Heat Pumps

Heat pumps are among the most efficient and environmentally friendly heating and cooling systems on the market. Heat pumps don't make heat—they move it. You'll keep warm in the winter, and by reversing the process, cool in the summer. Install one in your home or business to lower your energy bills, and we’ll give you money back through our rebate program. You'll stay comfortable while saving money!

  • Cold-climate air-source heat pumps operate with nearly 200% efficiency at 0°F and up to 400% efficiency at temperatures of 40°F and higher. This is thanks to inverter compressor technology. Installing a CCHP adds little to no additional cost over a standard central air conditioner when you take advantage of our rebates and meets up to 90% of space heating needs.
  • Standard air-source heat pumps operate with high efficiency down to temperatures of 20-30°F and require supplemental heating during the coldest weather. When operated as part of an off-peak electric heating system it will reduce your total heating costs by 30% to 50%, depending on the rate applied.
  • Geothermal heat pumps deliver more than four units of heat for each unit of energy used. You can reduce your annual heating and cooling costs by 70%!

Learn more about the types of heat pumps available.

Rebate eligibility and details

Qualifying high-efficiency cold-climate heat pumps, standard air-source, or geothermal heat pumps are eligible for the following rebates.

Cold-climate heat pump (CCHP) rebates:

CCHPs are available in ductless and ducted models with rebates varying by configuration. 

Ductless (mini split) configuration rebates: 

  • $700 per ton rebate for a ductless CCHP that has proof of the following ratings:
    • ENERGY STAR rated with HSPF of 10.0 or greater, or
    • 15.0 or greater SEER and 10.0 or greater HSPF.
    • This rebate is not limited by rate on which the unit is served.
  •  $500 per ton energy control rebate for a ductless CCHP when the unit is:

Ducted configuration rebates: 

  • $900 per ton rebate for a ducted CCHP system that has proof of the following ratings:
    • ENERGY STAR rated with HSPF of 9.0 or greater, or
    • 15.0 or greater SEER and 9.0 or greater HSPF.
    • This rebate is not limited by rate on which the unit is served.
  •  $700 per ton energy control rebate for a ducted CCHP system when the system is:

Air-source heat pump (ASHP) rebate:

  • $400 per ton rebate on an ASHP labeled ENERGY STAR or that has proof of the following ratings:
    • Split-system installation with 15.0 or greater seasonal energy-efficiency rating (SEER), 12.5 or greater EER, and 8.5 or greater heating season performance factor (HSPF).
    • Package-terminal heat pump installation with 12.0 or greater EER.

Geothermal heat pump (GHP) rebate:

  • Residential customers: $1,200 per ton rebate on a GHP labeled ENERGY STAR or that has proof of qualified minimum coefficient of performance (COP) and energy efficiency ratio (EER) ratings shown in the table below.
  • Commercial customers: $1,000 per ton rebate on a GHP labeled ENERGY STAR or that has proof of qualified minimum COP and EER ratings shown in the table below.
GHP type    Loop field type   
     COP    
    EER    
Water-to-air Open loop 4.1 21.1
Water-to-air Closed loop 3.6 17.1
Water-to-water Open loop 3.5 20.1
Water-to-water Closed loop 3.1 16.1
Direct exchange   3.6 16.0

 

Note: Only cold-climate heat pumps installed and served as part of an off-peak system may qualify for a rebate when installed where natural gas has previously provided the primary heat source.

Rebate limits apply. One rebate per unit. Acceptable proof of heat pump efficiency levels include AHRIdirectory.org certificates and manufacturer specification sheets for the model installed. Heat pumps labeled ENERGY STAR will qualify for a rebate when proof is provided for the make and model installed.

If you have any questions about program eligibility, contact our Idea Center or call 800-493-3299 during business hours.

Apply for your rebate

Fill out the rebate form. When completed, mail it, along with required documentation, to:

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

Please allow 6–8 weeks for your rebate check to arrive.

Minnesota