Colorado Heat Pump Rebates: 2026 Guide

Air source heat pumps providing at least 80% of annual heating needs qualify for a $1,000 tax credit in 2026. The credit goes to the contractor, and UniColorado passes it as a discount on your invoice. No income requirement.

See our Colorado Heat Pump Tax Credit page for full eligibility details and how the contractor-claimed credit works.

Multiple utility providers and local governments offer heat pump incentives. Each program has its own eligibility, amounts, and application process. UniColorado is registered with all of them.

• Xcel Energy - $2,250/ton for cold-climate heat pumps. The largest utility rebate in Colorado. Available to all Xcel gas customers.
• EnergySmart Boulder - Boulder County residents. Stacks with Xcel and HEAR programs, capped at 70% of project cost.
• United Power - Up to $2,500 for ducted heat pumps over 2 tons. Available to United Power members in the northern metro area.
• Longmont Power - Cold-climate ducted systems up to $2,000. Longmont municipal utility customers.
• DRCOG / Power Ahead Colorado - $273M program launching mid-2026 for the Denver metro area. Funded by EPA Climate Pollution Reduction Grant.

The primary federal incentive is HEAR (Home Electrification and Appliance Rebate), which 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.

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.

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.

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.