Xcel Energy Energy Rebates
Quick Answer: Xcel Energy offers up to $2,000 for cold-climate heat pumps, $400 for central air conditioners, and $50 for ENERGY STAR smart thermostats. HVAC rebates are available in Colorado and Minnesota. Apply at xcelenergy.com/rebates. Minnesota customers can also access the Home Energy Squad program for additional savings.
Xcel Energy is a major investor-owned utility serving approximately 3.7 million electricity customers and 2.1 million natural gas customers across eight states. The company's most significant residential rebate programs operate in Colorado, Minnesota, and Wisconsin, where Xcel Energy is the dominant utility provider. Xcel Energy's residential rebate portfolio covers high-efficiency air conditioners, heat pumps, smart thermostats, insulation, and water heaters. Gas furnace rebates were discontinued January 1, 2026. The utility has committed to delivering 100% carbon-free electricity by 2050 and is actively expanding its electrification rebates to help customers transition away from fossil fuel heating. Rebate amounts and available programs vary by state, so customers should check their specific state's offerings through the Xcel Energy website.
Quick Answer
Xcel Energy offers up to $2,000 for cold-climate heat pumps (ducted), $400 for central air conditioners, $600 for insulation, and $50 for ENERGY STAR smart thermostats in Colorado and Minnesota. Gas furnace rebates were discontinued January 1, 2026. Apply at xcelenergy.com/rebates. Minnesota customers also access the Home Energy Squad program ($50–$100 visit, $400+ in installed energy-saving materials). Xcel rebates stack with Colorado and Minnesota state programs for $10,000+ in total savings.
Service area: Colorado (Denver metro, Front Range, mountain communities), Minnesota (Minneapolis-St. Paul metro, southern and western Minnesota), Wisconsin (western Wisconsin), and parts of Texas, New Mexico, Michigan, North Dakota, and South Dakota
These amounts were last checked against the utility's own website on .
Residential Heating and Cooling Rebates
Xcel Energy's residential HVAC rebate program provides incentives for upgrading to high-efficiency heating and cooling equipment. Rebates are available for air conditioners, heat pumps, and smart thermostats. Gas furnace and boiler rebates were discontinued January 1, 2026. Equipment must meet minimum efficiency standards that vary by state and climate zone.
| Equipment | Rebate Amount | Details |
|---|---|---|
| Air Source Heat Pump, ducted or non-ducted | $300 to $900 per cooling ton | $300 standard, $900 with the fuel-burning system bonus. |
| Cold Climate Air Source Heat Pump | $750 to $2,250 per heating ton | Standard and bonus rates. |
| Smart Thermostat | $50 | Qualifying models. |
Home Energy Squad
Xcel Energy's Home Energy Squad program (available in Minnesota) sends a team of energy experts to your home for a comprehensive energy visit. The team installs energy-saving materials during the visit and provides personalized recommendations for larger upgrades. The visit costs approximately $50-$100 depending on the services selected, and delivers an average of $400+ in installed energy-saving materials.
Official Program PageHow to Apply for Xcel Energy Rebates
Here is how to apply for Xcel Energy residential rebates:
- Identify your state and service area: Xcel Energy rebates vary by state. Log into your Xcel Energy account to see rebates specific to your location, or select your state on the rebates page.
- Schedule a Home Energy Squad visit (Minnesota): If you are in Minnesota, start with a Home Energy Squad visit. The team will install immediate energy-saving measures and provide a roadmap for larger upgrades with specific rebate amounts. Call 612-330-6068 or book online.
- Choose qualifying equipment: Review Xcel Energy's qualified equipment list for your state. Efficiency requirements vary by region and climate zone. Ensure your chosen model meets the minimum specifications.
- Get installation quotes: Obtain quotes from licensed contractors. Xcel Energy maintains a network of participating trade allies who are familiar with program requirements and can help with rebate paperwork.
- Complete installation: Have the equipment installed by a licensed contractor. Retain all invoices, receipts, AHRI certificates (for HVAC equipment), and proof of old equipment disposal.
- Submit your rebate application: Visit xcelenergy.com/rebates and complete the online application. Upload all required documentation. You can also submit a paper application by mail.
- Receive your rebate: Xcel Energy typically processes rebates within 6 to 8 weeks. Payment is issued as a check or bill credit depending on the program and rebate amount.
Stacking with Federal Rebates
Utility rebates from Xcel Energy can typically be combined with the federal HOMES and HEAR rebates, but those are run state by state and most states have not launched them, so in much of the country there is currently nothing federal to combine with. This means you could potentially receive both a utility rebate and a federal rebate for the same improvement. Use our calculator to estimate your total savings.
Frequently Asked Questions
Do Xcel Energy rebates differ by state?
Yes, significantly. Xcel Energy operates in eight states, and each state has its own rebate portfolio based on local regulations, climate conditions, and energy efficiency goals. For example, Minnesota offers the Home Energy Squad program that is not available in Colorado. Colorado may have different rebate amounts for the same equipment. Always select your state on the Xcel Energy website to see accurate rebate information for your location.
What is the AC Rewards program and does it affect my rebate?
AC Rewards is Xcel Energy's voluntary demand response program. When you enroll, Xcel can briefly cycle your air conditioner during peak demand events (typically a few hot summer afternoons per year). In exchange, you receive an annual bill credit of $25-$40. Enrolling in AC Rewards does not affect your equipment rebate, but some smart thermostat rebates may offer a bonus for enrolling.
Can I get rebates from both Xcel Energy and my state government?
Yes. Xcel Energy rebates can typically be stacked with state-level incentives. In Colorado, for example, you can combine Xcel Energy rebates with Colorado Energy Office incentives, the Colorado Heat Pump Incentive, and federal HOMES or HEAR rebates. In Minnesota, Xcel Energy rebates can stack with the state's Conservation Improvement Program incentives. Check each program's stacking rules, as some cap the total incentive at a percentage of project cost.
Does Xcel Energy offer 0% financing like Mass Save?
Xcel Energy does not currently offer a 0% interest loan program comparable to Mass Save's HEAT Loan. However, the utility does partner with financing companies to offer low-interest loans for energy efficiency upgrades. In Minnesota, the Home Energy Squad program can connect you with financing options through the Center for Energy and Environment. Check your state's options on the Xcel Energy website.
How much can I save with Xcel Energy rebates in 2026?
With Xcel Energy rebates alone, you could receive up to $2,000 for a cold-climate heat pump, $400 for central AC, $600 for insulation, and $50 for a smart thermostat. Stack those with Colorado state programs like the Heat Pump Incentive ($1,500-$3,000) and HEAR point-of-sale rebates for income-qualifying households, and total savings could reach $10,000 or more.
What are Xcel Energy rebates in Minnesota vs Colorado?
Colorado Xcel customers can access HVAC rebates (up to $2,000 cold-climate heat pump, $400 AC, $600 insulation) plus the Colorado Heat Pump Incentive from the state. Minnesota Xcel customers have the same HVAC rebates plus the Home Energy Squad program, which provides $400+ in free installed energy-saving materials for $50-$100 and connects you with up to $1,600 in insulation rebates. Minnesota customers can also stack with Conservation Improvement Program incentives through your local utility.