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Home Energy Rebates

Consumer Protection Notice

  • The Home Energy Rebates Program has not launched. No rebates currently available. 
  • No estimated program launch date.
  • Be wary of unsolicited contact about this program via phone, email, text, ads, or door-to-door sales.
  • These offers are likely scams or fraudulent schemes.
  • Wait for official announcements from the Minnesota Department of Commerce before applying.

Advisory No.: 2024-001 Issued: December 5, 2024, at 08:00 CST. Last Updated: June 3, 2025.  Expires: September 3, 2025 at 23:59 CST Version: 1.2

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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 can range from $2,000 to $8,000 or more per home. Visit the Home Efficiency Rebate program (HOMES) page. 

Home Electrification and Appliance Rebate program (HEAR)

The Home Electrification and Appliance Rebate will provide rebates to income-qualified households to replace inefficient appliances with more efficient electric appliances, and to upgrade a home’s electrical service to be ready for increased electric demand. Visit the Home Electrification and Appliance Rebate program (HEAR) page.

Eligibility

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 2025Area Median Income Look-Up Table(.pdf) that references federal income limits by county and household size.

Background

The federal 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 HOMES & HEAR programs which will help American households save money on energy bills, upgrade to clean energy, improve energy efficiency, and reduce indoor and outdoor air pollution. HOMES & HEAR are operated on a state by state basis, and 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 HOMES & HEAR 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 electric appliances.

Additionally, in 2023, the Minnesota Legislature approved state funding for related home energy rebate programs. See the websites for the Heat Pump Rebates and the Electric Panel Upgrade Grants. These programs are designed to be "stacked' (also known as co-funded) with the federal rebates to decrease overall project cost.

Minnesota timeline

Mid 2023 – Commerce received DOE funds and begins program planning and design.

Late 2024 – Commerce submitted HEAR program application to DOE.

Late 2024 – DOE approved HEAR program and awarded funds.

Late 2024 – DOE partially approved HOMES program application but did not award funds.

Early 2025 – Commerce hired an implementation contractor to build systems to implement the rebate programs.

Mid 2025 – Commerce plans to launch a pilot program in partnership with the Weatherization Assistance Program.

Late 2025 – Commerce anticipates opening the HEAR program to eligible applicants statewide.

Programs run through 2031 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 options available today. The first step is to evaluate if you qualify for existing state programs to help save money on your energy bills. Second, search for federal tax credits and other state incentives for renewable energy or energy efficiency updates available now.

If you're planning future energy upgrades in your home or rental, learn about what you can do to make your home more efficient:

  • Home Energy Guide - offers practical ideas to improve your home’s energy use
  • CERTs - toolkits to learn more about energy efficiency projects
  • Learn about heat pump technology
  • DOE’s Home Comfort webpage provides explanations and diagrams of appliances, weatherization, home heating and cooling systems, and more

Contact residential.rebates.comm@state.mn.us with questions.

* NOTICE: The Minnesota Department of Commerce is asking you to provide your email address for notification purposes regarding Division of Energy Resources programs. The data will be shared with those employees within Commerce and its contractors whose work assignment requires access the data. You are not required, and may refuse, to provide your email address. If you refuse, Commerce will be unable to provide you with upcoming information about Division of Energy Resources programs. If you supply your email address, Commerce may send you updates via your email. The data you provide may be shared as authorized by law or if a court orders that it be produced.