Our discussion on how to save energy at home briefly hits on more than 30 changes you can can make in and around your home, from cheap-yet-effective steps to upgrades that require upfront spending, but quickly pay for themselves from lower utility bills to systems and renovations that minimize what you pull off the grid, but come at steep prices.

Often, the extra costs of energy-saving improvements can be reduced by tax credits and utility company rebates.

Below are the energy-saving rebate programs available at the time of this writing. Check EnergyStar.gov for up-to-date info. Also check with your utility company and the Database of State Incentives for Renewables & Efficiency (DSIRE).

We didn’t include low-interest loan programs or incentives available for new home construction. We also didn’t look for community grants for multi-home projects or programs for owners of commercial buildings. There are also many programs available to landlords of apartment buildings.

Federal Tax Credits and Rebates

There are two federal programs that provide incentives for home-energy-saving improvements: One provides tax credits; the other will create rebates, but the rebates aren’t yet available in this area.

Tax Credits

The “Energy Efficient Home Improvement Credit” provides tax breaks to homeowners who make green improvements to their primary residences. The credit is equal to 30 percent of the cost of eligible improvements made between 2023 and 2032. Here’s a list of eligible projects; for some there are individual annual maximum allowable credits:

• Air-sealing and insulation improvements—no cap
• Central ACs—$300 cap for most systems
• Energy audits—$150 cap
• Exterior doors—$250 per door, $500 limit for multiple doors
• Gas and oil furnaces—$600 cap for units with 97+ AFUE
• Windows and skylights—$600 cap

If you do more than one of the projects listed above there’s a maximum tax credit of $1,200 each year.

A separate tax credit of up to $2,000 is available if you buy a qualifying heat pump, biomass stove (for example, one that burns wood pellets), or boiler.

If you install a ground-source heat pump or solar panels you may qualify for a 30 percent federal tax credit with no cap. In 2033, these credits drop to 26 percent and then to 22 percent in 2034; after that, they’ll disappear unless new legislation gets passed.

Many local governments also provide incentives for residential solar-energy projects.

Rebates Coming Soon

New rebates will soon be available, funded by the federal government’s “High-Efficiency Electric Home Rebate” program. These aren’t tax credits; they’re point-of-sale rebates that homeowners will receive as discounts as they make approved improvements.

At the time of this writing, this program hadn’t been finalized for Minnesota. The law requires the Department of Energy to provide guidance to states and then each submits program proposals for review and approval; so far, only New York and Wisconsin have rebate programs up and running. Rebates for local residents probably won’t be available until sometime in 2025.

Once in place, the rebates most consumers will tap into will be tied to household income. To get the full rebate amount, your household income must be less than 80 percent of the Area Median Income (AMI); if your household income is 80 percent to 150 percent of the AMI you can get 50 percent of each rebate amount; households with AMIs higher than 150 percent do not qualify for the program.

According to Fannie Mae, the AMI for the Twin Cities area is $123,700. That means those with household incomes of less than $98,960 will qualify for the full rebate amounts, listed below; those with incomes between $98,960 and $185,550 can qualify for 50 percent of these amounts:

• $8,000—heat pumps when installed to replace existing gas-, oil-, or propane-burning furnaces or baseboard heat as the home’s sole heating source
• $1,750—heat pump water heaters
• $840—heat pump clothes dryers
• $840—replace gas stove with electric one
• $4,000—electrical panel upgrade if needed to power any of the above improvements
• $2,500—electrical wiring upgrades if needed to power any of the above improvements
• $1,600—insulation, air sealing, and ventilation improvements

For households that make more than one of the above improvements, there is a maximum $14,000 rebate.

There will also be a separate program that provides rebates of up to $8,000 for homeowners who take steps to reduce their residence’s overall energy usage by more than 20 percent. We’re still awaiting details from Minnesota on how it will calculate rebate amounts or impose income limits.

Confused by all this math? We are, too! Rewiring America built a brilliant calculator that can estimate which rebates you might qualify for. We’ll also update you on program details as they become available.

Local Incentive Programs

Listed below are incentives from local utility companies in effect in fall 2024. Programs come and go; check with your utility and the Database of State Incentives for Renewables & Efficiency (DSIRE) for up-to-date info.

Before starting a project, confirm that you qualify. Rebate programs usually require homeowners to work with the utility’s “approved” contractors or to file paperwork before installations.

