Upgrading your insulation is one of the best energy efficiency home improvements you can make. It can significantly lower your energy bills, improve comfort throughout your home, and reduce the risk of moisture problems.
Even better, many insulation improvements qualify for rebates and incentives that reduce your installation costs.
At Quarve Contracting, we stay on top of what’s available in Minnesota and can help you navigate your options.
Tax Credits for Insulation
The Energy Efficient Home Improvement Credit (also known as the 25C tax credit) allows you to claim a federal tax credit worth 30% of your insulation costs, up to $1,200 per year.
This credit can apply to several types of insulation, including:
- Roof deck insulation
- Exterior wall insulation
- Attic insulation
- Air sealing
Heads Up! The insulation tax credit is ending soon. Congress recently passed new legislation that will eliminate the tax credit at the end of 2025. To qualify, your insulation upgrades must be finished by the last day of 2025. Don’t miss out on savings! Reach out today to start your project before it’s too late.
Utility Rebates for Insulation in Minnesota
Many utility providers in Minnesota offer rebates to encourage energy-saving home improvements like insulation.
Xcel Energy Insulation Rebates
If you're a Minnesota homeowner who gets both electricity and natural gas from Xcel Energy, you may qualify for insulation rebates. These rebates are designed to save you money on improvements that lower your energy bills.
You may qualify for:
- Attic Insulation Rebates : 40% up to $1,200
- Wall Insulation Rebates : 40% up to $1,200
- Air Sealing Rebates : 40% up to $600
CenterPoint Energy Insulation Rebates
CenterPoint Energy offers energy efficiency rebates to help Minnesota customers save on insulation upgrades. To qualify, you must submit your rebate form by December 31st.
You may qualify for:
- Wall Insulation Rebates: $1,500
- Attic Air Sealing & Attic Insulation Rebates : $1,300
- Rim Joist Insulation Rebates : $200 (Add-on only)
- Attic Air Sealing Rebates : $750
Minnesota Home Energy Rebates (Coming Soon)
The Minnesota Department of Commerce is developing two new rebate programs through federal funding from the Inflation Reduction Act (IRA). These are not available yet, and changes to IRA funding may reduce or eliminate the rebate programs.
However, here’s what we currently expect to be available in the coming months:
HOMES – Home Efficiency Rebates in MN
- Focused on whole-home energy savings, including insulation and air sealing
- Rebates will vary based on your energy savings and household income
- Potential rebate range: $2,000 to $8,000+
HEAR – Home Electrification and Appliance Rebates in MN
- Designed for income-qualified households
- Can include up to $1,600 in rebates for insulation, air sealing, and ventilation
- Also supports upgrades to electric appliances
Note: These programs have not launched yet. We’ll keep this page updated with new information as soon as it’s released by the state.
We’re Here to Help You Save on Upgrades
Rebates and incentives can feel overwhelming, but we’re here to help. At Quarve Contracting, we’ll walk you through what’s available, help determine if you qualify, and ensure your upgrades comply with eligibility requirements where possible.