How to Save on Xcel Energy Bills in Denver

Living in Denver means enjoying four distinct seasons, from crisp mountain winters to long, sunny summers—and with those seasons come fluctuating energy demands. Xcel Energy, the primary electricity and natural gas provider for the Denver metro area, serves over 1.4 million residential customers. As utility rates rise and energy costs become a larger portion of household budgets, learning how to save on Xcel Energy bills in Denver is no longer optional—it’s essential.

Many residents assume their energy bills are fixed by nature, dictated by weather and usage patterns beyond their control. But the truth is, with the right strategies, Denver homeowners and renters can significantly reduce their monthly expenses—often by 20% to 40%—without sacrificing comfort. From simple behavioral adjustments to smart home upgrades and government-backed incentives, there are multiple proven pathways to lower your energy costs.

This comprehensive guide breaks down exactly how to save on Xcel Energy bills in Denver. Whether you live in a century-old bungalow in Capitol Hill or a modern apartment in RiNo, the strategies outlined here are tailored to Denver’s climate, utility structure, and local programs. You’ll learn actionable steps, best practices, tools to track progress, real-world success stories, and answers to common questions—all designed to help you take control of your energy spending.

Step-by-Step Guide

1. Understand Your Xcel Energy Bill Structure

Before you can reduce your bill, you must understand what’s on it. Xcel Energy bills in Denver are divided into two main components: electricity and natural gas (if applicable). Each has separate charges, including:

• Delivery charges – fees for maintaining the infrastructure that brings power or gas to your home.
• Supply charges – the cost of the actual energy you consume, which can vary based on market conditions and your rate plan.
• Taxes and surcharges – state and local fees applied to your usage.

Look for the “Usage Summary” section on your bill. It shows your daily and monthly kilowatt-hour (kWh) consumption for electricity and therms for gas. Compare this to previous months and the same period last year. A sudden spike often reveals a problem—like an aging appliance, poor insulation, or a thermostat set too high.

Also note your rate plan. Xcel offers several, including Time-of-Use (TOU) plans that charge more during peak hours (4–9 p.m. weekdays) and less during off-peak times. If you’re on a flat-rate plan, switching to TOU may save money—if you’re willing to shift usage. Use Xcel’s online bill analyzer to see which plan suits your habits.

2. Optimize Your Thermostat Settings

Heating and cooling account for nearly half of Denver’s average household energy use. In winter, Denver’s average low is 22°F, and in summer, highs regularly exceed 90°F. Smart thermostat management can cut this load dramatically.

Set your thermostat to 68°F when you’re home and awake in winter. Lower it to 60–62°F when you’re asleep or away. In summer, aim for 78°F when home and 85°F when away. Each degree you adjust can save 1–3% on heating or cooling costs.

Install a programmable or smart thermostat. Models like the Nest, Ecobee, or Honeywell Lyric are compatible with Xcel’s rebates. These devices learn your schedule, adjust automatically, and send alerts if temperatures stray from your settings. Some even detect when no one is home and switch to energy-saving mode.

3. Seal Air Leaks and Improve Insulation

Denver’s dry, windy climate and temperature swings make air leakage a major energy thief. Older homes, especially those built before 1980, often have gaps around windows, doors, electrical outlets, and attic hatches.

Start with a DIY weatherization audit. On a windy day, hold a lit candle near window frames, door jambs, and baseboards. If the flame flickers, you’ve found a draft. Seal these with caulk or weatherstripping—both are inexpensive and easy to install.

For attics, check insulation levels. The U.S. Department of Energy recommends R-49 insulation for Colorado homes. If your attic has less than R-30, adding more can reduce heating costs by up to 20%. Many Denver homeowners qualify for free or low-cost insulation through Xcel’s Energy Smart program.

Don’t forget the basement and crawl spaces. Insulating these areas prevents cold air from rising into living spaces, reducing the workload on your furnace.

4. Upgrade to Energy-Efficient Appliances

Old appliances are silent energy hogs. A refrigerator from the 1990s can use twice as much electricity as a modern ENERGY STAR® model. The same applies to washing machines, dishwashers, and HVAC systems.

Replace aging units with ENERGY STAR® certified products. These meet strict efficiency standards set by the U.S. Environmental Protection Agency. For example:

• ENERGY STAR® refrigerators use at least 15% less energy than non-certified models.
• Front-loading washing machines use 25% less energy and 40% less water.
• Heat pump water heaters can cut water heating costs by 50% compared to traditional electric models.