CenterPoint Energy

• Energy audits cost $70 to $100
• Attic air sealing—$750 rebate
• Attic air sealing plus add insulation—$1,300 rebate
• Clothes dryers—$75 rebate for Energy Star-certified gas models
• Fireplaces—$75 rebate for gas units with electronic ignition
• Furnaces, gas—$500 rebate for units with 92+ AFUE; $750 for 96+ AFUE; $1,000 for 97+ AFUE
• Furnaces, boiler—$300 rebate for units with 85+ AFUE; $500 rebate for condensing units with 91+ AFUE
• Heat pumps, air-source—$500 rebate if installed with a new or existing natural gas furnace with 92+ AFUE
• Programmable thermostats—$10 to $50 rebate
• Wall insulation—$1,500 rebate
• Water heaters, gas tank models—$250 rebate for efficient models
• Water heaters, gas tankless—$500 for efficient models

Connexus Energy

• Dual-fuel heating systems (for example, a heat pump backed by a gas furnace)—electricity rates cut in half from October to May
• Electronically commutated motors—$50 rebate
• Heat pumps, air-source—electricity rates cut in half from October to May plus $630 to $1,000 rebate, depending on model’s energy efficiency rating
• Heat pumps, ground-source—$400-per-ton rebate for qualifying systems
• Heat pumps, mini-split ductless—electricity rates cut in half from October to May plus $500 rebate for efficient models
• Smart thermostats—$25 rebate for approved models
• Water heaters, tank models—$100 discount for efficient electric models
• Water heaters, heat pump—$500 discount

Dakota Electric

• Appliance recycling—$75 rebate (one per year, max) when you turn in old units
• Central ACs—$350 rebate for efficient models
• Clothes dryers—$25 rebate for Energy Star-certified electric models
• Dehumidifiers—$25 rebate for Energy Star-certified models
• Heat pumps, air-source—$750 to $1,000 rebate
• Heat pumps, ground-source—$400-per-ton rebate for qualifying systems
• Heat pumps, mini-split ductless—$150 to $1,000 rebate, depending on size and efficiency of model
• Lighting—up to $2 per bulb rebate for LEDs; $30 per LED fixture for outdoor lighting
• Water heaters, electric tank—rebate up to $400
• Water heaters, heat-pump—$500 rebate

Minnesota Energy

• Energy audits—$75 or $150 rebate, depending on service
• Air-sealing—rebate equal to 50 percent of project costs with a $300 cap; must exceed 25 percent reduction in leakage
• Air-sealing and attic insulation combined—rebate equal to 50 percent of project costs with a $650 cap; must install at least R-49 of insulation and achieve 25 percent reduction in leakage
• Duct sealing (aerosol)—rebate of $2.50 per CFM reduction with a $500 cap; must achieve 50 percent reduction in leakage
• Floor insulation—rebate equal to 50 percent of project costs with a $200 cap
• Foundation/rim joist insulation—rebate equal to 50 percent of project costs with a $425 cap
• Fireplaces—$75 rebate for direct vent, sealed combustion, or electronic ignition fireplace, or an insert or free-standing stove
• Gas boilers—$200 rebate for units with 90+ AFUE; $250 rebate for 92+ AFUE with integrated water heating system
• Gas furnaces—$350 rebate for units with 92+ AFUE; $600 for 94+ AFUE; $800 for 97+ AFUE
• Programmable thermostats—$25 to $50 rebate
• Sidewall insulation—rebate equal to 50 percent of project costs with a $750 cap
• Water heaters, gas tank models—$125 to $300 rebate, depending on energy efficiency of unit
• Water heaters, gas tankless—$300 rebate for efficient units
• Windows—$50 rebate for projects that install Energy Star-certified models

Xcel Energy

• Energy audits—cost $30 to $100, depending on service
• Air sealing—rebate equal to 40 percent of project cost, up to $600 for heating customers; maximum rebate is $45 for cooling-only customers
• Central ACs—$150 or $450 rebate, depending on model
• Furnaces—$200 rebate for units with 95 AFUE; $300 for 96 AFUE; $400 rebate for 97+ AFUE
• Heat pumps, ground-source—$500-per-ton rebate
• Heat pumps, ductless—up to $2,000 rebate
• Insulation, attics—rebate equal to 40 percent of project cost, up to $1,200, for heating customers; maximum rebate is $120 for cooling-only customers
• Insulation, walls—rebate equal to 40 percent of project cost, up to $1,200, for heating customers; maximum rebate is $75 for cooling-only customers
• Refrigerators and freezers—$50 rebate for turning in old unit
• Water heaters, gas tank models—$75 rebate for approved models
• Water heaters, tankless gas—$250 rebate for approved models
• Water heaters, heat-pump—$400 to $500 rebate

Additional Resources to Help You Go Green at Home

Consumer Reports
Ratings of appliances, lightbulbs, window AC units, etc.

Database of State Incentives for Renewables & Efficiency
Rebates and tax incentives available from utilities and governments

Earth911.com
Green tips, plus database of recycling centers and where to dispose of hazardous household waste

Efficient Windows Collaborative
Help with window selection and estimating cost savings

Energy Star
Certifies energy-efficient appliances and HVAC equipment

National Renewable Energy Laboratory
Research and publications on renewables; offers a calculator that estimates energy production and cost of solar installations

Passive House Institute U.S.
Certification and training for net-zero energy-use builders, contractors, and manufacturers

Residential Energy Services Network
Certification for energy auditors

Rewiring America
Educational resources; tracks public policy for electrification projects; offers a nifty calculator that helps consumers figure out eligibility for rebates and other incentives

Snugg Pro
User-friendly web-based energy-auditing software

YouTube.com
Thousands of DIY videos from experts (but also non-experts)

Zero Energy Project
Advice and lists of products and suppliers for home buyers, builders, and designers interested in net-zero energy-use homes