How Do Connexus Energy and CenterPoint Energy Rebates Compare for a Furnace Upgrade in MN?

Comparing Minnesota Utilities: CenterPoint Energy, Connexus Energy, and Xcel Energy

Navigating utility rebates in Minnesota requires understanding how your energy services are structured. Many homes across the North Metro and greater Twin Cities area receive natural gas from one provider and electricity from another. Understanding this difference is essential when planning a home heating upgrade:

• Connexus Energy: As a local member-owned electric cooperative (serving Anoka, Chisago, Isanti, and Ramsey counties), Connexus Energy is strictly an electric provider. Consequently, Connexus offers rebates exclusively for electric heat pumps (standard and cold-climate), mini-splits, and electric energy management—not natural gas furnaces.
• CenterPoint Energy: A natural gas utility provider offering residential rebates specifically for high-efficiency natural gas heating equipment (furnaces, boilers, and combination systems), alongside efficiency controls and insulation.
• Xcel Energy: A dual-fuel utility supplying both natural gas and electricity in select Minnesota service territories. Because Xcel provides gas and electric service, it maintains rebate tracks for both gas furnaces and electric air source heat pumps.

All three utility providers support high-efficiency heat pump technology, but only gas utilities—specifically CenterPoint Energy and Xcel Energy—offer natural gas furnace rebates.

Gas Furnace Rebates: CenterPoint Energy vs. Xcel Energy

When upgrading a forced-air natural gas furnace, direct furnace rebate comparisons are between natural gas providers: CenterPoint Energy and Xcel Energy (which provides both gas and electric service).

CenterPoint Energy structures its residential replacement furnace rebates around the unit’s Annual Fuel Utilization Efficiency (AFUE) rating:

• 97% AFUE or higher (Replacement): $1,000 rebate check.
• 96% to 96.9% AFUE (Replacement): $400 rebate check.
• 92% to 95.9% AFUE (Replacement): $200 rebate check.

For new home construction projects, CenterPoint Energy provides modified tier amounts: $400 for 97%+ AFUE, $200 for 96–96.9% AFUE, and $50 for 92–95.9% AFUE units.

Xcel Energy provides structured gas heating rebates for its natural gas customers based on qualifying AFUE thresholds. Homeowners residing in dual-service territories can verify their primary gas account before installing equipment to ensure eligibility.

Heat Pump and Hybrid Heating Incentives: Connexus Energy, CenterPoint, and Xcel

Electric heat pumps have gained massive popularity across Minnesota as efficient heating and cooling solutions. Because heat pumps run on electricity, electric service providers play a primary role in funding heat pump incentives. All three utilities—Connexus Energy, CenterPoint Energy, and Xcel Energy—offer heat pump incentives under specific conditions:

Connexus Energy offers strong financial incentives for members who install high-efficiency heat pumps:

• Standard Ducted Air Source Heat Pumps (ASHP): Rebates ranging from $630 to $850 based on equipment performance ratings (SEER2 and HSPF2).
• Cold Climate Air Source Heat Pumps (ccASHP): $1,000 rebate for systems designed to operate at high heating capacity during sub-zero Minnesota temperatures.
• Ductless Mini-Split Heat Pumps: $500 rebate for targeted multi-zone or single-zone electric cooling and heating.
• Off-Peak Electricity Rates: Connexus members enrolling in the optional ASHP demand response program qualify for reduced electricity rates for heating and cooling, lowering seasonal operating expenses.

CenterPoint Energy also offers a $1,100 heat pump rebate for existing homes when a ducted air source heat pump is installed in tandem with a new 92%+ AFUE gas furnace. Xcel Energy provides separate heat pump rebates for its residential electric customers. Combining an electric heat pump with a high-efficiency gas backup furnace creates a dual-fuel hybrid system, optimizing energy efficiency in cold northern climates. Learn more about selecting the right setup by reading our guide on energy-efficient heating services.

Gas Furnace Rebate Comparisons: CenterPoint Energy vs. Xcel Energy (and Connexus Heat Pump Incentives)

When evaluating centerpoint energy and connexus energy rebates for furnace upgrades, it is critical to remember that Connexus Energy is your local electric provider and offers heat pump rebates only—not gas furnace rebates. Furnace rebate comparisons should be made between CenterPoint Energy and Xcel Energy, as Xcel provides both gas and electric service, while CenterPoint is a primary natural gas utility.