Take advantage of Xcel’s appliance rebates. They offer up to $150 for qualifying heat pump water heaters, $75 for ENERGY STAR® refrigerators, and $100 for smart thermostats. Rebates are often processed within 6–8 weeks after purchase and submission of proof.

5. Switch to LED Lighting

Incandescent bulbs waste 90% of their energy as heat. LED bulbs use 75% less energy and last 25 times longer. In a typical Denver home with 40 light fixtures, switching to LED can save $75–$120 annually.

Many LED bulbs are now available for under $2 each at local retailers like Home Depot, Lowe’s, and Costco. Xcel also offers free LED bulb kits to qualifying customers. Simply request one online through their Energy Smart portal—no appointment needed. Kits usually include 5–10 bulbs and installation instructions.

Install motion sensors or timers in low-traffic areas like closets, garages, and basements. This ensures lights are never left on accidentally.

6. Reduce Phantom Loads

“Phantom loads”—the energy devices draw even when turned off—are responsible for 5–10% of residential electricity use. TVs, game consoles, coffee makers, and phone chargers all consume power in standby mode.

Use smart power strips to eliminate this waste. These strips cut power to connected devices when the main device (like a TV or computer) is turned off. Plug entertainment centers, home offices, and kitchen appliances into them.

For devices without smart strips, unplug them after use. A simple habit like unplugging your microwave or toaster after breakfast can add up over time.

7. Wash Clothes in Cold Water and Run Full Loads

Heating water for laundry accounts for about 90% of a washing machine’s energy use. Switching from hot to cold water cuts energy consumption dramatically without sacrificing cleanliness. Modern detergents are formulated to work effectively in cold water.

Always wait until you have a full load before running the washer or dishwasher. Running half-empty machines doubles your energy and water use per item cleaned.

Use the “eco” or “energy saver” cycle when available. These cycles use less water and lower temperatures while still delivering clean results.

8. Use Ceiling Fans Strategically

Ceiling fans don’t cool the air—they move it, creating a wind-chill effect on your skin. In summer, set fans to rotate counterclockwise to push air downward. In winter, reverse them to clockwise on low speed to pull warm air down from the ceiling.

Use fans to allow you to raise your thermostat by 4°F without feeling warmer. This simple trick can reduce cooling costs by up to 40% during peak summer months.

Turn fans off when you leave the room. They only provide comfort when someone is present to feel the airflow.

9. Schedule Professional HVAC Maintenance

Your furnace or heat pump is one of your home’s largest energy consumers. A dirty air filter, clogged ducts, or low refrigerant can reduce efficiency by 15–20%.

Change your HVAC air filter every 1–3 months, depending on pets and air quality. A clogged filter forces your system to work harder and longer.

Book an annual professional tune-up in early fall for heating systems and early spring for cooling systems. Technicians check refrigerant levels, clean coils, inspect ductwork, and calibrate thermostats. Many Denver HVAC companies offer discounted maintenance packages—ask about Xcel’s partner provider network for additional savings.

10. Monitor Usage with Xcel’s Online Tools

Xcel Energy provides free, real-time usage tracking through its online customer portal and mobile app. Log in to view hourly, daily, and monthly consumption data broken down by appliance category (if you have smart meters).

Set usage alerts. For example, you can get notified if your electricity use spikes above 50 kWh in a day—helping you catch issues like a malfunctioning water heater or forgotten space heater.

Compare your usage to similar homes in your neighborhood. Xcel’s “Usage Comparison” feature shows how your energy use stacks up against peers with similar home sizes and locations. This provides context and motivation to improve.

Best Practices

1. Adopt a Seasonal Energy Routine

Denver’s climate demands seasonal adjustments. Create a checklist for spring, summer, fall, and winter:

• Spring: Clean gutters, inspect attic insulation, test smoke detectors, and schedule AC maintenance.
• Summer: Close blinds during peak sun hours (10 a.m.–4 p.m.), use fans, avoid using ovens during heatwaves, and check for AC refrigerant leaks.
• Fall: Seal windows and doors, replace air filters, schedule furnace inspection, and install programmable thermostat if not already done.
• Winter: Reverse ceiling fans, check for drafts, ensure vents are unobstructed, and use draft stoppers at doors.

Consistency is key. Small, regular actions prevent large energy spikes.

2. Use Natural Light and Ventilation

Denver averages 300+ sunny days per year. Take advantage of free solar heat and light. Open curtains on south-facing windows during winter days to let in warmth. Close them at night to retain heat.

In spring and fall, open windows during cooler morning and evening hours to naturally cool your home instead of running the AC.

