Electric efficiency
2025$72.7M spent of $93.0M flex budget
Tick: base budget, $78.8M
Data through Sep 30, 2025, not updated since
Source: Budget Transparency dashboard: Electric Energy Efficiency.Xcel Energy Colorado, heat pump rebates
Xcel's heat pump rebate budget for 2026 and 2027
Xcel told the PUC its 2026 Clean Heat money for heat pump bonuses would run out in October, and borrowed $20.5M from 2027 to keep paying. That leaves $84.9M approved for 2027 bonuses, 11% less than 2026 had. The PUC decides the rest of 2027 and beyond in April 2027.
Figures checked November 10, 2026 against Xcel and PUC filings. Xcel publishes spending quarterly; the next update is expected in mid November.
- 2026 Clean Heat heat pump budget, after the transfer and flex
- $110.1M
- approved for 2027, before flex
- $84.9M
- Clean Heat rebates paid Jan to Aug 2026
- $57.7M
01
Where a heat pump rebate comes from
Every Xcel heat pump rebate is paid from two budgets. The standard rebate ($750 per heating ton on a cold climate system) comes from the 2024 to 2026 DSM and Beneficial Electrification plan. The bonus for homes with Xcel gas comes from the 2024 to 2027 Clean Heat Plan, which exists to cut gas use under a 2021 state law.
The PUC sets both budgets by year. Xcel can go up to 20% over the DSM budget and 15% over the Clean Heat budget by filing a 60-day notice. Until October 2026 it had no way to borrow from a future year.
One rebate, two budgets
| Budget | Plan years | Pays | Per heating ton since Oct 1, 2026 | Flex allowed over the budget |
|---|---|---|---|---|
| DSM and Beneficial Electrification plan | 2024 to 2026 | Standard rebate | $750 | 20% |
| Clean Heat Plan | 2024 to 2027 | Bonus, homes with Xcel gas | $750 | 15% |
02
2026: the bonus ran short in October
Clean Heat paid $57.7M in heat pump rebates from January through August 2026, more than the $37.8M it paid in all of 2025. August alone was $13.1M. Xcel halved the bonus on October 1, but it told the PUC the cut would not stop the money from running out that month, because jobs invoiced before October 1 still got the old amount.
On October 21 the PUC let Xcel move $20.5M of 2027 money into 2026. Xcel sized that number to its own forecast of 2026 spending, so it expects to use nearly all of it. Money left at year end cannot roll into 2027.
2026 Clean Heat heat pump budget
| Layer | Amount | Running total |
|---|---|---|
| Approved base | $75.2M | $75.2M |
| Transfer from 2027 | $20.5M | $95.7M |
| 15% flex | $14.4M | $110.1M |
| Rebates paid Jan to Aug 2026 | $57.7M |
The transfer, 2026 and 2027
| Year | Approved in 2024 | Change | After Oct 21, 2026 |
|---|---|---|---|
| 2026 | $75.2M | +$20.5M | $95.7M |
| 2027 | $105.4M | -$20.5M | $84.9M |
03
Rebates paid each month, 2025 and 2026
Clean Heat heat pump rebates paid, by month
| Month | 2025 dollars | 2025 rebates | 2026 dollars | 2026 rebates |
|---|---|---|---|---|
| Jan | $0.0M | 0 | $0.5M | 60 |
| Feb | $0.0M | 0 | $7.3M | 1,839 |
| Mar | $0.8M | 241 | $5.7M | 1,282 |
| Apr | $1.7M | 479 | $7.4M | 1,787 |
| May | $3.0M | 823 | $9.0M | 1,846 |
| Jun | $2.5M | 716 | $7.6M | 1,595 |
| Jul | $4.2M | 1,176 | $7.1M | 1,508 |
| Aug | $4.7M | 1,315 | $13.1M | 2,923 |
| Sep | $4.8M | 1,313 | not reported | not reported |
| Oct | $6.6M | 1,800 | not reported | not reported |
| Nov | $2.6M | 667 | not reported | not reported |
| Dec | $6.9M | 1,384 | not reported | not reported |
04
Heat pump budgets, 2025 to 2027
Heat pump budget by year and pot
| Year and pot | Base | With flex | Spent |
|---|---|---|---|
| 2025 DSM/BE | $24.2M | $29.0M | $27.9M |
| 2025 Clean Heat | $54.8M | $63.0M | $58.3M |
| 2026 DSM/BE | $43.9M | $52.7M | |
| 2026 Clean Heat | $95.7M | $110.1M | |
| 2027 DSM/BE | not set | not set | |
| 2027 Clean Heat | $84.9M | $97.6M |
05
Where the 2025 money went
Xcel only breaks spending down by program for the DSM pot. In 2025 that pot spent $27.9M against a $24.2M budget. Residential Heating and Cooling, the program that pays furnace-to-heat-pump rebates, spent $18.6M against a budget of $8.9M. Business heat pump programs spent $0.2M of $4.7M.
