Colorado HVAC Energy Rebates 2023
Heating and cooling are almost
50%
of your bill
For most Colorado homeowners, heating and cooling costs represent over 50% of the energy bills they pay every month.
Making the switch to an energy-efficient furnace or HVAC system can result in massive yearly savings for many local residents.
High Efficiency Furnace Rebates
State and federal rebate plans can help you reduce costs and save BIG.
Benefits:
- Rebates help customers offset the initial costs of new equipment
- Upgrading to a 95% efficient furnace can offset rising energy costs for years
- Less expensive to run than conventional furnace fans
- Quieter operation means less noise disturbance when running
- Enhanced comfort control with reduced temperature fluctuation
Rebate Offers
30% of cost up to $600
Equipment Requirements
Less than 97% AFUE
Eligibility
Principal Residence Owners
Must be an existing home & your principal residence. New construction and rentals do not apply.
A principal residence is the home where you live most of the time. The home must be in the United States. It can include a house, houseboat, mobile home, cooperative apartment, condominium, and a manufactured home.
You can stay up to date on the latest Energy Star furnace rebates by visiting their website.
Rebate Offers
Natural gas furnace: $300 rebate
Natural gas boiler: $250
Natural gas boiler w/sidearm water heater: $350
Equipment Requirements
95% AFUE efficiency
Payment
You can expect your rebate check in eight weeks or less. Make sure your rebate application reaches us by the deadline – September 30 of the year after your new system was installed.
Eligibility
To qualify, you must:
- Be a Colorado Xcel Energy residential natural gas customer with an active billing account
- Have qualifying, 95% efficiency furnace or boiler equipment installed by a contractor
- Equipment model numbers on the invoice and the rebate form must match exactly. Check with your contractor to ensure that your unit will qualify for a rebate.
- If you have multiple furnaces installed, you may receive rebates for each. One application form is needed for each furnace.
- Boiler rebates are available only for equipment installed on or after November 5, 2021.
Rental Property Rebate Eligibility
Rental properties are also eligible for rebates. If you are the person who receives the energy bill and a tenant of the rental property, the property owner will likely pay for the project and will want the rebate. That is accomplished by you signing the rebate over to the property owner on the rebate application form in the Alternate Rebate Recipient section.
You can stay up to date on the latest Xcel Energy furnace rebates by visiting their website.
Inflation Reduction Act
30% of cost up to $600*
Equipment Requirements
*The terms & conditions for this program will be announced in the Spring of 2023 by the Department of Energy (DOE).
Helping you understand energy ratings and terminology:
AFUE — AFUE, or Annual Fuel Utilization Efficiency, is a measure of the efficiency of a heating appliance in converting fuel to energy over the course of a year.
High Efficiency Air Conditioner Rebates
By upgrading to a high-efficiency cooling system, you may qualify for significant rebates, in addition to enjoying a noticeable reduction in your monthly energy bills ranging from 40-60%!
- Available Xcel rebates can offset the initial costs of upgrading and installation
- Upgrading to a more energy-efficient AC unit can save you big on future energy bills especially as the costs of energy go up over time
Rebate Offers
30% of cost up to $600
Equipment Requirements
16 SEER2 & Above
Eligibility
Principal Residence Owners
Must be an existing home & your principal residence. New construction and rentals do not apply.
A principal residence is the home where you live most of the time. The home must be in the United States. It can include a house, houseboat, mobile home, cooperative apartment, condominium, and a manufactured home.
You can stay up to date on the latest Energy Star air conditioner rebates by visiting their website.
Rebate Offers
Standard Efficiency A/C: $200
High Efficiency A/C: $500
Equipment Requirements
Stnd Eff: Under 15 SEER, under 12.5 EER
High Eff 15+ SEER, 12.5 EER
Eligibility
You must be an Xcel Energy Residential Electric Customer
If you have more than one qualifying new AC system, you may receive rebates for each system. One application form is required per system
Rental properties are eligible for rebates. If you are the homeowner/landlord and not listed on the account for your tenant’s premise, or unsure, please have your tenant complete the “Alternate Rebate Recipient” section of the rebate application and authorize payment to you.
You can stay up to date on the latest Xcel Energy air conditioner rebates by visiting their website.