3. Avoid Electric Space Heaters

While convenient, electric space heaters are inefficient and expensive to run. A typical 1,500-watt heater costs about $0.20 per hour to operate—more than $14 per week if used daily. That’s over $700 annually.

If you need supplemental heat, use a well-insulated blanket, wear layers, or seal off unused rooms. If you must use a space heater, choose one with a thermostat, tip-over shutoff, and automatic timer—and never leave it unattended.

4. Consider Solar Energy

Denver is one of the sunniest cities in the U.S., with over 300 days of sunshine annually. Installing solar panels can drastically reduce or even eliminate your electricity bill.

Xcel Energy offers net metering: when your solar panels produce more electricity than you use, the excess is sent to the grid, and you receive credits on your bill. These credits offset usage during cloudy days or at night.

Colorado’s state tax credit (up to $5,000) and federal solar investment tax credit (30% through 2032) make solar more affordable than ever. Many Denver homeowners recoup their investment in 6–10 years and enjoy decades of free or low-cost electricity after that.

Start by using Xcel’s Solar Calculator to estimate your potential savings based on roof orientation, shading, and average usage.

5. Participate in Energy-Saving Programs

Xcel offers several no-cost or low-cost programs designed to help Denver residents save:

• Energy Smart – Free home energy assessments, rebates on appliances, and insulation upgrades.
• Load Management – Enroll to allow Xcel to briefly cycle your AC or water heater during peak demand. In exchange, you receive a monthly credit (typically $10–$20).
• Community Solar – Subscribe to a local solar garden if you can’t install panels on your roof. You get bill credits based on your share of the solar farm’s output.

These programs are often underutilized. Visit Xcel’s website and search “Denver energy savings programs” to see what you qualify for.

6. Educate Your Household

Energy savings only work if everyone in the home participates. Create a simple chart with tips: “Turn off lights,” “Unplug chargers,” “Close the fridge quickly.” Reward children or roommates for consistent behavior.

Hold monthly “energy check-ins” to review your bill and celebrate progress. When people understand the impact of their actions, they’re more likely to sustain good habits.

Tools and Resources

1. Xcel Energy Online Portal and Mobile App

Access your account, view usage graphs, set alerts, apply for rebates, and compare your usage to similar homes. Download the app for real-time notifications and bill payment.

2. ENERGY STAR® Product Finder

Use the official ENERGY STAR® website to search for certified appliances, lighting, and HVAC equipment. Filter by price, brand, and energy savings estimates.

3. Home Energy Saver (Lawrence Berkeley National Lab)

This free online tool analyzes your home’s energy use based on its size, age, insulation, and appliances. It provides a customized list of improvements with estimated savings and payback periods.

4. Colorado Energy Office – Energy Efficiency Programs

State-funded initiatives offer additional rebates for insulation, heat pumps, and weatherization. Visit coloradoenergy.org for eligibility details and application forms.

5. Denver’s Green Building Program

Homeowners who make energy-efficient upgrades may qualify for property tax exemptions or expedited permitting. Visit denvergov.org/greenbuilding for information.

6. Smart Thermostat Rebate Portal

Check Xcel’s rebates page for current offers on Nest, Ecobee, and Honeywell models. Some programs include free installation or $50 extra for enrolling in demand-response programs.

7. Utility Bill Comparison Tools

Third-party platforms like EnergySage and SaveOnEnergy let you compare rates and plans across providers. While Xcel is the default provider in Denver, understanding market rates helps you evaluate whether your current plan is optimal.

8. Local Weather and Sunlight Data

Use websites like weather.com or the National Weather Service to track daily highs, UV index, and wind patterns. This helps you plan when to open windows, run the dishwasher, or charge electric vehicles.

Real Examples

Example 1: The Martinez Family – 42% Reduction in 12 Months

The Martinez family lives in a 1,800-square-foot home in Lakewood. Their average monthly Xcel bill was $185 before implementing changes. They:

• Installed a smart thermostat (+$75 rebate).
• Added attic insulation to R-49 (+$300 rebate).
• Replaced their 15-year-old refrigerator with an ENERGY STAR® model (+$75 rebate).
• Switched all lighting to LED.
• Enrolled in Xcel’s Load Management program.

Within six months, their average bill dropped to $107. After 12 months, they saved $936—more than covering the cost of their upgrades. Their payback period for insulation and thermostat was under 8 months.

