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Heating Efficiency - CO

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Heating Efficiency

Colorado businesses can earn rebates and save energy on heating equipment

Overview

Earn rebates and save energy by purchasing and installing high-efficiency natural gas equipment, including:

  • Hot water boilers
  • Furnaces
  • Water heaters

Rebates for improvements are also available for:

  • Pipe insulation replacement and installation
  • Boiler Tune-Ups
  • Steam trap replacements
  • Outdoor air resets
  • Modular burner controls
  • Stack dampers

Do you know the symptoms of an inefficient heating system? Take the quiz! See the link in Additional Information.

View Video

Benefits

  • Decreases the up-front cost of either purchasing new energy-efficient equipment or making improvements to your existing heating system
  • Reduces energy costs by using high-efficiency equipment
  • Shortens the payback period for upgrades and new equipment
  • Increases the return on your investment
  • Lowers the maintenance cost of your equipment, while increasing its operational safety

Details

Rebates are available to Colorado customers for a wide range of heating equipment, improvements and more (for a full list of qualifying equipment and improvement measures, see the Qualifying Equipment section):

  • Equipment rebates are offered for qualifying boiler systems used primarily for space and/or domestic water heating, furnaces, water heaters and pipe insulation.
  • Boiler tune-up rebates are available every two years.
  • Boiler efficiency improvement rebates are offered for modular burner controls, outdoor air reset controls, stack dampers, and steam trap replacement and parts.
  • Custom rebates may be available for heating equipment not listed within the Qualifying Equipment section. Preapproval is required in order to qualify. Visit our Custom Efficiency page for more details (see the Custom Efficiency program link under Additional Information).

Rebate Limits: Heating Efficiency rebates cannot exceed 60 percent of the project cost (including equipment and labor). The minimum rebate is $5. Rebate qualifications do not imply any representation or warrant of such equipment, design or installation by Xcel Energy. Xcel Energy shall not be responsible or liable for any personal injury or property damage caused by this equipment. Xcel Energy does not guarantee any energy savings. In any case, Xcel Energy’s potential liability shall be limited to the amount of the rebate paid.

Who Qualifies

To qualify for the Heating Efficiency rebate program, you must:

  • Be a business retail natural gas customer of Xcel Energy in Colorado.
  • Purchase or upgrade equipment that uses natural gas as fuel (can have duel-fuel as backup).
  • Use heating equipment devoted to either space heating or domestic water heating purposes.
  • Customers that use Gas Transport are not eligible for Heating Efficiency rebates.

Customers that use Gas Transport are not eligible for Heating Efficiency rebates.

Qualifying Equipment

  Rebate
Hot Water Boiler Plan A – Replace a non-working hot water boiler or install a new boiler where none existed 85% min efficiency $750 per million BTUh
92% min efficiency $3,500 per million BTUh
Plan B – Boiler being replaced must be less than 25 years old and still functioning (provide Colorado state inspection report with application) 92% min efficiency $7,000 per million BTUH
Furnace
greater than 150,000 BTUh and greater than 92% efficiency
92% AFUE $80 per unit
94% AFUE $120 per unit
Water Heaters Tankless or with storage $350 per unit
Pipe Insulation Based on pipe diameter and R value $3–$5 per linear foot
Boiler Tune-Ups Must meet tune-up requirements on application $250 per million BTUh1 per boiler
Improvements and        Add-ons
(Add-ons are only eligible if a breakout of the equipment costs is clearly indicated on the invoice)
Modular burner controls > 5:1 turndown ratio $750 per million BTUh1;
$2,000 maximum
Outdoor air reset controls $250 per million BTUh1
Stack dampers $250 per million BTUh1
Steam trap replacements 25% of trap cost up to $250 per trap; maximum $10,000 per facility
1 Rebate dollar values shown reflect the rebate amount for qualifying boilers with input capacity of 1 MMBTUh (1 million BTU per hour). Rebate amounts will be prorated based on boiler input capacity. For example, a qualifying boiler with input capacity of 500,000 BTUh (half the size of 1 MMBTUh) would earn half the value of the designated rebate shown. Similarly, a boiler with input capacity of 2 MMBTUh, would earn twice the value of the designated rebate shown.

How to Get Started

  1. Check that your equipment and/or improvements meet all eligibility requirements listed on the rebate application, prior to purchase or installation. You must be a business retail natural gas customer of Xcel Energy in Colorado. Customers that use Gas Transport do not qualify for the program. Call our Business Solutions Center at 1-800-481-4700 to verify qualification.
  2. Purchase and install your equipment. (Note: For Custom Efficiency, the project must be approved before purchase and installation. See Custom Heating Efficiency under Additional Information.)
  3. After installation, complete and submit the rebate application per the requirements and instructions listed on the form. All information needs to be supplied before a rebate check can be issued; incomplete applications will delay processing.
  4. Include a copy of your paid invoices (with the appropriate level of detail required) with the submitted application. Any missing information will cause a delay or denial of the rebate application.
  5. If you’ve conducted a Boiler Tune-Up, use the Express Boiler Tune-Up application below.
  6. Applications must be submitted to Xcel Energy within one year of the date of invoice and installation.

Additional Information

If you have any questions about our Heating Efficiency rebates, call your Xcel Energy account manager or contact one of our energy efficiency specialists at EnergyEfficiency@xcelenergy.com or 1-800-481-4700.