible contractor.  

  • Improvement must meet specifications requirement. 

  • Applicant may have to specifically ask their insulation contractor to apply for the Xcel weatherization rebate for homeowners who primarily heat with CenterPoint-provided gas. While these rebates are small, they establish a record of a weatherization upgrade with Xcel. This record meets a qualification for a $600 Xcel bonus rebate for an air source heat pump installed within the next 24 months.  

  • Visit Xcel Energy’s Air Sealing & Insulation Rebates page for full details. 
     

The City of Edina rebate matches 

  • 50% utility rebate match available to all residents  

  • 100% utility rebate match available to residents who qualify for the environmental justice rate  

Requirements and notes: 

  • The City’s rebate match applies to all awarded utility weatherization rebates. For example, if a resident has received $3,000 from CenterPoint completing three weatherization projects (insulating and air sealing the attic, insulating the walls, and insulating the rim joists), the City will match either 50% or 100% of the total $3,000 amount.  

  • Within 36 months before installation, applicant must have completed a Home Energy Squad “Planner” visit.  

  • Applicant must have been awarded a utility rebate for an insulation project. 

  • Applicant must apply for the cost share match for approval, prior to project completion. View the application under Step 3 of the Community Climate Action Fund page. 

  • Visit the City of Edina’s Community Climate Action Fund page for full details. 
     

The City of St. Louis Park rebate matches 

  • 50% utility rebate match available to all residents  

  • 100% utility rebate match available to residents who qualify for the environmental justice rate  

Requirements and notes: 

  • The City’s rebate match applies to all awarded utility weatherization rebates. For example, if a resident has received $3,000 from CenterPoint completing three weatherization projects (insulating and air sealing the attic, insulating the walls, and insulating the rim joists), the City will match either 50% or 100% of the total $3,000 amount.  

  • Within 36 months before installation, applicant must have completed a Home Energy Squad “Planner” visit. 

  • Applicant must have been awarded a utility rebate for an insulation project. 

  • Applicant must complete the Climate Champions online application for approval, prior to project completion.  

  • Visit the City of St. Louis Park’s Climate Champions page for full details. 
     

City of Minneapolis rebate matches 

  • 100% utility rebate match 

Requirements and notes: 

  • Applicant must have been awarded a utility rebate for an insulation project. 

  • Only one rebate per eligible project is allowed. 

  • The total utility rebate and matching rebate cannot exceed the total project cost. 

  • Applicant must not have received a Minneapolis Energy Efficiency Loan or Grant. 

  • Visit CEE’s Minneapolis Insulation and Air Sealing Matching Rebate Program page for full details. 
     

City of Minneapolis “Energy Efficiency Loan and Grant” 

  • 0% loan up to $20,000 

  • Grant of: 

  • 70% of project costs (up to $14,000) for loan recipients earning less than 80% of their area median income 

  • 30% of project costs (up to $6,000) for loan recipients earning between 80% and 150% of their area median income  

  • 10% of project costs (up to $3,000) for loan recipients of any income level 

Requirements and notes: 

  • Within 36 months before installation, applicant must have completed a Home Energy Squad “Planner” visit.  

  • All loan recipients are eligible for the additional grant.  

  • Terms are up to 10 years. 

  • 100% of project costs, including utility rebates, can be financed. 

  • No down payment is required. 

  • Equipment meets specifications requirement. 

  • Loan must close in 2024. 

  • Funds are available on a first come first served basis. 

  • Income is based on adjusted gross income from the most recent Federal Tax Return and household size. 

  • Visit CEE’s Minneapolis Energy Efficiency Loan and Grant page for full details. 
     

Federal tax credit 

  • 30% of material costs can be deducted through the 25C Tax Credit (up to $1,200) 

Requirements and notes: 

  • Tax credits are calculated after subtracting awarded utility rebates from project costs. 

  • Improvement must meet specifications requirement.  

  • Visit ENERGY STAR for annual caps and more information. 
     

Federal IRA rebates (available late 2024 or early 2025) 

  • Up to $1,600 instant rebate for households earning less than 80% of their area median income 

  • Up to $800 instant rebate for households earning between 80% and 150% of their area median income 

Requirements and notes: 

State of Minnesota Housing Finance Agency’s “Home Energy Loan” 

  • Loans up to $60,000 

Requirements and notes: 

  • Secured and unsecured options are available. 

  • There is no maximum income limit. 

  • Terms are up to 20 years. 

  • 100% of project costs can be financed. 

  • There is no prepayment penalty. 

  • Closing costs apply. 

  • Visit the CEE Lending Center for current rates and more information. 


Ventilation

ventilation

Taking care to ensure adequate ventilation is especially important after weatherizing.

Proper fresh air flow throughout your house is key to a healthy indoor environment. Without adequate ventilation, excess moisture and pollutants can build up inside your home. This can affect your health and the health of the building.

