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Xcel Rebates in Colorado | Mini-Splits by Joseph
$ Colorado Heat Pump & HVAC Rebates

Exact Xcel, Mountain, and Colorado HEAR Rebates – One Simple Page

If your home currently uses natural gas as the primary heat source, you may qualify for powerful Xcel Energy rebates, special Mountain Energy Project incentives in select ZIP codes, and Colorado HEAR income-based rebates when you switch to a high-efficiency heat pump or mini-split with Mini-Splits by Joseph.

Standard Xcel Heat Pump Rebates
Up to $2,250 per ton (cold-climate)
Mountain Energy Project
Up to $20,000 per ton (ground source)
Heat Pump Water Heaters
Up to $2,250 standard or $4,000 mountain
Colorado HEAR State Rebates
Up to 100% of project cost (income-based)
Request a rebate-ready quote
Or call (970) 798-0096
1 · Xcel Energy standard rebates

Standard Xcel Energy Heat Pump & Water Heater Rebates

These rebates apply to qualifying single-family homes, duplexes, and four-plexes in Xcel territory. The higher “bonus” amounts are available to customers with a fuel-burning system (natural gas or propane) when they install a qualifying heat pump or heat pump water heater.

Effective Nov. 16, 2025 Standard + bonus tiers Gas-heated homes
Equipment Minimum Qualifying Standards Rebate with Fuel-Burning Bonus Standard Rebate Notes
Air Source Heat Pump (ASHP), Ducted
Heat pump 		15.2 SEER2, 11.7 EER2, 7.8 HSPF2 $900 per cooling ton at 95 °F $300 per cooling ton at 95 °F Core ducted ASHP rebate tier.
ASHP, Non-Ducted (Mini-Split)
Heat pump 		15.2 SEER2, 11.7 EER2, 7.8 HSPF2 $900 per cooling ton at 95 °F $300 per cooling ton at 95 °F Wall-mounted ductless systems.
ASHP, Mixed Ducted + Non-Ducted
Heat pump 		15.2 SEER2, 11.7 EER2, 7.8 HSPF2 $900 per cooling ton at 95 °F $300 per cooling ton at 95 °F Combination ducted & ductless heads.
Cold Climate ASHP, Non-Ducted
Cold-climate 		16 SEER2, 9 EER2, 9.5 HSPF2, COP ≥ 1.75 at 5 °F;
≥ 70% of 47 °F heating capacity at 5 °F. 		$2,250 per heating ton at 5 °F $750 per heating ton at 5 °F Best rebate level for non-ducted mini-splits.
Cold Climate ASHP, Ducted
Cold-climate 		15.2 SEER2, 10 EER2, 8.1 HSPF2, COP ≥ 1.75 at 5 °F;
≥ 70% of 47 °F heating capacity at 5 °F. 		$2,250 per heating ton at 5 °F $750 per heating ton at 5 °F Cold-climate ducted systems.
Cold Climate ASHP, Mixed Ducted + Non-Ducted
Cold-climate 		15.2 SEER2, 10 EER2, 8.1 HSPF2, COP ≥ 1.75 at 5 °F;
≥ 70% of 47 °F heating capacity at 5 °F. 		$2,250 per heating ton at 5 °F $750 per heating ton at 5 °F Hybrid ducted / ductless cold-climate systems.
Ground Source Heat Pump (GSHP)
Ground source 		16 EER2, 3.3 COP, full load $3,300 per heating ton $1,100 per heating ton Geothermal loop systems.
Heat Pump Water Heater (HPWH)
Water heating 		ENERGY STAR® $2,250 $750 Standalone heat-pump water heater.
Bonus vs. standard rebates. The “rebate with fuel-burning bonus” applies when you have an existing fuel-burning system. The “standard rebate” applies in other eligible situations. We design your project to hit the most favorable tier.
Gas furnace & boiler rebates removed. Effective Jan. 1, 2026, Xcel has removed gas furnace and boiler rebates. Gas furnace/boiler jobs invoiced in 2025 can still be submitted through Sept. 30, 2026, but new gas equipment no longer earns rebates.
2 · Insulation & air sealing rebates

Xcel Insulation & Air Sealing Incentives

Xcel also provides rebates for air sealing and insulation, with higher bonuses when you heat with Xcel natural gas and coordinate upgrades with a rebate-qualifying heat pump project.

Measure Minimum Standard Standard Rebate (Gas or Electric Heat) Bonus for Xcel Gas Heat
Air Sealing ≥ 20% reduction in CFM50 30% of project cost, cap $400 1.5 × standard rebate
Wall Insulation Empty cavity pre-job; post-job R-13+ 30% of project cost, cap $350 1.5 × standard rebate
Attic Insulation Pre-job R < 24; post-job R-60+ 30% of project cost, cap $500 1.5 × standard rebate
Whole Home Efficiency bonus. When you bundle three or more qualifying measures within two years, Xcel’s Whole Home Efficiency program can increase some rebates and add a 25% bonus on standard rebates. We will confirm eligibility and timing for your home.
3 · Xcel mountain incentives

Mountain Energy Project Rebates (Select ZIP Codes)

In certain high-altitude communities (including Breckenridge 80424, Dillon 80435, Frisco 80443, Grand Lake 80447, Leadville 80461, Silverthorne 80497/80498, and Red Cliff 81649), Xcel offers very high “Mountain Energy Project” rebates for cold-climate heat pumps, ground-source systems, and heat pump water heaters.

