Did Xcel Just Triple Their HVAC Rebates?

The 2025 rebate increase represents a near-tripling of previous amounts for most system types. For a typical 3-ton cold climate heat pump installation, homeowners can now receive $6,750 in rebates compared to $2,250 in 2024, a 3x increase.

This dramatic increase makes 2025 the best year in Colorado history to upgrade to a heat pump. At UniColorado, we've seen this translate to total project savings of $8,000-$12,000 when stacked with federal and local incentives.

Xcel significantly increased their heat pump rebates to help homeowners switch to greener and more efficient systems. This is part of Colorado's Clean Heat Plan, which directs utility providers to reduce emissions and rely on fossil fuels less.

The goal is to make energy-efficient systems like heat pumps more affordable for everyone. By upgrading, homeowners can save on energy bills, reduce their carbon footprint, and help Colorado hit its clean energy targets.

In the process, homeowners can also put extra money back in their pocket when they upgrade their HVAC system.

• Eligibility: You must have an active Xcel gas or gas/electric service at your property. The system you want to install must meet Xcel's energy efficiency criteria.
• Hire a Qualified Contractor: Most rebates require installation by a certified professional like UniColorado Heating & Cooling. The contractor must ensure your installation meets all the requirements. Mini-splits and heat pump water heaters are the exception and allow DIY installation.
• Application Process: Homeowners cannot apply for rebates directly. Your contractor must submit the application to Xcel. At UniColorado, we take care of the entire process for you. We provide Xcel rebates as a discount upfront.
• Act Quickly: Rebates are available for a limited time, and terms may change at any time. Don't miss this opportunity to save big on your upgrade.

Xcel's HVAC rebates are funded through a mix of utility initiatives and state mandates. Here's how it works:

• Utility Efficiency Programs: Xcel allocates a portion of the money collected from utility bills to fund energy-saving programs like rebates. This helps the utility meet state efficiency and emission reduction targets.
• Colorado's Clean Heat Plan: Legislation like the Clean Heat Plan requires utilities to take steps to lower greenhouse gas emissions. To comply, Xcel invests in programs that encourage homeowners to switch to energy-efficient systems.
• Shared Benefits: While part of the funding comes from utility budgets, the overall goal is to reduce energy consumption and emissions. This benefits everyone by keeping future energy costs down and improving environmental sustainability.

By taking advantage of these rebates, you're not only saving money, but also helping Colorado achieve a cleaner, greener future.

Xcel Energy has stated that the 2025 HVAC rebate program is expected to run for 8 to 12 months, starting in early 2025. However, Xcel can modify, change, or pull rebates at any time at their discretion.

Homeowners can do the following to ensure they don't miss this opportunity:

• Act Quickly: Reach out to UniColorado Heating & Cooling early in the year to start your upgrade process.
• Secure Your Rebate: Rebates are distributed on a first-come, first-served basis, so it's better to act now than wait.

Remember, this is a time-sensitive opportunity, and there's no guarantee the program will be renewed at the same levels in the future. Don't miss your chance to save big while upgrading to a more energy-efficient system.

Yes! Homeowners in Colorado can potentially stack multiple rebate programs for even greater savings. In addition to Xcel's 2025 rebates, here are some other options you can explore:

• Denver residents: CARe ended; see current Denver-area programs.
• EnergySmart for Boulder county residents
• Colorado Heat Pump Tax Credit for all Colorado residents
• Federal Tax Credit (25C): ended December 31, 2025
• HEAR Rebates (income-qualified federal incentives, now available)