Residential Heat Pump Rebate
Per-ton amounts from Xcel's official rebate summary sheet (effective 2025-11-16). With the fuel-burning bonus (customer replacing or supplementing a gas/propane system): cold-climate ASHP $2,250 per heating ton at 5F, standard ASHP $900 per cooling ton at 95F, ground-source $3,300 per heating ton. Standard (non-bonus) tiers - the only tiers available to customers with existing electric heat since 2025-11-16: ccASHP $750, ASHP $300, GSHP $1,100 per ton. Equipment: ASHP 15.2 SEER2 / 11.7 EER2 / 7.8 HSPF2; ccASHP ducted 15.2 SEER2 / 10 EER2 / 8.1 HSPF2 (non-ducted 16 SEER2 / 9 EER2 / 9.5 HSPF2) with COP at 5F >= 1.75 and 5F capacity >= 70% of the 47F rating; GSHP 16 EER2 / 3.3 COP. 25% Whole Home Efficiency bonus for 3+ qualifying upgrades within 2 years; $600 air sealing/insulation-first bonus; income-qualified customers can instead get up to the full installed cost through the Home Energy Squad pathway. Installs must be completed and invoiced by 2026-12-31 (applications accepted through 2027-09-30). TIME-SENSITIVE: Xcel notified trade partners on 2026-08-05 that the fuel-burning bonus steps down from 3x to 2x on 2026-10-01 (ccASHP $2,250 -> $1,500/ton, ASHP $900 -> $600/ton; install AND invoice before 2026-10-01 to keep current amounts) - re-verify the official summary sheet around that date. Rebates cannot exceed installation cost.
Xcel Energy offers robust rebates for high-efficiency heat pumps. Income-qualified customers may even have full costs covered. Act soon to grab bonus rebates before they expire at the end of 2025.
Guidance
Xcel Energy offers rebates ranging from $900 to $2,250 for Colorado electric customers installing high-efficiency heat pumps in single-family homes. Significant bonuses are available for installing cold climate systems, replacing electric resistance heating, and for income-qualified households.
Homeowner Tasks
- Confirm active Xcel Energy electric service
You must be a current Xcel Energy electric customer in Colorado to be eligible for this rebate.
- Verify your property type
Confirm that the installation is taking place at a single-family home.
- Determine income eligibility
Check if your household meets the limits for Xcel Energy's income-qualified program, which may cover up to the full equipment and installation cost.
- Verify your existing heating system
Note if the new heat pump is replacing an existing electric resistance heating system (such as baseboard heaters or an electric furnace) to qualify for a replacement bonus.
Contractor Tasks
- Install qualifying high-efficiency equipment
Ensure the installed heat pump system meets the minimum requirement of 15 SEER.
- Specify the heat pump classification
Indicate on the application whether the equipment is a Standard High-Efficiency Heat Pump or a Cold Climate Heat Pump.
- Submit the rebate application
Complete and file the rebate claim by the deadline of September 30, 2027.
Qualification
- Has income-qualified portion
Income-qualified customers may receive up to 100% of the equipment and installation cost. Check eligibility at https://xcelenergycores.clearesult.com/income-qualified.
Not required: energy star certified equipment · ahri matched pair · income-qualified · pre-approval required · permit required · contractor enrollment required · fuel switching required
Important Dates
- Program runs:
- December 31, 2026
- Claim deadline:
- September 30, 2027
Budget & Availability
- June 17, 2026Funds are currently available.
How to Submit
Install by Dec 31, 2026. Submit claim by Sept 30, 2027. Participating contractors typically handle the application and provide an upfront discount. Homeowners can submit online for DIY mini-split installations. Processing takes 8-10 weeks.