Affordable housing rebates

Minnesota Energy Resources provides rebates to support organizations including community development authorities, housing development agencies, Habitat for Humanity or other organizations who develop or manage affordable housing projects which are dedicated to serving the low-income community and 2023 Energy Assistance Payment (EAP) recipients.

This program offers accelerated rebates when compared to standard rebate offerings. For thermostats, the 50% of cost limitation on traditional rebate calculations is removed.

Affordable housing rebates

Measure Efficiency requirements Rebate
Natural gas furnace (Retrofit only) 92% AFUE $300
Natural gas furnace 94% AFUE $400
Natural gas furnace 97% AFUE $600
Natural gas boiler 90% AFUE $400
Integrated space and water heating system 92% AFUE $400
Natural gas storage water heater ≤ 55 gallon Medium usage bin and .64 UEF or greater $175
High usage bin and .68 UEF or greater
Natural gas storage water heater .82 UEF or greater $300
Natural gas water or tankless heater .87 UEF or greater $350
Drain water heat recovery (DHR) device   $300
Electronic programmable setback thermostat (Retrofit only) Customer Programmed $25*
Advanced thermostat or Wi-Fi enabled Advanced analytics or Wi-Fi enabled $75*
Natural gas heating system tuneup Work must be performed by a licensed HVAC technician $70
Natural gas hearth/fireplace Direct vent, sealed combustion, electronic ignition fireplace, insert or free-standing stove $150
Heat/Energy recovery ventilation (HRV/ERV), whole home where no HRV/ERV previously existed 65% SRE, 75 CFM $500 $500
Aerosol duct sealant** Where no duct sealing previously existed, minimum reduction of 50% $2.50 per CFM reduction up to $750
Air sealing and insulation See air sealing and insulation rebate form $125-750
ENERGY STAR® Window replacement** ENERGY STAR® certified and min 6 sq ft. $75

AFUE = Annual Fuel Utilization Efficiency, UEF = Uniform Energy Factor
CFM = Cubic Feet per Minute, SRE = Sensible Heat Recovery Efficiency
*Rebate amount is 100% of total cost, up to maximum rebate listed above.
**Retrofit or existing homes only. New construction does not qualify.
†Separate application forms need to be completed for these measures.

Program requirements

To qualify, new or existing one- to four- unit dwellings or townhomes must be served by Minnesota Energy Resources. New homes or developments participating in the Home Energy Excellence program are not eligible to receive space heating and water heating rebates under this program. A rehabilitation project cannot participate in this program if they are enrolled in any other energy efficiency program. To be eligible for affordable housing rebates, the developer, non-profit, or property manager must demonstrate that the housing will be serving low-income residents. Property must be occupied by a low-income family as described by federal poverty guidelines. This can be demonstrated by participation in the Weatherization Program, Low Income Rental classification, use restriction declaration, public housing properties, and Section 8 Housing.

All equipment requirements follow the same eligibility guidelines established by the standard residential rebate programs. See application form for complete details.

How it works

  • Purchase and install qualifying equipment.
  • Provide documentation of income eligibility.
  • Submit application along with dated invoice copy.
  • Receive your rebate check within six weeks of completed application.



Check all rebate requirements on the application to ensure eligibility. We must receive your application within 60 days of installation.

Funding is limited and can change or end at any time. Applications are processed on a first-come, first-served basis.

866-872-0052, option 1