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MINNESOTA

Minnesota Water Heater
Replacement

Licensing, rebates, running costs and local guides for 71 Minnesota communities.

Local guides in Minnesota

Minneapolis–St. Paul area

PlacePermit to replaceFeeElectricCompanies
MinneapolisRequired$85.20Xcel Energy15
St. PaulRequired$85Xcel Energy7
BloomingtonRequiredBy job value (from $65)Xcel Energy13
Brooklyn ParkRequired—Xcel Energy12
PlymouthRequired—Xcel Energy, Wright-Hennepin Cooperative Electric Association13
WoodburyRequired$75Xcel Energy14
LakevilleRequired$70Dakota Electric Association, Xcel Energy12
BlaineRequired$75Connexus Energy, Xcel Energy12
Maple GroveRequired$75Xcel Energy, Wright-Hennepin Cooperative Electric Association15
EaganRequired$75,Dakota Electric Association, Xcel Energy10
BurnsvilleRequired$82Xcel Energy, Dakota Electric Association, Minnesota Valley Electric Cooperative (MVEC)10
Coon RapidsRequired$62Xcel Energy, Connexus Energy11
Eden PrairieRequiredBy job value (from $600)Xcel Energy, Minnesota Valley Electric Cooperative (MVEC)13
Apple ValleyRequired$87.41Dakota Electric Association10
EdinaRequiredBy job value (from $200)Xcel Energy12
MinnetonkaRequiredBy job value (from $77)Xcel Energy15
St. Louis ParkRequired$85Xcel Energy10
ShakopeeRequired$75Shakopee Public Utilities (SPU), Xcel Energy, Minnesota Valley Electric Cooperative (MVEC)11
Cottage GroveRequired$61Xcel Energy10
MaplewoodRequired$45Xcel Energy, North St. Paul Electric Utility13
RichfieldRequired$65Xcel Energy9
Inver Grove HeightsRequired$80Xcel Energy, Dakota Electric Association11
RosevilleRequired$87Xcel Energy13
AndoverRequired$71Connexus Energy, Xcel Energy9
SavageRequired$70Minnesota Valley Electric Cooperative (MVEC), Xcel Energy9
Brooklyn CenterRequired$85Xcel Energy10
FridleyCheck with city—Xcel Energy10
ChaskaRequiredBy job value (from $71)Chaska Electric (City of Chaska Electric Department), Minnesota Valley Electric Cooperative, Xcel Energy11
OakdaleRequired$89Xcel Energy, City of North St. Paul electric utility10
RamseyCheck with city$101Anoka Municipal Utility (AMU)6
Prior LakeRequired$74Xcel Energy, Minnesota Valley Electric Cooperative (MVEC), Shakopee Public Utilities9
RosemountCheck with city$70Dakota Electric Association, Xcel Energy8
Elk RiverRequired$75Elk River Municipal Utilities (ERMU), Connexus Energy6
ShoreviewRequired$65Xcel Energy11
ChanhassenRequired$80Xcel Energy, Minnesota Valley Electric Cooperative (MVEC)11
White Bear LakeRequired$75Xcel Energy11
FarmingtonRequired$80Dakota Electric Association, Xcel Energy7
ChamplinCheck with city—Connexus Energy, City of Anoka Electric13
New BrightonRequired$52.50Xcel Energy10
CrystalRequired$71Xcel Energy10
OtsegoRequired$75Elk River Municipal Utilities, Wright-Hennepin Cooperative Electric Association2
Columbia HeightsRequired$65Xcel Energy8
HastingsRequired$75Xcel Energy, Dakota Electric Association6
Lino LakesRequired$11Xcel Energy, Connexus Energy9
Golden ValleyRequiredBy job value (from $500)Xcel Energy11
West St. PaulRequired$100Xcel Energy3
New HopeRequired$50Xcel Energy10
Forest LakeRequired$55Xcel Energy, Connexus Energy6
South St. PaulRequired—Xcel Energy3
St. MichaelRequired$100Xcel Energy, Wright-Hennepin Cooperative Electric Association2
StillwaterRequired—Xcel Energy11
HopkinsRequired—Xcel Energy11
AnokaRequired$100Anoka Municipal Utility (AMU)8
Ham LakeRequired$10Connexus Energy, Xcel Energy6
BuffaloRequired$75Buffalo Municipal Utilities (City of Buffalo Electric)2
HugoRequired$71Xcel Energy, Connexus Energy9
MonticelloCheck with city$50Xcel Energy, Wright-Hennepin Cooperative Electric Association3
RobbinsdaleRequired$125Xcel Energy6
RogersRequired$85Xcel Energy, Wright-Hennepin Cooperative Electric Association5
WaconiaRequired$20Xcel Energy, Minnesota Valley Electric Cooperative4
Lake ElmoCheck with city$60Xcel Energy7
Mounds ViewRequired$65Xcel Energy6
Vadnais HeightsRequired$65Connexus Energy, Xcel Energy5
North St. PaulRequired—North St. Paul Electric Utility (city-owned)5
Big LakeRequired$51Connexus Energy, Xcel Energy3
East BethelRequired$100Connexus Energy5
Mendota HeightsCheck with cityBy job value (from $75)Xcel Energy8
North BranchRequired$89East Central Energy, Xcel Energy2
VictoriaRequired$100Xcel Energy, Minnesota Valley Electric Cooperative (MVEC)3
Little CanadaCheck with city$45Xcel Energy7
CambridgeRequired$64Connexus Energy, East Central Energy2

