Minnesota energy rebates

Do you live in Minnesota? Do you know you can receive rebates for efficient use of energy? Here is a list of the various rebates available for you.

List of 7 Minnesota Energy Rebates: Become More Efficient And Save Money

As an incentive to encourage people to use natural gas, as well as energy-efficient heating systems to conserve energy, Minnesota Energy Resources is offering rebates to customers. Therefore, if you live in Minnesota and you want to save some money, make sure you utilize the Minnesota energy rebates.

If you are using old machines and systems that consume a lot of energy, you should consider replacing them for more energy-efficient one.

In this article, we will look at the various Minnesota energy rebates and programs that can help you save considerably on your use of energy.

Best Minnesota Energy Rebates to Consider

Energy efficiency is important as we seek to reduce our carbon footprint, save money and increase our efficiency. Fortunately, there are plenty of programs to choose from to help you save money while considering energy efficiency retrofits and upgrades.

  1. Insulation And Air Sealing Rebates

In Minnesota, energy rebates for insulation are rebates for enhancing your home’s air sealing and insulation. When you improve the air insulation in your house, you are able to save on and reduce the cooling and heating costs. This is one of the most proven energy conservation methods out there.

The Minnesota energy rebates for insulation are given to customers who use natural gas as a source of heating. They help customers in existing homes to improve their home’s air sealing and insulation. The program is only available for customers with existing homes that are older than two years.

Homes that are built within the last two years are considered new, and they don’t meet the eligibility criteria. Also, those homes that took part in the “Home Energy Excellence program” may not be eligible for this program.

Something to note though: For you to qualify for these rebates, the air sealing and insulation job for your home, must have been done by a Minnesota Energy Resources’ authorized contractor.

Through their Authorized Insulation Contractor program, they ensure the company you will use is both qualified and reputable.

You will receive the rebates in the form of a direct check from Minnesota Energy Resources. This is the standard way of paying the rebates to all their customers.


If any contractor tells you that they have included a rebate in their low cost, or offers a discount to make you sign up on the spot, they are not with Minnesota Energy Resources. You should, therefore, be careful.

The Minnesota Energy Resources monitors their authorized contractors through their continuing quality control program.

If you want to know which contractor is licensed, you can check it out in this list.

See Related: Can Sheeps Wool Insulation Work to Reduce Heat?

  1. Existing Homes Heating Rebates

The heating system rebates are rebates that customers receive from Minnesota Energy Resources when they upgrade to more efficient heating systems. The customers may upgrade to the use of a natural gas boiler or furnace, install an energy-efficient fireplace, or connect an advanced or programable thermostat in their existing homes.

By installing these upgrades, not only will you be saving through your advanced system, but you will also save from reduced use of natural gas. It is advisable for you to link with a heating dealer to help you identify a system that best suits your home.

AHRI is the body that verifies the correct ratings by AFUE  for the purposes of heating.

The AFUE (Annual Fuel Utilization Efficiency) offers different amounts of rebates for various efficiency percentages. For example, a natural gas furnace with a minimum efficiency of 92% AFUE, receives a $250 refund. On the other hand, a natural gas furnace with a 97% AFUE minimum efficiency receives $500 rebate.

For a natural gas boiler with a minimum efficiency of 90% AFUE, will receive a $200 rebate. One thing you should note though is that the amount of rebate is 50% of the total cost of the upgrade, up to a maximum of the rebate shown on the AFUE table.

Eligibility For The Rebate

For one to qualify to receive this kind of rebate, their homes must be older than two years. These are what we refer to as existing homes. If you are constructing a new home, you should visit the Minnesota Energy Resources’ rebate page for new construction.

These rebates are not intended for new homes. New homes refer to those built within a period of two years. If your home is new, visit our rebate page for new construction.

Again, to ensure you are eligible, you should check all requirements for the rebate, before you install a new system.

For you to qualify for an Upgraded Thermostat rebate, you must provide the whole model number.

And, to apply, you must download and complete the heating system rebate request whereby the requests are processed in the order of application.

Those apply first, are served first.

Non-Residential Properties

There are also rebates for organizations that serve low-income communities such as the nonprofit entities and new construction organizations.

Minnesota Energy Resources offer enhanced rebates to these organizations for their efforts to support the community.

The organizations that fall under this category include the nonprofit entities, as well as new construction firms such as Housing Development Agency, Community Housing Development Authority, and Habitat for Humanity, among others.

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  1. Minnesota Water Heating Rebates

Another large natural gas consumer in a house is water heating. When you upgrade your water heater, you not only save on the use of natural gas, but you also preserve the environment.

For you to know which water heater system best suits your home, it advisable that you talk to your retailer or contractor for the same. Together with the contractor, you can easily determine the heating needs of your home and get the best heater.

UEF (Uniform Energy Factor)

The amount of rebate you receive will depend on the minimum efficiency level known as the Uniform Energy Factor. This is the water heater’s efficiency measured for a period of 24 hours when the heater runs under standardized condition.

The factor is determined by undertaking a certain simulated use test (SUT) by the department of energy. For example, for a Natural gas water heater, with a minimum efficiency of ENERGY STAR® and a .64 UEF, you get a $125 rebate.

On the other hand, for the same water heater, with a minimum efficiency level of ENERGY STAR®  and a .82 UEF, you get a rebate of 250 dollars. The higher the efficiency, the higher the rebate.

And, just like in the other rebates, these also are not meant for new buildings. They are for current homes with over two years of existence.

