Commercial & Industrial · Effective Dec. 15, 2025 · Xcel Energy
Mountain Energy
Commercial Rebates 2025–2026
Businesses and commercial properties in eligible Colorado mountain ZIP codes can access substantial rebates on heat pumps, boilers, furnaces, insulation, and more — through Xcel Energy’s Mountain Energy Project.
Program is available in these mountain communities only
Our Process
Your Rebate Comes Off
Your Invoice Upfront
Most contractors submit the paperwork after the job and leave you waiting weeks for a check. We apply your full Mountain Energy rebate directly to your invoice at the time of installation — you only pay the net amount out of pocket from day one.
Get a Net-Price Commercial EstimateExample: 3-Ton Commercial Mini-Split (Early Replacement)
Equipment & Labor$28,000
⚡ Xcel Rebate Applied Upfront− $22,500
You Pay at Installation$5,500
We file the rebate claim on your behalf. You’re done.
Who Qualifies
Eligibility Requirements
Commercial and industrial customers in eligible ZIP codes can qualify. Review the criteria below — we’ll confirm eligibility during your estimate.
Required to Qualify
- Business or commercial property in one of the eligible ZIP codes
- Active natural gas service from Xcel Energy at the property (retail or firm transport)
- Replacing existing natural gas equipment performing the same function
- Equipment invoiced and installed on or after Dec. 15, 2025
- New qualifying equipment only — used, leased, or pre-owned is not eligible
- Equipment must be installed and operational before submitting application
Not Eligible
- Customers receiving electric-only service — natural gas service from Xcel Energy is required
- Equipment currently using electricity as its fuel source
- Gas boiler upgrades at premises with hydronic baseboard distribution — heat pump rebates may still apply
- Non-condensing boilers are not eligible for boiler rebates
- Rebates cannot exceed the actual cost of the system
- Duplicate rebates under other Xcel Energy programs for the same improvement
Early Replacement Bonus
- Applies to equipment 10 years old or less that is still operational
- Both customer and contractor must certify the old equipment was working at time of removal
- Installation year, manufacturer, model, and serial number of old equipment required on the application
- Significantly higher rebate amounts than Replace-on-Burnout tier — worth planning ahead for
Rebate Types
- Prescriptive: Fixed rebate amounts for standard equipment categories — straightforward to apply for
- Custom: Rebates calculated per kW saved or per Dth of gas reduced — requires additional documentation and cost justification
- Heat pumps ≤5.4 tons qualify as prescriptive; larger systems may require a custom pathway
- VRF systems also qualify under the prescriptive tier at ≤5.4 tons
2025–2026 Program Year
Commercial Rebate Amounts
Rebates are per heating ton, per unit, or per kW/Dth depending on equipment type. Early Replacement rebates require the replaced equipment to be 10 years old or less and operational.
Heat Pumps & Cooling
Boilers & Furnaces
Building Envelope
Water Heaters
| Equipment | Type | Early Replacement ≤10 Yrs, Operational |
Replace on Burnout |
|---|---|---|---|
| Cold Climate Air Source Heat Pump (ccASHP) Prescriptive · ≤5.4 tons |
Ducted | $7,500per heating ton at 5°F | $4,000per heating ton at 5°F |
| Cold Climate Mini-Split Heat Pump (ccASHP) Prescriptive · ≤5.4 tons |
Non-Ducted | $7,500per heating ton at 5°F | $4,000per heating ton at 5°F |
| VRF (Variable Refrigerant Flow) Prescriptive · ≤5.4 tons |
Multi-zone | $9,275per ton | $7,400per ton |
| Ground Source Heat Pump (GSHP) Prescriptive |
Closed-loop | $10,000per heating ton | $7,500per heating ton |
Gas removal required: All heat pump rebates require full removal and certification of the existing natural gas heating equipment performing the same function.
| Equipment | Size | Early Replacement ≤10 Yrs, Operational |
Replace on Burnout |
|---|---|---|---|
| Gas Boiler (Condensing) Prescriptive |
Up to 120,000 BTU | $17,500per MMBTU/h | $9,300per MMBTU/h |
| Gas Boiler (Condensing) Prescriptive |
Over 120,000 BTU | $17,500per MMBTU/h | $9,300per MMBTU/h |
| Gas Furnace Custom |
Up to 120,000 BTU | $1,250/PCkW · $250/Other-kW · $10.00/Dth Custom pathway — calculated on energy savings |
|
| Gas Furnace Custom |
Over 120,000 BTU | $1,250/PCkW · $250/Other-kW · $10.00/Dth Custom pathway — calculated on energy savings |
|
Non-condensing boilers are not eligible. Gas boiler rebates are not available for premises with hydronic baseboard heating distribution — those customers may qualify for a heat pump rebate instead.