Example 2: Javier, Renting in RiNo – $40 Monthly Savings

Javier, a 28-year-old software developer, rents a 750-square-foot apartment in RiNo. He can’t make structural changes, but he:

• Used draft stoppers at the front door and windows.
• Switched to cold-water laundry and only ran full loads.
• Unplugged his gaming console and TV when not in use.
• Requested free LED bulbs from Xcel’s program.
• Set his space heater to 68°F and used a blanket instead of turning up the thermostat.

His bill dropped from $98 to $58 per month. He saved $480 in one year—money he used to fund a weekend trip to the Rockies.

Example 3: The Thompsons – Solar Payback in 7 Years

The Thompsons installed a 6.5 kW solar panel system on their Aurora home in 2023. The total cost after federal and state tax credits was $11,200. Their average monthly electricity bill was $140.

After installation, their net bill dropped to $12/month (only grid connection fees). They earned $18–$25 in monthly credits from excess solar production. Their system generates 9,200 kWh annually—more than their 8,500 kWh usage.

They expect to break even in 7 years and enjoy 18+ years of nearly free electricity.

FAQs

Can I really save $500+ per year on my Xcel Energy bill in Denver?

Absolutely. Many Denver households achieve $400–$800 in annual savings by combining thermostat adjustments, LED lighting, appliance upgrades, and weatherization. The key is consistency and using available rebates.

Does Xcel Energy offer free energy audits?

Yes. Through the Energy Smart program, qualifying homeowners can receive a free in-home energy assessment. Technicians evaluate insulation, air leaks, HVAC efficiency, and appliance performance. They also provide a customized report with recommended upgrades and rebate eligibility.

Are smart thermostats worth it in Denver’s climate?

Yes. Denver’s wide temperature swings make programmable control especially valuable. A smart thermostat can reduce heating and cooling costs by 10–20%, often paying for itself in under a year—especially with Xcel’s $100 rebate.

What’s the best time to run the dishwasher and laundry to save money?

If you’re on a Time-of-Use plan, run these appliances before 4 p.m. or after 9 p.m. on weekdays. On weekends, anytime is off-peak. Avoid running them between 4–9 p.m. on weekdays.

Do I need to replace all my appliances at once to save money?

No. Start with the biggest energy users: HVAC, water heater, refrigerator, and lighting. Replace items as they fail. Prioritize upgrades with the highest return on investment—like insulation and LED lighting.

Can renters save on Xcel bills too?

Yes. Renters can install weatherstripping, use draft stoppers, switch to LED bulbs, unplug devices, adjust thermostats, and request free LED kits from Xcel. Even small changes add up.

Is community solar a good option if I can’t install panels?

Yes. Community solar allows you to subscribe to a local solar farm and receive bill credits without installing equipment on your property. It’s ideal for renters, apartment dwellers, or those with shaded roofs.

How do I know if my home is well-insulated?

Check your attic insulation depth. If it’s less than 12 inches, you likely need more. You can also feel for cold spots on walls or ceilings in winter, or notice ice dams on your roof in cold weather—both indicate poor insulation.

Can I get rebates for replacing windows?

Currently, Xcel does not offer direct window rebates. However, some local programs through Denver’s Green Building Initiative or the Colorado Energy Office may provide assistance for high-efficiency windows if they meet ENERGY STAR® criteria.

What should I do if my bill suddenly spikes?

Check for:

• Recent appliance use (e.g., new heater, pool pump, or EV charger).
• Leaky ductwork or malfunctioning HVAC.
• Thermostat set too high or low.
• Guests staying over or changes in household routine.

Use Xcel’s usage tracker to pinpoint the exact day the spike occurred. If you can’t identify the cause, request a free energy audit.

Conclusion

Saving on your Xcel Energy bills in Denver isn’t about drastic lifestyle changes or expensive overhauls. It’s about making smart, informed decisions—day after day, season after season. From sealing a drafty window to installing a smart thermostat, each action compounds into real, measurable savings.

The tools are available. The rebates are waiting. The climate, while challenging, offers opportunities—like abundant sunshine for solar and predictable temperature patterns that make thermostat scheduling highly effective.

Start today. Request your free LED bulbs. Check your thermostat settings. Review your last three bills. Visit Xcel’s Energy Smart portal. These small steps are the foundation of long-term savings.

Denver residents who take control of their energy use don’t just save money—they reduce their environmental footprint, increase home comfort, and build resilience against future rate increases. The power to lower your bill isn’t in the hands of a utility company. It’s in yours.

With the right knowledge and consistent effort, you can transform your energy bill from a monthly burden into a manageable, even predictable, expense. And in a city known for its independence and innovation, that’s exactly the kind of progress that matters.