Mountain Energy identified ZIP codes Requires gas equipment removal “Up to” listed amounts
Equipment Scenario Mountain Energy Rebate (Up To)
Cold Climate Air Source Heat Pump Early replacement $7,500 per heating ton at 5 °F
Cold Climate Air Source Heat Pump Replace on burnout $4,000 per heating ton at 5 °F
Cold Climate Air Source Heat Pump New construction $1,500 per heating ton at 5 °F
Cold Climate Mini-Split Heat Pump Early replacement $7,500 per heating ton at 5 °F
Cold Climate Mini-Split Heat Pump Replace on burnout $4,000 per heating ton at 5 °F
Cold Climate Mini-Split Heat Pump New construction $1,500 per heating ton at 5 °F
Ground Source Heat Pump Early replacement $20,000 per heating ton
Ground Source Heat Pump Replace on burnout $15,000 per heating ton
Gas Furnace Early replacement $3,000
Gas Furnace Replace on burnout $1,000
Gas Boiler Early replacement $3,000
Gas Boiler Replace on burnout $1,000
Heat Pump Water Heater Early replacement $4,000
Heat Pump Water Heater Replace on burnout $2,250
Attic Insulation — $2,550
Air Sealing — $1,125
Wall Insulation — $1,800
Key Mountain rules. Rebates are only available in Mountain Energy-identified ZIP codes. Heat pump rebates require removal of existing natural gas equipment, and stated values are “up to” amounts that cannot exceed project cost. Air-to-water heat pump rebates are under development and may be added later.
4 · State rebates

Colorado HEAR (Home Energy) Rebates – Income-Based

Colorado’s HEAR rebates provide income-based support for high-efficiency electric upgrades: heat pumps, heat pump water heaters, electrical service upgrades, insulation, and more. HEAR is separate from Xcel’s programs and is based on your household income as a percentage of Area Median Income (AMI).

Income Level Rebate Level What It Means
Below 80% of AMI Up to 100% of qualified project cost (capped at HEAR maximums) For many qualifying homes, HEAR can effectively cover the full cost of eligible measures.
80–150% of AMI Up to 50% of project cost (capped at HEAR maximums) Significant cost-share for moderate-income households.

HEAR can often be combined with Xcel rebates, subject to each program’s rules and caps. During your quote, we check both your AMI tier and your utility territory to outline how much of the project can be covered by HEAR plus Xcel incentives.

For a deeper dive into eligibility documentation, AMI charts, and application steps, visit our dedicated Colorado HEAR heat pump rebates guide.

5 · How we help

How Mini-Splits by Joseph Builds a Rebate-Ready Project

Confirm your heating system & address. We verify that your primary heat is natural gas or propane, identify whether you are in a standard or mountain Xcel territory, and check if your household may qualify for Colorado HEAR.
Design for the right rebate tier. We size and specify equipment to meet or exceed the qualifying standards for ASHP, cold-climate heat pumps, GSHPs, and HPWHs so you land in the highest feasible rebate tier.
Gather documentation. Our team provides invoices, model numbers, AHRI certificates, photos, and other documentation required by Xcel, Mountain Energy, and HEAR.
Guide your applications. We walk you through online or paper applications, timelines, and where checks or bill credits will come from so you know what to expect.
Show you your net price up front. When possible, we estimate your after-rebate cost before you sign so there are no surprises.
6 · FAQ

Rebates – Frequently Asked Questions

Can I stack Xcel, Mountain, and HEAR rebates together?
In many cases, yes. Xcel standard rebates, Mountain Energy Project incentives, and Colorado HEAR can work together, subject to program-specific caps and rules. We review your scenario and clearly outline which rebates can be combined and how that affects your final project cost.
Do rebate amounts ever change?
Yes. All rebate amounts and program terms are subject to change or cancellation by Xcel Energy or the State of Colorado. Funding is limited and offered on a first-come, first-served basis, so we confirm current values before you commit to a project.
Are these rebates available for rental properties?
Many rebates are available for owner-occupied homes and some rental properties, especially small multifamily buildings. HEAR and utility rules differ, so we review property type and ownership details as part of your quote.
Will you handle the rebate paperwork for me?
Yes. Mini-Splits by Joseph coordinates directly with Xcel and state program administrators where possible, and we provide a clear checklist of any items that must come from you (such as income documentation for HEAR).

This page is for general informational purposes only and does not constitute tax, legal, or financial advice. Program eligibility, rebate amounts, and requirements can change at any time. We confirm current program terms as part of your quote and recommend you consult your tax professional for any tax-related questions.

Next step

See How Much of Your Project Rebates Can Cover

Tell us a little about your home, your current heating system, and your goals. We’ll design a heat pump or mini-split system, match it to the appropriate Xcel, Mountain, and HEAR rebate tiers, and show you a clear estimate of your net cost.

Schedule a visit
Or call (970) 798-0096

Xcel energy information links.

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