Minnesota homeowners replacing their furnace with a high-efficiency model can get cash back from their utility — but most people don't apply. The process is simpler than you think, and the savings are real. Here's exactly how to claim furnace rebates from Xcel Energy and CenterPoint Energy in 2026.
Why Utilities Pay You to Buy an Efficient Furnace
Minnesota utilities are required by state law (the Conservation Improvement Program, or CIP) to invest in energy efficiency programs. It's cheaper for them to help customers use less energy than to build new generation capacity. That mandate translates into rebates for homeowners who upgrade to high-efficiency equipment.
Buy the same name-brand furnace the pros install — shipped factory-direct to your door. No middleman, 5-star rated, and financing available.
Xcel Energy Furnace Rebates (2026)
Xcel Energy serves the Twin Cities metro and much of central Minnesota. Their current residential rebate program includes:
| Equipment | Minimum Efficiency | Rebate Amount |
|---|---|---|
| Gas furnace | 95% AFUE | $200 |
| Gas furnace | 96% AFUE | $300 |
| Gas furnace | 97% AFUE | $400 |
| Gas furnace | 80% AFUE | $0 — does not qualify |
| Central AC | 13.4 SEER2 (AHRI ref# required) | $450 |
| Smart thermostat | ENERGY STAR qualifying models | $50 |
Note: Rebate amounts change annually. Always verify current amounts at xcelenergy.com/saveenergy before purchasing.
CenterPoint Energy Furnace Rebates (2026)
CenterPoint Energy serves Minneapolis, St. Paul, and surrounding communities. Their rebate program runs similarly:
| Equipment | Minimum Efficiency | Rebate Amount |
|---|---|---|
| Gas furnace | 94–95.9% AFUE | $300 |
| Gas furnace | 96% AFUE or higher | $400 |
| Water heater | Tank / tankless | $75 / $250 |
| Ducted dual-fuel heat pump | Paired with a gas furnace | $1,100 |
| Cooling-only AC or mini-split | Any | $0 — gas utility only |
Federal Tax Credit: Additional Savings
The federal 25C credit is no longer available. The Energy Efficient Home Improvement Credit terminated for property placed in service after December 31, 2025, so a furnace installed in 2026 earns no federal tax credit. Through the 2025 tax year it covered 30% of qualifying high-efficiency HVAC equipment, up to $600 for furnaces. If your equipment was placed in service on or before December 31, 2025, you may still claim it on that year's return — consult your tax advisor. For 2026 installations, your utility rebate is the incentive that matters.
How to Claim Your Rebate: Step by Step
- Check eligibility: Confirm your utility and that your new furnace meets the minimum AFUE requirement (95%+ for most programs)
- Keep your paperwork: Save the invoice from Furnace Direct and any installer invoices — you'll need model number, serial number, and installation date
- Submit within the deadline: Most utility rebate programs require submission within 90–180 days of installation
- Apply online: Both Xcel and CenterPoint have online rebate portals — typically takes 10–15 minutes
- Receive your check: Most rebates arrive as a check within 6–8 weeks
Does the Goodman GMVC96 Qualify?
Yes — the Goodman GMVC96 operates at 96% AFUE with a variable-speed blower. At 96% AFUE it earns $300 from Xcel or $400 from CenterPoint. (The federal 25C tax credit expired for equipment placed in service after December 31, 2025, so it does not apply to a 2026 installation.) When you factor in the rebate plus the factory-direct savings from Furnace Direct, the total cost of ownership drops significantly vs. buying through a traditional contractor.
View full specs on the Goodman furnace models comparison page.
Can I get a rebate if I buy my furnace factory-direct?
Yes — utility rebates are based on the equipment installed, not who you bought it from. As long as your furnace meets the minimum efficiency requirements and is professionally installed, you can claim the rebate regardless of where you purchased the equipment. Keep your Furnace Direct invoice and installer invoice as documentation.
Are there income-based rebate programs in Minnesota?
Yes — the Minnesota Energy Assistance Program (EAP) provides additional support for lower-income households, potentially covering the full cost of heating system upgrades. The Weatherization Assistance Program can also cover furnace replacement as part of a whole-home efficiency improvement. Apply through your county human services office or contact your utility for referrals.
Do rebates apply to furnace + AC combo replacements?
Yes — both Xcel and CenterPoint offer separate rebates for qualifying furnaces and AC systems. You can stack rebates if both units meet the efficiency requirements. A qualifying furnace + qualifying AC replacement could yield $650–$850 in combined utility rebates, plus potential federal tax credits on both units.
What if my utility isn't Xcel or CenterPoint?
Minnesota has many municipal utilities and electric cooperatives. Most participate in the statewide Conservation Improvement Program and offer similar rebate structures. Check your utility bill for the utility name, then search their website for "energy rebates" or "efficiency programs." The Minnesota Department of Commerce maintains a list of participating utilities.
Maximize Your Savings: Factory-Direct + Utility Rebates
Goodman GMVC96 qualifies for up to $200 in utility rebates + federal tax credit. Call us for pricing.
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