Xcel Aurora F-3 Project Rebates
Xcel is paying homeowners in one part of central Aurora to replace gas heat with electric. The heat pump rebate is up to $15,000, through December 31, 2026. It does not cover the whole job, and it requires removing your gas furnace or boiler. Dual fuel with a new 95% furnace gets $3,000 plus the standard Xcel rebate instead. We take the rebate off your invoice.
Updated September 1, 2026•By Editorial Staff
Xcel Aurora F-3 Project
For boundary and program questions, Xcel answers directly
What Aurora F-3 Pays
Xcel's gas lines in part of central Aurora are near capacity. Rather than add pipe, Xcel is paying homeowners in that area to switch from gas heat to electric. That is the Aurora F-3 Project.
The heat pump rebate is up to $15,000, and it requires removing your gas furnace or boiler. Standard Xcel pays $6,750 on a 3-ton system, so F-3 is more than double. It does not make the job free. An all-electric system runs $23,500 to $25,500, so you still pay $6,000 to $8,000 after every rebate, more if you need a panel upgrade. Those are example numbers. Every house quotes differently.
It runs through December 31, 2026. UniColorado takes the rebate off your invoice up front.
Xcel pays the invoice amount up to each cap. Source: Xcel rebate summary, June 22, 2026.
- Upgrade
- Cold climate heat pump (ducted or ductless)
- F-3 rebate
- Up to $15,000
- Upgrade
- Ground source heat pump
- F-3 rebate
- Up to $15,000
- Upgrade
- 95% gas furnace replacing an older one (if you keep gas)
- F-3 rebate
- Up to $3,000
- Upgrade
- Heat pump water heater
- F-3 rebate
- Up to $3,500
- Upgrade
- Wall insulation
- F-3 rebate
- Up to $3,600
- Upgrade
- Attic insulation
- F-3 rebate
- Up to $2,550
- Upgrade
- Air sealing
- F-3 rebate
- Up to $1,200
Why Xcel Is Doing This
On the coldest mornings of the year, the gas lines feeding this part of Aurora run close to their limit. The usual fix is a new pipeline project. Xcel is trying something else first.
Xcel calls it a non-pipeline alternative, or NPA. Instead of building more gas capacity, Xcel pays homes in the constrained area to need less gas on peak days: heat pumps, insulation, air sealing, and higher efficiency furnaces. If enough homes take part, the pipeline project can be delayed or dropped. That is cheaper for Xcel and its ratepayers than new infrastructure, which is why the rebates are so much larger than the standard program.
Xcel is clear that this is not about ending gas service. It is about cutting peak demand in one specific spot. That is also why the rebates only apply inside the boundary and only through 2026.
Do You Qualify?
You qualify if
Address inside the F-3 boundary (check the map below)
Xcel natural gas account (gas only, or gas and electric)
Existing home with a gas furnace or boiler
Not eligible if
Outside the boundary, even with an Aurora address
Home already heated with electric baseboard or a heat pump
New construction, or a garage or basement that was never heated
Is Your Address in the F-3 Area?
Type an address or click a spot on the map. The line is traced from the streets Xcel names in its rebate summary; Xcel's own map has the final say.
Roughly: Montview on the north, Mississippi on the south, Monaco and Quebec on the west, Sable and Chambers on the east. Lowry is inside the line even though it is Denver. If the checker puts you close to the line, send us the address and we will confirm with Xcel.
Xcel's boundary, clockwise from the northwest corner:
- Montview Blvd. from Quebec St. east to Lansing St.
- Lansing St. south to Colfax Ave.
- Colfax Ave. east to Sable Blvd.
- Sable Blvd. south, with a jog east on 13th Ave. to Chambers Rd., south to 6th Ave., and back to Sable
- Sable Blvd. south to Ellsworth Ave., then west to I-225
- I-225 south to Mississippi Ave.
- Mississippi Ave. west to Dayton St.
- Dayton St. north to Alameda Ave.
- Alameda Ave. west to Monaco Street Pkwy.
- Monaco north to 8th Ave., east to Quebec St., north to Montview
Xcel's PDF map is the official version.
The Furnace Has to Go
The $15,000 is for homes that switch fully to electric heat. Xcel confirmed it to us in writing on September 1, 2026: the gas furnace or boiler comes out, and the heat pump carries the whole house with electric backup heat. Your gas water heater can stay.
We size the system from a load calculation and use Mitsubishi, Bosch, or Carrier cold climate models that meet Xcel's minimums. Some homes need a panel upgrade for all-electric heat, which F-3 does not cover. We check that on the estimate.
Want to keep gas? A heat pump paired with a new 95% furnace (dual fuel) gets up to $3,000 from F-3 for the furnace, if it replaces an older 80% model, plus the standard Xcel heat pump rebate. Not the $15,000. We can quote it, but inside F-3 all-electric is where the money is.
What You Pay After Rebates
F-3 replaces the standard Xcel heat pump rebate. You get one or the other. The state tax credit and Power Ahead still add on. As an example, an all-electric 3-ton Mitsubishi at $23,500 to $25,500 before rebates:
- Xcel rebate
- Outside F-3
- $6,750
- Inside F-3
- $15,000
- State credit + Power Ahead
- Outside F-3
- $2,500
- Inside F-3
- $2,500
- You pay
- Outside F-3
- $14,250 to $16,250
- Inside F-3
- $6,000 to $8,000
These are examples for an all-electric 3-ton system. Costs vary by house, system size, and brand. A panel upgrade, if needed, is extra. The standard Xcel amount drops to $1,500 per ton on October 1, 2026. Xcel has confirmed the F-3 amounts do not change.
Get Your F-3 Number
Send us your address. We confirm the boundary with Xcel, then put the F-3 rebate on your estimate.
How It Works
Address Check
We confirm your home is inside the boundary
Estimate
All-electric system sized from a load calculation, F-3 rebate shown as a discount
Install
Heat pump in, gas furnace out, by December 31, 2026
We File
You and we sign the F-3 form. We submit it through Xcel's online portal. Xcel pays UniColorado in 6 to 8 weeks
You pay the net price. We file the F-3 paperwork and Xcel pays us. Nothing for you to mail or chase.
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