Xcel Mountain Energy
Rebate Program 2025–2026
Colorado mountain homeowners can receive up to $30,000+ in rebates when upgrading to high-efficiency heat pumps and insulation through Xcel Energy’s Mountain Energy Project.
Program is available in these mountain communities only
We Credit Your Rebate
Before You Pay
Most contractors make you wait 6–8 weeks to receive a rebate check from Xcel Energy after installation. We handle the paperwork and apply your full rebate directly to your invoice upfront — so you only pay the net amount out of pocket, on the day of installation.
Get Your Net Price EstimateEligibility Requirements
Before applying, confirm you meet all the following criteria. Your contractor (us!) will help verify eligibility during the estimate.
Required to Qualify
- Residential account in one of the eligible ZIP codes above
- Active natural gas service from Xcel Energy at the property
- Replacing existing natural gas equipment that performs the same function
- New qualifying equipment only — used, leased, or pre-owned is ineligible
- Equipment invoiced and installed on or after Dec. 15, 2025
- Equipment must be installed and operational before submitting application
Not Eligible
- Customers with existing electric heating (e.g., baseboard heat) installing a heat pump — still eligible for standard Xcel rebates
- Gas boiler upgrade if currently using hydronic baseboard distribution — heat pump rebate may still apply
- Heat pump water heaters unless current setup uses a natural gas boiler for both space and water heating
- Commercial equipment or window/wall AC units
- Duplicate rebates for the same equipment under other Xcel programs
Early Replacement Bonus
- Original equipment must be 10 years old or less and still operational
- Both customer and contractor must certify the old equipment was working at time of removal
- Manufacturer, model, and serial number of old equipment required
- Customer must agree to Xcel Energy inspection — failure means repaying the difference between early replacement and burnout rebate amounts
New Construction
- New construction projects are eligible — existing gas equipment replacement requirement is waived
- Builder and buyer must agree in writing who receives the rebate
- Equipment rebated through Mountain Energy Project cannot also be rebated under the New Home Construction program
Rebate Amounts
Rebates are paid per heating ton at 5°F for heat pumps, or as flat amounts for other equipment. Early replacement rebates apply when existing equipment is 10 years old or less and still operational.
| Equipment | Minimum Requirements | Early Replacement ≤10 Years Old & Operational |
Equipment Failure / Non-Early |
|---|---|---|---|
|
Cold Climate Mini-Split (ccASHP, Non-Ducted) Gas removal required
Participating contractor
|
16 SEER2, 9 EER2, 9.5 HSPF2 COP at 5°F ≥ 1.75; heating capacity at 5°F must be ≥70% of 47°F rated capacity |
$7,500 per heating ton at 5°F |
$4,000 per heating ton at 5°F |
|
Cold Climate Heat Pump (ccASHP, Ducted) Gas removal required
Participating contractor
|
15.2 SEER2, 10 EER2, 8.1 HSPF2 COP at 5°F ≥ 1.75; heating capacity at 5°F must be ≥70% of 47°F rated capacity. Commissioning form required. |
$7,500 per heating ton at 5°F |
$4,000 per heating ton at 5°F |
|
Cold Climate Heat Pump (ccASHP, Mixed Ducted) Gas removal required
Participating contractor
|
15.2 SEER2, 10 EER2, 8.1 HSPF2 COP at 5°F ≥ 1.75; heating capacity at 5°F must be ≥70% of 47°F rated capacity |
$7,500 per heating ton at 5°F |
$4,000 per heating ton at 5°F |
|
Ground Source Heat Pump (GSHP, closed-loop only) Gas removal required
|
16 EER2, 3.3 COP Full Load Must be listed on AHRI or energystar.gov |
$20,000 per heating ton |
$15,000 per heating ton |
|
Natural Gas Furnace (High-Efficiency) |
95%+ AFUE Must replace a non-condensing furnace |
$3,000 flat rebate |
$1,000 flat rebate |
|
Natural Gas Boiler (High-Efficiency) |
95%+ AFUE Must replace non-condensing boiler. Not available for hydronic baseboard premises. |
$3,000 flat rebate |
$1,000 flat rebate |
|
Heat Pump Water Heater
Replaces gas boiler providing both space & water heat
|
ENERGY STAR® rated Max 80-gallon tank for residential. Listed on energystar.gov. |
$4,000 flat rebate |
$2,250 flat rebate |
Air Sealing & Insulation Rebates
Minimum Qualifying Standards
Mountain Energy Home Energy Audit
Identify the best upgrades for your home before investing. Audits are available to natural gas customers in eligible ZIP codes.
How to Claim Your Rebate
We handle the technical paperwork and ensure every requirement is met for your maximum payout.
Confirm Eligibility
Verify your address ZIP code, active natural gas service, and that you have existing gas equipment to replace. Call us — we’ll confirm fast.
Get an Estimate
We assess your home, calculate heating tons, select AHRI-certified equipment meeting program specs, and provide a clear quote with estimated rebate.
Installation
Certified installation with full gas equipment removal, commissioning (ducted units), and a dated invoice — all required for your application.
Rebate Applied Upfront
Your rebate is deducted from your invoice on the day of installation. We file the claim with Xcel Energy — you’re done.
Program Requirements
Key rules to know before your project starts. We ensure compliance on every installation.
Heat Pumps (All Types)
- Must be listed on ahridirectory.org (AHRI certified)
- System must be matched and rated by AHRI — outdoor condenser and indoor evaporator coil must be designed to work together
- No commercial or window/wall units allowed
- Rebate paid per outdoor (condensing) unit, not per indoor head
- Must replace existing natural gas equipment performing the same function
- Full removal of old natural gas equipment must be certified by both customer and contractor
- Ducted units require a commissioning form per ACCA 2015 Standard 5 QI spec (non-ducted/mixed ducted exempt)
Cold Climate Performance (COP at 5°F)
- COP at 5°F must be ≥ 1.75 for all ccASHP types
- Heating capacity at 5°F must be at least 70% of the 47°F rated heating capacity
- These specs confirm the unit works in high-altitude Colorado winters
- Combining a new or existing furnace with cooling equipment to boost SEER rating is permitted
- Overall heat pump and AC rating must appear in the AHRI directory
Application & Documentation
- Applications must be postmarked by September 30 of the year following installation
- A dated purchase invoice or receipt is required — proposals or estimates are not accepted
- Invoice must include description of what was purchased and total cost
- All information on the invoice must exactly match the application
- Submitting an AHRI certificate with your application is highly recommended
- Submit to: Xcel Energy Rebate Operations, P.O. Box 829, Minneapolis, MN 55440-0829
Furnace & Boiler Rules
- Must achieve 95%+ AFUE to qualify
- New equipment must replace a non-condensing furnace or boiler
- Gas boiler upgrades are not available for homes with hydronic baseboard heating distribution
- Homes with hydronic baseboard may qualify for a heat pump rebate instead — full boiler removal certification required
- Gas boiler upgrades with a sidearm water heater must note tank size on the application
Get Your Rebate Credited Before You Pay a Dime
We’re a certified Xcel Energy participating contractor serving Breckenridge, Frisco, Dillon, Silverthorne, Leadville, and surrounding mountain communities. Your rebate comes off your invoice — upfront.
FAQ
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