For a new air conditioning installation in 2026, Minnesota homeowners can access several state-specific and utility rebates to lower their upfront costs.
Through the Minnesota HEAR program, income-qualified households can receive rebates for Energy Star certified cooling systems. Standard central AC units that meet SEER 16 or higher efficiency ratings qualify for rebates ranging from $500 to $1,000. For those installing high-efficiency cold-climate heat pumps, which provide both heating and cooling, the state offers an $800 rebate.
In addition to state-run programs, local utility providers in the Greater Minneapolis-St. Paul area offer their own incentives:
- Xcel Energy provides rebates between $300 and $500 for efficient cooling systems.
- CenterPoint Energy offers bonuses for high-SEER AC units and qualifying furnaces.
To qualify for these state and local incentives, homeowners typically must use a certified professional installer and may need to have had a home energy audit within the previous 18 months. These state rebates can often be stacked with federal tax credits of up to $600 for central AC or $2,000 for heat pumps to maximize total savings.
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