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How Xcel Energy Heat Pump Rebates Work in Colorado

We know you’re busy — the bottom line is: if you hire a participating contractor, install a qualifying heat pump, they’ll take care of the rebate paperwork. We go further — with us, the rebate shows up as an upfront discount, so you don’t have to wait.

2025 Rebate Amounts & Eligible Systems


Rebate Amounts for 2025 & Which Heat Pumps Qualify

 In 2025, Xcel Energy has tripled its rebates to encourage more homeowners to switch to efficient electric heat pumps. The exact rebate depends on system type, efficiency rating, and tonnage. These elevated incentives are temporary, and they end on December 31, 20205!

Xcel Rebates

To qualify for rebates, your contractor (us) must be in Xcel's Trade Partner Network (and we are!) To get started, schedule a simple, no-commitment installation quote to learn which system or product is right for your home and what your total rebate savings and out of pocket costs will be. We'll submit the rebate application on your behalf, so you don't need to do anything after the installation. 

Rebate Summary Table

System TypeRebate per TonNotes
Cold-climate heat pumpup to $2,250Meets advanced efficiency & COP thresholds
Standard heat pump / mini-splitup to $900Standard qualifying models
Bonus insulation + air sealing+ $600If installed within 6 months of heat pump

Eligibility & Requirements

You must be an Xcel Energy customer

Electric or gas service

The property must be 1–4 unit residential

Single-family, duplex, triplex, four-plex

A qualifying high-efficiency heat pump

The installed heat pump must meet Xcel’s efficiency and performance thresholds (SEER2, EER2, HSPF2, and for cold-climate models, COP at 5°F).

An Xcel-registered contractor

To qualify for rebates, your contractor (us) must be in Xcel's Trade Partner Network (and we are!) The contractor must document the equipment specs, serial numbers, and install per quality standards.


Maximizing Your Savings: Bonuses & Stacking Incentives

How to Stack Rebates, Bonuses & Tax Credits

Choose a participating contractor & qualifying system

  • Ask the contractor to confirm their Xcel registration and rebate eligibility.
  • Get a quote that shows the expected rebate amount.

Install the equipment

  • Your contractor handles proper installation, permits, disposal of the replaced system, etc.

Contractor submits rebate application

  • They collect all documentation (equipment specs, your Xcel account info, etc.) and submit to Xcel.
  • Homeowners typically can’t apply directly

Rebate payment & timing

  • Standard approach: you pay full cost, then wait ~6–8 weeks (or more) for the rebate check.
  • Better approach: Contractor applies the rebate as an upfront discount, reducing your out-of-pocket cost immediately.

One great thing about how we work with Xcel’s rebate program is that we handle almost everything for you. You do not need to fill out confusing forms or mail anything yourself. Instead, we will handle the rebate application and provide your savings up front! 

How to Claim the Rebate (Process & Timeline)

How to Stack Rebates, Bonuses & Tax Credits

Xcel Whole Home Efficiency Bonus

If you implement 3+ qualifying efficiency upgrades within two years (e.g. heat pump + insulation + smart thermostat), you can earn an extra 25% bonus on your rebates.

Insulation + Air Sealing Bonus

For 2025, Xcel offers an extra $600 if you add qualifying insulation/air sealing within 6 months of the heat pump install.

Local & State Rebates

Cities (Denver, Boulder, etc.) often have their own incentives you may layer.

Federal Tax Credit

  • You may also claim the federal heat pump tax credit (e.g. 30% up to a limit) when you file your taxes, in addition to the Xcel rebate.

(Include a disclaimer: tax credit rules change — consult your tax advisor.)