Xcel Energy Rebates Colorado (2026-2027)
A cold climate heat pump gets $1,500 per heating ton from Xcel, so $4,500 to $6,000 on a typical 3 to 4 ton Denver system. No income limit. We take it off your invoice and file the paperwork, so Xcel's January 2027 payout delay doesn't touch your price.
Updated October 13, 2026•By Editorial Staff
Qualifying Equipment & Technical Requirements
Xcel gas customers (gas-only or gas and electric) get the full rebate with the bonus. Xcel electric customers without Xcel gas get the standard amount only, with no bonus.
You qualify if
Xcel Energy gas & electric customers
Xcel Energy gas-only customers
Single family homes, duplexes, four-plexes
Installing qualifying heat pump or water heater
Xcel electric-only customers (standard amount, no bonus)
Not eligible if
Already have heat pump or electric baseboard
DIY installations (contractor must apply), with the exception of minisplits and HPWH
Equipment Requirements
| System Type | Rebate | Details |
|---|---|---|
| Air Source Heat Pump (ASHP) - Ducted | $600/cooling ton at 95°F | |
| Cold Climate Air Source Heat Pump (ccASHP) - Ducted | $1,500/heating ton at 5°F | |
| MiniSplit Heat Pump (MSHP) | $600/cooling ton at 95°F | |
| Cold-Climate MiniSplit Heat Pump (ccMSHP) | $1,500/heating ton at 5°F | |
| Heat Pump Water Heater | $1,500 |
Xcel Energy Heat Pump Rebates for 2026
Cold climate heat pumps qualify for $1,500 per heating ton at 5°F through Xcel's Clean Heat Plan. Most Denver-area homes need a 3-4 ton system. Standard (non-cold-climate) units qualify for $600/cooling ton.
These are the amounts for Xcel gas customers. Xcel electric customers without Xcel gas get the standard amount with no bonus: $750 per heating ton for cold climate and $300 per cooling ton for standard units.
These amounts took effect October 1, 2026. Xcel cut the bonus for Xcel gas customers from three times to two times the standard rebate. Cold climate went from $2,250 to $1,500 per heating ton, standard from $900 to $600 per cooling ton. Xcel made the cut to stay within its approved program budget, and its program terms allow amounts to change again at any time. We are working to keep most installs close to what customers paid this summer. The full story is in our October rebate change guide.
All three brands we install (Mitsubishi, Bosch, Carrier) have qualifying models with Xcel rebates ranging from $3,000 to $7,500. To estimate your annual energy savings after switching from gas, use our energy calculator.
Cold climate = what you want in Colorado
| System Size | Cold Climate ($1,500/ton) | Details |
|---|---|---|
| 2 ton | $3,000 | |
| 2.5 ton | $3,750 | |
| 3 ton | $4,500 | |
| 3.5 ton | $5,250 | |
| 4 ton | $6,000 | |
| 5 ton | $7,500 |
What Do Xcel Rebates Mean for Your Bottom Line?
Here is what it looks like in practice: a 3-ton cold climate heat pump paired with a new furnace and coil, the combination system most of our customers choose, has a gross price around $21,000. After the Xcel rebate ($4,500), Colorado state tax credit ($1,000), and Power Ahead Colorado ($1,500), your net invoice can drop to $14,000 or less. That is comparable to replacing just a furnace and AC with no rebates at all.
Our customers saved an average of $8,200 through Xcel rebates alone in 2025. The rebate is not a reimbursement you wait for. It is an instant discount on your invoice. You sign the estimate, we subtract the rebate, and you pay the net price. Xcel pays us directly. No forms to fill out, no checks to chase.
How do I get my Xcel rebate?
Get Your Quote
Rebate shown as discount on your estimate
Pay Net Price
Your invoice reflects the discounted amount
We Handle Paperwork
UniColorado submits the Xcel application
Xcel Pays Us
Rebate goes to UniColorado, not you
You don't pay full price and wait for reimbursement. UniColorado applies the rebate as an upfront discount on your invoice. We handle all paperwork and Xcel pays us directly.
When Does Xcel Pay the Rebate?
Rebates filed after October 19, 2026 get paid in January 2027. Xcel told contractors on October 9 that its 2026 heat pump budget is nearly spent and payments would pause after October 19. The rebate isn't cancelled. The check just comes later.
