Last updated: April 22, 2026
HEAR program status: Pending Launch — Minnesota received its HEAR allocation from the U.S. DOE and submitted its State Implementation Blueprint. As of April 2026, Minnesota has not opened HEAR applications. Program launch is anticipated in 2026, administered through the Minnesota Department of Commerce. Focus on Energy utility rebates and contractor programs are available now.
HEAR (Home Efficiency Rebates) is funded by the Inflation Reduction Act. When Minnesota's program opens, it will follow the federal framework:
| Measure | LMI (<80% AMI) | Moderate (80–150% AMI) | Above 150% AMI |
|---|---|---|---|
| Heat Pump HVAC (air source / mini-split) | Up to $8,000 | Up to $4,000 | Not eligible |
| Heat Pump Water Heater | Up to $1,750 | Up to $875 | Not eligible |
| Electric Stove / Induction Range | Up to $840 | Up to $420 | Not eligible |
| Electric Dryer | Up to $840 | Up to $420 | Not eligible |
| Electrical Panel Upgrade | Up to $4,000 | Up to $2,000 | Not eligible |
| Insulation & Air Sealing | Up to $1,600 | Up to $800 | Not eligible |
| Household cap | $14,000 LMI / $7,000 Moderate | ||
These are federal HEAR maximums. Final Minnesota amounts confirmed at launch. Equipment must meet program efficiency standards (typically ENERGY STAR 6.1 Cold Climate for heat pumps in heating climates).
HEAR uses HUD Area Median Income (AMI). Minnesota has significant variation between the Twin Cities metro and greater Minnesota:
| Region | 4-Person Median Income (HUD 2024) | 80% AMI (LMI) | 150% AMI (ceiling) |
|---|---|---|---|
| Minneapolis–St. Paul–Bloomington | ~$111,700 | ~$89,360 | ~$167,550 |
| Rochester | ~$103,600 | ~$82,880 | ~$155,400 |
| Duluth–Superior | ~$82,500 | ~$66,000 | ~$123,750 |
| St. Cloud | ~$88,700 | ~$70,960 | ~$133,050 |
| Rural Greater Minnesota | ~$72,000–$88,000 | ~$57,600–$70,400 | ~$108,000–$132,000 |
Verify exact figures at huduser.gov. 2025 HUD limits may differ. AMI varies by household size — 1, 2, and 3-person limits are lower.
Focus on Energy is Minnesota's statewide energy efficiency program, funded by participating utilities including Xcel Energy, CenterPoint Energy, and others. These rebates are live and separate from HEAR:
| Utility / Program | Heat Pump Rebate | Notes |
|---|---|---|
| Xcel Energy (electric) | $300–$1,200 air source heat pump | Trade partner program; instant discounts at some distributors. Verify at xcelenergy.com. |
| CenterPoint Energy (gas) | $400 dual-fuel heat pump | Rebate for replacing gas furnace with dual-fuel heat pump system |
| Cooperative utilities | Varies by co-op | Check individual utility via focusonenergy.com or contact utility directly |
| CEE HPwES (Twin Cities) | Through Xcel/CenterPoint rebates | CEE bundles utility rebates into Home Performance with Energy Star project packages |
Verify current rebate amounts at xcelenergy.com or focusonenergy.com. Rebate amounts change frequently.
CEE (Center for Energy and Environment) runs residential home performance programs in the Twin Cities metro, including Home Performance with Energy Star (HPwES). CEE is the most likely delivery partner for Minnesota HEAR when it launches:
Minnesota's HOMES program (whole-home efficiency rebates up to $10,000) will launch on the same timeline as HEAR:
A low-income Twin Cities household replacing fossil fuel heat with a cold-climate heat pump could qualify for:
| Program | Measure | Projected Amount |
|---|---|---|
| HEAR (federal) | Cold Climate Air Source Heat Pump | $8,000 |
| Xcel Energy rebate | Air source heat pump | $1,200 |
| HEAR (federal) | Heat Pump Water Heater | $1,750 |
| Xcel Energy rebate | Heat pump water heater | ~$200 |
| HEAR (federal) | Insulation & Air Sealing | $1,600 |
| HEAR (federal) | Electrical Panel Upgrade | $4,000 |
| Projected household stack (LMI) | ~$16,750 | |
HEAR and utility rebates can stack. HOMES can add up to $10,000 additionally for qualifying whole-home projects. Actual amounts subject to Minnesota program confirmation at launch.
When MN HEAR launches, we'll cover contractor enrollment requirements, income verification mechanics, CEE contractor process, and first-week implementation details — before most practitioners know the program is live.