New Construction Energy Efficiency Program

New Construction Energy Efficiency Program

More than $4,000 in incentives are available for Minnesota Power customers building a new home!

in incentives are available for Minnesota Power customers building a new home!

You may qualify for Minnesota Power’s Residential New Construction Energy Efficiency Program

Minnesota Power’s New Construction Energy Efficiency program promotes building practices and technologies that enhance the new construction market in our region. If you are planning to build a new home that will be heated primarily with electric heat and are interested in energy efficiency, comfort, health, and durability this program is a great fit for you. The best part is you’ll have an energy advisor available to help you through the entire process.

Common types of electric heat being used in new construction homes:

  • Radiant slab heating
  • Air Source Heat Pumps
  • Ground Source Heat Pumps
  • Baseboard Heating

Perks of Participating:

  • Increased HVAC incentives
  • Access to an Energy Advisor
  • You will have a Minnesota Power contact to help you through the entire process
  • Electric heating is very versatile and can offer many heating options to meet your needs, such as:
    • Radiant heat, e.g., cover heaters, ceiling panels, radiant slab heating
    • Conventional heat, e.g., baseboards and boilers
    • Fan forced heat, e.g., electric furnaces, plenum heaters, wall heaters, kickspace heaters, floor heaters, air source heat pumps and ground source heat pumps
  • Electric heating offers a high degree of reliability with time-tested, proven heating technology.
  • Electric heating is considered to be one of the most reliable systems available today.
  • There’s no flame, which means less fire hazard and no combustion by-products that could present an indoor air quality concern.
  • Eliminates sooting, back-drafting or fuel handling.
  • Individual room units provide precise room-by-room temperature control to fit your lifestyle, save energy and allow for individual comfort. Electrical heat lets you put the right amount of heat exactly where you need it.
  • In most cases, there are no, or a limited number, of moving parts.
  • Installation and maintenance costs are low, and competitive Dual Fuel and Fixed Off-Peak storage rates make electric heat economical.

  1. Home will be heated primarily with electric heat
  2. Home will have an Energy/Heat Recovery Ventilator (ERV/HRV) with a minimum sensible recovery efficiency (SRE) of 60% or greater

Air Sealing Incentives: Measured by ACH50 (Air changes per hour at 50 pascals)

Available Rebates Amount
<1.00 ACH50 $1,700
1.00-1.49 ACH50 $1,200
1.50-1.99 ACH50 $600
2.00-2.49 ACH50 $300

Insulation Incentives

Available Rebates Amount
Continuous Wall Insulation - R-21 +5 or equivalent U-value $800
Foundation Walls - R-20+ $450
Under-slab Insulation (R-10 for non-heated and R-20 for heated) $225
Attic Insulation - R-60+ $125
Exposed Floor Insulation - R-38 +5 or equivalent U-value $100

Window Incentives

Available Rebates Amount
Efficient Windows - < 0.28 U-value $400

HVAC Bonus Incentives

Available Rebates Amount
Air Source Heat Pump (ASHP) - Cold Climate $1,500
Ground Source Heat Pump - MNGHPA Master Installer (per ton) $1,200
Ground Source Heat Pump (per ton) $1,000
Air-to-Water Heat Pump (per ton) $400
ERV/HRV that meets program requirements $300

Water Heating Incentives

Available Rebates Amount
Heat Pump Water Heater $600

Building Certification Bonus

Available Rebates Amount
ENERGY STAR®, Indoor airPLUS, DOE Zero Energy Ready Homes, PHIUS (Passive) $250

Additional Rebates

Available Rebates Amount
Bonus rebate for affordable housing $1,000
ECM Circulator Pump $200

**Visit for more information on Minnesota Power Rebates and to see the additional appliance/thermostat rebates you may qualify for!