When upgrading heating systems, homeowners can choose between instant discounts applied at purchase or mail-in/online paper applications submitted after installation:

• Instant Discounts: Participating CenterPoint Energy contractors can deduct rebates directly from your project invoice as an instant discount (e.g., up to $225 for a 97%+ AFUE furnace). This reduces your initial out-of-pocket payment immediately without waiting for a processing check.
• Standard Rebate Applications: Homeowners or installers submit proof of purchase and equipment documentation directly to the utility to receive a mail-in rebate check (up to $1,000 for 97%+ AFUE replacement units).

For step-by-step advice on managing paperwork, explore our step-by-step guide to Minnesota energy rebates for HVAC upgrades.

CenterPoint Gas Furnace and Connexus Heat Pump Rebates for Dual-Fuel Stacking

Because CenterPoint Energy supplies natural gas and Connexus Energy supplies electricity, homeowners living in overlapping service areas do not have to choose between utilities. You can install a high-efficiency dual-fuel heating system and claim rebates from both organizations.

A dual-fuel system uses an electric heat pump during mild to cold weather (down to 15°F–20°F) and seamlessly switches to a high-efficiency gas furnace when temperatures drop during severe Minnesota winter stretches.

Here is how utility and municipal stacking works for a dual-fuel installation:

1. CenterPoint Energy Rebate: Claim up to $1,000 for installing a qualifying 97%+ AFUE gas furnace.
2. Connexus Energy Rebate: Claim up to $1,000 for pairing a cold-climate air source heat pump with your system.
3. Municipal Matching Grants: Local city programs, such as the Coon Rapids Green Homes Program, offer a 50% match on primary utility rebates up to $250 for heating upgrades and up to $550 for insulation.

By combining electric co-op heat pump rebates, gas utility furnace rebates, and municipal grants, Twin Cities homeowners achieve comprehensive system upgrades at significantly reduced overall expense. Discover additional incentive programs through our programs and incentives resource page.

Applying for CenterPoint Gas Furnace and Connexus Heat Pump Rebates

Filing utility rebates accurately ensures rapid check processing and prevents claim rejections. Follow this process when applying for natural gas furnace or heat pump rebates in Minnesota:

1. Equipment Verification: Ensure your selected furnace or heat pump is listed on the active AHRI (Air-Conditioning, Heating, and Refrigeration Institute) or ENERGY STAR directory.
2. Detailed Invoicing: Obtain a complete, itemized installation invoice from your contractor. Invoices must show the installation date, equipment brand, complete indoor and outdoor model numbers, serial numbers, and dealer information. Proposals or estimates are not accepted as proof of purchase.
3. Submission Deadlines:
   • CenterPoint Energy: Applications and proof of purchase must be submitted online or postmarked by December 31, 2026.
   • Connexus Energy: Rebate forms should be submitted within the timeframe specified by the co-op, typically within 60 to 90 days of equipment installation.
4. Online Dealer Portals: Working with experienced contractors speeds up processing. When an HVAC dealer submits claims directly through the CenterPoint online dealer portal, processing times are faster compared to paper homeowner applications. Standard paper processing usually takes 8 to 10 weeks before checks are issued.

Review common installation questions in our heating and air conditioning FAQ.

Maximizing Savings: Stacking Federal, State, and Municipal Incentives in 2026

Beyond local utility rebates, homeowners planning HVAC replacements in 2026 can stack federal tax credits and upcoming state-administered programs to lower overall out-of-pocket expenses.

• Federal Energy Efficient Home Improvement Credit (Section 25C): Following federal legislative changes, residential energy credits expired on December 31, 2025. Homeowners who completed projects prior to the end of 2025 were eligible to claim federal tax credits alongside utility rebates. In 2026, home efficiency upgrades depend primarily on local utility rebates, state programs, and municipal matching grants. For complete historical tax credit details, review our guide to 2025 HVAC tax credits and rebates.
• Save Energy Minnesota (Inflation Reduction Act HOMES and HEAR Programs): Administered by the Minnesota Department of Commerce, these federal IRA funded rebate programs provide income-qualified households with electrification and efficiency incentives. The Home Electrification and Appliance Rebates (HEAR) and Home Efficiency Rebates (HOMES) programs allow eligible households (based on Area Median Income thresholds) to receive substantial rebates for heat pumps and weatherization measures. Detailed insights are available in our guide to Inflation Reduction Act benefits for Minnesota homeowners.
• Municipal Matching Programs: Cities like Coon Rapids support energy conservation by matching 50% of your primary utility rebate (up to $250 for heating equipment and up to $550 for insulation upgrades).

