How much is the Xcel Energy heat pump rebate in Colorado in 2026?

Xcel Energy offers $2,250 per heating ton for cold-climate heat pumps at 5°F in 2026. A typical 3-ton system receives $6,750 in Xcel rebates. The bonus tier (for gas customers replacing a furnace) effectively triples the standard rate. High-altitude communities may qualify for the Mountain Energy Project with up to $7,500/ton.

What is the Colorado state heat pump tax credit?

Colorado offers a $1,000 state tax credit for qualifying heat pump installations through a registered contractor. No income requirement. The credit is applied as a discount on your invoice at installation time. It started at $1,500 in 2024, dropped to $1,250 in 2025, and is $1,000 in 2026.

Can I stack Xcel Energy rebates with HEAR and the state tax credit in Colorado?

Yes. Colorado homeowners can stack Xcel Energy rebates, the $1,000 state tax credit, Power Ahead Colorado ($1,500), and HEAR rebates (up to $8,000 for income-qualified households). A typical Denver-metro Xcel customer stacking Xcel + Power Ahead + state credit saves $9,250 on a 3-ton system with no income requirement.

Is the Colorado HEAR rebate still available in 2026?

HEAR Region 1 (Front Range) funds were fully reserved as of April 28, 2026. HEAR Region 2 is accepting applications until August 1, 2026, or until funding is reserved. Households in Region 2 should apply immediately through a registered contractor.

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16 Programs Verified · Gas incentives end January 2027

Colorado Home Energy Rebates 2026–2027

Colorado offers some of the most stackable energy rebates in the country. Xcel Energy up to $2,250/ton, a $1,000 state tax credit, Power Ahead Colorado, and HEAR rebates can be combined — with no income requirement for the Xcel and state programs.

⚡ Act soon: Xcel Energy gas equipment incentives end January 1, 2027. HEAR Region 1 funds fully reserved. Region 2 accepting until August 2026.

Get My Personalized CO Report →See All 16 Programs ↓

Programs available

$2,250/ton

Xcel cold climate rebate

$9,250+

Typical stacked savings

Jan 2027

Gas incentive deadline

Colorado Energy Rebates Overview

Colorado has one of the most aggressive electrification incentive programs in the country, driven by Xcel Energy's Clean Heat Plan requirement to electrify 200,000 households by 2030. Xcel issued 10,640 heat pump rebates worth $57 million in 2025 and maintained elevated rebate levels into 2026.

The Colorado state heat pump tax credit ($1,000) requires no income verification and is applied as an upfront invoice discount at installation. Combined with Xcel's cold-climate rebates and Power Ahead Colorado, Denver-metro homeowners can save $9,250+ on a 3-ton system without any income requirement.

⚠ Important Deadlines

Xcel Energy gas equipment incentives end January 1, 2027 per Colorado PUC mandate. HEAR Region 1 (Front Range, Denver metro) is fully reserved as of April 28, 2026. HEAR Region 2 is accepting applications until August 1, 2026. Federal 25C/25D credits expired December 31, 2025.

How to Stack Colorado Rebates

Denver metro — Xcel gas customer (any income)

Xcel $6,750 (3-ton) + Power Ahead $1,500 + State $1,000 = $9,250 on a typical system

$9,250+

Denver metro — Below 150% AMI (HEAR eligible)

Xcel $6,750 + HEAR $8,000 + State $1,000 + Power Ahead $1,500 = massive combined savings

$17,250+

High-altitude (Mountain Energy Project)

Mountain Energy Project up to $7,500/ton × 3 tons = $22,500 from Xcel alone

$22,500+

Whole Home Efficiency — 3+ measures

Complete insulation + water heater + heat pump, get 25% extra on all standard Xcel rebates

+25% bonus

All 16 Colorado Programs (2026–2027)

Data sourced from Rewiring America API · Verified July 2026 · Confirm current amounts at xcelenergy.com and energyoffice.colorado.gov