Learn more about ventilation with CEE:

Rebate-eligible weatherization contractors or Home Energy Squad auditors will test your home for ventilation needs. Some older houses, even after weatherization upgrades, will not need mechanical ventilation. You can read more about mechanical ventilation from Home Energy Hub. If testing shows your home needs ventilation, there are two options to consider.

Ventilation Summary Table

  Continuous Ventilation Fan Heat Recovery Ventilator Energy Recovery Ventilator
Upfront costs* $1,400–$1,500 $4,000–$5,000 $4,000–$5,000
Recovers heat energy? No Yes Yes
Balances moisture? No No Yes

*Based on recent prices for an average 2,000 square foot Minnesota home

Exhaust-Only Systems

dwdw

Exhaust-only systems use a fan that continually runs to exhaust stale air from your house.

A continuous ventilation fan replaces the bathroom fan or kitchen range hood. The fan runs at a constant, low speed and can go to high speed as needed. Fresh air replaces the exhausted air through air leaks in the house to the outside.

Exhaust-only systems do lose some energy by expelling conditioned air. However, the health benefits of fresh air compensate for the small energy penalty. Exhaust-only systems are a cost-effective strategy for many older homes.

Balanced Systems

Balanced Systems

Balanced systems use special equipment that exhausts stale indoor air while pulling in fresh outdoor air.

Balanced systems are usually tied into the ductwork. There are two types of balanced systems: heat recovery ventilators and energy recovery ventilators. The main advantage of a balanced system is its ability to recover heat from the air that is being exhausted. There are also health benefits, as balanced systems include filters for incoming air. Energy recovery ventilators can also transfer humidity between incoming and outgoing air. This helps to balance indoor humidity year-round.

Balanced systems are more expensive to install and usually not strictly necessary unless the home is very air-tight.

 

 

Resources

City Resources

  • Electrify Everything Advisors: Residents of Eden Prairie, Edina, Minneapolis, and St. Louis Park can contact our Electrify Everything Advisor service for guidance on completing projects and lining up resources. Email us through our contact form or call 612-244-2486

Financing

  • Low-interest financing is available for ventilation projects through the Minnesota Housing Finance Agency’s Fix Up Fund. Visit the CEE Lending Center to view options.

 

 

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Heating accounts for over 70% of the annual energy use of a typical Minnesota home. A high efficiency electric heating system can significantly cut your carbon emissions.

The advantage of high efficiency electric heating systems is their ability to use cleaner energy as the electric grid gets greener. And if you want clean energy now, there are low-cost renewable energy subscription available.

There are several factors to consider when weighing electric heating systems for your home: your current heating system, upfront and ongoing costs, preferred mode of heating, whether you have ductwork, and more. Depending on your home and the electric heating system, a secondary heating system may be needed for very cold weather.

Weatherizing your home before adding electric heating equipment is strongly recommended. Weatherization reduces the energy needed to heat your home, which makes electric heating equipment more effective and affordable. If you are not sure whether your home is weatherized, read how to get an energy audit here.

 

Recommended heating systems with an air source heat pump

heat pump

Air source heat pumps (ASHPs) currently offer the best blend of affordability, availability, effectiveness, and flexibility for most homes. You can of course choose other systems based on your home and goals. Other electric heating systems are detailed below.

Heat pump technology is a centerpiece of high efficiency electric heating. To get more familiar with heat pump technology, watch this video from This Old House:

 

Click the box that matches your current equipment below for recommendations on how to electrify part or all of your heating.

Option 1: Go dual fuel to reduce emissions while keeping energy bills similar to now. Keep or replace your gas furnace depending on its age and condition. Add a ducted ASHP, which would replace your central AC unit (if present) and give you the option to use electric heating.

How it works: The ducted ASHP provides cooling in the summer and heating in the spring and fall. You can use the gas furnace for extra heat as needed.

 

Option 2: Go all-electric to maximize emission reductions. Remove the gas furnace. Install a ducted ASHP system with electric resistance secondary heating.

How it works: The ducted ASHP provides all cooling and heating all year. The system automatically turns on the electric resistance heaters for extra heat as needed.

 

Option 1: Go dual fuel to reduce emissions while keeping energy bills similar to now. Replace the central AC with a ducted ASHP. Keep your furnace or replace it at the same time depending on its age and condition. Adding an ASHP as an AC replacement can be a way to ease into incorporating electric heating.

 

Option 2: Go all-electric to maximize emission reductions. Remove the gas furnace. Replace the central AC with a ducted ASHP system with electric resistance secondary heating.

How it works: The ducted ASHP provides cooling and heating all year. The system automatically turns on the electric resistance heaters for extra heat as needed.

Option 1: Go dual fuel to reduce emissions while keeping energy bills similar to now. Keep or replace your gas boiler depending on its age and condition. Then, install a mini-split ASHP system.

How it works: The mini-split ASHPs provide cooling in the summer and heating in the spring and fall. You can use the gas boiler for extra heat as needed.

 

Option 2: Go all-electric to maximize emission reductions. Remove the gas boiler and install a mini-split ASHP system. Install electric resistance heating for secondary heating.

