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Home Efficiency Rebates (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 ranges from $2,000 to $8,000 or more per home. Visit the Home Efficiency Rebate (HOMES) page for more details. 

Home Electrification and Appliance Rebates (HEAR)

The Home Electrification and Appliance Rebate will provide instant rebates to income-qualified households to help install new efficient electrical equipment and supporting upgrades, such as an electric panel, wiring, and air sealing. Visit the Home Electrification and Appliance Rebate (HEAR) page for more details.

Residential Heat Pump Rebates

Residential Heat Pump Rebates provide financial assistance to eligible applicants that purchase and install a heat pump for space heating and cooling in the applicants' Minnesota residence. Heat pumps for clothes drying or water heating are excluded from the state rebate program. Visit the Residential Heat Pump Rebates page for more details. 

Residential Electrical Panel Upgrades

Residential Electrical Panel Upgrades provide financial assistance to owners of single-family residences and multifamily buildings to upgrade residential electric panels. Visit the Residential Electrical Panel Upgrades page for more details.

Eligibility

Eligibility and rebate amounts 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 2025 Area Median Income Look-Up Table(.pdf). Area Median Income thresholds are updated annually. 

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 HOMES and HEAR 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 and HEAR are operated on a state by state basis, and each state must apply for these funds and receive U.S. Department of Energy (DOE) approval prior to issuing rebates.

The Minnesota Department of Commerce is responsible for designing and administering Minnesota’s HOMES and 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 Upgrades. These programs are designed to be "stacked' with the federal rebates to decrease overall project cost.

Minnesota Timeline

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

Late 2024 – Commerce submitted HEAR application to DOE.

Late 2024 – DOE approved HEAR and awarded funds.

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

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

September 2025 – Commerce plans to launch a pilot program in partnership with the Weatherization Assistance Program (WAP).

Late 2025 – Commerce anticipates starting a phased roll out of the Save Energy Minnesota program.

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. Please note, federal tax credits for residential clean energy projects are expiring at the end of 2025.

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.