Colorado Heat Pump Rebates: 2026 Guide
Colorado residents can qualify for thousands of dollars in savings on heat pumps. Homeowners have access to over 40 heat pump rebate programs including state tax credits, Xcel Energy utility rebates, federal programs, and local incentives. UniColorado handles all rebate paperwork.
Updated February 24, 2026•By Editorial Staff
Your Guide to Colorado Heat Pump Rebates
Considering switching your furnace and AC for a heat pump system? Colorado is incentivizing homeowners to replace their existing HVAC systems with energy-efficient options more than ever with expanded heat pump incentives. Colorado residents can qualify for $7,750 to $15,750 in savings on heat pumps across six active programs covering the Denver metro and Front Range, with more launching mid-2026.
UniColorado Heating & Cooling is a registered contractor for all of the available rebate programs. We apply all qualifying rebates as upfront discounts on your invoice. You don't file paperwork or wait for reimbursement. Find the federal and Colorado heat pump rebate programs we participate in and how these can impact your new system estimate below.
How Do Rebates Work?
Get Free Estimate
All qualifying rebates shown on your quote
We Verify Eligibility
Utility provider, income, and equipment specs checked
Pay the Net Price
Rebates applied as upfront discounts on your invoice
We Handle Paperwork
All submissions done by UniColorado
All rebate programs we participate in are applied as upfront discounts. You never pay full price and wait for reimbursement.
Colorado Heat Pump Rebate Programs: What Are the Details?
Homeowners can take advantage of multiple statewide and local heat pump rebate programs for their new heat pump systems. This includes tax incentives for installing a new, energy-efficient system and significant discounts from utility companies like Xcel Energy.
UniColorado Heating & Cooling handles everything from the paperwork to the install for our customers.
Colorado Heat Pump Tax Credit (State)
The Colorado Heat Pump Tax Credit provides all Colorado residents who install a qualified heat pump through a registered contractor with a tax credit as a discount at the time of installation. All Colorado residents qualify for this rebate program.
Through the Colorado Heat Pump Tax Credit, homeowners can receive a $1,000 discount for heat pumps that cover at least 80% of their annual heating needs. The credit launched January 1, 2024 at $1,500, dropped to $1,250 in 2025, and settled at $1,000 for 2026 and beyond.
See our Colorado Heat Pump Tax Credit page for full eligibility details and how the contractor-claimed credit works.
Xcel Energy (Utility)
Xcel Energy offers rebates of $2,250/ton for cold-climate heat pumps to homeowners throughout the Denver metro area. Denver homeowners can save between $5,000 to $15,000 on new system installations with Xcel Energy rebates and other incentives. Homeowners must have an active Xcel gas or gas and electric service at the property to be eligible.
As the most experienced heat pump installer in Colorado, UniColorado guides homeowners through the Xcel Energy rebate process. See our Xcel Energy HVAC Rebates page for details.
Denver CARe (Local Government)
The City & County of Denver incentivized Denver residents to electrify their homes via the Denver Climate Action Rebate Program (CARe). This program ended in 2025 and is no longer available.
UniColorado was a top participant in this program. See our Denver Heat Pump Rebates page for more information.
EnergySmart (Local Government)
In partnership with Boulder County, EnergySmart encourages Boulder homeowners to enhance their homes' energy efficiency through installing heat pumps and other greener HVAC systems. Boulder homeowners must work with an EnergySmart advisor and pre-qualify before they apply for these rebates. See our EnergySmart Rebates page.
United Power (Utility)
Up to $1,000 for ducted heat pumps over 2 tons. Available to United Power members in the northern metro area. See our United Power Rebates page.
DRCOG (Local Government)
The Denver Regional Council of Governments (DRCOG) is developing a major rebate program funded by the EPA's Climate Pollution Reduction Grant. This $273M program is launching mid-2026 for the Denver metro area. See our DRCOG Rebates page.
HEAR & HOMES (Federal)
The Home Electrification and Appliance Rebate (HEAR) provides up to $8,000 for income-qualified homeowners (at or below 150% AMI). HEAR rebates are applied at point of sale as an upfront discount.
The federal 25C tax credit ended December 31, 2025. HEAR is now the sole federal program for residential heat pumps in Colorado.
Federal Tax Credit (Ended)
Through the Inflation Reduction Act (IRA), homeowners were eligible for federal tax credits for energy-efficient home improvements including heat pumps. This program ended December 31, 2025. IRA rebates are now disbursed through the HEAR program above. See our Federal Tax Credits page for details.
Can Homeowners Stack Rebates?
Yes. Colorado homeowners can combine multiple programs on the same installation as long as they meet each program's eligibility. A typical Xcel customer stacking Xcel + state tax credit saves $7,750 on a 3-ton system. Add HEAR for income-qualified households and savings reach $15,750.
Why UniColorado for Heat Pump Rebates?
UniColorado is a registered contractor for every rebate program listed on this page. We've completed over 12,000 installations across the Denver metro area and have been installing heat pumps since before the Clean Heat Plan existed. That matters because program requirements change annually, and the contractor is responsible for correct paperwork.
What We Handle
- We handle all rebate paperwork - Xcel, HEAR, state tax credits, DRCOG
- We verify eligibility before quoting - utility, income, and equipment specs
- We install brands that qualify - Mitsubishi, Carrier, and Bosch cold-climate heat pumps
- Proper sizing maximizes your rebate - Manual J load calculations on every project
The difference between a $6,750 rebate and a $2,700 rebate often comes down to equipment selection. Cold-climate heat pumps are measured at 5°F (heating tons) and qualify for $2,250/ton from Xcel, while standard units measured at 95°F (cooling tons) only get $900/ton. The Manual J load calculation also confirms your system covers 80%+ of heating needs for the Colorado state tax credit.
How It Works
This Is What Your Invoice Looks Like
We don’t just install heat pumps. We maximize your savings. Every rebate shows up as a line-item discount before you pay.
Rebates applied as upfront discounts
Every eligible rebate is deducted directly on your invoice. You pay the reduced price at installation. No waiting for reimbursement checks.
We handle all the paperwork
Our team submits every application, gathers documentation, and follows up with program administrators. You sign, we do the rest.
Guaranteed amount or we cover it
If a rebate is denied after we quoted it, we absorb the difference. The discount on your invoice stands.
RebateStacking
Stack Your Savings by System Size
Real savings for cold climate heat pumps. Xcel rebate is $2,250 per heating ton at 5°F.
3-Ton, Any Income
All Xcel gas customers. No income requirement.
Up to Total Savings
$7,750
3-Ton, Income-Qualified
Under 150% AMI (~$168K household of 2).
Up to Total Savings
$15,750
4-Ton, Income-Qualified
Larger homes, under 150% AMI.
Up to Total Savings
$18,000
Based on cold climate heat pumps (ccASHP/ccMSHP) at $2,250/heating ton. HEAR amounts depend on income level and household size.
Frequently Asked Questions
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