About 90% of the pot went out as rebates. The rest was program delivery, advertising, and measurement.
2025 DSM/BE heat pump spending, by segment
| Segment | Budget | Actual |
|---|---|---|
| Residential | $10.9M | $20.0M |
| Income qualified | $6.5M | $6.6M |
| Business | $4.7M | $0.2M |
| Planning, research, education | $2.1M | $1.2M |
2025 residential programs, budget and actual
| Program | Budget | Actual |
|---|---|---|
| Residential Heating & Cooling | $8.9M | $18.6M |
| New home construction | $1.5M | $0.8M |
| Whole Home Efficiency | $0.1M | $0.2M |
| Advertising | $0.3M | $0.4M |
2025 DSM/BE heat pump spending, by cost type
| Cost type | Actual |
|---|---|
| Rebates and incentives | $25.0M |
| Program delivery and admin | $1.9M |
| Advertising | $0.7M |
| Measurement and verification | $0.3M |
06
Who is installing
Through June 2026, Xcel's residential program rebated 8,484 heat pumps and heat pump water heaters, against 921 furnaces. 99% of ducted heat pumps were cold climate models. Denver led with 1,471, followed by Fort Collins, Boulder, and Littleton.
Heat pumps rebated by type, Jan 1 to Jun 30, 2026
| Equipment | Rebated | Cold climate share |
|---|---|---|
| Ducted heat pump | 6,215 | 99% |
| Mini-split | 1,744 | 96% |
| Heat pump water heater | 507 | |
| Ground source | 18 |
Heat pumps rebated, top 9 cities, Jan 1 to Jun 30, 2026
| City | Rebated |
|---|---|
| Denver | 1,471 |
| Fort Collins | 680 |
| Boulder | 655 |
| Littleton | 616 |
| Aurora | 463 |
| Longmont | 347 |
| Lakewood | 324 |
| Arvada | 322 |
| Westminster | 296 |
07
2027: less bonus money, and most of the budget still undecided
The Clean Heat bonus has $84.9M approved for 2027, or $97.6M with flex. At 2026's average pace through August ($7.2M a month) that would last about 12 months; at August's pace, about 6 and a half. These are straight division, not a forecast: the bonus per ton is lower now, so each rebate costs Xcel less.
The standard rebate's 2027 budget does not exist yet. It is part of Xcel's 2027 to 2030 plan, filed July 1, 2026, which the PUC expects to decide in April 2027. Xcel also has to report by July 1, 2027 how much 2027 Clean Heat money is left and whether rebate levels should change.
$84.9M divided by a month of rebates
| Pace | Per month | Months covered |
|---|---|---|
| 2026 average, Jan to Aug | $7.2M | 11.8 |
| Aug 2026 alone | $13.1M | 6.5 |
08
2028 to 2030: what Xcel has asked for
Xcel's plan asks for $194M to $256M a year for Clean Heat programs from 2027 through 2030. That line covers electrification and gas efficiency together; Xcel's budget attachment does not split out heat pump rebates. None of it is approved.
Clean Heat budget Xcel has asked for, 2027 to 2030
| Year | Clean Heat, proposed | All programs, proposed |
|---|---|---|
| 2027 | $194.2M | $454.7M |
| 2028 | $212.0M | $477.8M |
| 2029 | $234.5M | $522.8M |
| 2030 | $255.8M | $561.0M |
09
What this means if you are replacing a furnace
For a 2026 install, the money is there. Xcel's 2026 program requires install and invoice by December 31, 2026, and Xcel says applications filed near year end will take longer to pay.