Insulation & Air Sealing
Air Sealing
Custom pathway $1,250/PCkW
$250/Other-kW
$10.00/Dth
Custom pathway $1,250/PCkW
$250/Other-kW
$10.00/Dth
Wall Insulation
Custom pathway $1,250/PCkW
$250/Other-kW
$10.00/Dth
Custom pathway $1,250/PCkW
$250/Other-kW
$10.00/Dth
Roof Insulation
Custom pathway $1,250/PCkW
$250/Other-kW
$10.00/Dth
Custom pathway $1,250/PCkW
$250/Other-kW
$10.00/Dth
Windows
High Efficiency Windows
Custom pathway $1,250/PCkW
$250/Other-kW
$10.00/Dth
Custom pathway $1,250/PCkW
$250/Other-kW
$10.00/Dth
Custom pathway rebates are calculated based on measured energy savings (kW peak demand reduction, other kW savings, or Dth of natural gas saved). Documentation of energy analysis and baseline conditions is required.
| Equipment | Category | Replace on Burnout Rebate | |
|---|---|---|---|
| Heat Pump Water Heater Prescriptive |
Light Commercial | $5,375per unit | |
| Heat Pump Water Heater Prescriptive |
Commercial | $15,000per unit | |
Commercial heat pump water heater rebates are currently available for Replace-on-Burnout only. Early Replacement tier is not listed for commercial water heaters in the current program documentation.
Time-Sensitive Offer
Mountain Energy Launch Promotion
Install & Invoice by April 15, 2026
$2,000 Bonus
Heat Pump Incentive
Additional Bonus+$2,000
- Extra $2,000 bonus on top of base rebate for any heat pump or heat pump water heater installation
- Equipment must be installed and invoiced by April 15, 2026
- Available to commercial customers in all eligible Mountain Energy ZIP codes
- Rebate will not be paid out for more than the cost of the system
Audit Delivered by April 15, 2026
Bonus Audit
Rebates
- Infrared Audit — up to $300 bonus
- Blower Door Audit — up to $240 bonus
- Standard Audit — up to $150 bonus
- Rebates cannot exceed the actual cost of the audit
- Must be invoiced and delivered by April 15, 2026 to qualify for the bonus
Program Rules
Key Commercial Program Rules
These rules apply in addition to Xcel Energy’s standard rebate portfolio terms and conditions.
Qualifying Conditions
- Customer must receive retail or firm transport natural gas service from Xcel Energy
- Equipment invoiced and installed on or after Dec. 15, 2025
- Only new qualifying equipment — used, leased, or pre-owned is ineligible
- Heat pump rebates require full removal of natural gas equipment that previously performed the same heating function
- Early Replacement requires equipment to be 10 years or newer and operational at time of removal
Rebate Caps & Stacking
- Rebates will not exceed the actual cost of the system
- Total rebates from all incentivizing parties (state, local, nonprofit, Xcel) cannot exceed the actual project cost
- Participants will not receive duplicate rebates for the same improvement under other Xcel Energy programs
- Prescriptive rebates (≤5.4 tons) are fixed amounts; larger installations may require a custom rebate pathway
Boiler & Furnace Restrictions
- Gas boiler upgrades not available for premises with hydronic baseboard distribution
- Non-condensing boilers are not eligible for rebates
- Hydronic baseboard customers are still eligible for heat pump rebates — full boiler removal required
- Gas furnace rebates follow a custom pathway based on measured energy savings
Program Stability
- Rebates are subject to change — Xcel Energy will strive to provide 60-day notice where possible
- An air-to-water heat pump measure is under development — anticipated launch Q1 2026
- Additional commercial services being developed — targeted launch Q2 2026
- Funding is limited and available on a first-come, first-served basis
About the Mountain Energy Project: This program is a Non-Pipeline Alternative (NPA) initiative designed to reduce natural gas peak demand in mountain communities, helping defer costly gas pipeline construction. Rebates are approximately 150% of standard Clean Heat program incentives for qualifying measures.
Get Your Commercial Rebate Credited Upfront
We’re a certified Xcel Energy participating contractor serving Breckenridge, Frisco, Dillon, Silverthorne, Leadville, and surrounding mountain communities.