ST. PAUL – The Minnesota Department of Commerce has awarded $5.6 million in grants to nine non-profit groups and businesses to advance research and innovation in energy conservation. The grants are awarded through the state’s Conservation Applied Research and Development (CARD) program. In addition to these grants, the projects leverage more than $590,000 in matching grantee funds.

"The best energy solutions are backed by good research. These projects will help us better understand what works in Minnesota so utilities, businesses and homeowners can make smarter investments that save energy, lower costs and strengthen our energy system for years to come," said Commerce Commissioner Grace Arnold. "Minnesota has long been a leader in energy conservation because we're willing to invest in innovation."

Projects for this year’s CARD grants were selected from more than 40 proposals submitted through a competitive grant process. Grant recipients include a range of nonprofit groups and businesses, many with years of experience working alongside utilities to help them achieve energy conservation goals and benefit Minnesota utility ratepayers.

The grants are part of Commerce’s Energy Conservation and Optimization (ECO) Program’s work to implement the ECO Act, a state law passed in 2021 with bipartisan legislative support. The program is funded by utility ratepayers and administered by electric and gas utilities. Previous research has found $4 in benefits for every $1 invested in energy conservation. The research funded by these grants can also help Minnesota meet its goal — passed into law in 2023 — of 100 percent carbon-free electricity by 2040.

CARD Grant Awardees

The Cadmus Group

Amount: $178,480
Project: Reassessing Residential Efficiency Measure Life in Minnesota
Goal: Survey Minnesota households to better understand how long common energy-saving improvements, such as insulation, efficient heating and cooling equipment, and other energy-efficient upgrades, remain in use.

Center for Energy and Environment

Amount: $69,198
Project: Navigating the North: A Practical Guide to Successful Residential Heat Pump Water Heater Implementation in Minnesota
Goal: Create a practical guide to help homeowners and contractors successfully install heat pump water heaters in Minnesota homes. The guide will summarize the latest research, share best practices and offer solutions to common installation challenges so these systems work well, save energy and perform reliably in Minnesota's climate.

Center for Energy and Environment

Amount: $307,571
Project: Beneficial Electrification for Better Barns: Where Can Heat Pumps Help on the Farm?
Goal: Identify which livestock operations could benefit most from switching to electric equipment. The project will study market barriers and opportunities and estimate the potential energy and cost savings from using heat pumps to provide heating, cooling and hot water in Minnesota turkey, dairy and swine barns.

Center for Energy and Environment

Amount: $458,565
Project: Smart Control Valve Energy Savings for Chilled Water in Heating, Ventilation and Air Conditioning (HVAC) Systems
Goal: Study how much energy and money commercial buildings can save by using smart valves in chilled-water heating and cooling systems. The project will use computer modeling and real-world testing to estimate statewide savings, determine whether the technology is cost-effective, and help improve Minnesota energy-efficiency programs.

Center for Energy and Environment

Amount: $427,605
Project: Vertical Packaged Heat Pump Field Study in Multifamily and Hospitality Buildings
Goal: Test several cold climate heat pump alternatives, focusing on system performance and energy savings.

Center for Energy and Environment

Amount: $230,684
Project: Paths to HVAC Electrification: Evaluating Retention of Existing Radiator Distribution Systems for Cost-Effectiveness
Goal: Evaluate the potential to retain existing radiators when installing electrified HVAC systems.

Center for Energy and Environment

Amount: $385,507
Project: Modern Air Source Heat Pump Performance in the Coldest Conditions: Savings, Peak Demand and Design Impacts
Goal: Update performance data for cold-climate heat pumps to better understand how well they work in temperatures below 5 degrees. The project will use that information to estimate annual energy savings, impacts on peak electricity demand, and best practices for designing heat pump systems in Minnesota.

Center for Energy and Environment

Amount: $308,392
Project: Heating Load Estimates and Duct Performance Diagnostics for Successful ASHP Retrofit Installations
Goal: Identify when ductwork must be improved for a heat pump to work effectively. The project will study central duct systems for existing ducted all-electric and dual-fuel heat pumps in homes in greater Minnesota.

Center for Energy and Environment

Amount: $66,089
Project: Recommendations for Minnesota Residential Electrical Services to Enable Electrification
Goal: Study how Minnesota homeowners can switch from fuel-powered equipment to efficient electric systems without needing costly electrical upgrades. The project will use research from Minnesota and other states to recommend technologies, strategies and practical guidance for typical single-family homes.