Inflation Reduction Act
30% of cost up to $600*
Equipment Requirements
*The terms & conditions for this program will be announced in the Spring of 2023 by the Department of Energy (DOE).
Helping you understand energy ratings and terminology:
EER — EER, or Energy Efficient Ratio, is a measurement of the cooling capacity of an air conditioning system in relation to the amount of energy it consumes.
SEER — SEER, or Seasonal Energy Efficiency Ratio, is a measurement of the cooling output of an air conditioning system over a typical cooling season, divided by the energy it consumes in Watt-hours.
Heat Pump Rebates
Rebate Offers
30% of cost up to $2,000
Equipment Requirements
ASHP: 16 SEER2, 12 EER2, 9 HSPF2
ducted: 10 EER2
mini-splits: SEER2 > 16, EER2 > 9, HSPF2 > 9.5
Eligibility
Principal Residence Owners
Must be an existing home & your principal residence. New construction and rentals do not apply.
A principal residence is the home where you live most of the time. The home must be in the United States. It can include a house, houseboat, mobile home, cooperative apartment, condominium, and a manufactured home.
You can stay up to date on the latest Energy Star heat pump rebates by visiting their website.
Rebate Offers
Excel Energy offers the following Heat Pump standard rebates:
ASHP: $1,500
ccASHP: $2,000
MSHP: $1,500
ccMSHP: $2,000
GSHP (rplc electric): $300/ton, up to $1,500 + $500 bonus
GSHP (rplc nat gas): $400/ton, up to $2,000 + $500 bonus
Equipment Requirements
ASHP: 15+ SEER, 11.5+ EER, 9+ HSPF
ccASHP: 18+ SEER, 11.5+ EER, 9.5 HSPF
MSHP: 15+ SEER, 11+ EER, 9+ HSPF
ccMSHP: 18+ SEER, 11+ EER, 9.5+ HSPF
GSHP (rplc electric): 14.1+ EER
GSHP (rplc nat gas): 14.1+ EER
Eligibility
Heat Pump Rebate Eligibility
To qualify for a rebate on a heat pump, you must:
- Be a residential electric customer of Xcel Energy in Colorado
- Equipment must be installed by a current participating contractoropens in a new window
Installation Requirements
In order to qualify for this rebate, your contractor must be a current participating contractor.
Rental Property Rebate Eligibility
Rental properties are eligible for rebates. If you are the homeowner/landlord and not listed on the account for your tenant’s premise, or unsure, please have your tenant complete the Alternate Rebate Recipient section of the rebate application and authorize payment to you.
You can stay up to date on the latest Xcel Energy heat pump rebates by visiting their website.
State of Colorado Tax Incentive
12.9% tax incentive
Payment
Only applies to equipment costs. Does not include installation costs. Total state tax incentive includes a tax credit (10%) and sales tax exemption (2.9%) on the equipment price for a total of 12.9% credit for those with enough tax liability.
Eligibility
Only applies to equipment costs. Does not include installation costs. Total state tax incentive includes a tax credit (10%) and sales tax exemption (2.9%) on the equipment price for a total of 12.9% credit for those with enough tax liability.
Learn more about Colorado Inflation Reduction Act Rebates.
Denver Climate Action Rebates Program
Denver offers the following standard rebates, with up to 100% of the actual cost available to income-qualified residents:
ASHP: $1,500
ccASHP: $3,500
MSHP: $1,500
ccMSHP: $3,500
GSHP: $3,500
Equipment Requirements
ASHP: 15 SEER5, 11.5 EER, 9 HSPF+
ccASHP: 15+ SEER2, 10+ EER2, 8.1+ HSPF2
MSHP: 15+ SEER, 11+ EER, 9+ HSPF
ccMSHP: 16+ SEER2, 9+ EER2, 9.5+ HSPF2
GSHP: 16+ EER2
Program Eligibility
To utilize this program:
- You must live in the City and County of Denver
- You must apply the rebate to a project at an existing residence. New construction is not eligible
- Project location must be in an existing single-family homes or multi-family building of 4 units or less
- You must be Xcel Energy customer
Learn more about Denver heat pump rebates.
