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Electric heating rebates

Rebates are available for several electric-heating technologies.

Electric heating: Safe, comfortable, and efficient

Rebates are available for several electric-heating technologies installed on qualified off-peak rates when you install a minimum of 9 kilowatts (kW).

2024 electric heating rebate form

2023 electric heating rebate form

Electric heating rebates

Install an efficient electric-heating system to qualify for the following rebates:

  • Receive a $40-per-kW rebate when you install an electric plenum heater, electric boiler, ducted electric furnace, or an efficiency rebate-qualified cold-climate or geothermal heat pump on our Dual Fuel or RDC Rate.
  • Receive a $40-per-kW rebate when you install an electric cable or panel storage heating system on our Dual Fuel Rate. (For RDC Rate installations see our thermal-storage rebate below.)
  • Receive a $20-per-kW rebate when you install baseboard, cove heat, a garage unit heater, or radiant electric heating (including ceiling and non-storage floor warming installed beneath flooring material) on our Dual Fuel or RDC Rate.

Electric heating offers heating efficiency of 100% or more!  Learn more about eligible electric-heating technologies including:

Heat storage systems

Get a rebate of $75-per-kW for qualified systems when you install a minimum of 9 kW on our Deferred Load, RDC, or Fixed Time of Delivery Rate. A typical home system is about 28 kW and would qualify for a rebate of about $2,100!

Eligible electric applications include:

A maximum of 500 kW applies for rebates in North Dakota and South Dakota.

Heat pump rebates

Additional generous rebates are available for heat pump installations when you install qualified cold-climate, air-to-water, or geothermal heat pumps. Rebates vary by state. 

Electric water heating

Electric water heaters operate at up to 96% efficiency and qualify for the following rebates when installed on off-peak services. 

  • Get a $400 rebate when you install an 80-gallon or larger water heater new to off-peak control.
  • Get a $200 rebate for a replacement.
  • Get a $200 rebate when you install a 50-gallon water heater new to off-peak control.
  • Get a $100 rebate for a replacement.
  • Get a $50-per-kW rebate for installing a heavy duty commercial water heating system when you install at least 12 kW and 120 gallons of storage. A $5,000 maximum rebate applies.

Water heaters must be rated with a minimum .90 UEF (uniform energy factor) to qualify.

You’ll save every month with one of our discounted off-peak rates! Install your water heater on our Dual Fuel, Deferred Load, RDC, or Controlled Water Heating Rate and take advantage of a lower rate. Or simply let us install a radio receiver on your residential or general service meter to receive a monthly bill credit of $8 to $10 (varies by state). 

Apply for your rebate!

Contact our Idea Center or call 800-493-3299 with questions during business hours.

Once your installation is complete, fill out the rebate form and attach all required documentation, then mail it to the address below. Please allow 6-8 weeks for your rebate check to arrive.

Rebates
Otter Tail Power Company
P.O. Box 496
Fergus Falls, MN 56538

Customer Rebate Application

Learn more about:

Heating and cooling

From heat pumps to air conditioning, better understand your options when it comes to comfort, energy savings, and discounted pricing for heating and cooling.

Inflation Reduction Act

Tax credits, rebates available.

Water heating

Learn more about the different methods of electric water heating, and find savings with off-peak rates and rebates today.