Colorado headline: Xcel $1,000-$3,000 + state sales-tax exemption + HEEHRA up to $8,000. Combined $4,000-$8,000+.

Active programs

Xcel Energy

Heat pump rebates $1,000-$3,000 depending on equipment efficiency.1

Colorado HEEHRA

Administered by Colorado Energy Office.2 $8,000 cap (≤80% AMI), $4,000 cap (80-150% AMI).

State sales tax exemption

Qualified heat pumps exempt from state sales tax through 2032.3 Effective 4-7% savings on the project.

Other utilities

  • Black Hills Energy
  • Colorado Springs Utilities

Realistic example

Denver home cold-climate heat pump:

  • Install: $16,000
  • Xcel: $2,000
  • Sales tax exemption: ~$700
  • HEEHRA at 80-150% AMI: $4,000
  • Net: $9,300

What to do next

See the 2026 heat pump rebate guide.