Xcel Energy Rebate Information

With inflation on the rise, it’s more important than ever for homeowners to try to find new ways to save money. Investing in a new high-efficiency heat pump can help to conserve energy and lower your monthly utility costs. What’s more, homeowners in Denver, CO and the surrounding areas may be eligible to qualify for significant HVAC rebates that could help offset the initial cost of installing these new systems. At Apple Aire Heating & Cooling, we’re here to help you understand these HVAC rebates and find the best equipment for your needs.

Xcel Energy Rebates

Xcel Energy is offering rebates for qualifying air-source and cold-climate heat pump systems, with amounts based on equipment efficiency and size. For cold-climate air-source heat pumps that meet Xcel’s efficiency criteria, rebates can amount to significantly higher per-ton payouts (especially when paired with bonus incentives)— with typical total rebates often reaching several thousand dollars on qualifying systems.

Homeowners and residential landlords in Colorado must be Xcel Energy electric and/or natural gas customers to be eligible for these rebates, and all qualifying equipment must be installed by a participating Xcel rebate contractor. Systems installed in multi-unit residential properties (like duplexes or four-plexes) can also qualify, and you can receive rebates for each qualifying new heat pump system installed.

Minimum Requirements for Standard Air-Source Heat Pump— Ducted/Non-Ducted or Mixed (combination of ducted and non-ducted)

Efficiency Minimums: 15.2+ Seasonal Energy Efficiency Ratio (SEER2), 11.7+ Energy Efficiency Ratio (EER2), 7.8+ Heating Seasonal Performance Factor (HSPF2)

· Standard Rebate: $300/cooling ton at 95°F

· Rebate Total with Bonus: $900/cooling ton at 95°F

Minimum Requirements for Cold Climate Air-Source Heat Pump— Ducted or Mixed (Combination of Ducted and Non-Ducted)

· Efficiency Minimums: 15.2+ Seasonal Energy Efficiency Ratio (SEER2), 10+ Energy Efficiency Ratio (EER2), 8.1+ Heating Seasonal Performance Factor (HSPF2)

· Additional Requirements: The unit must be listed on ashp.neep.org and must have a heating capacity at 5°F of at least 70% of the heating BTU at 47°F

· Standard Rebate: $750/heating ton at 5°F

· Rebate Total with Bonus: $2,250/ heating ton at 5°F

Minimum Requirements for Cold Climate Air-Source Heat Pump— Non-Ducted (Mini Split/Ductless)

· Efficiency Minimums: 16+ Seasonal Energy Efficiency Ratio (SEER2), 9+ Energy Efficiency Ratio (EER2), 9.5+ Heating Seasonal Performance Factor (HSPF2)

· Coefficient of Performance (COP)— at 5 F ≥ 1.75

· Additional Requirements: The unit must be listed on ashp.neep.org and must have a heating capacity at 5°F must be at least 70% of the 47°F rated heating capacity

· Standard Rebate: $750/heating ton at 5°F

· Rebate Total with Bonus: $2,250/ heating ton at 5°F

Bonus Rebate Eligibility

· Effective November 16th, 2025, rebate bonuses will no longer be available for customers with existing electric heating systems (e.g. electric baseboard heat, electric radiant heat, electric furnace, customer has existing heat pump and installs a new heat pump). However, these customers will still be eligible for standard rebates amounts.

· This change only applies to customers who have existing electric baselines. Customers with electric baseline heating will only qualify for the standard rebate amount. Customers with homes with natural gas or non-electric primary heating will receive the bonus amount.

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EER2, HSPF2, SEER2, and COP are efficiency ratings used to measure how efficiently heating and cooling systems operate under different conditions.

· SEER2 (Seasonal Energy Efficiency Ratio) measures a heat pump or air conditioner’s cooling efficiency over an entire cooling season. A higher SEER2 means lower electricity use during normal summer operation.

· EER2 (Energy Efficiency Ratio) measures cooling efficiency at a specific high outdoor temperature. It reflects real-world performance during peak summer heat and is useful for comparing how systems perform on the hottest days.

· HSPF2 (Heating Seasonal Performance Factor) measures a heat pump’s seasonal heating efficiency, averaged across the heating season. Higher HSPF2 ratings indicate better cold-weather performance and lower heating costs.

· COP (Coefficient of Performance) measures instant heating efficiency at a specific outdoor temperature, showing how much heat is delivered for each unit of electricity used. A COP of 2.0 means the system produces two units of heat for every unit of electricity consumed.