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  1. Free Water Conservation Kit

Minnesota Energy Resources also offer free water conservation kits for all their active customers in residential homes. These kits come as a package of low-flow showerheads, pipe insulation, as well as bathroom and kitchen faucet aerators.

The items in these kits are simple to install, and therefore you can instantly start saving on your water heating costs.

There are practically two categories of water conservation kits available namely Kit A and Kit B. Kit A, contains two shower heads, one kitchen faucet aerators, two faucet aerators for the bathroom, and two 3′ pipe insulation.

For Kit B, it comes with one shower head, one kitchen faucet aerator, two faucet aerators for the bathroom and two, 3′ pipe insulation.

For you to apply for these kits, you must complete an online request, through which they will verify your eligibility. If you qualify, you will wait for an average of 4 to 6 weeks to receive the Kit. However, this program can change or end at any time, and without any notice.


For you to qualify for this program, then you must meet the following criteria:

  • Your water heater must be using natural gas
  • You must be a residential customer of Minnesota Energy Resources who have an existing account
  • Your home must be an existing one i.e., more than two years old
  • The maximum kits per household are one kit
  1. Appliance Rebates

These are rebates that are offered mainly for saving energy use in appliances such as dishwashers and washing machines. For a washing machine, most of the energy used (around 70-90%), is mainly to heat the water. Therefore, if you want to save energy, you should replace your washing machine that uses less water.

For you to qualify for rebate, Minnesota Energy Resources requires you to have a top-loading or front-loading washing machine that is ENERGY STAR® certified. In addition to that, you must be using natural gas water heaters in your home to be eligible.

With current, more efficient washing machines, not only will you save energy on heating, but you will also save energy on drying the clothes. This is because of the higher efficiency washing machines squeeze more water from the clothes, unlike conventional washers.

With an ENERGY STAR® certified washing machine, you will save both on energy use and water consumption by around a third.

In terms of a dishwasher, you will save around $40 per year on utility bills, if you use a current dishwasher. The old ones are machines that were built before 1994. You must, therefore, replace your old dishwasher with an ENERGY STAR® certified one to save more money.

However, just like in the case of washing machines, you must be using natural gas to be eligible for a rebate.

The minimum efficiency standard for these machines is being ENERGY STAR® certified. For ENERGY STAR® certified dishwashers, you get a $30 rebate, while for a clothes washer, you get a $45.


  • You must be using natural gas to fuel the water heater
  • The equipment must be ENERGY STAR® certified to qualify

See Related: Best Energy Efficient TVs to Consider

  1. Heating System Tune-Up Rebate

For any machine to function efficiently, regular maintenance must be done, which will also help it to last longer. The heating systems are not different. If they are well maintained, they will also function properly.

Therefore, Minnesota Energy Resources offer customers a $35 rebate when you hire a heating service professional to perform a tune-up for you. This rebate helps to ensure that your heating system operates optimally. It also helps to prevent any expensive repairs due to significant breakdowns.

For you to qualify for this rebate, the professional technician must perform the following services:

  • Undertake a carbon monoxide test, as well as correct all safety issues
  • Check flame appearances and regulate gas and air when required
  • Check and clean the flue gas path that goes from the burner to the vent
  • Examine the igniter for correct operation. They also should check if the flame sensor or the igniter light controls are operating correctly.
  • Take a look at the conditions of the air filter of the furnace
  • Inspect the condition of the fan motors and pump motor, especially for boilers. If required, lubricate bearings.
  • Examine the operation of controls and when necessary, adjust.

Other Requirements For Rebate

  • Available for the existing home only.
  • Customers become eligible for the tune-up rebate after every two years.
  • Installation must be done by a certified HVAC dealer.
  • Rebate is always less than the tune-up cost.

For rebate application, you have to download and complete the heating system tune-up rebate form.

See Related: What is Net Metering?

  1. Residential Thermostat Rebates

These are the rebates offered when you install an advanced, programmable, or Wi-Fi enabled or thermostats. When you install a programmable thermostat, you will continually save with reduced use of natural gas every year.

For an advanced thermostat, you get a $100 rebate while for the Wi-Fi enabled one; you receive $25. For the programmable setback thermostat, you will receive a $25 rebate.

Energy Efficiency Rebates Categories

We can categorize the entire energy efficiency program into the following:

  1. Residential Customers

These ones include:

  • Existing homes
  • New homes
  • Audit and workshops
  • Weatherization for eligible customers
  1. Business Customers

These ones include all the rebates such as:

  • Gas furnace rebates
  • Food-service equipment
  • Furnace heating systems and components
  • Insulation
  • Water heating
  • Custom energy-saving measures
  • Furnace tune-ups
  • Steam trap
  1. Trade Allies Rebates And Programs
  2. Builders and contractors And Programs

Minnesota Energy Audit

If you are in Minnesota, an energy audit will help you evaluate how you can save more with the rebates they offer. There is a huge room for improvement and which can help you save more.

Minnesota Energy Resources, together with various electric power providers offers a joint electricity and natural gas energy audits at your home.

Conclusion On Minnesota Energy Rebates

When you use energy-efficient heating systems in your home, not only will you get rebates, but you will also save on your energy bills significantly. I hope this guide about the state of Minnesota energy rebates helps you understand just how you can save with these rebates.

Do you think energy rebates encourage people to be energy efficient? Drop your comment in our comments area below. We’d love to hear from you.

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