Heat Pumps
Get rebates when you install a new heat pump
Heat pumps are among the most efficient and environmentally friendly heating and cooling systems on the market. Install one in your home or business to lower your energy bills and we’ll give you money back through our rebate program.
The benefits of heat pumps
Heat pumps don't make heat—they move it. You'll keep warm in the winter; and by reversing the process, you'll keep cool during warmer weather. And heat pumps are one of the most efficient systems available!
- Geothermal heat pumps are incredibly efficient. They deliver more than four units of heat for each unit of energy used, which can reduce your annual heating and cooling costs by 70%!
- 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 they'll reduce your total heating costs by 30-50%, depending on the rate applied.
- 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. A cold-climate heat pump efficiently will meet up to 90% of space heating needs with an overall effective seasonal efficiency of 250%.
Learn more about the types of heat pumps available to you.
Rebate eligibility and details
Qualifying high-efficiency geothermal, air-source, or cold-climate heat pumps are eligible for the following rebates.
Geothermal heat pump (GHP) rebate:
- $1,000 per ton rebate on a GHP labeled ENERGY STAR or that has proof of a qualified minimum coefficient of performance (COP) and energy efficiency ratio (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 |
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.
Cold-climate heat pump (CCHP) - ductless mini split configuration:
- $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:
- Rated with an HSPF of 10.0 or higher.
- Served through a Dual Fuel, Deferred Load, or Residential Demand Control Rate and subject to control according to the rate.
Cold-climate heat pump (CCHP) - ducted configuration:
- $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:
- Rated with an HSPF of 9.0 or higher.
- Served through a Dual Fuel, Deferred Load, or Residential Demand Control Rate and subject to control according to the rate.
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.