How it works: The mini-split ASHP system provides cooling and heating all year. You can turn on the electric resistance heaters for extra heat as needed.

Your heating is all electric already, but not efficient. Install a mini-split ASHP to take over most of your heating to reduce bills and emissions. Keep the electric resistance baseboards as a secondary source of heating.

How it works: The mini-split ASHP system provides cooling and heating all year. You can use the electric resistance heaters for extra heat as needed.


Electric Heating Systems

There are multiple electric heating technologies available. Each has its own pros, cons, and ideal applications. Further information on each technology are available below the table.

Electric Heating Summary Table

  Upfront costs Annual operation costs Relative lifetime carbon emissions Equipment lifespan Heat type Includes cooling?
Air Source Heat Pump
with Gas Secondary (35°F switchover)
$12,000–$24,000 $900 Medium 15–20 years Forced air Yes
Air Source Heat Pump
with Electric Resistance Secondary
$12,000–$24,000 $1,500 Low 15–20 years Forced air Yes
Ground Source Heat Pump $30,000–$60,000 $750 Lowest 15–20 years for the heat pump.
25–50 years for the underground loops
Forced air or radiant Yes
Air-to-Water Heat Pump $15,000–$50,000 $1,500 Low 15–20 years Forced air or radiant Yes. in some configurations
Electric Boiler $2,000–$6,000 $3,000 Medium-High 20–25 years Forced air or radiant No
For comparison
Gas Furnace (high efficiency) $4,000–$6,000 $900 High 15–20 years Forced air No
Gas Boiler (standard efficiency) $4,000–$8,000 $1,000 Highest 20–25 years Radiant No

*Based on average 2,000 square foot Minnesota home.


Air Source Heat Pump

Air Source Heat Pump

Air source heat pumps (ASHPs) are air conditioners that can run in both directions. They move heat to either cool or heat your home.

ASHPs are very energy efficient compared to traditional heating systems because they move rather than generate heat. The efficiency of ASHPs depends on the outdoor air temperature. Efficiency is highest at mild temperatures and decreases as temperatures drop. Most Minnesota homes will need a secondary heating system when outdoor temperatures are too cold for the ASHP to meet the thermostat setpoint. However, ASHP efficiency will still always be higher than combustion heating equipment. There are two types of ASHPs.

Ducted ASHPs

ducted

Ducted ASHPs use the same ductwork that a furnace or air conditioner would use to supply conditioned air. The outdoor units look indistinguishable from central air conditioners.

Ductless Mini-split ASHPs

mini

Ductless mini-split ASHPs (often called mini-splits) use indoor units to directly condition the air in one or more rooms. Mini-splits do not need ductwork. You can choose from a few styles of indoor units depending on visual taste and the needs of the room(s). The outdoor units look like smaller central air conditioners.

ASHPs come in two performance levels: standard and cold climate. While more expensive, cold-climate ASHPs offer superior energy efficiency and performance in cold weather. Cold-climate ASHPs can supply heat even when outdoor temperatures go below 0°F.

Visit this FAQ from the Minnesota ASHP Collaborative to learn more about ASHPs.

 

Installation and Contractors

ASHPs are the most common type of heat pump because of their relative affordability and ease of installation. However, familiarity and acceptance of heat pump technology are not universal among contractors.

Installing a cold-climate ASHP will give the greatest ability to use electricity for heating all winter. You can ensure your contractor is quoting cold climate ASHPs by asking for units that are on the NEEP cold-climate specification list. 

Visit the Minnesota ASHP Collaborative’s Preferred Contractor Network to connect with an experienced heat pump installer.

 

Resources

Entity Maximum incentive available
Xcel Energy Up to $1,500 rebate*
CenterPoint Energy $500 rebate
City of Edina Up to $2,000 rebate match*
City of St. Louis Park Up to $2,000 rebate match
City of Minneapolis 0% loan up to $20,000 with grant up to $14,000
Federal Up to $2,000 tax credit
Federal Up to $8,000 rebate (available late 2024 or early 2025)
State of Minnesota Loans up to $60,000
State of Minnesota Up to $4,000 rebate match (available late 2024 or early 2025)

*Additional incentives are available if you are also completing related energy projects. Read more under the Details and Links dropdown.   

Want help understanding these resources? Residents of Eden Prairie, Edina, Minneapolis, and St. Louis Park can contact our Electrify Everything Advisor service for guidance on completing projects and lining up resources. Email us through our contact form or call 612-244-2486.  

Xcel Energy rebate 

  • $1,500 rebate for ASHPs that meet cold climate specifications 

  • $1,100 rebate for ASHPs that meet minimum efficiency specifications 

Additional incentives: 

  • $600 bonus rebate if applicant has been awarded an Xcel Energy weatherization rebate within the past 24 months 

Requirements and notes: 

  • Installation must be completed by a rebate-eligible contractor.  

  • Equipment must meet specifications requirement.  

  • Visit Xcel’s Weatherization Rebates page if interested in meeting the qualifications for the $600 bonus rebate. 