Elevate Energy

Amount: $69,897
Project: Increasing the participation of naturally occurring affordable housing in energy efficiency programs through market characterization and mapping
Goal: Develop a reliable method to identify naturally occurring affordable housing across Minnesota using housing information and census data. Utilities could use the method to better reach these properties, which are often underserved by energy-efficiency programs.

Frontier Energy

Amount: $230,246
Project: Residential Deep Maintenance for Persistent Energy Savings and Comfort
Goal: Study whether thorough, long-term maintenance of home energy systems can save energy, reduce costs, improve comfort, and extend the life of equipment. The project will evaluate whether this approach is a cost-effective alternative to routine maintenance and more frequent equipment replacement in Minnesota homes.

Michaels Energy

Amount: $199,670
Project: Thermal Energy Storage for Industrial Heating
Goal: Evaluate whether thermal energy storage technologies could help Minnesota industries reduce energy costs by storing heat when electricity is cheaper or more readily available and using it later. The project will assess where these technologies make the most sense and their potential for broader use across the state.

Midwest Energy Efficiency Alliance

Amount: $67,400
Project: Readying Minnesota for Distributional Equity Analysis
Goal: Help regulators, utilities and stakeholders better understand which customer groups benefit from ECO and other energy programs. This study will provide tools to evaluate how program benefits are distributed and support more informed decisions.

Resource Innovations

Amount: $401,240
Project: Field Validation of PWHPs in Cold-Climate Multifamily Buildings
Goal: Evaluate performance, energy and carbon savings, and customer experience of packaged window heat pumps (PWHPs) when installed in gas-heated multifamily buildings across Minnesota, as well as quantify achievable energy savings and investigate the conditions under which PWHPs provide a reliable and cost-effective path for efficient fuel switching to inform measure development and program design for utilities within ECO.

Slipstream, Inc.

Amount: $358,719
Project: Phasing Out Industrial Compressed Air Systems
Goal: Measure potential energy savings and determine whether reducing reliance on compressed air is a practical energy-saving strategy measure.

Slipstream, Inc.

Amount: $396,256
Project: Heat Pump Water Heaters (HPWHs) for Retrofits with Space and Electrical Constraints
Goal: Identify, deploy and monitor HPWHs designed to address space and electrical constraints for multifamily and manufactured housing retrofits, assessing installation barriers and opportunities, resident experiences and satisfaction, unit efficiency and hot water delivery.

Slipstream, Inc.

Amount: $352,040
Project: Partial Displacement of Commercial Boiler Space Heating with Air-to-Water Heat Pumps
Goal: Study how air-to-water heat pumps can reduce the amount of natural gas used by boilers in apartment and commercial buildings. The project will identify cost-effective system designs and develop resources to help Minnesota energy programs support customers interested in lowering energy use and emissions.

Slipstream, Inc.

Amount: $424,169
Project: Improving Manufactured Home HVAC Performance and Sizing
Goal: Improve HVAC performance and sizing when replacing or serving a system in existing manufactured homes to deliver improved performance, energy savings, increased resident comfort, extended HVAC system life and reduced noise.

Slipstream, Inc.

Amount: $69,982
Project: Energy Savings from Dual Fuel Controls Optimization across Minnesota
Goal: Study how to best control dual-fuel heat pump systems that use both electricity and fuel in Minnesota homes. The project will identify control settings that save homeowners the most money, produce the greatest energy savings and reduce greenhouse gas emissions. It will also create practical guidance for utilities, contractors and others using equipment already available in the market.

West Monroe

Amount: $302,160
Project: Market Assessment of Next-Generation Commercial and Industrial Refrigeration Controls for Energy Efficiency and Load Management
Goal: Assess the prevalence of, and the potential energy-saving opportunities associated with, advanced refrigeration control and monitoring systems at commercial and industrial refrigeration facilities in Minnesota. Develop recommendations for ECO utility programs, incentive structures, and market strategies to accelerate adoption and maximize energy and demand savings.

West Monroe

Amount: $298,227
Project: Data Center Energy Efficiency Strategies: Codes, Programs, and Cost-Effective Measures for Minnesota
Goal: Identify cost-effective energy efficiency and load flexibility measures for small- and medium-size data centers (< 20 MW capacity) that can be incorporated into utility ECO programs, Technical Reference Manual entries, and codes and standards.

More information on the CARD program is available on the Minnesota Department of Commerce website. Email the Commerce Department's Energy Information Center at energy.info@state.mn.us or call 651-539-1886 with questions.