Program	Applies To	Benefit	Income
Xcel Energy — Cold Climate Heat Pump (Gas Bonus) Xcel Energy · Rebate View Official Program →	Cold climate heat pump	$2,250/heating ton	Xcel gas customers
Xcel Energy — Standard Air Source Heat Pump Xcel Energy · Rebate View Official Program →	Standard heat pump	$900/cooling ton	All Xcel customers
Xcel Energy — Heat Pump Water Heater Xcel Energy · Rebate	Heat pump water heater	$2,250	All Xcel customers
Xcel Energy — Whole Home Efficiency Bonus Xcel Energy · Bonus	All upgrades (3+ measures)	+25% on all rebates	All Xcel customers
Xcel Energy — Insulation + Heat Pump Bundle Bonus Xcel Energy · Bonus	Insulation + heat pump combo	+$600	All Xcel customers
Xcel Mountain Energy Project Xcel Energy · Rebate	Heat pump (high-altitude ZIP codes)	Up to $7,500/ton	Xcel customers in eligible ZIPs
Colorado State Heat Pump Tax Credit State of Colorado · Tax credit (invoice discount)	Qualifying heat pump (80%+ annual heating)	$1,000	All CO residents
Colorado HEAR — Heat Pump (Region 2) CO Energy Office · Rebate View Official Program →	Heat pump	Up to $8,000	Below 150% AMI (Region 2 only)
Colorado HEAR — Heat Pump Water Heater CO Energy Office · Rebate	Heat pump water heater	Up to $1,750	Below 150% AMI
Colorado HEAR — Insulation & Air Sealing CO Energy Office · Rebate	Insulation, Air Sealing	Up to $1,600	Below 150% AMI
Colorado HEAR — Electrical Panel CO Energy Office · Rebate	Electrical panel upgrade	Up to $4,000	Below 150% AMI
Power Ahead Colorado DRCOG / Regional · Rebate	Cold-climate heat pump	~$1,500	All (9 Front Range counties)
EnergySmart Boulder — Heat Pump Rebate EnergySmart Boulder · Rebate	Heat pump, water heater, insulation	Up to $2,000/year	Below 100% AMI (Boulder County)
Colorado WAP — Weatherization Program CDHS · Assistance	Insulation, Air Sealing, HVAC	Free services	Low income
Xcel Energy — Attic Insulation Xcel Energy · Rebate	Attic insulation	Up to $600	All Xcel customers
Xcel Energy — Energy Audit Rebate Xcel Energy · Rebate	Home energy audit	Up to $200	All Xcel customers

FAQ — Colorado Energy Rebates

Do I need to be an Xcel Energy customer to get the rebates?

For Xcel Energy rebates, yes — you need Xcel electric or gas service. For the Colorado state heat pump tax credit ($1,000) and Power Ahead Colorado, any Colorado resident qualifies regardless of utility. HEAR is income-qualified and available to any CO resident through registered contractors.

What is the Mountain Energy Project?

Xcel Energy's Mountain Energy Project offers dramatically higher rebates (3–6× the standard rate) for select high-altitude ZIP codes including Breckenridge, Leadville, Silverthorne, Dillon, Frisco, Grand Lake, and others. If you live above 7,000 feet, ask your contractor about Mountain Energy Project eligibility.

What happens after January 2027 in Colorado?

The Colorado Public Utilities Commission has mandated that all gas equipment incentives end January 1, 2027. This means Xcel's bonus tier for replacing gas furnaces will be eliminated. Homeowners planning a heat pump upgrade from a gas system should act before this deadline to maximize savings.

Is HEAR still available in Colorado in 2026?

HEAR Region 1 (Front Range — Denver, Boulder, Larimer, etc.) funds were fully reserved April 28, 2026. HEAR Region 2 is accepting applications until August 1, 2026. Region 2 counties include parts of southern and western Colorado. Check energyoffice.colorado.gov for current status.

Colorado · 16 Programs Verified · Act Before Jan 2027

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This guide is for educational purposes only. Program details change frequently. Always verify with xcelenergy.com, energyoffice.colorado.gov, or your utility before starting a project. Data sourced from Rewiring America API and official program documentation, verified July 2026.