  • Visit Xcel’s Heat Pump Rebates page for full details. 
     

CenterPoint Energy rebate 

  • $500 rebate for ducted ASHPs  

Requirements and notes: 

  • Installation must be completed by a rebate-eligible contractor.  

  • Equipment must meet specifications requirement and be combined with a furnace of 92% efficiency or greater 

  • Applicants can ask their contractor for assistance applying for the CenterPoint rebate.  
     

City of Edina rebate match 

  • 50% utility rebate match available to all residents 

  • 100% utility rebate match available to residents who qualify for the environmental justice bonus  

Additional incentives: 

  • $250 bonus rebate for having completed an air sealing and insulation project within 36 months 

Requirements and notes: 

City of St. Louis Park rebate match 

  • 50% utility rebate match available to all residents 

  • 100% utility rebate match available to residents who qualify for the environmental justice rate 

Requirements and notes: 

  • Within 36 months before installation, applicant must have completed a Home Energy Squad “Planner” visit. 

  • Applicant must have been awarded a utility rebate for a qualifying cold climate ASHP. 

  • Applicant must complete the Climate Champions online application for approval, prior to project completion.  

  • Visit the City of St. Louis Park’s Climate Champions page for how to apply to the cost share application and full details. 
     

City of Minneapolis “Energy Efficiency Loan and Grant” 

  • 0% loan up to $20,000 

  • Grant of: 

  • 70% of project costs (up to $14,000) for loan recipients earning less than 80% of their area median income 

  • 30% of project costs (up to $6,000) for loan recipients earning between 80% and 150% of their area median income  

  • 10% of project costs (up to $3,000) for loan recipients of any income level 

Requirements and notes: 

  • Within 36 months before installation, applicant must have completed a Home Energy Squad “Planner” visit. 

  • All loan recipients are eligible for the additional grant.  

  • Terms are up to 10 years. 

  • 100% of project costs, including utility rebates, can be financed. 

  • No down payment is required. 

  • Equipment meets specifications requirement. 

  • Loan must close in 2024. 

  • Funds are available on a first come first served basis. 

  • Income is based on adjusted gross income from the most recent Federal Tax Return and household size. 

  • Visit CEE’s Minneapolis Energy Efficiency Loan and Grant page for full details. 
     

Federal tax credit 

  • 30% of project costs can be deducted through the 25C Tax Credit (up to $2,000) 

Requirements and notes: 

  • Tax credits are calculated after subtracting awarded utility rebates from project costs. 

  • Equipment must meet specifications requirement.  

  • Visit ENERGY STAR for annual caps and more information. 
     

Federal IRA rebate (available late 2024 or early 2025) 

  • Up to $8,000 rebate for households earning less than 80% of their area median income 

  • Up to $4,000 rebate for households earning between 80% and 150% of their area median income 

Requirements and notes: 

  • Equipment must meet specification requirement. 

  • Area median income cutoffs have not yet been confirmed. 

  • Visit the Department of Energy for more information. 
     

State of Minnesota Housing Finance Agency’s “Home Energy Loan” 

  • Loans up to $60,000 

Requirements and notes: 

  • Secured and unsecured options are available. 

  • There is no maximum income limit. 

  • Terms are up to 20 years. 

  • 100% of project costs can be financed. 

  • There is no prepayment penalty. 

  • Closing costs apply. 

  • Visit the CEE Lending Center for current rates and more information. 
     

State of Minnesota heat pump rebate (available late 2024 or early 2025) 

  • Up to $4,000 rebate  

Requirements and notes: 

  • Applicant must have had an energy audit within the last 18 months. 

  • The energy audit determined the applicant’s house has recommended levels of air sealing and insulation. 

  • The selected HVAC contractor must be  on the qualified contractor list (list not created yet). 

  • Applicant must have been awarded a federal rebate for an ASHP installation. 

  • Visit the Minnesota Department of Commerce’s Residential Heat Pump Rebate Program page for more information. 


Ground Source Heat Pump

gshp

Ground source heat pumps (GSHPs) transfer heat from the ground through underground loops. GSHPs can work in homes with and without ductwork.

GSHPs are the most energy efficient of all heat pumps. This is because GSHPs exchange heat underground where temperatures are stable year-round. By contrast, ASHPs lose efficiency as the above-ground temperature cools because ASHPs are exchanging heat with the outdoor air. You can learn more about GSHPs with this video from This Old House.

Installation and Contractors

GSHPs are rare in cities because of the costs and complexity of installing them for existing buildings. The underground loops that transfer heat are either buried horizontally, in shallow trenches, or vertically, in deeper boreholes.

Installers will need heavy equipment for digging or drilling. Your property size, access to it, and access in the surrounding area will influence the project’s cost and complexity.

 

Resources

Entity Total available incentives
Xcel Energy $500 rebate per ton
City of Edina Up to $500 rebate match per ton*
City of St. Louis Park Up to $500 rebate match per ton
Federal Up to $2,000 tax credit
Federal Up to $8,000 (available late 2024 or early 2025)
State of Minnesota Loans up to $75,000

*Additional incentives are available if you are also completing related energy projects. Read more under the Details and Links dropdown.

