Heat Pump Water Heater Rebates in Fort Collins, Loveland and Northern Colorado (2026)
2026 heat pump water heater rebates by town: Efficiency Works, Xcel, PVREA, Atmos and Colorado's $250 credit, with deadlines.
In 2026, an ENERGY STAR heat pump water heater can earn up to $600 from Efficiency Works if Fort Collins, Loveland, Longmont or Estes Park supplies your electricity, $750 from Xcel Energy or $350 from Poudre Valley REA (PVREA), plus at least $83 off the invoice through Colorado’s $250 tax credit. The federal 25C credit ended with 2025 installs, and the state’s HEAR rebates closed on August 1, 2026. Fort Collins Water Heater Pros installs heat pump water heaters across Larimer County; amounts change, so check current amounts with your utility before you buy.
Call (970) 305-5633 for a written quote on an ENERGY STAR heat pump water heater that lists the model details rebate forms ask for.
Call nowHeat pump water heater rebates by town (2026)
Your electric utility decides which heat pump rebate you can claim, and your gas utility decides any gas water heater rebate. Where no town or utility source confirms the provider, the table says check your bill.
| Town | Electric | Gas | Rebates to check |
|---|---|---|---|
| Fort Collins | Fort Collins Utilities | Xcel Energy | Efficiency Works; Xcel (see stacking below) |
| Loveland | City of Loveland Utilities | Xcel Energy on the state map; check your bill | Efficiency Works; Xcel if it supplies your gas |
| Longmont | Longmont Power & Communications | Xcel Energy | Efficiency Works; Xcel |
| Estes Park | Estes Park Power and Communications | Check your bill | Efficiency Works |
| Windsor | Xcel Energy or PVREA, by address | Xcel Energy or Atmos Energy; check your bill | Xcel or PVREA; Atmos for gas models |
| Greeley | Check your bill | Atmos Energy | Atmos for gas models; heat pump rebate depends on your electric utility |
| Wellington | PVREA or Xcel Energy | Black Hills Energy | PVREA or Xcel; ask Black Hills about gas |
| Severance | Xcel Energy or PVREA | Xcel Energy at most addresses | Xcel or PVREA |
| Milliken | Xcel Energy; PVREA in the Mad Russian and Mill Iron areas | Xcel Energy at most addresses | Xcel or PVREA |
| Timnath | Check your bill | Check your bill | Depends on your utilities |
| Berthoud | Check your bill | Check your bill | Depends on your utilities |
| Johnstown | Check your bill | Check your bill | Depends on your utilities |
| LaPorte | PVREA on the state map; check your bill | Xcel’s mapped territory; check your bill | PVREA for members |
| Bellvue | PVREA on the state map, Xcel overlapping; check your bill | Xcel’s mapped territory; check your bill | PVREA or Xcel |
| Masonville | PVREA on the state map; check your bill | Xcel’s mapped territory; propane is common | PVREA for members |
| Livermore | PVREA on the state map; check your bill | No utility gas on the state map; propane is common | PVREA for members |
Providers come from town and utility pages, Atmos Energy’s April 2026 tariff and, where noted, Colorado’s online utility maps, checked in November 2026. A mapped gas territory doesn’t mean a gas main reaches your lot.
What each program pays in 2026
Figures come from each program’s own pages, checked November 2026.
- Efficiency Works, Platte River Power Authority’s program for the Fort Collins, Loveland, Longmont and Estes Park utilities: for an ENERGY STAR heat pump water heater, up to $600 when it replaces an electric or propane heater and up to $400 when it replaces gas, per its January 2026 rebate sheets. It adds up to $500 for a panel upgrade to 200 amps or more (done by a licensed electrician, under its rules) or up to $250 for a load-sharing device on a smaller panel. Fort Collins Utilities rental properties get double the standard rebate on Retrofit projects with a lease of at least 12 months and pre-approval.
- Xcel Energy: a $750 standard rebate for Colorado residential electric, gas or combined customers, whether you self-install or hire any installer. Units over 80 gallons and indirect or commercial units don’t qualify, and Xcel’s 2026 summary (effective October 1, 2026) requires ENERGY STAR and a 3.3 UEF. Xcel also advertises a limited-time bonus, but its own pages disagree on the amount, so ask Xcel. Its smart heat pump water heater program pays Xcel electric customers $100 to enroll and $25 a year. Xcel lists no gas tank or tankless rebate.
- Poudre Valley REA: $350 for an ENERGY STAR heat pump water heater of at least 30 gallons, with proof of certification. It also pays $50 for an electric resistance water heater if you are switching from gas or propane, have a demand-response-ready (CTA-2045) unit or are on a time-of-use rate. Amounts change with funding.
- Atmos Energy: 80% of the cost, up to $800, for a natural gas tankless heater with a UEF of 0.95 or higher, and 80%, up to $700, for a gas storage heater of 55 gallons or less with a UEF of 0.86 or higher; two per premise per year, while funding lasts. Approved installers can take it off at purchase.
- Black Hills Energy (Wellington’s gas utility): ask it about water heater rebates.
How Colorado’s heat pump tax credit works
For an ENERGY STAR heat pump water heater installed on or after January 1, 2026, Colorado pays a $250 tax credit to the state-registered installer, who must pass at least a third of it, $83, on to you. The Colorado Energy Office says the discount must appear as its own invoice line, the “State of Colorado Heat Pump Discount,” and you file nothing.
- The installer keeps up to two-thirds and claims the credit through the Colorado Department of Revenue.