If we install your system, you won't notice. The rebate is already off your invoice, and we carry the wait until Xcel pays us. If a contractor charges you full price and has the rebate check sent to you, you're the one waiting until 2027. More in our payment pause guide.
What equipment qualifies for Xcel rebates?
Five categories of equipment qualify. The biggest rebates go to cold climate ducted and ductless systems because they're measured "per heating ton at 5°F" - meaning capacity in real Colorado winter conditions, not summer cooling specs.
- Cold climate ducted heat pumps (ccASHP) - $1,500/heating ton. Must maintain 70% capacity at 5°F with COP ≥ 1.75. This is what most Denver homes get.
- Cold climate ductless mini-splits (ccMSHP) - $1,500/heating ton. Same cold climate requirements. Good for additions, garages, or homes without ductwork.
- Standard ducted heat pumps (ASHP) - $600/cooling ton. Lower rebate because it's measured at 95°F, not 5°F.
- Standard ductless mini-splits (MSHP) - $600/cooling ton. Same as standard ducted.
- Heat pump water heaters - $1,500 flat. Must be Energy Star certified.
All three brands we install - Mitsubishi, Bosch, and Carrier- have qualifying models in each category. Your contractor determines the exact heating capacity at 5°F from the equipment's published data, which sets your rebate amount.
Get a 25% Bonus: Xcel Whole Home Efficiency Program
Xcel's Whole Home Efficiency program adds a 25% bonus on the standard rebate portion ($750/ton) if you complete 3+ qualifying projects within two years. Requires an Xcel-approved energy audit first.
Qualifying projects include air sealing, insulation, heat pump water heaters, and more. There's an additional $600 bonus if you complete air sealing and insulation before the heat pump installation.
Note: Whole Home Efficiency-eligible bonuses were part of Xcel's October 1, 2026 reduction. The table below uses the current amounts.
For those who want to maximize savings
| Component | 3-Ton Example | Details |
|---|---|---|
| Standard rebate portion | $2,250 | |
| Clean Heat Plan bonus | $2,250 | |
| WHE 25% bonus (on standard) | $562.50 | |
| Total with WHE bonus | $5,062.50 |
Why UniColorado for Xcel Rebates
UniColorado is a certified Xcel Energy Trade Ally and one of the most active heat pump contractors in Xcel's rebate program. We apply the rebate as an upfront discount on your invoice, so you never pay full price and wait for reimbursement.
The difference between a $4,500 rebate and a $1,800rebate on a 3-ton system often comes down to equipment selection and sizing. Cold-climate heat pumps are measured at 5°F (heating tons), while standard units are measured at 95°F (cooling tons). A properly sized cold-climate system almost always qualifies for the higher rebate tier. We run Manual J load calculations on every project to confirm the right system size, then select equipment from Mitsubishi, Bosch, or Carrier that maximizes your rebate.
We handle the entire Xcel application. You don't file anything, don't wait for reimbursement, and don't chase paperwork.
How It Works
This Is What Your Invoice Looks Like
We don’t just install heat pumps. We maximize your savings. Every rebate shows up as a line-item discount before you pay.
Rebates applied as upfront discounts
Every eligible rebate is deducted directly on your invoice. You pay the reduced price at installation. No waiting for reimbursement checks.
We handle all the paperwork
Our team submits every application, gathers documentation, and follows up with program administrators. You sign, we do the rest.
Guaranteed amount or we cover it
If a rebate is denied after we quoted it, we absorb the difference. The discount on your invoice stands.
Stack With Other Rebate Programs
Xcel rebates are just one piece. Colorado homeowners can combine multiple programs for maximum savings.
RebateStacking
Stack Your Savings by System Size
Real savings for cold climate heat pumps (ccASHP/ccMSHP). Xcel rebate is $1,500 per heating ton at 5°F for Xcel gas customers.
3-Ton, Outside Denver Metro
Xcel gas customers outside the DRCOG region. No income requirement.
Up to Total Savings
$5,500
3-Ton, Denver Metro
Xcel gas customers in the DRCOG region. No income limit.
Up to Total Savings
$7,000
4-Ton, Denver Metro
Larger homes in the DRCOG region. No income limit.
Up to Total Savings
$8,500
Based on cold climate heat pumps (ccASHP/ccMSHP) at $1,500/heating ton for Xcel gas customers. Power Ahead Colorado applies in the DRCOG region only.
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