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Rebates & Tax Credits

Rebates & Tax Credits for Energy Efficiency

Upgrading your home’s comfort systems doesn’t just save you money on monthly utility bills — it also qualifies you for valuable federal tax credits and rebates. Through December 31, 2025, homeowners can take advantage of incentives that make investing in efficiency and clean energy more affordable than ever.

Federal Tax Credits for Homeowners

Save Up to $3,200 Per Year

Homeowners can claim 30% of the cost of qualifying home upgrades — with a maximum of $3,200 annually.
Eligible improvements include everything from HVAC systems and insulation to windows, doors, and more.

Types of Federal Tax Credits

1. Energy Efficient Home Improvement Tax Credits

You can claim up to $2,000 for heat pump technology, including:

  • Air source heat pumps
  • Heat pump water heaters
  • Biomass stoves or boilers

You can also claim up to $1,200 for other energy-saving upgrades such as:

  • Windows, doors, and skylights
  • Insulation and air sealing
  • Furnaces, boilers, and central air conditioners
  • Gas, oil, or propane water heaters
  • Electric panel upgrades
  • Home energy audits
  • EV chargers

2. Residential Clean Energy Credits

Get 30% back on renewable energy systems, including:

  • Solar panels
  • Geothermal heat pumps
  • Small wind turbines
  • Fuel cells
  • Battery storage systems

Unlike the Home Improvement Credit, some of these credits can be carried forward to future tax years if you can’t use the full amount right away.

How to Claim Your Tax Credits

  1. File IRS Form 5695 with your federal tax return for the year improvements are made.
  2. Starting in 2025, include the Qualified Manufacturer (QM) code to verify eligibility.
  3. Credits apply to your principal residence in the U.S., with some equipment (like HVAC systems) also eligible for secondary homes and rentals.

Strategies to Maximize Savings

Plan your upgrades strategically to make the most of available credits:

  • Combine a home energy audit with insulation work for up to $1,200.
  • Install a heat pump and claim an additional $2,000.
  • Upgrade windows, doors, and a heat pump water heater to reach over $3,000 in one tax year.

With careful planning, you can maximize the $3,200 annual limit through 2025.

Electrical Panel Upgrade Rebate – Up to $1,500

In addition to federal tax credits, you may qualify for an instant rebate when upgrading your home’s electrical panel.

Why Upgrade?

  • Improved Safety – Reduce fire risks and meet modern electrical codes.
  • Reliable Power – Support high-demand appliances, heat pumps, EV chargers, and HVAC systems.
  • Increased Home Value – Buyers appreciate updated electrical systems.
  • Immediate Savings – Claim up to $1,500 in rebates before the deadline.

Who Qualifies?

  • Residential Xcel Energy customers
  • Panel upgrades that meet current standards (routine repairs don’t qualify)
  • Work must be completed by a licensed, approved electrician

How to Claim

  1. Check your eligibility with Xcel Energy.
  2. Schedule your upgrade with a licensed professional.
  3. Submit your rebate application online or by mail before the deadline.

⚡ Deadline: December 31st — once it passes, so does your chance to save up to $1,500.

Act Now to Lock in Your Savings

Between federal tax credits and limited-time rebates, you can significantly reduce the cost of making your home more energy-efficient, safer, and future-ready.

Don’t leave money on the table — start your upgrades now and maximize every incentive available!