- December 31, 2026 is the last day for installers to register for 2026 installations.
- The 2024-2025 version paid $500, with at least $166.65 off, which is why older pages quote bigger numbers.
- The Energy Office’s page gives no end date and says the amounts drop again in tax year 2029.
Before you sign, ask whether the installer is registered for 2026 and look for the discount line on the quote.
Is there a federal tax credit for water heaters in 2026?
No. IRS fact sheet FS-2025-05 (August 21, 2025) says the energy efficient home improvement credit, 25C, “will not be allowed for any property placed in service after December 31, 2025.” While it ran, it covered up to $2,000 a year for heat pumps and heat pump water heaters and up to $600 for a qualifying gas, propane or oil water heater. Pages still advertising federal water heater credits of up to $2,000 or $3,200 are out of date for 2026 installs.
Colorado’s HEAR rebates have closed
The Colorado Energy Office took applications for its federally funded HEAR single-family rebates, which paid up to $1,750 for a heat pump water heater, from November 13, 2025 to August 1, 2026. A separate program for manufactured and mobile homes is expected, but it requires a home energy audit, and single upgrades alone won’t qualify.
Rebate application deadlines
| Program | Apply | Good to know |
|---|---|---|
| Efficiency Works | Within 45 days of purchase, installation or delivery (retail route) or of purchase or project completion (Retrofit) | Proof of installation required, no self-certification; Retrofit work must be done by a provider listed with Efficiency Works Homes, and projects over $2,500 in total incentives need pre-approval |
| Poudre Valley REA | Within 90 days of purchase | 6 to 8 weeks to process; under $250 arrives as a bill credit, $250 or more as a check |
| Atmos Energy | Within 60 days of installation | Paid until funding runs out |
| Xcel Energy | By September 30 of the year after installation | 8 to 10 weeks to process; the bonus needs a 2026 invoice |
| Colorado tax credit | Nothing for you to file | The installer claims it |
Stacking rebates
Efficiency Works’ own 2026 incentive sheet shows its heat pump water heater rebate combined with an Xcel rebate and the state discount, so a home with city electricity and Xcel gas may collect from both utilities. Read Xcel’s fine print first: its 2026 summary says gas-only customers who install a heat pump and get electric heat from another provider don’t qualify, and it doesn’t say how that applies to water heaters, so confirm with Xcel.
Limits apply too. Efficiency Works’ rebate can’t exceed what you paid, Xcel’s rebate plus bonus can’t exceed the invoiced cost, and Efficiency Works’ 2026 bundling bonus excludes heat pump water heaters.
Paperwork to keep
- An itemized invoice showing the model number, installation date and the State of Colorado Heat Pump Discount line
- Proof the model is ENERGY STAR certified
- Proof of installation or delivery for Efficiency Works
A heat pump water heater needs a permit and inspection like any other water heater; see do I need a permit to replace a water heater. To weigh rebates against price, read are heat pump water heaters worth it and our water heater replacement cost guide. Our heat pump water heater page covers fit and installation, and water heater replacement in Fort Collins covers standard tanks.
Heat pump water heater rebate FAQ
Can I combine Efficiency Works and Xcel rebates?
Sometimes. Efficiency Works’ 2026 sheet shows the two combined, but Xcel’s summary excludes gas-only customers who install a heat pump and get electric heat from another provider, so confirm with Xcel first.
How do I get Colorado’s heat pump water heater tax credit?
Have an ENERGY STAR heat pump water heater installed by a state-registered installer on or after January 1, 2026. At least $83 comes off your invoice, and you file nothing.
Is there a federal tax credit for heat pump water heaters in 2026?
No. The IRS says the 25C credit will not be allowed for property placed in service after December 31, 2025.
How long do I have to apply for a water heater rebate?
Efficiency Works allows 45 days, Atmos Energy 60 days from installation, Poudre Valley REA 90 days from purchase, and Xcel until September 30 of the year after installation.
Are there rebates for gas water heaters?
Atmos Energy pays 80% of the cost, up to $800 for a tankless heater with a UEF of 0.95 or higher and up to $700 for a tank of 55 gallons or less with a UEF of 0.86 or higher. Xcel lists no gas water heater rebate.
Keep reading
Related guides
Colorado's Low-NOx Water Heater Law: What Changes When You Replace a Gas Water Heater in 2026
What Colorado’s low NOx water heater law means for a 2026 gas replacement: limits, propane, altitude and exemptions. Call (970) 305-5633 for a quote.
Read guide
Do I Need a Permit to Replace a Water Heater? Fort Collins, Loveland and Larimer County Rules
Yes. Every town around Fort Collins requires a water heater permit. Who issues it in 16 towns, fees and homeowner rules.
Read guide
Are Heat Pump Water Heaters Worth It? Pros, Cons and Payback in Fort Collins
Are heat pump water heaters worth it? Honest pros and cons, a payback example with 2026 rebates and Colorado winter tips.
Read guidePhoto credits (Wikimedia Commons): Colorado's Low-NOx Water Heater Law: What Changes When You Replace a Gas Water Heater in 2026: Jason Woodhead, CC BY 2.0.
Water heater trouble?
Call for a diagnosis and a written quote.
Call for a written quote on a heat pump water heater in Fort Collins, Loveland or anywhere in Larimer County.
Water heater replacement, repair and tankless installation for Fort Collins, Loveland and Larimer County. Written, itemized quotes and licensed plumbers.
Call (970) 305-5633