Utility Rebates
Xcel Energy Rebates,
Without the Runaround
Xcel is the biggest rebate source for most Front Range homes, and the one with the most rules: participating contractors, blower door verification, bonus windows that depend on the order you do things in. This page covers the three categories that matter most for homeowners, insulation and air sealing, HVAC and heat pumps, and water heaters, and how we sequence a project so nothing is left on the table.
Eligibility
Who qualifies
Xcel rebates follow the meter. If Xcel bills you for the fuel that heats your home, its residential rebates apply.
Rates and rules on this page last verified September 2026. We re-confirm at quote time.
Residential Xcel customer in Colorado
Natural gas heating or electric heating customers. Heating customers get the highest rebate tier.
Existing single-family or small multifamily
Up to four units per building. New construction, additions, garages, sheds, mobile homes, and buildings with five or more units are excluded.
Participating contractor
Insulation and air sealing must be installed by a current participating contractor, to program requirements.
Measured results
Air sealing must cut the home’s air leakage (NACH50) by at least 20% on a before-and-after blower door test. Walls must have no existing insulation to qualify for the wall rebate.
What It Pays
Insulation and air sealing
For Xcel heating customers, from the program’s published schedule.
| Measure | Incentive | Requirements |
|---|---|---|
| Air sealing | 30% of project cost, up to $200 | At least a 20% reduction in NACH50, verified by blower door |
| Attic insulation | 30% of project cost, up to $400 | |
| Wall insulation | 30% of project cost, up to $350 | Walls must be uninsulated before the work |
| Envelope-first heat pump bonus | $600 | Rebate-qualifying insulation and air sealing installed before a rebate-qualifying space-heating heat pump, within two years of each other |
Xcel also runs bonus rebates for customers who heat with Xcel natural gas, which can raise these figures. Amounts and promotions change through the year, so we confirm your exact stack at quote time.
What It Pays
HVAC, heat pumps, and water heaters
Amounts in these categories change with equipment efficiency tier and current promotions, so we quote the exact figure for the model going into your home instead of publishing numbers that go stale.
| Measure | Incentive | Requirements |
|---|---|---|
| Cold-climate air source heat pumps | Tiered by efficiency | Depends on SEER2 and HSPF2 rating and cold-climate certification |
| High-efficiency furnaces and central AC | Tiered by efficiency | |
| Heat pump water heaters | Rebate available | |
| Smart thermostats | Rebate available |
How We Handle It
What PowerHouse does with this program
Confirm your territory
Gas heating, electric heating, or both changes the amount. We check before quoting.
Blower door on both ends
The 20% leakage reduction is measured. We test before and after and keep the numbers with your paperwork.
Sequence for the bonus
Envelope first, heat pump within two years, and the $600 bonus attaches. We plan the order so it does.
Filed as a participating contractor
The application, the test results, and the invoice go in for you.
FAQs
Xcel Energy questions, answered
Does Xcel require an energy audit before an insulation rebate?
No. Xcel does not require an audit, but it does require a measured air leakage reduction of at least 20% for the air sealing rebate, which means a blower door test before and after. We run it either way, because it is how you know the job worked.
Can I use any contractor?
For insulation and air sealing rebates, no. The work must be done by a current participating contractor, to program requirements.
What is the $600 bonus?
If you install rebate-qualifying insulation and air sealing first and then a rebate-qualifying space-heating heat pump within two years, Xcel adds a $600 bonus. Doing the envelope first is also just the right order, because a tighter house needs a smaller heat pump.
Do Xcel rebates stack with Efficiency Works?
Yes, where your home has city electric and Xcel gas, which describes a lot of Fort Collins, Loveland, and Longmont. Different utilities, different programs, same job.
Are the amounts fixed?
No. Xcel runs promotions and bonus tiers that change through the year. We confirm the current figures for your address at quote time.
Get Started Today
Find out what Xcel Energy is worth for your home
One free quote confirms which programs your address qualifies for, what they pay right now, and what your project actually costs after we have filed every one of them.
970-825-0950