Depending on your gas utility, homeowners in Rochester, Owatonna and the South Metro can get 2026 rebates of $200 to $1,000 on a new high-efficiency gas furnace or boiler, plus electric utility rebates on heat pumps, central air conditioners and heat pump water heaters. The amount depends on your utility and the efficiency of the equipment. The federal energy efficiency tax credit for furnaces, air conditioners and heat pumps (25C) does not apply to equipment installed after December 31, 2025. Tonna Mechanical can help you choose equipment that qualifies. Call 507-288-1908 or request a free in-home estimate.
Rebate amounts below were checked in November 2026. Utilities can change or end rebates at any time, and each program has its own rules and deadlines. Always confirm with your utility before you buy. Tonna Mechanical does not issue these rebates.
Gas furnace and boiler rebates
Minnesota Energy Resources (Rochester area)
| Equipment | Efficiency | Base rebate |
|---|---|---|
| Gas furnace | 92% AFUE | $200 |
| Gas furnace | 94% AFUE | $350 |
| Gas furnace | 97% AFUE | $500 |
| Gas boiler | 90% AFUE | $200 |
| Integrated space and water heating system | 92% AFUE | $250 |
| Heat or energy recovery ventilator (HRV/ERV) | 65% SRE, 75 CFM | $400 |
| Smart or Wi-Fi thermostat | See program | Up to $50 (50% of cost) |
Details: Minnesota Energy Resources heating system rebates.
CenterPoint Energy (much of the South Metro)
| Equipment | Efficiency | Rebate |
|---|---|---|
| Gas furnace | 97% AFUE or higher | $1,000 |
| Gas furnace | 96–96.9% AFUE | $400 |
| Gas furnace | 92–95.9% AFUE | $200 |
| Boiler | 85% AFUE or higher | $300 |
| Condensing boiler | 91% AFUE or higher | $500 |
| Combination boiler | 91% AFUE or higher | $1,000 |
Details: CenterPoint Energy heating system rebates.
Heat pump, air conditioner and water heater rebates
Rochester Public Utilities (RPU) electric customers
| Equipment | 2026 rebate |
|---|---|
| Air source heat pump | Starting at $100 |
| Ground source heat pump | Starting at $200 |
| Central air conditioner | Starting at $100 |
| Heat pump water heater (20–55 gallons) | $400 (up to 50% of cost) |
| Central AC or heat pump tune-up | $20, $40 or $60 |
| Furnace fan motor replacement | $50 |
| Smart thermostat | $10 to $100 |
Details: RPU residential rebates.
Other utilities in our service area
If you get electricity from Xcel Energy, Dakota Electric or a rural electric cooperative, or gas and electricity from Owatonna Public Utilities (inside Owatonna city limits), check your utility’s website or call them for current heat pump, air conditioner and furnace rebates. We are happy to help you find the right program.
Federal tax credits
The federal Energy Efficient Home Improvement Credit (25C), which covered part of the cost of qualifying furnaces, boilers, air conditioners, heat pumps and water heaters, is not allowed for equipment placed in service after December 31, 2025, according to the IRS. If you installed qualifying equipment in 2025, you may still be able to claim it on your 2025 tax return. Talk to your tax professional.
Minnesota Home Energy Rebates (not open yet)
Minnesota plans to offer income-based rebates on heat pumps, heat pump water heaters and insulation through Save Energy Minnesota. As of November 2026, the program has not launched, and rebates will not be paid for equipment bought before it opens. Watch for updates on the Minnesota Department of Commerce website. Be careful of unexpected calls, texts or door-to-door visits about this program, since the state warns these are likely scams.
How to get your rebate
- Find out which utility provides your gas and your electricity.
- Choose equipment that meets the efficiency level for the rebate you want. We will show you which models qualify.
- Keep your invoice and the equipment model and serial numbers.
- Submit the rebate application to your utility before its deadline. Some utilities require it within 60 days of installation.
Frequently asked questions
Are there rebates for a new furnace in Rochester, MN?
Yes. Minnesota Energy Resources, the gas utility for most of Rochester, offers base rebates of $200 to $500 on qualifying high-efficiency gas furnaces in 2026, depending on efficiency. Amounts can change, so confirm with your utility before you buy.
How much is the CenterPoint Energy furnace rebate in 2026?
CenterPoint Energy offers Minnesota residential customers $200 to $1,000 on a qualifying replacement gas furnace in 2026, depending on efficiency. The top $1,000 rebate requires 97% AFUE or higher. Equipment must be installed and the application submitted by December 31, 2026.
Is there still a federal tax credit for heat pumps or furnaces?
No. The federal 25C tax credit for energy-efficient home improvements is not allowed for equipment placed in service after December 31, 2025, according to the IRS.
Does Rochester Public Utilities offer heat pump rebates?
Yes. RPU offers 2026 rebates starting at $100 for air source heat pumps and $200 for ground source heat pumps, plus rebates for central air conditioners, heat pump water heaters and tune-ups.
Can Tonna help me with my rebate?
Yes. We will help you choose equipment that qualifies and give you the model information your utility needs. Call 507-288-1908.
See typical installed prices in our cost guide, or learn about financing.