Xcel Energy Launches $10M Neighborhood Retrofit Program for Whole-Home Electrification in Denver and Aurora

Zero Homes selected to manage the program, offering up to $20,000 in incentives per household to study the cost-effectiveness of electrification versus gas infrastructure investment.

Apr. 17, 2026 at 9:30pm

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A highly structured abstract painting in soft, flat colors featuring sweeping geometric arcs, concentric circles, and precise botanical spirals, conceptually representing the complex forces and concepts of residential electrification and grid infrastructure.Xcel Energy's landmark investment in neighborhood-scale electrification aims to gather data that could reshape the future of residential energy infrastructure.Denver Today

Xcel Energy has selected Zero Homes, a technology company driving the digital revolution of residential upgrades, to operate its $10 million Neighborhood Residential Retrofit Program. The program is designed as a study to evaluate whether it is more cost-effective for Xcel Energy to electrify homes or continue investing in maintaining and expanding aging gas infrastructure. By funding whole-home electrification upgrades in two target neighborhoods - one income-qualified in Denver's Valverde neighborhood and one market-rate in Aurora - Xcel Energy will gather real-world data on the costs, energy impacts, and grid effects of concentrated residential electrification.

Why it matters

As gas infrastructure across the country ages and faces rising maintenance costs, utilities are increasingly exploring whether targeted electrification can serve as a more cost-effective alternative. This study will generate the data to answer that question, which could reshape how Xcel Energy and other utilities allocate infrastructure dollars as Colorado and other states pursue their climate goals.

The details

The program will provide homeowners with some of the most generous home upgrade incentives available in the country. In the Valverde neighborhood, income-qualified homeowners can receive a 100% incentive, covering all project costs. In Aurora, market-rate homeowners receive up to $20,000 off heat pumps, heat pump water heaters, weatherization and panel upgrades per home. These incentives can stack on top of existing Colorado State rebates, which means income-qualified homeowners can save up to $22,500.

  • The Xcel Energy Neighborhood Residential Retrofit Program launched in April 2026.
  • The program will run for an initial study period, with the goal of gathering real-world data on the costs, energy impacts, and grid effects of concentrated residential electrification.

The players

Zero Homes

The technology company driving the digital revolution of residential upgrades, selected by Xcel Energy to manage the Neighborhood Residential Retrofit Program.

Xcel Energy

The utility company that is investing $10 million in the Neighborhood Residential Retrofit Program to study the cost-effectiveness of electrifying homes versus continuing to invest in gas infrastructure.

Grant Gunnison

The CEO and Co-Founder of Zero Homes.

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What they’re saying

“Utilities across the country are realizing that the cheapest pipe might be the one you don't have to build.”

— Grant Gunnison, CEO and Co-Founder of Zero Homes

What’s next

Xcel Energy and Zero Homes will compare the total cost of electrification against the cost of continued gas system maintenance in the two target neighborhoods, with the findings potentially reshaping how Xcel Energy and other utilities allocate infrastructure dollars.

The takeaway

This program represents the largest non-pipeline alternative evaluation investment by any utility in the country, serving as a proof point for neighborhood-scale electrification as a viable alternative to gas infrastructure investment as Colorado and other states pursue their climate goals.