Participation Roadmap

Residential new Construction blue image with the number 1 in the middle

Step 1: I'm building a new home. Where do I start?
Contact Minnesota Power to learn about the advantages of building a new home with energy efficient technology. Minnesota Power representatives can go over the Residential New Construction program with you, answer questions, and help you apply.
Residential new Construction yellow image with the number 2 in the middle

Step 2: Plan Review
After applying for the program, you will be set up with an Energy Advisor who will provide guidance related to energy efficiency and answer all of your questions. You can utilize this advisor as much or as little as you’d like and once you have your plans finalized, they will confirm that you qualify for the program.
Residential new Construction light blue image with the number 3 on the right

Step 3: Mid-Work Inspection
This program includes a mid-work site inspection, completed before the drywall goes up. This inspection includes a free blower door test which will help identify air leaks that can greatly reduce the efficiency of your home. Fixing issues early can save energy and money long term and additionally can help you qualify for the largest incentives.
Residential new Construction light purple image with the number 4 to the left

Step 4: The Homestretch
While you are shopping to furnish your home, make sure to take advantage of Minnesota Power rebates on ENERGY STAR® appliances. Your Minnesota Power representative can help answer any questions. You simply hang on to your receipts and we will ensure you receive all of the available rebates once your home is finished!
Residential new Concstruction light green image with the number 5 to the right

Step 5: Final Inspection
Congratulations! You are almost ready to move into your new energy-efficient home. Contact Minnesota Power and schedule a final site inspection. An Energy Advisor will visit the property to perform final tests to measure the efficiency of your home and calculate your rebates! You’ll receive your rebate check 6-8 weeks later.

How to Participate

Get started with our online application or contact us to get started

Phone: 218-355-2843

What you get with the New Construction Energy Efficiency Program:

  • Assistance from Minnesota Power when filling out forms and applications for service and rebates
  • Access to an energy advisor with an optional plan review prior to construction
  • Optional mid-work inspection including free blower door test
  • Final blower door test and thermal imaging scan
  • Access to available rebates

Small changes add up to significant energy savings

Customer Testimonial: Josh and Emily Bellamy

Josh and Emily Bellamy's House

Josh and Emily Bellamy's new home in Duluth is the first project to make use of Minnesota Power's Residential New Construction Energy Efficiency Program

Q. What types of electric heat are there?

A. There are several types of electric heating options including:
  • Radiant heat, e.g., cover heaters, ceiling panels, radiant slab heating
  • Conventional heat, e.g., baseboards and boilers
  • Fan forced heat, e.g., electric furnaces, plenum heaters, wall heaters, kickspace heaters, floor heaters, air source heat pumps and ground source heat pumps

Q. Can I be in the program if I have an additional fuel source?

A. Yes, so long as the house you are building has the capability to be primarily heated with electric heat its ok if you also have an additional heat source. Additionally, if you have a backup heat source you may want to look in to Minnesota Power’s Dual Fuel program to see about receiving a discounted rate on your electric heat.

Q. Can I be in the program if I’m using cold climate air source heat pumps?

A. Yes, cold climate heat pumps are capable of providing heat for the majority of the heating season so these do qualify as electric heat for this program.

Q. What is an ERV/HRV and why do I need one?

A. When a home is built to be air-tight it’s great for heating and cooling efficiency, but it is less great for ventilation. An ERV or HRV is a ventilation device that replaces stale indoor air with fresh outdoor air. Making sure that the Sensible Recovery Efficiency is greater than 60% will reduce the heating and cooling demand of the home.

Q. Do I need to qualify for all of the Residential New Construction rebates to participate in the program?

A. No. You can pick and choose from the available incentives based on your plans.

Q. If I’m in the program will I still qualify for additional appliance rebates?

A. Yes! As you go through the home building process, keep in touch with Minnesota Power and make sure you take advantage of all available rebates, including appliance and thermostat rebates. Find the complete list here: Make sure to keep your receipts to make this rebate process easier.

Q. Do I need to utilize the Energy Advisor and other free services?

A. Many of the services included in this program are optional. Sharing your plans with the assigned Energy Advisor and completing the final inspection are both required. All other services are optional.

Q. Can I participate if I’m building a multifamily building (duplex/triplex/etc.)

A. Yes! We accommodate Four-unit or less multifamily buildings in the program. Minnesota Power can still support larger multifamily buildings, but they are supported by the Commercial Conservation team.

Q. Are the HVAC and water heater rebates in addition to your standard rebates?

A. No. If you receive an HVAC or water heater rebate in the Residential New Construction program, you cannot also receive the standard HVAC or water heater rebates. However, the HVAC and water heater rebates are increased in the Residential New Construction program for a better value.

Q. What is a blower door test?

A. A blower door test measures the amount of air leakage from the house using a calibrated fan installed in to an otherwise sealed doorway or window. By measuring the pressure on either side of the fan and measuring the volume of air going through the fan, professionals can determine the volume of air that is leaking through the cracks and gaps in the building.

Questions on Energy Conservation?

Phone: 218-355-2843
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