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: 

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

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