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 (CCHP) 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 will meet up to 90% of your space heating needs.
  • Air-to-water heat pumps (AWHPs) can operate with high efficiency down to temperatures of -10°F and below while still achieving efficiencies over 150%. They're a great option when selecting equipment for a hydronic in-floor heating system. These types of systems are typically designed with a storage "buffer" tank that can include options such as domestic hot water pre-heating and electric resistance back-up.
  • Geothermal heat pumps deliver more than four units of heat for each unit of energy used. Reduce your annual heating and cooling costs by up to 70%!

Learn more about the types of heat pumps available.

Rebate eligibility and details

Qualifying high-efficiency cold-climate heat pumps, air-to-water heat pumps, 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: 

  • $500 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.
  •  $400 per ton energy control rebate for a ductless CCHP when the unit is:

Ducted configuration rebates: 

  • $700 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.
  •  $600 per ton energy control rebate for a ducted CCHP system when the system is:

Air-to-water heat pump (AWHP) rebate

  • $400 per ton rebate on an AWHP that has proof of the following ratings:
    • 1.7 or greater coefficient of performance (COP) at an A5W110F (at an outdoor ambient temperature of 5°F, the unit must deliver 110°F supply water).

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 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 Loop 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 16.1
GHP single unit 6 tons or greater   3.1 13.0

 

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.