The honest answer: it depends on four things — and in 2026, the rebates matter as much as the equipment. Rather than quote a misleading internet average, here’s exactly what moves the number up or down in a Denver installation, and how the incentive stack changes what you actually pay.

The Four Cost Drivers

Factor	What Moves the Number
Tank size & model	40 to 80 gallons; larger households need bigger tanks. LeakGuard leak-protection models cost more and can pay for themselves in avoided damage.
Electrical work	Standard units need a 240V/30A circuit. If your panel is full, a circuit addition — or a 120V plug-in ProTerra model — solves it at different price points.
Placement & condensate	Near a floor drain in a heated basement is the cheap scenario. Relocations, ducting for tight closets, or condensate pumps add cost. See our placement guide.
What you’re replacing	Electric-to-HPWH swaps are simplest. Gas-to-HPWH conversions add gas capping and electrical — and are exactly what the Xcel rebate targets.

The 2026 Rebate Math

Don’t Forget Operating Cost

The purchase price is half the story. A Rheem ProTerra runs up to 4.07 UEF — meaning it produces the same hot water on roughly a quarter to a third of the electricity of a standard electric tank. Over a 10-year warranty life, in a Denver household of three or more, the operating savings typically dwarf any upfront difference against a standard tank — and Denver’s cold groundwater makes efficient recovery worth more here than in warmer states.

Cost FAQ

Is a HPWH worth it over a standard tank replacement?

With the current rebate stack, usually yes if you have a workable location. Our three-way comparison covers when each option wins.

Does the federal credit apply if I owe little tax?

25C is non-refundable — it offsets tax you owe. Ask your tax preparer; the Xcel rebate applies regardless.

How fast can you install?

Most Denver installations are completed in a single day once equipment is selected.