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Heat pump water heaters are an exciting domestic hot water solution with benefits for your business and customers. 

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Differentiate and future-proof your business. 

With generous federal incentives, heat pump water heaters (HPWH) are poised to take off in the market. Offering heat pump water heaters, also called hybrid water heaters, puts your business ahead of the curve and prepared for changing efficiency requirements.

Explore training resources

Highlight your company’s HPWH expertise

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Save your customers energy.

HPWHs are up to four times more energy efficient than traditional gas or electric water heaters. 

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Help customers reach their decarbonization goals.

HPWHs benefit from an increasingly green electric grid. As more Minnesotans become interested in sustainable options, the HPWH market is sure to grow.

Explore heat pump water heater resources for contractors

Our collected resources include heat pump water heater (HPWH) installation guidance, training documentation, and financial incentives for customers.


 

Try the cost estimator spreadsheet.

Explore the easy-to-use HPWH operational cost estimator spreadsheet. Created by Dan Wildenhaus at the Center for Energy and Environment, the calculator is based off the Department of Energy’s HPWH cost modeling work and allows for adjustment of the assumed therms or kWh per day and the EF/UEF specifications.

Download the cost estimator spreadsheet

 

Watch an installation guide.

Please see below for Northeast Energy Efficiency Alliance and Hot Water Solutions Northwest’s contractor guide on HPWH installations.

 

Browse previous training material.

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Dan Wildenhaus, Center for Energy and Environment’s senior technical manager and residential advisor, led a heat pump water heater (HPWH) training session on April 5th, 2023, in St. Louis Park. Dan is a former contractor with eleven years of experience with inverter-driven heat pumps and heat pump water heaters.

Download the presentation deck PDF

 

 

Financial resources available to customers:

 

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

 

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.  

  • Xcel Energy’s rebate requires that applicant is replacing an electric water heater with a HPWH (replacing a gas water heater with a HPWH heater is not eligible).  

  • Visit the City of Edina’s Community Climate Action Fund 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 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. 

Interested in highlighting your HPWH expertise?

Electrify Everything created the HPWH Installer Network to connect residents interested in HPWH solutions with experienced contractors. Join the network to get your business listed!

Learn more about the HPWH Installer Network

Highlight your expertise in heat pump water heater solutions by joining our Installer Network.


Electrify Everything created the Heat Pump Water Heater (HPWH) Installer Network to connect residents interested in HPWH solutions with experienced contractors.

Members of Electrify Everything include the cities of Eden Prairie, Edina, Minneapolis, Rochester, and St. Louis Park, in collaboration with Center for Energy and Environment (CEE).

 

How to join:

1. Watch our recorded training

The HPWH training recording is led by Dan Wildenhaus, CEE’s senior technical manager and residential advisor. In the training, Dan covers customer benefits of HPWH technology, application considerations in our climate, sizing and installation recommended practices, and more.

View The Recorded Training

 

2. Pass the eight-question quiz

Passing the quiz will confirm your viewing of the training.

Open The Quiz

 

3. Complete the intake survey

Open the survey
 

4. Complete the paperwork

After you complete the quiz, CEE will contact you to complete the Participation Agreement and to get proof of insurance documentation.

 

How membership works:

  • Electrify Everything will refer residents to the Installer Network during its work promoting residential electrification.
  • Installer Network membership lasts for one year following enrollment.
  • Installer Network membership can be renewed for the next year if: 
    • The employee who attended the training is still employed at the company, or
    • The company has installed at least three HPWHs in the preceding year.
    • The Participation Agreement is re-signed.

Want to learn more? Contact Arbor Otalora-Fadner at aotalorafadner@mncee.org or call 612-455-7801

 

Heat Pump Water Heater Installer Network members: 

Installer Network members are listed on Electrify Everything’s resident-facing website and other relevant community materials.  

 

Twin Cities Metro 

4Front Energy  

Air Mechanical Inc.    

Erickson Plumbing Heating Air & Electrical  

Metro Heating & Cooling  

MSP Plumbing, Heating, & Air  

Water Heaters Now  

 

Rochester area  

Tonna Mechanical  

Water Heaters Now  

This program is supported by

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dmc
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