Want help understanding these resources? Residents of Eden Prairie, Edina, Minneapolis, and St. Louis Park can contact our Electrify Everything Advisor service for guidance on completing projects and lining up resources. Email us through our contact form or call 612-244-2486.

Xcel Energy rebate 

  • $500 rebate per ton 

Requirements and notes: 

  • Tons denote how much heat the system can move- how “large” the system is.  

  • Installation must be completed by a rebate-eligible contractor. 

  • Equipment must meet specifications requirement. 

  • Visit Xcel Energy’s Heat Pump Rebates page for full details. 
     

City of Edina rebate match 

  • $50% utility rebate match available to all residents  

  • 100% utility rebate match available to residents who qualify for the environmental justice rate  

  • $250 bonus rebate for having completed an air sealing and insulation project within 36 months 

Additional incentives: 

  • $250 bonus rebate for having completed an air sealing and insulation project within 36 months 

Requirements and notes: 

City of St. Louis Park rebate match 

  • 50% utility rebate match available to all residents ($250 per ton) 

  • 100% utility rebate match available to residents who qualify for the environmental justice rate ($500 per ton) 

Requirements and notes: 

  • Within 36 months before installation, applicant must have completed a Home Energy Squad “Planner” visit. 

  • Applicant must have been awarded a utility rebate for a qualifying cold climate ASHP. 

  • Applicant must complete the Climate Champions online application for approval, prior to project completion.  

  • Visit the City of St. Louis Park’s Climate Champions page for how to apply to the cost share application and full details. 
     

Federal tax credit  

  • 30% of project costs can be deducted through the 25C Tax Credit (up to $2,000) 

Requirements and notes: 

  • Tax credits are calculated after subtracting awarded utility rebates from project costs. 

  • Equipment must meet specifications requirement. 

  • Visit ENERGY STAR for annual caps and more information. 
     

Federal IRA rebate (available late 2024 or early 2025) 

  • Up to $8,000 rebate for households earning less than 80% of their area median income 

  • Up to $4,000 rebate for households earning between 80% and 150% of their area median income 

Requirements and notes: 

  • Equipment must meet specification requirement.  

  • Area median income cutoffs have not yet been confirmed.  

  • Visit the Department of Energy for more information. 
     

State of Minnesota Housing Finance Agency’s “Home Improvement Loan” 

  • Loans up to $75,000 

Requirements and notes: 

  • Secured and unsecured options are available. 

  • Maximum qualifying income is $185,700 or $167,000 depending on where the home is located. 

  • Terms are up to 20 years. 

  • Financing is available for 100% of project costs. 

  • There is no prepayment penalty. 

  • Closing costs apply. 

  • Visit the CEE Lending Center for current rates and more information. 


Air-to-Water Heat Pump

Air-to-Water Heat Pump

Air-to-water heat pumps (AWHPs) transfer heat between the air surrounding the outside unit itself (like an air conditioner) and a tank of water or an indoor water loop. The AWHP then pipes the conditioned water through radiators or in-floor loops to supply heating.

Installation and Contractors

AWHPs are very new and rare in our area due to their installation costs and complexity. It may be difficult to find contractors who are experienced with AWHP installation and the overall AWHP market is very immature.

Additionally, because AWHPs heat water to a lower temperature than boilers, home modifications may be needed. This may include extensive weatherization improvements and/or complete radiator replacement.

 

Resources

Entity Total available incentives
State of Minnesota Loans up to $75,000

 

Want help understanding these resources? Residents of Eden Prairie, Edina, Minneapolis, and St. Louis Park can contact our Electrify Everything Advisor service for guidance on completing projects and lining up resources. Email us through our contact form or call 612-244-2486.

State of Minnesota Housing Finance Agency’s “Home Improvement Loan” 

  • Loans up to $75,000 

Requirements and notes: 

  • Secured and unsecured options are available. 

  • Maximum qualifying income is $185,700 or $167,000 depending on where the home is located. 

  • Terms are up to 20 years. 

  • Financing is available for 100% of project costs. 

  • There is no prepayment penalty. 

  • Closing costs apply. 

  • Visit the CEE Lending Center for current rates and more information. 

 


Electric Boiler

electric boiler

Electric boilers deliver radiant heat through radiators or in-floor loops. They are an easy and affordable replacement for gas boilers. Many HVAC companies offer electric boiler installation. However, they are more expensive to run. This makes electric boilers most suitable for smaller or super energy efficient homes.

Resources

Want help understanding these resources? Residents of Eden Prairie, Edina, Minneapolis, Rochester, and St. Louis Park can contact our Electrify Everything Advisor service for guidance on completing projects and lining up resources. Email us through our contact form or call 612-244-2486.

Entity Total available incentives
State of Minnesota Loans up to $75,000

State of Minnesota Housing Finance Agency’s “Home Improvement Loan” 

  • Loans up to $75,000 

Requirements and notes: 

  • Secured and unsecured options are available. 

