Minneapolis Bonus Rebate Program
The City of Minneapolis is offering a bonus rebate on qualifying home energy efficiency improvements.
To qualify, the recipient must NOT be participating in the Low Income Rental Efficiency Program. Work MUST be completed before applying. Funds are available on a FIRST COME, FIRST SERVED basis for projects completed after December 15, 2025.
About the Rebate
- Bonus rebate amount not to exceed:
- Green Zone residents: $20,000
- Non-Green Zone residents: $6,000
- Not sure if you live in a Green Zone? Use this map to look it up.
- Funds are available on a first come, first served basis for projects completed after December 15, 2025.
- Minneapolis bonus rebate and utility rebate cannot exceed the total project cost.
- Only one rebate per eligible project and eligible utility rebate.
- Projects must be eligible for a utility rebate from CenterPoint Energy or Xcel Energy.
- Project must be completed and all required documentation must be submitted for the application to be considered complete and to receive the bonus rebate.
- See list of eligible improvements below.
- Work must be done by a properly licensed or registered contractor with the MN Department of Labor.
- The rebate will be paid to the utility account holder.
Property Eligibility
- 1-4 unit, owner-occupied or absentee-owned residential properties located in the City of Minneapolis.
- Individual townhomes, twin-homes, and condominiums are eligible.
- Properties held in a Trust are eligible.
- Properties with more than 4 units, co-operatives, manufactured homes, properties used for commercial purposes, and new construction properties are not eligible.
- Borrowers may not have participated in the Low-Income Rental Efficiency program.
- Recipients cannot have received a previous energy efficiency grant, loan, or rebate for the project the rebate is being used for.
- Funds are available on a first come, first served basis for projects completed after December 15, 2025.
- Work MUST be completed before applying.
Rebate Details
Below is a summary of the eligible energy efficiency improvements available with this rebate. Funds are available on a first come, first served basis. To qualify for a rebate, the eligible improvements must have been made after December 15, 2025. The table includes the relevant utility (Xcel Energy and CenterPoint Energy) and City of Minneapolis rebates. The total rebate amount from the City and utility cannot exceed the total project costs. Please contact your City inspections department to verify if your project requires a permit.
| Eligible Improvement | Energy Efficiency Specification | Utility Rebate | Bonus Rebate (Green Zone) up to $20,000 | Bonus Rebate (Non-Green Zone) up to $6,000 |
| Weatherization | ||||
| Attic insulation and air sealing | ≥ R-49 or as much as possible; air sealing required | $1,300 | $3,000 | $1,300 |
| Wall Insulation | ≥ R-11 or as much as possible | $1,500 | $3,000 | $1,500 |
| Triple-pane windows | Energy STAR Northern Climate v.7 replacing single pane windows | $0 | $1,000 | $500 |
| Air source heat pumps (ASHPs) | ||||
| Cold climate ASHP — Non-ducted (Mini split) | 16 SEER2 (9.0 EER2), HSPF2 9.5, COP of at least 1.75 at 5° and capacity ratio ≥ 70% at 5°F/47°F | $2,000 | $5,000 | $1,000 |
| Cold climate ASHP — Ducted or mixed ducted | 15.2 SEER2 (10 EER2), HSPF2 8.1, COP of at least 1.75 at 5°and capacity ratio ≥ 70% at 5°F/47°F | Gas: $1,100 Elec.: $900 | $5,000 | $1,000 |
| ASHP — Non-ducted (Mini split) | 15.2 SEER2, 9.3 EER2, 8.5 HSPF2 | $1,600 | $4,000 | $1,000 |
| ASHP — Ducted or mixed ducted | 15.2 SEER2, 9.6 EER2, 7.8 HSPF2 | Gas: $1,100 Electric: $500 | $4,000 | $1,000 |
| Gas heating systems | ||||
| Furnace | ≥ 97% AFUE installed with a qualifying ASHP | $1,000 | $2,000 | $1,000 |
| Furnace | 96%–96.9% AFUE installed with a qualifying ASHP | $400 | $2,000 | $1,000 |
| Boiler (Condensing) | ≥ 95% AFUE installed with a qualifying ASHP | $500 | $2,500 | $1,000 |
| Boiler (Combination) | ≥ 95% AFUE installed with a qualifying ASHP | $1,000 | $2,000 | $1,000 |
| Other | ||||
| Heat pump water heaters (HPWHs) | Energy STAR certified | $400 | $1,500 | $400 |
| Electric panel upgrades | Must increase amperage of existing electric panels if being done with a qualifying ASHP or HPWH | $1,500 | $3,000 | $800 |
Terms:
- AFUE — Annual Fuel Utilization Efficiency
- COP — Coefficient of Performance
- EER2 — Energy Efficiency Ratio 2
- HSPF2 — Heating Seasonal Performance Factor 2
- SEER2 — Seasonal Energy Efficiency Rating 2
Can I get bonus rebates for more than one project?
Yes. As long as you have not previously received a rebate for that project and your rebate amount does not go over the maximum rebate amounts identified above and in the supplemental application, you may receive multiple rebates. For example, you could weatherize your home with insulation and air sealing and also install an ASHP.
Can I get bonus rebates for multiple systems? What if I want to install two ASHPs?
Yes. If you install two systems that are eligible for two utility rebates and meet all other program eligibility requirements, including maximum rebate amounts, you may receive multiple rebates.
Questions?
Contact Janson Hunter or Jordan Bothun below.
- Janson Hunter: jhunter@mncee.org or 612-335-5873
- Jordan Bothun: jbothun@mncee.org or 612-464-5138
Hablamos Español: 612-335-5856
The current loan terms and conditions stated, including interest rates, do not constitute a commitment to lend or an offer to enter into an agreement, and that such an offer may only be made pursuant to Minnesota Statutes, Section 47.206(3) and (4).
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