Do it in the right order and stack every rebate
- The order that saves reworkSeal first: up to 10% off a year’s energy bills. ENERGY STAR
- A 25% bonus on your standard Xcel rebatesEnroll in Whole Home Efficiency, then do three qualifying upgrades. Xcel
- $1,000 State discount in 2026On a heat pump installed in 2026; $500 in 2027. Energy Office
- The panel checked firstBefore you pick equipment; a new one, if needed, runs $5,500–$6,100. Our estimates
Your plan, step by step
First: Xcel’s audit, then enroll in Whole Home Efficiency.
Air sealing and insulationFirst
Up to 10% off a year’s energy bills, and a smaller heat pump. ENERGY STAR, Oct 13, 2026
- Up to $1,000 with gas bonus
- By square foot and R-value added
- Up to $875 with gas bonus
Not our work: Xcel’s contractor list.
Panel check before equipmentCheck early
Heat pumps usually need a 240-volt circuit. Any new panel goes in with the equipment.
- New panel, if needed$5,500–$6,100
Before rebates, from our Denver estimates, Oct 14, 2026. How we price
Heat pump and a 95% gas furnacePlan replacement
The furnace is past 15 years and the AC is past 10 years. The heat pump takes mild days; the furnace, cold nights.
At current Xcel rates, heating with a heat pump costs more to run than a 95% gas furnace.
- Typical price$21,000–$28,000
Rebates$7,975
- Xcel heat pump
- $5,250, if 3.5 tons
- Xcel furnace
- $225
- State discount
- $1,000
- Power Ahead Colorado
- $1,500
Heat pump water heaterPlan replacement
Past 10 years, a tank can fail without warning.
- Typical price$7,500–$8,200
- Or another gas tank$2,600–$3,400
Rebates$1,750
- Xcel rebate
- $1,500
- State discount
- $250
The rebates, added up
- Could qualify for
- Up to $13,231plus the attic rebate
Each part and assumption
- Xcel rebates on these steps
- Up to $8,850
- State discounts
- $1,250
- Power Ahead Colorado
- $1,500
- 25% bonus on standard Xcel rebates
- $1,031
- Insulation-first bonus
- $600
- Attic taken as 1,200 sq ft at R-19 until the audit measures it.
- Heat pump taken as 3.5 tons until it’s sized.
- If Xcel counts the furnace separately, the bonus could be $56 more.
Xcel rules checked Oct 13, 2026.
Before you start
- Enroll before any work
- Participating contractors only. Xcel pays after the third upgrade.
- We don’t do audits or insulation
- We price the heat pump, water heater and panel work the audit recommends.
Send photos of your equipment
Priced after rebates, confirmed in person.
Equipment labels and a photo of the closed electrical panel help, too. Leave covers in place.