  • Maximum qualifying income is $185,700 or $167,000 depending on where the home is located. 

  • Terms are up to 20 years. 

  • Financing is available for 100% of project costs. 

  • There is no prepayment penalty. 

  • Closing costs apply. 

  • Visit the CEE Lending Center for current rates and more information. 

All-Electric System

All-electric system

All-electric systems reduce the most emissions from heating over time. All-electric systems work best in very energy efficient, well-weatherized homes. In more conventional homes, going all-electric will likely raise energy bills in the winter. 

In an all-electric system, a heat pump runs during the entire heating season. The existing gas furnace/boiler would be removed. The heat pump will have integrated electric resistance heating to boost capacity as needed. The best heat pumps are programmed to use the electric resistance heating in the most energy efficient way possible.  

Dual Fuel System

Dual Fuel System

Dual fuel systems are a pragmatic choice in our cold climate. Dual fuel systems keep energy bills reasonable while reducing emissions compared to a gas-only system. In a dual fuel system, a heat pump electrifies your home's heating in the spring, fall, and much of the winter. A gas furnace/boiler would take over for the colder times of the year (e.g., below 15°F).  

A dual fuel system is easier to set up than an all-electric system. This can come in handy if you are pressed for time after a gas furnace/boiler failure.  

Adding a heat pump while keeping your existing gas furnace/boiler will save on upfront costs. In keeping a gas furnace, you may have more limited choices of heat pump brands to add because of brand compatibility concerns. 

Installing a new gas furnace/boiler and heat pump at the same time will have a higher cost at first. However, installing both sets of equipment simultaneously will ultimately cost less. Two separate contractor visits to install equipment repeats some of the same steps, which adds cost. A new gas furnace/boiler is likely to perform a little better than an older gas furnace/boiler, too. If you are buying a new gas furnace, you will have more flexibility to plan out a compatible brand match between the heat pump and gas furnace.  

Secondary Heating Table

Type of System All-Electric Dual Fuel
What to do with
your current furnace/boiler
Remove Keep or replace with
a new one
What will be the new
primary heating system
An air source heat pump An air source heat pump
What you will use for
secondary heating system
Electric resistance The furnace/boiler
Relative lifetime
carbon emissions
Low Medium
Annual operation costs $1,500 $900

 

 

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You can improve the health and safety of your home by transitioning appliances to electric options.

Where to start by Pathway 

Climate Now

Water heating is the most energy-intensive function of the appliance categories. A heat pump water heater is the most energy efficient option available.   

Easing In

You can easily electrify your cooking and clothes drying with traditional electric resistance options. Electric resistance units are affordable, widely available, and easy to install.  

An even easier way to get into electric cooking is with a portable one- or two-burner unit.  

Healthy and Safe Home

Start with the gas-combustion functions that are closest to your living space. 

Transition to electric cooking first to address your kitchen. 

Transition your water heating or clothes drying next, depending on which appliance is closer to your living space.

Cooking

Cooking

Electrifying your cooking removes a common source of indoor air pollution from your home. Gas-burning ranges release high concentrations of nitrogen dioxide when they are running. Children living in households with gas ranges are over 40% more likely to have asthma. Gas ranges will also leak even when turned off.

No matter the type of cooking range, you should always run ventilation while cooking. Cooking produces lots of steamy, humid air that can contribute to building moisture issues. Burning food while cooking can also produce harmful air pollutants. The solution, for any cooking range technology, is to run a kitchen range hood or other ventilation system to keep your indoor air healthy.

Cooking Summary Table

  Induction Range Electric Range Traditional Gas Range
(for comparison)
Upfront costs* $1,000–$4,000 $500–$3,000 $500–$1,800
Efficiency 85% efficient 75% efficient 40% efficient
Safety Cooktop surface is not directly heated Cooktop surface gets hot and is slow to cool Cooktop surface gets hot and is slow to cool
Cooking power Fastest Slower Fast
Cookware compatibility Most steel and cast-iron cookware Any cookware Any cookware

*Based on recent prices for an average 2,000 square foot Minnesota home

 

System Options

Induction Range

Induction oven ranges heat cookware itself through a localized electromagnetic field. Induction ranges are more energy efficient, cook faster, and offer more precise control than traditional electric ranges.

The surface of an induction range does not get hot enough to burn like the surface of a traditional range. Additionally, induction ranges do not heat up kitchens as much through ambient heat.

Induction ranges need compatible, magnetic cookware to work. Most steel and cast-iron cookware is compatible, but aluminum cookware is not. You can test a piece of cookware by seeing if a magnet sticks to it well. You can learn more about induction ranges with this video from America’s Test Kitchen.

You can also add the option to cook with induction technology without replacing your existing range. Portable, one or two burner induction cooktops are available for significantly less than a full induction range.

 

Traditional Electric Range

Traditional electric ranges create heat by running a current through a heating element. They are a little less energy efficient than induction ranges and slower to cook and cool down. Traditional electric ranges are widely available and affordable.

