Southwest Minnesota Housing Partnership

Heat pump assessments for multifamily housing

May 2025

North Place Apartments. Photo by Colin Jones.Can air source heat pumps lower the energy costs and increase comfort for multifamily housing like apartment buildings and condos? Southwest Minnesota Housing Partnership used CERTs Seed Grants to find answers. 

The Southwest Minnesota Housing Partnership recently collaborated with Clean Energy Resource Teams (CERTs) and a mechanical engineering firm to assess converting heating and water systems in two multifamily properties to air source heat pumps (ASHP). With a portfolio of 66 properties across Minnesota, this effort could have far reaching impacts. 

“The project aimed to improve energy efficiency, reduce costs, and enhance living conditions for low-income tenants,” notes James Arentson, an architect at Southwest Minnesota Housing Partnership. 

The project served City of Hutchinson and City of Westbrook residents at North Place Apartments and Westbrook Apartments, who primarily have lower income levels.

Findings and advice

Site visits and utility data analysis at North Place and Westbrook Apartments provided insights into heat pump benefits and challenges. 

“Our advice for others looking to replicate this project is to stay updated on the evolving ASHP technology, as significant advancements have been made in recent years,” says Arentson. “Not all heat pumps are created or designed equally, and understanding the latest features, like inverter technology, can greatly enhance efficiency, especially in cold climates. Additionally, exploring the integration of heat pumps with storage solutions and onsite solar energy can further optimize energy efficiency and sustainability.”

Our advice for others looking to replicate this project is to stay updated on the evolving ASHP technology, as significant advancements have been made in recent years. Not all heat pumps are created or designed equally.

- James Arentson, Southwest Minnesota Housing Partnership

Arentson says that the project helped the team understand that there is no “one-size-fits-all” solution for heat pumps.

“The selection of ASHP systems depends heavily on the building design, unit configurations, and other specific factors. We also realized the importance of continuously collecting utility usage data from tenants to effectively track energy consumption and savings,” says Arentson.

Next steps in the journey

Westbrook Apartments. Photo by Colin Jones.Arentson says the team is using the project’s findings to apply for grants toward ASHP installations. The partnership did receive a Minnesota State Housing Tax Credit grant for renovations at Westbrook Apartments and were able to include a different technology, packaged terminal air conditioners in the budget — which would be supplemented by the existing electric baseboard heaters, and replace the existing through-wall air conditioners. 

Arentson sees a future where ASHPs can be implemented in properties as a way to lower energy consumption, reduce carbon emissions, decrease tenants' financial burdens, and provide more reliable heating and cooling solutions. The CERTs Seed Grants have made that path a little easier.

“The CERTs coordinators were helpful and easy to work with throughout the process. The seed grant process was straightforward, allowing us to focus on the project’s objectives effectively,” Arentson states. 

PROJECT SNAPSHOT

Clean Energy Focus: Electrification: Heating and Water Assessment

Southwest & West Central CERTs Grants: $16,300

Communities Served: Residents with low-income in Hutchinson and Westbrook

People Reached and Involved: 630 adults
 

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