Rebates and Incentives

⚡ Limited-Time Opportunity (as of January 2026): Xcel Energy is offering enhanced bonus rebates for heat pumps, heat pump water heaters and weatherization. In some cases, available rebates are double or nearly triple previous amounts for a limited time.

2026: Expanded Rebates for Heat Pumps and Efficiency

Xcel Energy has introduced limited-time bonus rebates for heat pumps, heat pump water heaters and weatherization measures following approval of its Clean Heat Plan.

Whole Home Efficiency

*Xcel Energy Customers only

After receiving a home energy assessment, energy advisors in Xcel Energy’s Whole Home Efficiency program are available to talk through assessment findings and recommendations, can connect you to participating contractors, coordinate installation work and help make sure your projects are maximizing your home’s efficiency.

Not only does this program open access to higher insulation rebates, but if you install three qualifying measures within two years of enrolling, you can get an additional 25% bonus.

Heat Pump Rebates

Limited time bonus rebates are available for:

Air Source Heat Pumps (ASHP)
Cold Climate Air Source Heat Pumps (ccASHP)
Ground Source Heat Pumps (GSHP)

Rebate amounts are typically based on system size (in cooling tons), efficiency and program eligibility.

Example:

A Broomfield townhome installs a 2.5-ton non-ducted, cold-climate air source heat pump (SEER 18.) At the time of publication, available rebates could total up to $5,625, compared to $2,000 under a previous rebate structure. Actual rebate amounts vary and are subject to change based on program availability, funding and eligibility requirements.

Note: Rebates are not available for heat pumps replacing existing electric heating systems.

Heat Pump Water Heaters

Rebates may be available for ENERGY STAR®–certified heat pump water heaters, with incentives up to $2,250 at the time of publication. Find more information about Water Heater Rebates.

Note: Bonus rebates are generally not available when replacing existing electric water heaters. Rebate amounts and eligibility are subject to change.

Insulation and Air Sealing Bonus

Residents who install qualifying insulation and air sealing improvements within six months of a qualifying heat pump installation may be eligible for an additional bonus rebate (up to $600) when work is completed by Xcel Energy–certified contractors.

Stack Incentives to Maximize Savings

In addition to utility rebates, residents may be able to stack multiple incentives to reduce upfront costs, including:

Note: Available incentives, eligibility and funding levels vary. Residents are encouraged to review federal and state programs and confirm requirements before starting a project.

Sample Savings Scenario (example only)

Project cost: $14,000
Xcel Energy heat pump rebate: –$5,625
Federal tax credit (up to): –$2,000
Contractor/state incentive: –$500
Estimated out-of-pocket cost: $5,875

Note: Income-qualified households may be eligible for additional savings. Examples shown are for illustrative purposes only; actual costs and incentives vary.

Ready to Get Started?

To qualify for Xcel Energy rebates: