Electric heating, cooling and water heating rebates
Rebates help RPU electric customers install qualifying efficient heat pumps, cooling equipment, water heaters, pumps, fan motors and thermostats.
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The rebate depends on the equipment and its efficiency. No rebate can exceed the purchase price. Several options also have a 50% equipment-cost cap.
- Ducted air-source heat pumps: $1,500 for a home’s main heating and cooling system, including a hybrid system with backup heat. The form requires SEER2 above 16.2 and HSPF2 above 7.8. These are the unit’s rated seasonal cooling and heating efficiencies. Provide its Air-Conditioning, Heating, and Refrigeration Institute (AHRI) certificate and nameplate ratings. Set backup heating to take over at 30°F or lower, and report the switchover temperature. Mini-split heat pumps are supported in single-family and multi-family buildings. Rebates are per system and cannot exceed 50% of equipment cost. The table below shows base amounts, with the enhanced-efficiency amount in parentheses. The applicable minimum seasonal cooling efficiency, SEER2, is 16.2.
| Installation or existing heating being replaced/supplemented | Cooling capacity below 20,000 Btuh | Cooling capacity 20,000–65,000 Btuh |
|---|---|---|
| New construction, no previous heating, or failed heating | $800 ($1,000) | $1,600 ($2,000) |
| Working electric heat | $900 ($1,100) | $1,800 ($2,200) |
| Working air-source heat pump | $125 ($250) | $250 ($500) |
| Working through-wall heat pump | $200 ($350) | $400 ($700) |
| Working natural-gas/other heating | $100 | $200 |
These amounts and their qualifying tests come from Table 2 of the application.
The first four rows’ standard amounts require HSPF2, the rated seasonal heating efficiency, of at least 7.8. Enhanced amounts require HSPF2 of at least 7.7 for ducted or 8.5 for ductless systems, plus a coefficient of performance (COP) of at least 1.75 at 5°F. COP measures heat output against electricity input at that temperature. The table says the 7.8-tier base applies if the enhanced COP test is not met. The natural-gas/other row requires HSPF2 of at least 7.5. Efficiency bonuses add $10 for each SEER2 point above 16.2 in the first four rows, or $20 in the natural-gas/other row.
Supply an AHRI certificate. If it does not verify COP at 5°F, use the NEEP cold-climate heat-pump list linked in the application. For multi-head systems, capacity is the smaller of total indoor and outdoor capacities. If the heat pump is the primary heat source, report the temperature at which backup heat takes over.
- Ground-source heat pumps: $200 per ton of capacity plus $20 per ton for each cooling-efficiency (EER) point above the applicable minimum. The bonus is capped at $200 per ton and the total at 50% of equipment cost. Minimum EER/COP pairs are 17.1/3.6 for closed-loop water-to-air, 16.1/3.1 for closed-loop water-to-water, 22.1/4.1 for open-loop water-to-air, 20.1/3.5 for open-loop water-to-water, and 16.0/3.6 for direct geoexchange. EER measures cooling output against electricity use; COP measures heating output against electricity use. Multi-stage units use the average of highest- and lowest-capacity ratings. Provide AHRI certification and the applicable manufacturer ratings/specifications required by Table 3.
- Cooling-only central air conditioners, mini-splits and air-source heat pumps: $100 below 20,000 Btuh or $200 from 20,000 to 65,000 Btuh, plus $20 for each SEER2 point above 16.2. The form states SEER2 above 16.2 and requires an AHRI certificate. Multi-head capacity is the smaller of total indoor and outdoor capacities.
- Room air conditioners: $25 for an ENERGY STAR model. If you replace and recycle a working unit, the additional recycling rebate covers the actual charge up to $15; include the recycling receipt.
- Heat pump water heaters: $400 for 20–55 gallon models or $90 above 55 gallons, each capped at 50% of cost. ENERGY STAR certification is required. Electric instantaneous and tankless water heaters do not qualify.
- Circulator pumps: $50 below 30 watts, $75 at 30–49 watts or $100 at 50–750 watts, capped at 50% of cost. The new motor must be an electronically commutated motor (ECM), DC brushless or permanent-magnet type, above 1/50 horsepower and no larger than 1 horsepower (750 watts). It must vary speed and automatically adjust flow to demand using integrated controls.
- Furnace fan motors: $50 to retrofit an existing furnace with an ECM or equivalent, with documentation of the motor type. New furnace installations do not qualify.
- Smart thermostats: one ENERGY STAR unit, reimbursed at 50% of cost up to the applicable maximum. When it controls air conditioning, the maxima are $100 for electric heat, $50 for heat pumps and $10 for natural-gas/other heating. Without air-conditioning control, electric heat has a $90 maximum; natural-gas/other heating is ineligible.
Eligibility
You must be an RPU electric customer, and the equipment must be installed at an address with active RPU electric service. The form covers residential and commercial customers, owners and renters, but individual equipment sections impose their own building and system conditions. The $1,500 ducted heat-pump route applies to homes. The mini-split and ground-source sections cover single-family and multi-family buildings. Rebates go to customers rather than contractors or builders.
Buy and install new products meeting the option’s efficiency and certification requirements. Used, reconditioned and refurbished equipment is excluded, as are warranty replacements and equipment supplied through repair/replacement service agreements. Contractors must be licensed where applicable; RPU may reject applications arising from contractors who breach programme terms. Installations may be inspected.
The 2026 purchase window operates first come, first served while funding lasts. Equipment must be installed while funding is in effect. If funding is withdrawn, installations after the withdrawal date through year-end receive no rebate. RPU must receive applications for 2026 purchases by 31 March 2027.
How to apply
- Statut
- clôture 31 mars 2027
- Clôture
- Conditions de cette période de candidature
- For purchases made in 2026. Applications must be received by 31 March 2027; first come, first served while funds last. Equipment must be installed while funding remains in effect.
After installation, complete and sign the 2026 application for one installation address. Attach the final detailed receipt, invoice or picking slip showing your name, purchase and installation dates, manufacturer and model. HVAC invoices must include serial and model numbers. Include the equipment-specific certificates, specifications or motor documentation required by the relevant form section.
Email the application and documents to rebates@rpu.org, or post them to Rochester Public Utilities, Attn: Rebate Processing, 4000 East River Rd NE, Rochester, MN 55906-2813. Questions go to 507-280-1537. Allow 6–8 weeks for processing; missing or incorrect information causes delays.
Rebates of $500 or less are paid as an RPU bill credit. For a larger rebate you can request a check; without that selection it is also a bill credit. RPU may apply rebates to past-due accounts, and its current page says accounts more than 30 days delinquent receive rebates against their balance.