Residential Geothermal Heat Pump Rebate Program (Minnesota)

From Open Energy Information


Last modified on May 23, 2011.

Financial Incentive Program

Place Minnesota

Name Residential Geothermal Heat Pump Rebate Program
Incentive Type State Rebate Program
Applicable Sector Residential
Eligible Technologies Geothermal Heat Pumps
Active Incentive No
Implementing Sector State/Territory
Energy Category Renewable Energy Incentive Programs
Amount 35% of system cost

Eligible System Size Up to 5.5 tons; conditional applications for larger systems may be submitted
Equipment Requirements Equipment must be new; Energy Star listed under criteria established after December 1, 2009; and equipped with a 5-year warranty; other component requirements also apply

Installation Requirements Installations must be performed by a licensed and bonded contractor

Maximum Incentive 10,000

Program Budget $1 million

Program Administrator Minnesota Department of Commerce

References DSIRE[1]


Note: Current funding is fully reserved and the program is no longer accepting applications.

The Minnesota Office of Energy Security (OES) offers rebates for the installation of qualifying ground-source heat pumps at existing primary residences within the state. Installations undertaken as part of new construction are not eligible for a rebate. The rebate is calculated as 35% of the installed system cost up to a maximum of $10,000. Eligible costs include those associated with desuperheater equipment, but do not include equipment and labor costs for auxiliary heating equipment. The rebate may not exceed the total cost of the system minus federal, utility, or other incentives. In order to qualify for a rebate, the equipment must have been installed on or after July 1, 2009. For systems that begin construction after February 16, 2010 the applicant must submit the program application prior to beginning system construction in order to reserve rebate funds. Projects must be completed within 180 days of the date the application is approved.

Only systems that use a closed-loop system to provide space heating and cooling -- including both forced air and hydronic heating systems -- are eligible for rebates. Open-loop systems, direct exchange systems, pond-loop heat exchangers, and systems connected to hot tubs or swimming pools are not eligible. In addition, in order to qualify for a rebate the system must be new; Energy Star listed under criteria established after December 1, 2009; and have a five-year equipment and installation warranty. Further requirements exist for certain aspects of the system, including the piping, heat transfer fluids, and system installation. System size is generally limited to 5.5 tons; however, the OES will accept conditional applications for larger systems that otherwise meet the program requirements. Funding for conditional applications will ultimately be determined by the U.S. Department of Energy (DOE).

The program is funded by the American Recovery and Reinvestment Act (ARRA), thus all installations are subject to compliance and reporting requirements associated with the use of ARRA funds. Installations may be subject to inspection by OES personnel to verify compliance with program rules. The program application contains a detailed list of reporting and implementation standards for prospective applicants.

Incentive Contact

Contact Name Energy Information Center
Department Minnesota Department of Commerce
Division Office of Energy Security
Address 85 7th Place East, Suite 500
Place St. Paul, Minnesota
Zip/Postal Code 55101-2198
Phone (800) 657-3710


  • Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.[1]


  1. 1.0 1.1  "Database of State Incentives for Renewables and Efficiency (DSIRE)"