xcel rebates
Up to $11,250
STATUS
INCOME REQUIREMENT
WHO QUALIFIES
TYPICAL SAVINGS
Qualifying Xcel Energy Customers
Available Now
None
Xcel Rebates for colorado
Xcel Energy offers substantial rebates on qualifying heat pumps and heat pump water heaters. Through September 30, 2026, qualifying cold-climate heat pumps may receive up to $2,250 per heating ton at 5°F. Beginning October 1, these enhanced rebate amounts are scheduled to decrease. Standard Xcel rebates do not have an income requirement.
Xcel Energy Heat Pump Rebates 2026
System Type | Requirements | Rebates Through Sep. 30, 2026 | Rebates Starting Oct. 1, 2026 |
|---|---|---|---|
Heat Pump Water Heater | ENERGY STAR® Certified | $2,250 | $1,500 |
Cold-Climate MiniSplit Heat Pump (ccMSHP) | 16 SEER2, 9 EER2, 1.75 COP @ 5°F, 70% Cold Heat | $2,250/heating ton at 5°F | $1,500/heating ton at 5°F |
MiniSplit Heat Pump (MSHP) | 15.2 SEER2, 11.5 EER2, 7.8 HSPF2 | $900/cooling ton at 95°F | $600/cooling ton at 95°F |
Cold Climate Air Source Heat Pump (ccASHP) - Ducted | 15.2 SEER2, 10 EER2, 1.75 COP @ 5°F, 70% Cold Heat | $2,250/heating ton at 5°F | $1,500/heating ton at 5°F |
Air Source Heat Pump (ASHP) - Ducted | 15.2 SEER2, 11.7 EER2, 7.8 HSPF2 | $900/cooling ton at 95°F | $600/cooling ton at 95°F |
Xcel Rebate Qualifications
YOU MAY QUALIFY IF
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You are an eligible Xcel Energy residential customer in Colorado
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You are installing qualifying heat-pump or heat-pump water-heater equipment
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The equipment meets Xcel Energy efficiency and performance requirements
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The installation is completed by a participating contractor such as A&O Heating and Air Conditioning
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The equipment is new and meets applicable rebate-program requirements
ELIGIBILITY DEPENDS ON
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Your Xcel Energy service type
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The specific equipment being installed
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Equipment efficiency ratings and certifications
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Installation and application requirements
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Current program funding and promotional deadlines
Xcel Energy Rebate Changes October 1, 2026
Through September 30, 2026, qualifying cold-climate heat pumps may receive enhanced rebates of up to $2,250 per heating ton at 5°F. Beginning October 1, 2026, the enhanced incentive is expected to decrease to $1,500 per heating ton.
Standard qualifying air-source heat pumps are currently shown at $900 per cooling ton and are expected to decrease to $600 per cooling ton beginning October 1.
If you're considering a heat-pump installation, act now. Completing a qualifying project before the current promotional deadline could mean thousands of dollars in additional rebates.
A&O Heating and Air Conditioning installs qualifying heat pump systems from Mitsubishi, Bosch and Carrier. Rebate amounts vary by equipment, system size, efficiency requirements and installation date. Contact A&O to determine which equipment qualifies and how much you may be eligible to receive.
Cold climate = what you want in Colorado
System Size | Standard ASHP Through Sep. 30 | Standard ASHP Starting Oct. 1 | Cold Climate Through Sep. 30 | Cold Climate Starting Oct. 1 |
|---|---|---|---|---|
5 ton | $4,500 | $3,000 | $11,250 | $7,500 |
4 ton | $3,600 | $2,400 | $9,000 | $6,000 |
3.5 ton | $3,150 | $2,100 | $7,875 | $5,250 |
3 ton | $2,700 | $1,800 | $6,750 | $4,500 |
2.5 ton | $2,250 | $1.500 | $5,625 | $3,750 |
2 ton | $1,800 | $1,200 | $4,500 | $3,000 |
The Bottom Line for Xcel Rebates
If you're considering upgrading to a qualifying heat pump, timing can make a difference of thousands of dollars. Through September 30, 2026, a qualifying 3-ton cold-climate heat pump may receive up to $6,750 in Xcel Energy rebates. Beginning October 1, that same rebate is expected to decrease to approximately $4,500 — a difference of $2,250.
Larger systems can have an even greater difference. A qualifying 5-ton cold-climate system could receive up to $11,250 before October 1 compared with $7,500 afterward — a potential difference of $3,750.
A&O Heating and Air Conditioning can help you select qualifying equipment, determine the rebates available for your property and navigate the rebate process. If you're considering an upgrade, schedule early so your project can be completed before the higher incentive period ends.
How to Get an Xcel Rebate
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Get a Quote- We identify qualifying equipment and available rebates.
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See Your Savings - Your qualifying rebate is reflected on your estimate.
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We Handle the Paperwork - A&O Heating and Air Conditioning submits the required Xcel rebate documentation.
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Pay the Net Price- You receive the applicable discount upfront rather than waiting for reimbursement.
You don't pay full price and wait for reimbursement. A&O Heating and Air Conditioning applies the rebate as an upfront discount on your invoice. We handle all the paperwork and Xcel pays us directly.
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.
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Cold-climate ducted heat pumps (ccASHP) — Up to $2,250/heating ton through Sept. 30; $1,500/heating ton starting Oct. 1
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Cold-climate ductless mini-splits (ccMSHP) — Up to $2,250/heating ton through Sept. 30; $1,500/heating ton starting Oct. 1
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Standard ducted heat pumps (ASHP) — Up to $900/cooling ton through Sept. 30; $600/cooling ton starting Oct. 1
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Standard ductless mini-splits (MSHP) — Up to $900/cooling ton through Sept. 30; $600/cooling ton starting Oct. 1
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Heat pump water heaters — Up to $2,250 through Sept. 30; $1,500 starting Oct. 1
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.
Stack Additional Savings with Xcel Whole Home Efficiency (WHE)
Customers completing multiple qualifying home-efficiency improvements may be eligible for additional Whole Home Efficiency incentives. Qualifying improvements can include air sealing, insulation, heat pump water heaters and other approved measures. Program requirements, bonus amounts and availability can change, so A&O Heating and Air Conditioning can help determine which additional incentives are available for your project.
How Much Could You Lose by Waiting Until October?
System Example | Through Sep. 30, 2026 | Starting Oct. 1, 2026 | Potential Difference |
|---|---|---|---|
5-ton Cold Climate Heat Pump | $11,250 | $7,500 | $3,750 |
3-son Cold-Climate Heat Pump | $6,750 | $4,500 | $2,250 |
3-ton Standard ASHP | $2,700 | $1,800 | $900 |
What A&O Heating and Air Conditioning Offers
A&O Heating and Air Conditioning participates in the Xcel rebate program for heat pumps, heat pump water heaters, and electrical panel upgrades (in conjunction with heat pumps) and insulation or air sealing.
