Limited time bonus rebates are available for qualifying water heater equipment installed between June 1, 2025 and
Sept. 30, 2025.
After home heating, water heating uses the most natural gas in your home.
Get a rebate to save now and for years to come with lower gas bills.
Work with your contractor or retailer to select a qualifying water heater that best fits your needs.
Rebates
| Equipment |
Minimum efficiency |
Rebate |
Bonus* |
Total Rebate with Bonus |
| Natural gas storage water heater 55 gallons or less |
Medium usage bin and .64 UEF or greater |
$125 |
$75 |
$200 |
| High usage bin and .68 UEF or greater |
| Natural gas storage water heater |
.82 UEF or greater |
$250 |
$75 |
$325 |
| Natural gas storage or tankless water heater |
.87 UEF or greater |
$300 |
$100 |
$400 |
| Drain water heat recovery device (DHR) |
|
$150 |
UEF: Uniform Energy Factor
*Bonus rebate details and qualifications:
- No special rebate application form is necessary. Bonus will be reflected in the final rebate check.
- Bonus rebates for qualifying furnace installations occurring June 1, 2025, through Sept. 30, 2025..
- Rebate forms must be postmarked by Oct. 31, 2025.
- Bonus rebates will be added to both standard and affordable rebate offerings.
- Eligible for existing homes and affordable housing only. This offer does not apply to new home construction rebates.
- Bonus offers cannot be combined.
- Rebate cannot be more than the amount paid.
- All other program terms and conditions are in effect.
- This offer is for Minnesota Energy Resources residential customers only.
Requirements
Water heater must be fueled by natural gas to be eligible for rebates. Indirect water heaters are not eligible for rebate. When upgrading your water heater, first identify the usage bin level, then the efficiency rating to ensure your model qualifies.
Visit the Air Conditioning, Heating and Refrigeration Institute (AHRI) website to verify water heater eligibility.
Visit the ENERGY STAR® website for additional Usage Bin information.
How it works
- Find a contractor. Self-installations are eligible for rebates.
- Purchase and install a qualifying water heater in your home.
- Apply and submit a rebate application online or download and mail a paper copy along with a copy of a dated invoice.
- Receive your rebate check within six weeks of completed application.
Apply online or Download water heating rebate application
Important rebate information
- Check all rebate requirements on the application prior to service to ensure eligibility. We must receive the application within 60 days of service.
- Rebate amount cannot exceed the cost of improvement or service.
- Customers cannot receive more than one rebate per improvement or service.
- Rebate offers cannot be combined.
- Funding is limited and can change or end at any time. Applications are processed on a first-come, first-served basis.
Questions?
MinnesotaEnergyResources@icf.com
866-872-0052, option 1
Trade ally resources
Our trade ally program provides registered contractors with opportunities to cash in on incentives for installing qualified energy efficient
residential and commercial equipment. Register your business today to maximize benefits.
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