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How Xcel Rebates Work on Insulation and Air Sealing Projects
Updated: 14 minutes ago
Colorado homeowners hear a lot about rebates, and most of what they hear is out of date within a year. Programs open, close, and change their rules. If you are planning to add insulation or seal air leaks before winter, it helps to know which incentive is actually in play for your home and how it works.
For many Front Range homeowners, that incentive is the rebate program from Xcel Energy. One program in particular, Whole Home Efficiency, can unlock much higher rebates than the standard route. Here is how it all works in plain terms, so you can plan a project with realistic expectations.
What are Xcel rebates?
Xcel Energy offers rebates to its residential customers who make qualifying upgrades that cut energy use. Two examples are attic insulation and air sealing, which keep heat from escaping your home. There are two ways to get rebates:
Standard rebates. Available to eligible Xcel customers without an energy audit.
Whole Home Efficiency (WHE). Xcel's program for homeowners who start with an energy audit. For insulation, the rebates are usually much higher than the standard route. WHE also rewards completing multiple projects, and doing them in a certain order, with additional rebates.
A rebate does not cover the whole project. It reduces what you pay. Customers generally see savings of up to 30-60%. Rebate amounts vary based on pre-existing factors in the home, the number of projects, and the overall cost of the projects.
What is Whole Home Efficiency, and why do we recommend it?
Technically, a homeowner can get a standard rebate without an energy audit. But for most insulation projects, going through WHE produces a higher rebate. Even after the cost of the audit, customers usually come out with a higher insulation rebate than the standard program would have paid. That is why we offer to enroll our customers in WHE.
The program also opens the door to larger rebates for homeowners planning more than one project. Completing several projects, in the right order, earns additional rebates. Other work we do, such as heat pump water heater installation, can count toward it too.
Who qualifies for Xcel rebates?
Eligibility comes down to two questions: what energy do you buy from Xcel Energy (gas, electricity, or both), and how do you heat your home?
Buy gas from Xcel and heat your home with that gas: you qualify for the higher, bonus-level rebates.
Buy electricity from Xcel and heat your home with that electricity: you qualify for the standard rebates.
Buy from Xcel but heat with a different source (for example, gas from Xcel while heating with electricity from another provider): you qualify for a much smaller rebate.
Do not buy gas or electricity from Xcel: Xcel rebates do not apply. Other utilities have programs of their own, and we can help with those too.
Your rebate amount also depends on what insulation is already in your attic and how big the attic is. We confirm all of this with you before any work starts, so there are no surprises.
How does the Xcel rebate process work?
1. Start with an energy audit. We perform the audit and give you a comprehensive report of the findings. It uses infrared imaging to see thermal data, and a blower door test to measure how tight your house is, meaning how much outside air gets in. The audit also confirms which rebates you are eligible for and how much you qualify for, and it is what makes you eligible for Whole Home Efficiency.
2. Use a participating contractor. To receive a rebate, the audit and the insulation and air sealing work need to be done by a contractor registered with the program. This is a common reason homeowners miss out when they hire someone who is not.
3. Complete the qualifying work. The scope matters. Rebates are tied to specific upgrades that meet requirements, so we build the plan around what qualifies and around where you will see the biggest energy savings, instead of the cheapest patch.
4. We handle the paperwork and front the rebate. Rebate paperwork is where many homeowners get stuck. We need a copy of your Xcel statement and your sign-off, and we do all the input and submission. We also take the expected rebate off your cost up front, so we are the ones waiting on Xcel's check, not you. We are confident in our calculations, which is why we can do that.
Why do insulation and air sealing go together?
Insulation slows heat moving through your attic floor. Air sealing stops warm air from leaking around lights, pipes, and framing. When air leaks are not fixed first, new insulation does not perform as well as it should. That is why our inspections check for both, and why many rebate-eligible projects include the two together when they are recommended.
Questions to ask before you start
What do I buy from Xcel, and how do I heat my home? How does that change my rebate?
Would Whole Home Efficiency give me a higher rebate than the standard route?
Is the contractor registered with Xcel's program, including for the energy audit?
Who submits the paperwork, and who waits on the rebate payment?
Are the program terms the same today as when the project was quoted?
That last one matters. Rebate programs change, and it is worth confirming the current terms before you plan around them.
Frequently asked questions
Do I need an energy audit to get a rebate?
Not for the standard Xcel rebates. The audit is required to be in Whole Home Efficiency, which is the route that usually pays higher insulation rebates. That is why we recommend it.
Do I have to be an Xcel Energy customer?
For Xcel's rebates, yes. You need to buy gas or electricity from Xcel Energy in Colorado, and the size of the rebate depends on how you heat your home. Not an Xcel customer? We can still help. Reach out and we will guide you through the process and the rebates available from your utility.
Does the rebate cover the whole project?
No. The rebate reduces your cost, but it does not pay for the entire project. We review your options and your expected out-of-pocket cost before you decide.
Who files the rebate paperwork, and who waits for the payment?
We do both. We need a copy of your Xcel statement and your sign-off, and we handle the input and submission. We also take the expected rebate off your cost up front, so we wait for Xcel's payment instead of you.
Will doing more than one project increase my rebate?
Through Whole Home Efficiency, it can. Completing multiple projects, and doing them in a certain order, earns additional rebates. We plan the order with you.
When is the right time to do this?
Before the coldest weather hits is ideal, since insulation and air sealing improve comfort right away. Scheduling an assessment now also gives you time to plan.
Ready to find out what applies to your home?
Have a question first? Contact Colorado Home Services
Rebate programs, tax incentives, eligibility requirements and equipment qualifications are subject to change. Availability and amounts depend on your utility account and the program rules in effect when work is completed. Colorado Home Services will confirm current requirements with you before starting any project.
Related Colorado Home Services Resources
Related Reading: What Is a Home Energy Audit? A Colorado Homeowner's Guide
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