North Dakota Heat Pump Rebates
For geothermal systems, Otter Tail Power Company pays $700-per-ton, the largest of the North Dakota heat pump rebates. Ducted cold-climate units also earn $600-per-ton while the state's rebate programs are still being planned.
Find the North Dakota rebates for your ZIP code
If JavaScript is turned off, look up your state in the program table.
Who sends your electric bill?
What are you putting in?
- Largest standard rebate now open
- None open Right now, no utility or state program is offering heat pump rebates
- HEAR appliance rebates
- Not yet open Run by North Dakota Department of Commerce. Official page
- HOMES whole-home rebates
- Not open yet Paid on the energy saved by a whole-home upgrade. Official page
- 25C federal tax credit
- Ended No credit for heat pumps installed after 31 December 2025
North Dakota heat pump rebates
Look through the list for your utility or electric cooperative to see which rebates your home can get.
| Program | Who can get it | Central heat pump | Ductless mini-split | Heat pump water heater | Status | Apply |
|---|---|---|---|---|---|---|
| Otter Tail Power Heat Pump Rebates (North Dakota) | Served by Otter Tail Power Co | $600-per-ton | $400-per-ton | None | Open | Official page |
| Cass County Electric Cooperative Off-Peak Heat Pump Rebates | Served by Cass County Elec Coop Inc | $150/ton | None | None | Open | Official page |
| Montana-Dakota Utilities residential incentives (North Dakota) | Served by Montana-Dakota Utilities Co | None | None | None | Closed | Official page |
Claiming Your North Dakota Heat Pump Rebates
Payment from utilities is based on the ton, a measure of your home heating capacity. A controlled off-peak electric rate is required by both utilities currently open. Under that rate, your electricity costs less because the system shifts to backup heat when demand is highest.
These are the steps to follow for Otter Tail Power Company and Cass County Electric Cooperative:
- Otter Tail Power pre-approval is needed if your rebate total reaches $10,000 or more.
- Doing the job yourself is allowed on Otter Tail Power's application, so you can hire a contractor or install it yourself.
- Send in the 2026 rebate application with a dated receipt by March 31 of the following year after installation.
- Attach your AHRI certificate, the official test sheet showing your system's efficiency score.
- Phone the energy management team at Cass County Electric Cooperative to ask about its air-source rebate of $150/ton and ground-source rebate of $250/ton.
Are State Rebates or Free Weatherization Available to Lower-Income Households?
Free home upgrades are available now for families that qualify by income, even though the state's new heat pump rebates are still closed. To fund the Home Electrification and Appliances Rebates program, a request for $37.1 million has been submitted by the North Dakota Department of Commerce. The state put in a request for $37.2 million for Home Efficiency Rebates too, and picked Franklin Energy to run that program. Federal Department of Energy approval is still pending for both state energy rebate programs, and no launch date has been set.
Until those programs start, you can apply to the North Dakota Weatherization Assistance Program and lower your heating bills. To qualify, your household's total income can be no more than 200% of the federal poverty level. Families getting help from the Low Income Home Energy Assistance Program qualify without any extra step. These free weatherization services are provided across the state by eight local Community Action Agencies.
North Dakota's Cold Weather Rules and Fuel Costs
In 2025, the state's average temperature was 42 degrees Fahrenheit, placing it 49th in the United States. With such bitter winters, Otter Tail Power requires units rated for cold climates that reach an HSPF2 of 7.5 or higher. The heating efficiency score, HSPF2, appears on the label of the equipment.
Roughly four in ten households use electricity for heat, and one in seven burns petroleum products, mostly propane. North Dakota also leads the country in per capita electricity sales, driven by heavy industrial power use. The rebates you can get depend on your utility, and Montana-Dakota Utilities has no residential incentives at the moment. Equipment put in service after 31 December 2025 also loses the federal 25C tax credit, which has ended.
Common Questions About North Dakota Heat Pump Rebates
Can you still claim the federal heat pump tax credit in 2026?
No. Under the One, Big, Beautiful Bill, Congress cut the residential energy tax credits short on July 4, 2025. 2026 installations do not qualify, an Internal Revenue Service fact sheet dated August 21, 2025 confirms. This federal law shut both the air-source and geothermal heat pump credits.
How much of the bill for my heat pump will a utility rebate cover?
Your total bill and your system size in tons, not your home's square footage, determine the payout. Otter Tail Power Company will pay at most 75% of your total project cost for its ducted rebate of $600-per-ton. For a geothermal heat pump at $700-per-ton, the rebate can cover up to 50% of what the project costs.
Are any North Dakota rebates available for heat pumps that are ductless or water-heating?
Yes. Ductless cold-climate heat pumps with a rating of HSPF2 of 7.5 or higher earn $400-per-ton from Otter Tail Power Company. There is also $400-per-ton for air-to-water units, which use hot water to warm your home. To earn the rebate, both systems have to run on a qualifying controlled electric rate.
If my heat pump is on a utility rebate rate, what is the main disadvantage?
Utility rebates in North Dakota require you to let your power company switch off your unit when demand peaks. With Otter Tail Power Company, the rate your system must use is Dual Fuel, Deferred Load, or Residential Demand Control. So a backup heat source must be ready for the coldest hours of winter.
Get North Dakota installer quotes with the rebates taken off
Most rebates on this page are paid through the installer or need the installer's paperwork, so the quote is where the money is settled. Tell us the ZIP code and what you want installed, and installers who work with these programs send a written price with the rebates taken off.