xcel rebates
$6,400-$9,000
STATUS
INCOME REQUIREMENT
WHO QUALIFIES
TYPICAL SAVINGS
Xcel Gas Customers
Available Now
None
Xcel Rebates for colorado
Xcel Energy offers the largest utility rebates in Colorado for heat pumps and water heaters. Cold-climate heat pump rebates are $2,250 per heating ton at 5°F, with typical savings of $6,400-$9,000. No income qualification required.
Xcel Energy Heat Pump Rebates 2026
Xcel Energy gas account holders (gas-only or gas+electric) are eligible. Electric-only customers do not qualify.
System Type | Requirements | Rebates |
|---|---|---|
Heat Pump Water Heater | Energy Star Certified | $2,250 |
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 |
MiniSplit Heat Pump (MSHP) | 15.2 SEER2, 11.5 EER2, 7.8 HSPF2 | $900/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 |
Air Source Heat Pump (ASHP) - Ducted | 15.2 SEER2, 11.7 EER2, 7.8 HSPF2 | $900/cooling ton at 95°F |
Xcel Rebate Qualifications
YOU QUALIFY IF
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Xcel Energy gas & electric customers
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Xcel Energy gas-only customers
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Sincle family homes, duplexes, four-plexes
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Installing qualifying heat pump or water heater
NOT ELIGIBLE IF
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Electric-only customers (no gas service)
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Already have heat pump or eletric baseboards
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DIY installations (contractor must apply), with the exception of minisplits and HPWH
Xcel Rebate Amounts (2026)
Cold climate heat pumps qualify for $2,250 per heating ton at 5°F through Xcel's Clean Heat Plan. Most Colorado homes need a 3-4 ton system. Standard (non-cold-climate) units qualify for $900/cooling ton.
All three brands we install (Mitsubishi, Bosch, Carrier) have qualifying models with Xcel rebates ranging from $5,000 to $10,000+. To estimate your annual energy savings after switching from gas, use our energy calculator.
Cold climate = what you want in Colorado
System Size | Standard ASHP ($900/ton) | Cold Climate ($2,250/ton) |
|---|---|---|
5 ton | $4,500 | $11,250 |
4 ton | $3,600 | $9,000 |
3.5 ton | $3,150 | $7,875 |
3 ton | $2,700 | $6,750 |
2.5 ton | $2,250 | $5,625 |
2 ton | $1,800 | $4,500 |
The Bottom Line for Xcel Rebates
Here is what it looks like in practice: a 3-ton cold climate heat pump that replaces your furnace and AC has a gross price around $21,000. After the Xcel rebate ($6,750), Colorado state tax credit ($1,000), and any HEAR qualification, your net invoice can drop to $13,000 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 to Get an Xcel Rebate
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Get a Quote- Rebate shown as discount on your estimate
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Pay Net Price - Your invoice reflects the discounted amount
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We Handle the Paperwork - A&O Heating and Air Conditioning submits the Xcel application
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Xcel Pays Us- Rebates goes to A&O Heating and Air Conditioning
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) - $2,250/heating ton. Must maintain 70% capacity at 5°F with COP ≥ 1.75. This is what most Denver homes get.
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Cold climate ductless mini-splits (ccMSHP) - $2,250/heating ton. Same cold climate requirements. Good for additions, garages, or homes without ductwork.
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Standard ducted heat pumps (ASHP) - $900/cooling ton. Lower rebate because it's measured at 95°F, not 5°F.
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Standard ductless mini-splits (MSHP) - $900/cooling ton. Same as standard ducted.
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Heat pump water heaters - $2,250 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.
For those who want to maximize savings
Component | Per Ton | 3-Ton Example Copy |
|---|---|---|
WHE 25% bonus (on standard) | $187.50 | $562.50 |
Total with WHE bonus | $2,437.50 | $7,312.50 |
Clean Heat Plan bonus | $1,500 | $4,500 |
Standard rebate portion | $750 | $2,250 |
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.