Smart Thermostats, Maintenance, and Financing Options

To maximize the performance of a high-efficiency gas furnace or heat pump upgrade, installing a smart Wi-Fi thermostat is one of the easiest steps you can take. Smart thermostats optimize fuel consumption, maintain indoor air comfort, and earn immediate bill credits.

• CenterPoint Energy Thermostat Incentives: $50 rebate for qualifying ENERGY STAR certified smart Wi-Fi thermostats (such as select Ecobee, Google Nest, or Honeywell models) or $10 for basic programmable thermostats. Dual-fuel homes and new construction units are excluded from CenterPoint’s standard thermostat rebate tier.
• Connexus Energy Thermostat Incentives: $25 rebate for Wi-Fi enabled thermostats, plus an additional $30 summer bill credit for enrolling in peak demand energy management programs.
• Furnace Maintenance Rebates: Keeping your heating equipment maintained protects manufacturer warranties and improves efficiency. CenterPoint Energy offers a $25–$50 furnace tune-up rebate once every 24 months when serviced by a qualified professional technician.

When upgrading home heating equipment, flexible financing options can help spread out remaining equipment investment balances after applying rebates. Learn about flexible payment solutions on our HVAC financing options page.

Frequently Asked Questions About Utility Rebates in Minnesota

Does Connexus Energy offer rebates for natural gas furnace upgrades?

No. Connexus Energy is an electric utility cooperative serving members in parts of Anoka, Chisago, Isanti, and Ramsey counties. Because Connexus provides electricity, its heating rebates apply exclusively to electric equipment—such as standard air source heat pumps, cold-climate heat pumps, ductless mini-splits, and smart thermostat controls. If you are seeking rebates for a natural gas furnace upgrade, those incentives are offered by your natural gas utility provider, such as CenterPoint Energy or Xcel Energy.

How much can I get back from CenterPoint Energy for a high-efficiency furnace?

CenterPoint Energy offers tier-based rebates for residential replacement forced-air natural gas furnaces in Minnesota:

• $1,000 rebate for furnaces rated at 97% AFUE or higher (or qualifying combination furnace systems).
• $400 rebate for furnaces rated between 96% and 96.9% AFUE.
• $200 rebate for furnaces rated between 92% and 95.9% AFUE.

For new construction projects, rebate tiers are $400 (97%+ AFUE), $200 (96-96.9% AFUE), and $50 (92-95.9% AFUE). Alternatively, participating HVAC contractors can apply instant discounts directly to your installation invoice.

Can I combine CenterPoint Energy gas rebates with Connexus Energy heat pump rebates?

Yes! If your home receives natural gas from CenterPoint Energy and electricity from Connexus Energy, you can stack rebates from both utilities by installing a hybrid dual-fuel heating system. When you pair a high-efficiency natural gas backup furnace with an electric air source heat pump, you qualify for CenterPoint Energy’s furnace rebate (up to $1,000) and Connexus Energy’s heat pump rebate ($630 to $1,000). You can also apply for additional municipal matching funds if your city offers local green home grant programs.

Conclusion

Understanding how centerpoint energy and connexus energy rebates for furnace upgrades operate allows Minnesota homeowners to make informed decisions for long-term comfort and energy savings. By pairing gas furnace efficiency from CenterPoint Energy with electric heat pump performance from Connexus Energy, home owners can build an optimized hybrid heating system that delivers reliable warmth through severe winter months.

At Joel Smith Heating & Air Conditioning, Inc., we have served homeowners across Ham Lake, Minneapolis, St. Paul, and surrounding Twin Cities communities since 1994. Headquartered at 13915 Lincoln St. Suite E, Ham Lake, MN 55304, our family-owned business prides itself on dependable workmanship, personalized customer care, and expert local knowledge. Whether you need a high-efficiency furnace replacement, heat pump installation, indoor air quality solution, or preventative tune-up, our experienced team helps you navigate local utility rebate programs to maximize your savings.

Ready to upgrade your home heating system and secure available utility incentives? Learn more about our energy-efficient heating services or call our friendly team today to schedule your personalized home comfort consultation.