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. By moving free heat available in the air or ground into your home or facility to keep you warm in the winter, and reversing the process to keep you cool in the summer, they're one of the most efficient systems available.
- Geothermal heat pumps are incredibly economical. 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 variable capacity (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 rebates through the Minnesota Conservation Improvement Program (CIP). Cold-climate heat pumps also may qualify for a rebate through our energy control program. One rebate per unit.
- Get a rebate of $800 per ton on a geothermal heat pump (GHP) labeled ENERGY STAR or that has proof of a qualified minimum coefficient of performance (COP) and energy efficiency ratio (EER) rating as 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 |
- Get a rebate of $400 per ton on an air-source heat pump 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.
- Get an efficiency rebate of $600 per ton on a cold-climate heat pump that has proof of the following ratings:
- ENERGY STAR rated with HSPF of 10.0 or greater, or
- 15.0 or greater SEER, 12.5 or greater EER, and 10.0 or greater HSPF.
- Get an energy control rebate of $600 per ton on a cold-climate heat pump 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.
- Sized for heating season performance.
- Installed with a crossover set point no higher than 0°F.
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 your heat pump’s 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.
