Xcel Energy offers several heating and cooling rebates for energy efficient appliances and equipment. Eligible equipment includes heat pumps, central air conditioning systems, evaporative coolers, water heaters, boilers and furnaces. Rebate amounts vary depending on the system type and efficiency level. An electric heat pump water heater is eligible for a $450 rebate, whereas, a natural gas tankless water heater with an EF value of 0.82 or greater is eligible for a rebate of $50. The rebate is equal to either $25 for a natural gas standard tank water heater with an EF value between 0.62 and 0.64, $70 for a heater with an EF value between 0.65 and 0.66 or $90 for a heater with an EF value of 0.67 or greater.

Additionally, if you owe money on your taxes you could be eligible for a 10 percent tax credit for the equipment and installation costs of high efficiency water-heating equipment. Gas, oil and propane water heaters with EF values of at least 0.82 qualify for a rebate of no more than $300, and electric heat pump water heaters with an EF value of at least 2.0 also qualify for a rebate of no more than $300.