The Xcel Heat Pump Water Heater Rebate — Credited Upfront
Get an ENERGY STAR hybrid heat pump water heater installed and save up to $1,500 through Xcel Energy. As a participating Xcel contractor, we take the rebate straight off your invoice — no waiting on a check, no chasing paperwork.
The Xcel rebate, explained plainly
Xcel Energy offers a rebate to Colorado customers who replace an older tank water heater with an energy-efficient heat pump (hybrid) water heater. These units pull heat from the surrounding air to warm your water, using roughly a third of the electricity of a standard electric tank. The rebate exists to make that upgrade affordable from day one.
The amount you receive depends on how your home is set up today. If you currently heat with natural gas, or you have a gas or propane water heater you are replacing, you qualify for a bonus of about $1,500. Everyone else — typically homes already on an electric water heater — qualifies for the $750 standard rebate. The bonus is Xcel’s way of encouraging households that burn fuel for hot water to switch to an efficient electric heat pump.
How much you save
Here is how the two rebate levels compare. Both are credited directly on your invoice — the figures below are what comes off your price before you pay.
| Rebate Tier | Who It Applies To | Amount |
|---|---|---|
| Standard Rebate | Homes replacing an existing electric water heater | $750 |
| With Gas / Propane Bonus | Homes that heat with natural gas, or have a gas or propane water heater | $1,500 |
These amounts stack with the naturally lower operating cost of a heat pump water heater, so the savings continue every month on your utility bill long after the install is done. Want the full breakdown of equipment and labor? See our Denver cost and pricing guide.
Three simple steps — we handle the rest
No forms to mail, no rebate portal to log into, no six-to-eight-week wait for a check. We manage eligibility and filing from start to finish.
1. We confirm eligibility
We check your Xcel account and current water heater setup to confirm which rebate tier you qualify for — the $750 standard or the $1,500 gas/propane bonus — before any work begins.
2. We install
Our licensed team installs your ENERGY STAR hybrid heat pump water heater, handling permits, placement, and haul-away of the old unit across the Denver metro.
3. Credit applied
The rebate comes right off your invoice that day. We submit the required documentation to Xcel ourselves — you never touch the paperwork.
What equipment qualifies
To earn the rebate, the new unit must be an ENERGY STAR certified hybrid heat pump water heater. These are the high-efficiency tanks that use a heat pump to move heat into the water rather than generating it with a resistance element alone.
Our preferred unit is the Rheem ProTerra, a proven, quiet, and highly efficient hybrid heat pump water heater that qualifies cleanly for the Xcel program. We size the unit to your household’s hot water demand so you get both the rebate and the right fit.
Who can do the work matters too: the install must be completed by a participating contractor to credit the rebate upfront. We are licensed in 25+ Colorado cities across the metro and the Front Range, and we handle the full replacement — see our heat pump water heater installation page for what a typical job looks like.
Common questions
How much is the Xcel heat pump water heater rebate?
Do I have to wait for a rebate check?
Who qualifies for the rebate?
What water heater qualifies?
Ready to claim your Xcel rebate?
Call and we’ll confirm your rebate tier, size the right unit, and show you the after-credit price — before you commit to anything.