Skip to main content

Rebates can cover a big chunk of your heat pump install.

See how much you can save
Heat pump

How to save money with your heat pump during Xcel Energy's summer time-of-use rates

Xcel TOU thumbnail 2

Heat pumps are already one of the most efficient ways to cool your home—but if you're an Xcel Energy customer, a few small adjustments this summer can help you save even more.

From June 1 through September 30, Xcel Energy's Time-of-Use (TOU) rates mean the price of electricity changes depending on when you use it. The good news? Your heat pump is perfectly suited to take advantage of these lower-cost hours.

How Xcel's summer time-of-use rates work

On weekdays during the summer:

  • Off-peak (20 hours/day): Electricity costs $0.07/kWh before 5 p.m. and after 9 p.m.
  • On-peak (5–9 p.m.): Electricity jumps to $0.21/kWh—about three times more expensive.

Weekends and holidays stay at the lower off-peak rate all day.

Pre-cool your home before peak hours

One of the biggest advantages of a heat pump is that it cools your home efficiently and steadily. Instead of making it work hardest during the most expensive hours, let it do more of the work beforehand.

Try this simple schedule:

  • Around 3:30–4:00 p.m., lower your thermostat by 2–3°F below your normal setting.
  • At 5:00 p.m., raise it back to your usual temperature.

Your home will stay comfortable while your heat pump "coasts" through the expensive 5–9 p.m. window.

Let your smart thermostat do the work

If you have a programmable or smart thermostat, create a schedule that automatically pre-cools your home before peak pricing begins. Once it's set up, you won't have to think about it all summer.

Schedule your heat pump water heater

If you have a heat pump water heater, check its app—such as AeroTherm or EcoNet—to see if you can schedule heating cycles or enable an off-peak or high-efficiency mode. Heating water before 5 p.m. can help reduce electricity use during peak pricing hours.

Shift other energy use

Your heat pump isn't the only appliance that can help lower your bill. Whenever possible, run larger electrical loads during off-peak hours, including:

  • Charging your EV
  • Running the dryer
  • Doing laundry or using other high-energy appliances

Stay comfortable—and save

Heat pumps are designed to deliver efficient, consistent comfort year-round. Pairing yours with Xcel's Time-of-Use rates is an easy way to lower your summer energy costs without sacrificing comfort.

Have questions about operating your heat pump? Reach out to the Elephant Energy Service team at service@elephantenergy.com—we're always happy to help.