Licensing in Minnesota

The Minnesota Department of Labor and Industry (DLI) licenses plumbers statewide. Individuals must hold a journeyworker or master plumber license, or be registered unlicensed plumbers or apprentices working under direct supervision, and businesses that contract for plumbing work need a plumbing contractor license backed by a surety bond and liability insurance.

The DLI lookup, iMS, needs no account ('Continue as guest') and also shows plumbing bond holders and enforcement actions; restricted master and restricted contractor licenses also exist.

Minnesota plumbing license lookup (DLI iMS) ↗ · Minnesota DLI – License and registration lookup ↗ · Minnesota DLI – Plumbing license basics ↗ · Minnesota DLI – Plumbing and mechanical contractors ↗ · Minnesota DLI – Choosing a plumber ↗

Rebates and credits in Minnesota

Heat Pump Water Heater Rebate (Minnesota electric)

Xcel Energy · Active

$400 for an eligible electric heat pump water heater, or $500 for a smart heat pump water heater.

Xcel Energy residential customer in Minnesota; model must be on Xcel's eligible heat pump water heater list; units over 80 gallons are excluded; apply by Sept 30 of the year after installation.

Program details ↗

Natural Gas Water Heater Rebate (Minnesota gas)

Xcel Energy · Active

$75 for a standard gas tank water heater at 0.64 UEF (medium draw) or 0.68 UEF (high draw); $250 for a gas tankless water heater at 0.87 UEF or higher.

Xcel Energy residential natural gas customer in Minnesota; gas tanks of 55 gallons or more are not eligible; must be listed on AHRI or ENERGY STAR; self-install allowed.

Program details ↗

Residential Water Heater Rebate (Minnesota)

CenterPoint Energy · Active

Replacement rebates: $250 for a gas tank of 55 gallons or less (0.64 UEF medium draw or 0.68 UEF high draw), $500 for a gas tankless at 0.87 UEF or higher, $1,000 for a combination tankless plus air handler unit, and $200 for an indirect storage tank.

CenterPoint Energy Minnesota natural gas customer; equipment verified on AHRI or ENERGY STAR; submit by Dec 31 of the year of installation; new construction amounts are lower.

Program details ↗

Federal Energy Efficient Home Improvement Credit (25C)

IRS · Ended

Covered improvements made through December 31, 2025. Not available for 2026 installations.

Program details ↗

Checked September 29, 2026. Utility rebates are only for that utility’s customers. Each city guide shows the rebates for its utilities.

What it costs to run in Minnesota

Estimated yearly energy cost at Minnesota’s average residential prices: 16.25¢ per kWh (year to date through July 2026) and $10.98 per thousand cubic feet of gas (2025 annual average).

Estimated yearly energy cost by water heater type in Minnesota
TypeEfficiency (UEF)Energy per yearEst. cost per year
Gas storage tank0.64174 therms$185
Gas tankless0.93120 therms$127
Electric storage tank0.923,556 kWh$578
Heat-pump tank3.5935 kWh$152

Assumes the Department of Energy’s medium-use test: 55 gallons a day heated 67°F, and typical efficiency ratings for each type. Colder incoming water, larger households and your utility’s actual rates change the result. Sources: EIA Electric Power Monthly, Table 5.6.B ↗ · EIA Natural Gas Prices, residential ↗ · ENERGY STAR test conditions ↗.