 

Installation and Contractors

Electric cooking appliances need a 240-volt plug. An electrician can install a new 240-volt plug for up to $600.

Major box stores will often offer appliance delivery and installation services for low or no cost. Most often the best way to secure installation service is to speak to an employee at the store itself.

 

Resources

Entity Maximum incentive available
City of Edina Up to $750 rebate for an induction range
Federal government Up to $840 for an induction or traditional electric range (available late 2024 or early 2025)

 

Want help understanding these resources? Residents of Eden Prairie, Edina, Minneapolis, and St. Louis Park can contact our Electrify Everything Advisor service for guidance on completing projects and lining up resources. Email us through our contact form or call 612-244-2486.

City of Edina cost share reimbursement  

  • $500 rebate available to all residents 

  • $750 rebate available to residents living in an energy justice tract  

Requirements and details: 

Federal IRA rebate (available late 2024 or early 2025) 

  • Up to $840 rebate for households earning less than 80% of their area median income 

  • Up to $440 rebate for households earning between 80% and 150% of their area median income 

Requirements and details: 

  • Rebate is available for both induction ranges and traditional electric ranges. 

  • Equipment must be ENERGY STAR-certified.  

  • This particular appliance rebate can be either applied to an induction/traditional electric range or a heat pump clothes dryer. 

  • Area median income cutoffs have not yet been confirmed.  

  • Visit the Department of Energy for more information. 


Clothes Drying

Clothes Drying

Transitioning to an electric clothes dryer removes another gas-burning appliance from your home. And a heat pump dryer does not need to be vented to the outdoors, giving you more flexibility in where you place it.

Clothes Drying Summary Table

  Heat Pump Dryer Electric Resistance Dryer Gas-Fired Dryer
(for comparison)
Upfront costs* $1,000–$1,700 $600–$1,400 $600–$1,400
Per-load operation costs $0.25 $0.50 $0.39
Lifespan 20 years 10–5 years 10–15 years
Drying time Slower Faster Faster
Venting to the outside No vent needed Vent required Vent required
Treatment of clothes Gentler Less gentle Less gentle

*Based on recent prices for an average Minnesota home.

 

System Options

Heat Pump Dryer

Heat pump dryers (also called ventless dryers) use warm air to transfer moisture out of clothes and into a condensate pan or drainpipe. Heat pump dryers are more energy efficient and gentler on clothes than traditional dryers. However, heat pump dryers do have longer cycles. Heat pump dryers do not need to be vented to the outside. You can learn more about heat pump dryers with this video from This Old House.

 

Electric Resistance Dryer

Electric resistance dryers use heat from electric coils rather than combusting gas to dry clothes. Electric resistance dryers are widely available, affordable, and dry clothes quickly. However, they are not energy efficient compared to heat pump dryers and use up to twice as much electricity. Electric resistance dyers also need proper venting to the outside.

 

Installation and Contractors

Electric clothes dryers need a 240-volt plug. Many houses already have a 240-volt plug available where a dryer would normally be found. An electrician can install a new 240-volt plug for up to $600.

Major box stores will often offer appliance delivery and installation services for low or no cost. Most often the best way to secure installation service is to speak to an employee at the store itself.

 

Resources

Entity Maximum incentive available
Federal government Up to $840 for heat pump clothes dryers (available late 2024 or early 2025)


Want help understanding these resources? Residents of Eden Prairie, Edina, Minneapolis, and St. Louis Park can contact our Electrify Everything Advisor service for guidance on completing projects and lining up resources. Email us through our contact form or call 612-244-2486.

Federal IRA rebate (available late 2024 or early 2025) 

  • Up to $840 rebate for households earning less than 80% of their area median income  

  • Up to $440 rebate for households earning between 80% and 150% of their area median income 

Requirements and details: 

  • Equipment must be ENERGY STAR-certified.  

  • This particular appliance rebate can be either applied to a heat pump clothes dryer or an electric range. 

  • Area median income cutoffs have not yet been confirmed.  

  • Visit the Department of Energy for more information. 

Heat Pump Water Heaters

Heat Pump Water Heaters

Heat pump water heaters (HPWHs) are an energy efficient way to electrify your domestic hot water. HPWHs can also be called hybrid water heaters. These units use heat pump technology to keep stored water hot by drawing heat from the surrounding air. As a bonus benefit, HPWHs help dehumidify the space around them. This can be helpful if your HPWH is installed in the basement. 

Water Heating Summary Table

  Heat Pump Water Heater Gas-Fired Water Heater
(standard, for comparison)
Upfront costs* $4,000–$5,000 $700–$2,000
Annual operation costs $120–$250 $100–$200

*Based on recent prices for a 50-gallon water tank.

Installation and Contractors

Please visit the Heat Pump Water Heater Installer Network section below for Electrify Everything’s list of trained and vetted contractors.

