For Colorado
FAQs
How much can I actually save on a heat pump in Colorado right now?
Most Denver-area homeowners can stack two rebates with no income requirement: the Xcel Energy cold-climate heat pump rebate and the Colorado State heat pump discount. On a typical system that's roughly $7,750 in savings on a 3-ton system and up to $12,250 on a 5-ton system — applied before you pay, not months later. Income-qualified households may be eligible for more. All rebates are subject to program approval and available funding.
What rebates are available?
There are a few worth knowing about: Xcel Energy Cold-Climate Heat Pump Rebate — the big one Colorado State Heat Pump Discount — up to $1,000 off your invoice HEAR Federal Rebate — income-qualified, currently limited (see below) Power Ahead Colorado — a Denver-metro program launching in 2026 Federal 25C Tax Credit — expired, and we want you to know that
Tell me about the Xcel rebate.
This is the largest rebate available to most homeowners. Xcel pays $2,250 per heating ton (measured at 5°F), which typically works out to around $6,750 on a 3-ton system or $11,250 on a 5-ton system. There's no income requirement — it's open to all Xcel gas customers — but the install has to be done by an Xcel-approved contractor. Juan, our lead technician and co-owner, is approved. One thing to know: funding is first-come, first-served, and Xcel can change or end the program at any time. Final rebate amounts are subject to Xcel's approval.
What's the Colorado State Heat Pump Discount?
It's an instant discount of up to $1,000 applied as a line item on your quote — no income requirement, available to all Colorado residents. The install has to be done by a Colorado Energy Office registered contractor (Juan is registered), and your heat pump needs to cover at least 80% of your home's annual heating needs, which a properly sized system will.
Can I really combine both?
Yes. The Xcel rebate and the state discount stack, with no income check on either. That's where the up to ~$7,750 (3-ton) and ~$12,250 (5-ton) figures come from. Both are subject to program approval and funding.
What about federal rebates — I've heard there's $8,000 available.
That's the HEAR program (Home Electrification and Appliance Rebates), and it's income-qualified — up to $8,000 for households under roughly 150% of area median income (about $168K for a household of two). Here's the honest part: as of spring 2026, the Front Range / Denver-metro funding appears to be fully reserved, so it's likely unavailable for most new Denver projects. It may still be available in other Colorado regions, and it's all subject to budget availability. If you think you may qualify, we'll help you check before assuming anything.
I saw something about a 25C federal tax credit.
That one expired December 31, 2025, so it's not available for 2026 installs. If you've seen it referenced online, that's why — we're flagging it so there's no confusion.
Is anything new coming?
Power Ahead Colorado is a Denver-metro regional program expected to launch in 2026 — roughly $1,500, no income requirement, and stackable on top of the others. We're not promising specifics until it's live, but it's worth asking about when you reach out.
Do I have to deal with the paperwork?
No. We submit the rebate to Xcel on your behalf — that part happens regardless. You don't chase forms or portals.
Do I get the savings upfront, or do I wait for a check?
Your choice, and either way the rebate shows on your quote as an instant rebate: Sign it over to us and we deduct it directly from your invoice, so you pay the lower net price on install day — no waiting. Receive it directly from Xcel yourself, typically within 8–12 weeks after install. Most people choose the upfront discount. We front the rebate so you don't have to.
Are these savings guaranteed?
We'll show you every rebate you may qualify for and start the process for you — but rebates are subject to program approval and available funding, which we don't control. We'd rather tell you that plainly than overpromise. (The state credit is a tax-related program; for questions specific to your tax situation, check with a tax professional.)
How do I find out what I qualify for?
Reach out and we'll put together a quote with every applicable rebate itemized, so you can see your real net price before you commit to anything.