Mountain Energy Project rebates, and how to tell if your town qualifies

Which towns and zip codes qualify

Eligibility is by town and zip code, and the list is narrower than the four-county footprint of the wider project. You need an active residential natural gas account from Xcel Energy at a property in one of these:

Gas-only customers and customers with both gas and electric service from Xcel both qualify. If you're in Vail, Avon, Keystone, Winter Park, or anywhere else inside Grand, Lake, Eagle, or Summit county that isn't on this list, these rebates don't apply and Xcel's standard statewide programs do.

One exclusion catches a lot of mountain condos: if you already heat with an electric resistance system such as electric baseboard, you're not eligible for the Mountain Energy heat pump or heat pump water heater rebates. You remain eligible for Xcel's standard rebates.

What the Mountain Energy Project pays

Which column you land in matters more than anything else on this page. "Early replacement" means the equipment you're replacing is 10 years old or less and still working.

Weatherization and audits are separate:

The two details that change your number

It's dollars per heating ton at 5°F, not per nominal ton. A nominal 3-ton cold-climate heat pump doesn't deliver 3 tons of heating capacity at 5 degrees. The rebate is calculated from the certified AHRI or ENERGY STAR rating at 5°F, not from the size on the nameplate. A quote that estimates your rebate off nominal tonnage produces a number you won't receive.

Early replacement pays roughly 88% more than waiting. $7,500 per heating ton against $4,000 is the premium Xcel pays for a demand reduction it can count before the winter peak it's planning around. In these eight zip codes, the usual advice to run heating equipment until it dies costs you money. Our explainer on why the Mountain Energy Project rewards replacing early walks through the reasoning.

Boiler and radiant-floor homes

Mountain housing stock is disproportionately hydronic, and a conventional air-source heat pump blows warm air into a house with no ducts. The equipment that fits is a cold-climate air-to-water heat pump, which makes hot water instead of hot air and feeds the distribution you already have.

The Mountain Energy Project is the only Xcel rebate in Colorado with a dedicated air-to-water line. Two conditions attach: the equipment needs a COP of at least 1.7 at 5°F outdoor air with a 110°F leaving water temperature at design, and projects installed or invoiced before April 9, 2026 aren't eligible for this line specifically.

That 110°F requirement is the design constraint worth settling first. Cast-iron baseboard sized for 180°F water won't put out enough heat at 110°F. Radiant floors, panel radiators, and generously sized baseboard usually will. It's a question about your specific distribution system, which is exactly what a room-by-room design answers and a square-footage estimate does not.

The rules that decide what you receive

Invoices must be dated on or after December 15, 2025. The air-to-water line is the exception: April 9, 2026.

Heat pump rebates require certified removal of the gas equipment they replace, where the new system now heats the same space or serves the same purpose. Keeping the boiler as a backup disqualifies that measure.

Rebates can't exceed your actual cost. Combined rebates from all parties, including state programs, local government, and nonprofits, are capped at the real equipment and labor cost. Labor only counts when performed by an independent third-party contractor qualified to work in the jurisdiction.

No duplicate rebates for the same improvement under another Xcel program.

Funding is limited and first come, first served. Xcel asks customers to verify the program is still active and funded before completing a project.

How the process runs with Zero Homes

1. Scan your home from your phone. No sales visit, which matters more when the house is three hours from a contractor's shop, or when it's a second home you're not standing in.

2. We check your zip code and what you're actually heating with, and tell you which column and which lines you qualify for before you commit.

3. We design for your distribution system, ducted or hydronic, and read the rebate off the certified 5°F rating rather than nameplate tonnage.

4. You get a fixed quote with rebates already applied, with $0 down financing available.

5. We install with a contractor in Xcel's approved network and file the Mountain Energy Project application. Xcel typically processes in six to eight weeks, then sends a check or credits your invoice.