For 2027, nobody outside Xcel knows the rebate amounts yet. The bonus pot is smaller, the standard rebate's budget is undecided until April, and Xcel can change amounts during the year, as it did on October 1.
When we install your system, the Xcel rebate comes off the invoice and we file the application. If Xcel is slow to pay, we wait, not you.
Key dates
Jun 15, 2026
Aug 5, 2026
Xcel tells contractors the heat pump bonus will be halved on Oct 1
Sep 10, 2026
Xcel says DSM/BE heat pump flex money will be needed in Q3 and Q4
Oct 1, 2026
Bonus halved: cold climate rebate goes from $2,250 to $1,500 per heating ton
Oct 13, 2026
Oct 19, 2026
Oct 21, 2026
Dec 31, 2026
Last install and invoice date for Xcel's 2026 heat pump program
April 2027
Jul 1, 2027
Deadline for Xcel to report how much 2027 Clean Heat money is left
Sep 30, 2027
Since 2014
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10
Xcel's other Colorado program budgets
Xcel publishes a budget dashboard for each program family. The electric efficiency, gas efficiency, and electrification dashboards have not been updated since September 30, 2025. The EV dashboard runs through October 16, 2026 and the solar and battery dashboard through September 15, 2026.
Gas efficiency
2025$12.1M spent of $41.0M flex budget
Tick: base budget, $33.6M
Data through Sep 30, 2025, not updated since
Source: Budget Transparency dashboard: Gas Energy Efficiency.Beneficial electrification (Xcel dashboard)
2025$35.9M spent of $87.2M flex budget
Tick: base budget, $78.8M
Data through Sep 30, 2025, not updated since
Source: Budget Transparency dashboard: Beneficial Electrification.EV programs, homes
2024-2026$16.9M spent of $26.7M budget
Data through Oct 16, 2026
Source: Budget Transparency dashboard: Clean Transportation.EV programs, business
2024-2026$172.6M spent of $175.0M budget
Commercial charger rebates, EV rebates and company-owned chargers are at capacity.
Data through Oct 16, 2026
Source: Budget Transparency dashboard: Clean Transportation.Solar and battery programs, homes
2026$2.2M spent of $13.6M budget
Data through Sep 15, 2026
Source: Budget Transparency dashboard: Renewables.Frequently Asked Questions
11
Sources
Every number on this page comes from an Xcel filing or a PUC decision. Spending is preliminary until Xcel's annual status report, usually filed in April.
Xcel Energy (16)
- Heat Pumps, Colorado residential (program dates)Nov 10, 2026
- Colorado Demand-Side Management (Budget Transparency tab)Nov 10, 2026
- Budget Transparency dashboard: Clean TransportationOct 16, 2026
- Unopposed Motion to move 2027 Clean Heat funds into 2026 (Proceeding 23A-0392EG)Oct 13, 2026
- Budget Transparency dashboard: RenewablesSep 15, 2026
- 60-Day Notice: DSM/BE beneficial electrification and gas EE flex budgetSep 10, 2026
- DSM Roundtable, Q2 2026 program presentationAug 12, 2026
- 2027-2030 Integrated Customer Program Plan, Hearing Exhibit 101 Attachment 3 (Budget)Jul 1, 2026
- 60-Day Notice: Clean Heat Plan budget flex for 2026Jun 15, 2026
- 2025 Colorado DSM Annual Status Report (Tables 12a, 12b)Apr 1, 2026
- 60-Day Notice: Clean Heat beneficial electrification flex budget (2025 overspend)Mar 9, 2026
- Budget Transparency dashboard: Beneficial ElectrificationNov 13, 2025
- Budget Transparency dashboard: Electric Energy EfficiencyNov 13, 2025
- Budget Transparency dashboard: Gas Energy EfficiencyNov 13, 2025
- 2024-2026 DSM & Beneficial Electrification Plan (Tables 6c, 6e)Dec 6, 2024
- Updated 2024-2027 Clean Heat Plan (Table 2, approved budget)Nov 1, 2024