Current update (02/12/24): The Home Energy Rebates have not launched yet. The Department of Commerce will update this page as new information becomes available. We do not yet have an estimate for a program launch date.
The Inflation Reduction Act (IRA) invests $500 billion in the clean energy economy through programs to reduce energy costs and carbon emissions. The IRA includes the Home Energy Rebate program which will help American households save money on energy bills, upgrade to clean energy, improve energy efficiency, and reduce indoor and outdoor air pollution. The U.S. Department of Energy (DOE) has requirements states must follow when setting up the Home Energy Rebate program in their state. Each state must apply for these funds and receive DOE approval prior to issuing rebates.
The Minnesota Department of Commerce is responsible for designing and administering Minnesota’s Home Energy Rebate programs and is committed to ensuring access to low- and moderate-income households. These rebates will help households make energy improvements, like upgrading appliances to efficient electric models, adding insulation, and modernizing home wiring systems to support home electrification.
Eligibility and rebate amounts for federal Home Energy Rebates will vary based on an applicant’s total household income. Check if your total household income is at or below 80% or 150% of Area Median Income (AMI) for your county using the Commerce-provided 2023 Area Median Income Look-Up Table (.pdf) that references federal income limits by county and household size.
Home Efficiency Rebate program (HOMES)
The Home Efficiency Rebates will provide rebates for whole-home energy saving improvements. The rebate amount will vary based on the amount of energy savings achieved and a household’s income. The rebate amount will range from $2,000 to $8,000 per home.
Minnesota is currently designing its program and approach. This program is intended to make homes more energy efficient and provide improvements such as insulation, air sealing and efficient heating and cooling equipment. Existing single-family homes and multifamily buildings will be eligible.
Home Electrification and Appliance Rebate program (HEAR)
The Home Electrification and Appliance Rebates will provide rebates to replace non-electric appliances with more efficient electric appliances, and to upgrade a home’s electrical service to be ready for increased electric demand.
Minnesota is currently designing its program and identifying which upgrades will be eligible. This program can provide rebates for things such as a first-time purchase of heat pump technologies (for air cooling/heating, water heating, and clothes drying), electric cooking appliances (stove, cooktop, range, or oven), and upgrades to a home’s electrical panel and wiring.
Rebates will be available to households with total annual income less than 150 percent of the area median income of the area in which they reside. The rebate amount will depend on the upgrades and technologies purchased and a household’s income. Improvements to existing single-family homes and multifamily buildings will be eligible. New homes may be eligible.
Mid 2023 – received DOE funds for program planning
Mid 2023 to early 2024 – program planning and design
Mid 2024 – submit program application to DOE
Mid 2024 to late 2024 – DOE approves program and awards funds to start program
Late 2024 to early 2025 – build and implement program
Late 2024 to early 2025 – Commerce opens program to households
Program runs through 2032 or until all funds are used, whichever is earlier
What can you do now?
If your home needs urgent energy efficiency upgrades now, there are many opportunities available today. Commerce encourages you to evaluate whether you qualify for existing state programs to help you save money on your energy bills. You can also search for federal tax credits or other state incentives for renewable energy or energy efficiency updates available now.
If you're planning future energy upgrades in your home, you can learn about what homeowners and renters can do to make your home more efficient.
Home Energy Guide - offers practical information on ways to improve your home’s performance
CERTs - toolkits to learn more about energy efficiency projects
The Home Electrification and Appliance Rebates Program is not available for projects completed before the program launch date.
While the IRA provides some federal guidelines for what products qualify and who may be eligible, the state of Minnesota will design its own program to distribute rebates. Until program design is complete for the HOMES rebate, we cannot guarantee who will qualify when we begin providing rebates. The law does not authorize states to offer Home Electrification and Appliance Rebates retroactively. If you have further questions, you can visit the U.S. Department of Energy’s website.
The State Heat Pump Rebate Program is designed to supply additional rebate funds to a household that earns a rebate for a heat pump for space heating and cooling through either the HOMES or HEAR rebates. To be eligible for the State Heat Pump Rebate, applicants must first apply and receive a federal HOMES or HEAR rebate.
The Residential Electrical Panel Grants do not depend on an application to the HOMES or HEAR rebate programs. They can be applied to separately, or co-fund upgrades from the federal programs. Learn more about leveraging other funding sources with Home Energy Rebates.
Both the state Residential Electrical Panel Grants and Heat Pump rebates will utilize the same application system as the federal programs and thus will likely begin at the same time or after the launch of the federal programs.
The US Department of Energy invited the Minnesota Department of Commerce to rapidly accelerate its HEAR application. This will allow the state to launch rebates earlier than originally planned. The state is now seeking input to inform our HEAR application. Federal guidance allows states some flexibility in program design to reflect the state’s priorities. We invite community partners, contractors, technical experts, retailers and the public to provide input to inform the rebate programs’ design.
Input received via this RFI by February 27, 2024 will be considered for the HEAR application. Input received by April 1, 2024 will be considered for the HEAR implementation blueprint as well as the HOMES application and HOMES implementation blueprint.