Resources

Entity Maximum incentive available
Xcel Energy Up to $500 rebate
City of Edina Up to $750 rebate match
City of St. Louis Park Up to $750 rebate match
City of Minneapolis 0% loan up to $20,000 with grant up to $14,000
Federal Up to $2,000 tax credit
Federal Up to $1,750 rebate (available late 2024 or early 2025)
State of Minnesota Loans up to $60,000
Federal Up to $1,600 in rebates (available late 2024 or early 2025)
State of Minnesota Loans up to $60,000

 

Want personalized guidance on what resources you may be eligible for? Residents of Eden Prairie, Edina, Minneapolis, and St. Louis Park can contact our Electrify Everything Advisor service for guidance on completing projects and lining up resources. Email us through our contact form or call 612-244-2486.

Xcel Energy rebate 

  • $400 rebate for HPWHs 

  • $500 rebate for smart HPWHs 

Requirements and notes: 

  • Equipment meets specifications requirement. 

  • Visit Xcel’s Water Heater Rebates page for full details. Please note that Xcel’s website may not be updated, but they will rebate a conversion to a HPWH from a gas water heater. 
     

City of Edina rebate match 

  • 100% utility rebate match available to all residents  

  • 150% utility rebate match available to residents who qualify for the environmental justice rate 

Additional incentives: 

  • $800 rebate for residents whose HPWH installation does not qualify for a utility rebate 

Requirements and details: 

City of St. Louis Park rebate match 

  • 100% utility rebate match available to all residents 

  • 150% utility rebate match available to residents who qualify for the environmental justice rate  

Requirements and details: 

  • Within 36 months before installation, applicant must have completed a Home Energy Squad “Planner” visit. 

  • Applicant must have been awarded a utility rebate for a qualifying heat pump water heater. 

  • Applicant must complete the Climate Champions online application for approval, prior to project completion.  

  • Visit the City of St. Louis Park’s Climate Champions page for how to apply to the cost share application and full details. 
     

City of Minneapolis “Energy Efficiency Loan and Grant” 

  • 0% loan up to $20,000 

  • Grant of: 

  • 70% of project costs (up to $14,000) for loan recipients earning less than 80% of their area median income 

  • 30% of project costs (up to $6,000) for loan recipients earning between 80% and 150% of their area median income  

  • 10% of project costs (up to $3,000) for loan recipients of any income level 

Requirements and notes: 

  • Within 36 months before installation, applicant must have completed a Home Energy Squad “Planner” visit.   

  • All loan recipients are eligible for the additional grant.  

  • Terms are up to 10 years. 

  • 100% of project costs, including utility rebates, can be financed. 

  • No down payment is required. 

  • Equipment meets specifications requirement. 

  • Loan must close in 2024. 

  • Funds are available on a first come first served basis. 

  • Income is based on adjusted gross income from the most recent Federal Tax Return and household size. 

  • Visit CEE’s Minneapolis Energy Efficiency Loan and Grant page for full details. 
     

Federal tax credit 

  • 30% of project costs can be deducted through the 25C Tax Credit (up to $2,000) 

Requirements and notes: 

  • Tax credits are calculated after subtracting awarded rebates from project costs. 

  • Equipment must meet specifications requirement.  

  • Visit ENERGY STAR for annual caps and more information. 
     

Federal IRA rebate (available late 2024 or early 2025) 

  • Up to $1,750 instant rebate for households earning less than 80% of their area median income  

  • Up to $875 instant rebate for households earning between 80% and 150% of their area median income  

Requirements and details: 

  • Equipment must be ENERGY STAR-certified.  

  • Area median income cutoffs have not been confirmed.  

  • Visit the Department of Energy for more information. 
     

State of Minnesota Housing Finance Agency’s “Home Energy Loan” 

  • Loans up to $60,000 

Requirements and notes: 

  • Secured and unsecured options are available. 

  • There is no maximum income limit. 

  • Terms are up to 20 years. 

  • 100% of project costs can be financed. 

  • There is no prepayment penalty. 

  • Closing costs apply. 

  • Visit the CEE Lending Center for current rates and more information. 

 


The Heat Pump Water Heater Installer Network

hpwh

Electrify Everything’s Heat Pump Water Heater Installer Network helps homeowners find experienced contractors committed to quality HPWH installations and maintenance. The individuals and companies on this list have completed training on HPWHs and provided proof of licensure and insurance. Electrify Everything MN makes no guarantee with regards to pricing or work quality for the contractors on this list.  

Are you a contractor who installs HPWHs? Visit our contractor page for our training content and information on enrolling in the HPWH Installer Network.

 

Twin Cities Metro

 

4Front Energy

 

Air Mechanical Inc.

 

Erickson Plumbing Heating Air & Electrical 

 

Metro Heating & Cooling

 

MSP Plumbing, Heating, and Air

Water Heaters Now 

 

Rochester area 

 

Tonna Mechanical 

 

Water Heaters Now 

 

 

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The HPWH Installer Network is supported by

dmc rochester
city opf rochester
eden priaire
edina
mpls
st louis park

This program is supported by