In an ongoing effort to combat the impacts of climate change, Colorado has become a trailblazer with its innovative Clean Heat Plan (CHP). As the first of its kind in the U.S., Colorado’s Clean Heat Plan aims to reduce greenhouse gas emissions from home and building heating systems. Here’s what it’s all about and what it means for Colorado residents.
Heating homes and buildings contributes significantly to greenhouse gas emissions since many of these systems rely on natural gas. To address this, Colorado passed Senate Bill 21-264 in 2021, creating a groundbreaking Clean Heat Standard. This law requires gas utilities to cut emissions by 4% by 2025 and 22% by 2030 in comparison to 2015 levels. This standard is also referred to as the Clean Heat Plan or “CHP” in the Colorado energy industry.
As part of the CHP, the Colorado Public Utilities Commission (PUC) works with stakeholders, like utility providers, to plan and provide support for clean technology. You can find more information on the specifics of the CHP in the table below.
The ultimate goal? Reduce the state’s reliance on fossil fuels and build a more sustainable energy future.
The plan encourages gas utilities to use a mix of solutions, including the following:
One major utility, Xcel Energy, has already rolled out its Clean Heat Plan, approved in June 2024. This plan dedicates over $440 million over the next three years to electrification, energy efficiency, and targeted incentives.
For many homeowners and businesses, the Clean Heat Plan will encourage a switch to electric heat pumps—versatile devices that can heat and cool efficiently. Xcel plans to incentivize nearly 100,000 installations by the end of 2026. That’s a big step toward reducing carbon emissions!
The plan also prioritizes equity. A full 20% of customer incentive funds are set aside for low-income and historically disadvantaged communities, ensuring everyone has access to clean energy solutions.
Heating accounts for a significant portion of energy use, so transitioning to cleaner systems can have a major impact on emissions. The Colorado PUC, which approved Xcel’s plan, emphasized that electrification and efficiency are the most cost-effective and scalable ways to reduce emissions.
The plan focuses on proven solutions, which is why alternatives like hydrogen blending or biomethane are playing a smaller role. Instead, efforts are squarely aimed at making a measurable difference in the short and long term.
Colorado’s leadership is inspiring other states to follow suit. Vermont, Massachusetts, Illinois, and New Jersey have all introduced or passed similar measures to cut emissions from heating. The success of Colorado’s Clean Heat Plan could pave the way for nationwide adoption of similar standards.
If you’re a homeowner in Colorado, 2025 is the perfect time to embrace the benefits of the Clean Heat Plan and Xcel is making it easier than ever. As the state’s largest heat pump installer, UniColorado Heating & Cooling is here to help you take full advantage of the opportunities available. You can benefit by taking advantage of TRIPLED rebates for a limited time in 2025:
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With over 30 years of experience, UniColorado Heating & Cooling stands as the leading name in heat pump installation across Denver and the surrounding metro areas. Our in-depth knowledge of cold climate heat pump systems ensures your home stays comfortable year-round, no matter how extreme the weather gets.
At UniColorado Heating & Cooling, we believe top-tier heating and cooling solutions shouldn’t break the bank. Due to our immense volume of heat pump installations, we offer competitively priced services and state-of-the-art heat pump equipment, making energy-efficient home comfort accessible for everyone in Colorado.
Choosing the right partner for your heat pump needs is crucial to getting the most out of your investment. With UniColorado Heating & Cooling, you’ll benefit from:
Make the switch to cleaner, more efficient heating and cooling today with Colorado’s most trusted heat pump experts. Contact us for a free estimate and start saving with innovative energy solutions!
Contact us today for a free estimate and let us help you make the most of your heat pump investment.