Inflation Reduction Act
30% of cost up to $600*
Equipment Requirements
*The terms & conditions for this program will be announced in the Spring of 2023 by the Department of Energy (DOE).
Helping you understand energy ratings and terminology:
ASHP — ASHP, or Air Source Heat Pump, is a type of heating and cooling system that transfers heat between the inside and outside of a building.
ccASHP — A ccASHP, or Cold Climate Air Source Heat Pump, is a type of ASHP specifically designed to work efficiently in cold climates with low temperatures.
ccMSHP — A ccMSHP, or Cold Climate Mini-Split Heat Pump, is a type of mini-split heat pump that is designed to operate efficiently in colder climates.
EER — EER, or Energy Efficient Ratio, is a measurement of the cooling capacity of an air conditioning system in relation to the amount of energy it consumes.
GSHP — GSHP, or Ground Source Heat Pump, is a type of heating and cooling system that uses the earth’s constant temperature to transfer heat between the ground and a building.
HSPF — HSPF, or Heating Seasonal Performance Factor, is a measurement of the heating efficiency of a heat pump over the course of a heating season.
MSHP — MSHP, or Mini-Split Heat Pump, is a type of heating and cooling system that uses an outdoor compressor unit and one or more indoor air-handling units to heat or cool individual rooms or zones in a building.
SEER — SEER, or Seasonal Energy Efficiency Ratio, is a measurement of the cooling output of an air conditioning system over a typical cooling season, divided by the energy it consumes in Watt-hours.
Water Heater Rebates
Rebate Offers
30% of cost up to $600
Equipment Requirements
> 0.81 UEF for tanks less than 55 gallons
> 0.86 UEF for tanks greater than or equal to 55 gallons
Eligibility
Principal Residence Owners
Must be an existing home & your principal residence. New construction and rentals do not apply.
A principal residence is the home where you live most of the time. The home must be in the United States. It can include a house, houseboat, mobile home, cooperative apartment, condominium, and a manufactured home.
You can stay up to date on the latest Energy Star water heater tax credits by visiting their website.
Rebate Offers
Natural Gas:
Medium Draw Standard Tank Water Heater: $50 rebate
High Draw Standard Tank Water Heater: $50 rebate
Tankless Water Heater: $100 rebate
Electric:
Electric Heat Pump Water Heater: $600 rebate
Smart Electric Heat Pump Water Heater: $800 rebate
Equipment Requirements
Natural Gas:
Medium Draw Standard Tank Water Heater – 0.64 UEF
High Draw Standard Tank Water Heater – 0.68 UEF
Tankless Water Heater – 0.87 UEF
Electric:
Electric Heat Pump Water Heater
Smart Electric Heat Pump Water Heater
Eligibility
To qualify for a rebate on a natural gas water heater, you must:
- Be a residential natural gas customer of Xcel Energy in Colorado
- Installation can be self-install or by a contractor on our list of current Water Heater Contractors
To qualify for a rebate on an electric heat pump water heater, you must:
- Be a residential electric customer of Xcel Energy in Colorado
- In order to be eligible for a rebate, a mixing valve MUST be installed for all heat pump water heaters, regardless of the rebate tier.
You can stay up to date on the latest Xcel Energy water heater rebates by visiting their website.
Inflation Reduction Act
30% of cost up to $600*
Equipment Requirements
*The terms & conditions for this program will be announced in the Spring of 2023 by the Department of Energy (DOE).
Helping you understand energy ratings and terminology:
UEF —UEF, or Uniform Energy Factor, is a measurement of the overall energy efficiency of a water heater that takes into account both its hot water production and standby energy losses over a day.
Own A Rental Property?
As a rental property owner, you too may be eligible for these money-saving rebates from Xcel.
Tenants receiving the energy bill may sign over the rebate to the property owner (i.e. you) on the rebate application form under the Alternate Rebate Recipient section.
This provides you with an incentive to upgrade your furnace system, and your tenants with a safer and better forming heating unit.
Getting Your Xcel Rebate: The Process
Step 1
Purchase a qualifying system from 888 Heating and Cooling.
Step 2
Have our team of talented HVAC technicians install your new system.
Step 3
Fill out and return your rebate application form to Xcel for review and processing.
