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Xcel Energy heat pump rebates in Colorado open

Administered by Xcel Energy (Public Service Company of Colorado).

From 1 October 2026 Xcel Energy pays $1,500 per heating ton for a cold-climate heat pump in Colorado homes heated with Xcel natural gas, and the standard $750 per ton to homes with electric heat; ground-source systems get $2,200 or $1,100 per ton and heat pump water heaters $1,500 or $750. Rebates come by check or off the contractor's invoice.

source · verified 3 October 2026 · amounts in US dollars

What it pays

Xcel Energy Colorado heat pump rebates, effective 1 October 2026
UpgradeConditionAmount
Cold-climate air-source heat pump, ducted or mixedBonus rate, Xcel gas-heated homes$1,500 a heating ton
Cold-climate air-source heat pump, ducted or mixedStandard rate$750 a heating ton
Air-source heat pump, ducted or mixedBonus / standard, per cooling ton$600 / $300
Ground-source heat pumpBonus / standard, per heating ton$2,200 / $1,100
Air-to-water heat pumpBonus / standard, per heating ton$1,900 / $950
Heat pump water heater3.3 UEF; bonus / standard$750–$1,500
Mini-split for supplemental useGarages, additions, single rooms; not reducing gas use$500

Mini-splits heating at least half the home earn the same per-ton rates as ducted systems. Base rebates plus bonus cannot exceed the invoiced cost, and the invoice must be dated in 2026 for the bonus.

Who is eligible

who
Xcel Energy residential electric and/or natural gas customers in Colorado.
the bonus
For homes heated with Xcel natural gas; since 16 November 2025 customers with existing electric heating get the standard rebate only.
dates
Invoices and installations must be completed by 31 December 2026; applications are accepted through 30 September 2027.
installer
A Trade Partner Network contractor, or yourself for some mini-splits.
lower incomes
Income-qualified customers may get rebates and services covering up to the full cost of a heat pump and its installation.

What disqualifies you

The rules people find out about after the work is done.

  • Xcel gas-only customers whose electric heating comes from another utility.
  • The bonus, for homes already heated with electric resistance, such as baseboards.

Where the application goes

Your contractor applies for you, or you apply online for a do-it-yourself mini-split.

Where the application goes
If this is youApply here
Heat pump rebatesco.my.xcelenergy.com
2026 rebate summaryxcelnew.my.salesforce.com
Phone800-895-4999

The thing most pages get wrong

A rebate guide updated in September 2026 says Xcel customers replacing gas heat 'can earn up to $2,250 per heating ton for cold-climate systems (ground-source earns up to $3,300 per ton)'. Xcel's rebate summary effective 1 October 2026 pays $1,500 per heating ton with the bonus, and $2,200 for ground-source.

Electric-heated homes get the standard rate

Since 16 November 2025 Xcel's bonus is not available to customers whose existing heat is electric, such as baseboards. They still get the standard rebate, the right-hand column on Xcel's sheet.

A $600 bonus for doing insulation first

Xcel adds $600 for customers who install rebated insulation and air sealing before a rebated space-heating heat pump, within two years of each other by invoice date.