What’s new for 2026: Minnesota furnace rebates at a glance
In 2026 Minnesota homeowners can save significantly when replacing older natural gas furnaces with high-efficiency models. Both CenterPoint Energy and Xcel Energy continue to offer generous rebates for 95%+ AFUE gas furnaces, and there are additional incentives for dual-fuel systems and heat pumps. If you live in Minneapolis, St. Paul, Bloomington, Edina, Eagan, Burnsville, Plymouth, Maple Grove, Woodbury, Eden Prairie, Minnetonka, Richfield, Roseville or nearby Twin Cities communities, these programs can reduce your upfront cost and lower long-term heating bills.
CenterPoint Energy rebate details for gas furnaces (2026)
CenterPoint Energy’s 2026 program supports high-efficiency natural gas furnaces with the following key rebates:
- High-efficiency gas furnaces (95%+ AFUE): up to $400 standard rebate.
- Income-qualified households: enhanced rebates up to $1,200.
- Dual-fuel heat pumps (paired with a 92%+ AFUE gas furnace): $1,100.
- CenterPoint also offers rebates on water heaters: tank (0.64+ UEF) up to $250, and tankless (0.87+ UEF) up to $750 replacement or $1,000 for new construction.
Xcel Energy gas furnace & heat pump rebates (2026)
Xcel Energy’s 2026 incentives differ by equipment efficiency and purchase combinations. Highlights relevant to natural gas furnace replacements:
- Gas furnaces: $200 for 95% AFUE, $300 for 96% AFUE, and $400 for 97% AFUE.
- Air-source heat pumps (ASHP) and mini-splits: up to $1,600 standard or $2,000 for cold-climate models (higher incentives for combo gas/electric customers).
- Central AC incentives range from $150 (13.4 SEER2) to $450 (15.2 SEER2) when installed with a Quality Install.
- Heat pump water heaters: $400 for ENERGY STAR units, or $500 with Demand Management participation.
- Bonus: $600 extra incentive when a qualifying heat pump is installed after insulation and air-sealing measures.
- Important: central AC and ASHP Quality Install incentives require installation by a participating contractor — Metro Heating & Cooling is an authorized participating contractor for Xcel Energy Quality Installs in the Twin Cities.
Quick comparison table: CenterPoint vs. Xcel — furnace rebates
| Program | Gas Furnace Rebate (95%+ AFUE) |
| CenterPoint Energy | Up to $400 standard; up to $1,200 for income-qualified households; Dual-fuel pairing rebate $1,100 |
| Xcel Energy | $200 (95% AFUE), $300 (96% AFUE), $400 (97% AFUE) |
How to maximize your rebate — steps to follow
To get the most from these programs, follow a few practical steps: choose a high-efficiency furnace rated 95% AFUE or higher; confirm program rules and model eligibility on your utility’s rebate page; use a participating contractor for Xcel Quality Installs when required; collect receipts, model numbers, and installation documentation; and apply promptly — some rebates are first-come, or have program year deadlines.
Metro Heating & Cooling makes this simple across the Twin Cities. We provide free estimates, will verify eligibility for CenterPoint or Xcel rebates for homeowners in Minneapolis, St. Paul, Bloomington, Edina, Eagan, Burnsville, Plymouth, Maple Grove, Woodbury, Eden Prairie, Minnetonka, Richfield, Roseville and nearby suburbs, and handle paperwork so you receive your rebate without delay.
Why a professional install matters for rebates and long-term performance
Quality installation affects both energy savings and rebate eligibility. Xcel Energy requires participating contractors for certain Quality Installs, and CenterPoint rebates are easier to claim when installations meet program specifications. Poor installs can reduce furnace efficiency, create comfort issues, and even disqualify rebates. Metro Heating’s technicians are trained for high-efficiency gas furnace installs and dual-fuel systems, delivering reliable performance, proper venting, and accurate system sizing — all with no hidden fees.
Typical savings example for a Twin Cities homeowner
Consider replacing an old 80% AFUE furnace with a new 97% AFUE unit in Bloomington or Edina. You could qualify for a $400 Xcel rebate (97% AFUE) and up to $400 from CenterPoint (if you’re served by CenterPoint), or choose the single best program based on your utility. Add the long-term energy savings from higher AFUE and possible heat pump combos, and the total lifecycle savings can be substantial — often paying back a large portion of the upgrade cost within several years.
Common questions: eligibility, timing and documentation
Q: Do I need to be an Xcel or CenterPoint customer to apply? A: Yes — rebates are utility-specific and generally require account holders to participate. Q: Are income-qualified incentives available? A: CenterPoint offers enhanced rebates up to $1,200 for income-qualified households — check CenterPoint’s eligibility guide. Q: How long until I receive my rebate? A: Processing times vary; Metro Heating will help you submit a complete application to speed processing.
Schedule your free, no-pressure estimate in the Twin Cities
If you’re in Minneapolis, St. Paul, Bloomington, Edina, Eagan, Burnsville, Plymouth, Maple Grove, Woodbury, Eden Prairie, Minnetonka, Richfield, Roseville or nearby communities, Metro Heating & Cooling can assess your existing system, recommend the right 95%+ AFUE furnace or dual-fuel combo, complete a quality installation with no hidden fees, and help you claim CenterPoint or Xcel rebates. We pride ourselves on fast, affordable service and clean, professional installations.
Ready to save on your 2026 furnace replacement? For a free estimate and expert guidance through the CenterPoint and Xcel rebate process, contact Metro Heating & Cooling today — we’ll handle the details so you can enjoy reliable comfort and big savings.
