Xcel Energy Heat Pump Rebates Are Changing October 1: What Denver Homeowners Need to Know
If you have been considering a heat pump or heat pump water heater for your Denver area home, there is an important deadline coming up.
Xcel Energy is changing its heat pump and heat pump water heater bonus rebates on October 1, 2026. For qualifying homeowners, the current bonus will decrease from three times the standard rebate amount to two times the standard rebate amount.
If you want to take advantage of the current higher bonus, your qualifying equipment must be installed and invoiced by September 30, 2026, and your rebate application must be submitted by October 15, 2026.
Who Can Qualify?
The updated bonus applies to residential customers who:
● Heat their home with natural gas service from Xcel Energy
● Have a gas or propane water heater
● Install qualifying heat pump or heat pump water heater equipment
Customers who heat their homes with electric equipment or already have an electric water heater may still qualify for standard rebate amounts.
Eligibility depends on the equipment and your home's existing systems, so it is important to confirm what you qualify for before starting a project.
What Are the Current and New Rebates?
For qualifying residential projects, Xcel Energy is changing the bonus amounts on October 1.
● Air source heat pumps: Current $900 per cooling ton, changing to $600
● Cold climate air source heat pumps: Current $2,250 per heating ton, changing to $1,500
● Ground source heat pumps: Current $3,300 per heating ton, changing to $2,200
● Heat pump water heaters: Current $2,250, changing to $1,500
● Air to water heat pumps: New rebate beginning October 1 of $1,900 per heating ton at 5°F
The exact rebate available for your home depends on your equipment and eligibility.
The Deadline Is Coming Up Quickly
If you are hoping to receive the current higher bonus, keep these two dates in mind:
September 30, 2026: Qualifying equipment must be installed and invoiced.
October 15, 2026: Your rebate application must be submitted.
Installing your equipment before October 1 but waiting to submit your rebate application will not lock in the current bonus. Applications submitted after October 15 will be processed using the new bonus amounts.
That is why it is worth getting started now. A home electrification project can take time to plan, schedule and complete, especially if your electrical system or existing HVAC setup needs additional work.
My Electric Home Can Help You Get Started
My Electric Home helps homeowners throughout the Denver area understand their home electrification options and take advantage of available energy incentives. The first step is a free home inspection. This gives the team an opportunity to look at your existing systems, understand your goals and determine which upgrades may make sense for your home.
My Electric Home can help with projects including:
● Cold climate heat pumps
● Heat pump water heaters
● HVAC upgrades
● Electrical panel upgrades
● EV chargers
● Other home electrification improvements
Getting an inspection now also gives you more time to determine if your project can realistically be completed before the September 30 deadline.
Serving Denver and Surrounding Communities
My Electric Home works with homeowners throughout the Denver metro area. As more Colorado homeowners look for ways to improve energy efficiency and move toward electric home systems, available rebates can make these upgrades more accessible.
With the current Xcel Energy bonus amounts changing October 1, there is a real reason to get started sooner rather than later.
Ready to See What Your Home Qualifies For? If you have been considering a heat pump or heat pump water heater, now is the time to schedule your home inspection.
My Electric Home will work around your schedule to evaluate your home, talk through your options and help you understand which upgrades may be a good fit.
Rebate amounts, eligibility requirements, funding and program terms are subject to change. Homeowners should confirm current requirements with Xcel Energy and their qualified installer.
