Heat Pump Water Heater Rebates in Colorado 2026
What you can get for a heat pump water heater in Colorado depends on your utility and your region. The federal HEAR rebate covers up to $1,750 where it is open (the full amount is for income-qualified households under 80% of Area Median Income; 80-150% AMI receives half), and Xcel Energy pays a flat $2,250 in its territory -- up to $4,000 where both apply. On the Front Range, where HEAR is currently closed, an Xcel customer's dependable rebate is the $2,250 Xcel amount. The calculator below shows your exact eligibility.
Federal HEAR rebate: up to $1,750 (where it is open)
The federal HEAR program offers up to $1,750 for a qualifying heat pump water heater. For households below 80% of Area Median Income it covers 100% of the equipment cost up to $1,750; between 80% and 150% AMI it covers 50%. But HEAR is regionally gated: the Front Range (Region 1) stopped accepting new applications on April 28, 2026, while the mountain and Western Slope counties (Region 2) remain open. The calculator checks your region before counting it.
Xcel Energy rebate: a flat $2,250
If Xcel Energy serves your home, its heat pump water heater rebate is a flat $2,250 for a qualifying ENERGY STAR unit -- not a small add-on. It applies regardless of the HEAR region status, so for most Front Range households it is the dependable rebate today, and where HEAR is also open it stacks for up to $4,000. If you are not in Xcel territory, the calculator surfaces your own utility's water-heater rebate instead.
Why a heat pump water heater is worth it
A heat pump water heater moves heat from the surrounding air into the tank rather than generating it directly, making it roughly three times more efficient than a standard electric water heater. For most Colorado households it pays back its cost premium within three to five years through energy savings, and the rebates above shorten that further.
See your exact rebate
Start with the calculator below. It takes your ZIP code, household size, and income, confirms your utility, checks your region's HEAR status, and shows every program that is open for you with specific dollar amounts, using real 2026 program data from Rewiring America.
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Frequently Asked Questions
How much can I get for a heat pump water heater in Colorado?
It depends on your utility and your region. The federal HEAR rebate covers up to $1,750 for a heat pump water heater where it is open, and Xcel Energy pays a flat $2,250 in its territory. Where both apply, that is up to $4,000 for an income-qualified household, since the full HEAR amount is for households under 80% of Area Median Income (80-150% AMI receives half). On the Front Range, where HEAR is currently closed, an Xcel customer's dependable rebate is the $2,250 Xcel amount. The calculator shows your exact number by address.
Is the HEAR water-heater rebate available on the Front Range?
Not right now. Colorado runs HEAR by region, and the Front Range (Region 1) stopped accepting new applications on April 28, 2026. The mountain and Western Slope counties (Region 2) remain open. So a Front Range household cannot currently claim the $1,750 HEAR water-heater rebate, though Xcel's $2,250 utility rebate still applies. The calculator checks your ZIP's HEAR status.
What is a heat pump water heater, and why does it qualify for rebates?
A heat pump water heater (HPWH) moves heat from the surrounding air into the tank instead of using resistance elements or a gas burner, making it roughly three times more efficient than a standard electric water heater. Because of that efficiency, state and utility programs offer rebates to encourage the switch. The unit must be ENERGY STAR certified to qualify.
Is there enough space in my home for a heat pump water heater?
Heat pump water heaters need more clearance and air volume than a standard tank -- most models need at least 7 feet of ceiling height and roughly 700 to 1,000 cubic feet of surrounding air. Basements, garages, and utility rooms usually work well. A contractor can assess your space before installation.