Discounts & Financing
A variety of incentives are available to reduce the costs of home energy improvements. Consumers should check for federal, state, utility, and local incentives when considering upgrades. Look for opportunities to combine incentives to maximize their benefits. Income-qualified programs can even provide free or deeply discounted energy-related improvements. It might be necessary to finance some of the costs of improvements, so consumers should consider their financing options.
Federal
Tax Credits: Federal tax credits are available for energy audits and a variety of home energy improvements.
Rebates: The state of Minnesota is currently developing rebates for the federal Home Efficiency Rebate (HOMES) and Home Electrification and Appliance Rebate (HEAR) programs
Weatherization Assistance Program: A program to help income-qualified households make home energy improvements free of charge.
State
The State of Minnesota passed legislation to create new rebate programs for electric panel upgrades and air source heat pumps. These programs are still under development.
Utility
Minnesota’s Energy Conservation and Optimization (ECO) Act requires most electric and gas utilities to provide discounts on energy efficiency improvements.
Rebates or discounts are available for projects like insulation and air sealing, heating and cooling system upgrades, thermostat upgrades, and more.
Utilities also offer — or support local agencies to offer — income-qualified programs that provide deeply discounted or even free upgrades.
Local
Some local communities offer incentives for energy efficiency upgrades. Check with your local city and/or county about programs.
For example, the City of St. Louis Park has a Climate Champions program that provides cost-sharing for some energy efficiency improvements. Their cost-sharing can range from a 25% to 100% match of utility rebates.
Financing
Many households will need loans to pay for larger home energy improvements. It is important to shop around to find the best financing options for your situation.
Minnesota Housing, a state governmental agency, provides low-interest loan programs to help people with financing home and energy related improvements. They work with a variety of lenders to offer these loans.
Local communities may offer further subsidized loan programs. Some cities, counties, and even neighborhood associations offer low-interest loans.
Income-Qualified Programs
Weatherization Assistance Program: A program that provides income-qualified households with free energy efficiency improvements.
Utility Income-Qualified Energy Efficiency Programs: Minnesota’s Energy Conservation and Optimization (ECO) Act requires most electric and gas utilities to provide income-qualified energy efficiency programs. These are sometimes administered jointly with the Weatherization Assistance Program. Reach out to your local utility to learn more.
