Electrify your home

Denver Climate Action Rebates

The Denver Climate Action Rebates program includes multiple rebates to help Denver homeowners electrify their home. Homeowners can save up to $8,000 on a heat pump system with Denver CARe + other incentives. UniColorado is proud to be a top participant in this historical program.

denver heat pump rebates

Denver Heat Pump Rebates

Denver Heat Pump Rebates - UniColorado Heating & Cooling
Eligible Equipment & RebatesRebate AmountEfficiency RequiredUse CasePrice Range (Before Rebates)
Air Source Heat Pump (ASHP)$1,50015.2 SEER2, 11.7 EER2, 7.8 HSPF2+House w/ ductwork or existing forced-air system$11,500 - $17,200 before rebates
Cold Climate Air Source Heat Pump (ccASHP)$3,50015.2 SEER2, 10.0 EER2, 8.1 HSPF2 & 70%+ Cold HeatHouse w/ ductwork or existing forced-air system$15,100 - $25,400 before rebates
MiniSplit Heat Pump (MSHP)$1,50015.2 SEER2, 11.5 EER2, 7.8 HSPF2No ductwork$6,100 & up depending on # of zones before rebates
Cold-Climate MiniSplit Heat Pump (ccMSHP)$3,50016.0 SEER2, 9.0 EER2, 9.5 HSPF2 & 70%+ Cold HeatNo ductwork$6,700 & up depending on # of zones before rebates
Electrical Service Upgrade if needed for ASHP or Mini$2,000Licensed Electrician (Provided by UniColorado)Electrical work for Heat Pump$450 - $6,000 before rebates
EV Charger$200Energy Star Level 2 CertifiedElectric Vehicle Charging$1,000 - $1,500 before rebates
Heat Pump Water Heater$1,000 - $1,750Energy Star CertifiedWater Heater Replacement$5,400 - $7,500 before rebates
Solar$4,000Previous heat pump or EV rebate recipients onlySolar PV$10,400 - $30,500 before rebates
Battery Storage$500 - $2,750High rebate for previous heat pump or EV rebate recipients onlyEnergy Storage$15,400 - $27,200 before rebates
TL;DR

The Denver Climate Action Rebate Program (CARe) is an initivative by the City & County of Denver to encourage homeowners to electrify their home.
You can:

  • Upgrade your HVAC System
  • Upgrade your Electrical Panel
  • Get Solar
  • Get an EV Charger
  • Get Battery Storage

at a substantially reduced cost.

How does the Denver Climate Action Rebate work?

The eligible rebate amount is applied as a discount by the contractor on eligible installations at the time of purchase.

Who is eligible for Denver CARe Rebates?

Single family, duplex and townhome (as well as renter occupied) properties located in the City & County of Denver. You must have an active Xcel Gas & Electric account at the property.

Who completes the applications?

UniColorado does all the rebate paperwork for our customers. You’ll be required to sign a few forms via eSignature (takes a few minutes), but that’s the extent of forms you’ll need to do.

How does the Xcel Rebate work?

The Xcel Energy Rebate is provided to UniColorado customers upfront as a discount. The rebate will be assigned to us.

What is the customer's share of cost?

For a free online heat pump pricing calculator, click here.

For air source heat pumps, our Denver customers spent an average of $10,900 – $15,800 in fourth quarter of 2023.

For MiniSplit heat pumps, our customers spent an average of $3,500 – $26,200 in fourth quarter of 2023.

The rebates help reduce the overall the cost of the project and incentives for heat pumps are currently at an all time high.

I don't live in Denver, can I get the rebate?

No. The property must be located in the City & County of Denver.

What's the difference between AC & Heatpump?

An Air Conditioning unit only provides cooling function in the summer. A Heat pump unit provides cooling in the summer and electric heating in the winter.

Do you offer fully electric heat pump systems?

We do.

MiniSplit systems (for ductless setups) are fully electric; For traditional systems with duct work, we offer furnace electrification services.

Learn more about furnace electrification

How do I get pricing?

We provide free estimates on replacement or installation of new heatpump systems.

Click here to schedule

UniColorado verifies eligibility and handles all paperwork for our customers. Both Denver CARe & Xcel Rebates are provided to our customers up front as discounts.
  • Eligibility Requirements for Denver CARe Rebates
  • City & County of Denver Residents
  • Single-Family, Duplex and Townhomes
  • Xcel Energy Gas & Electric Account
MORE SAVINGSMORE REBATESMORE SAVINGSMORE REBATESMORE SAVINGSMORE REBATES
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Even More

Xcel’s Rebates are discounted up front by UniColorado to the customer.

Terms are set by Xcel Energy & subject to change. Table shows simplified information for 2024. For full terms, click below.

System Type2024 Xcel Rebate
Air Source Heat pump$1,700
Cold Climate Air Source Heat pump$2,200
MiniSplit Heat pump$1,700
Cold-Climate MiniSplit Heat pump$2,200

Colorado residents can benefit from an upfront discount, which is a tax credit to the contractor. UniColorado offers $1,000 – $1,500 off on eligible systems. System must provide 80% or more of annual heating needs.

System TypeMinimum DiscountUniColorado's Discount
Air Source Heat pump$499.50$1,000+
Water & Combined Source Heat pump$990.90Not offered
Heat Pump Water Heater$166.60$300+
Save
On Your Taxes

Inflation Reduction Act Tax Incentives

The Inflation Reduction Act offers two incentives for heat pumps: the 25C Tax Credit incentive and HEEHRA Rebates (The High-Efficiency Electric Home Rebate Act).

The Federal 25C Tax Credit provides homeowners with savings on qualifying heat pumps and electrical panel upgrades. Deduct 30% of the costs, up to $2,000 for heat pumps and $600 for electrical panel upgrades, from your federal taxes annually.

Most homeowners are expected to be eligible for the 25C tax credit incentives, while HEEHRA is designed for low-income households. Eligibility requirements for HEEHRA have not yet been fully announced.

For the most up-to-date information on tax credit eligibility and rules, visit the IRS website or consult a tax professional.

IncentiveAvailableBenefitDescriptionRestriction
25C Tax CreditUp to $2,000A tax credit that reduces tax liabilityMust have tax liability to offset
HEEHRA RebatesUp to $8,000An income restricted rebate that is not available yetHeavily income restricted
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Loved By Homes ❤️

The Best Heat Pump Experience Possible

UniColorado is the most experienced heat pump installer in the Denver metro area. With thousands of heat pump units installed, we know what works, what’s high quality and what’s worth your time and money.

We take great pride in our quality of work and designs that work for a wide range of homes & budgets.

What is a Heat Pump?

A heat pump is a HVAC unit that provides both electric heating and central air conditioning for your home using electricity. The heat pump is the outdoor component of the system, working to transfer heat either into or out of your living space, depending on the season.

In a ducted system, the heat pump is connected to an indoor furnace or air handler, which distributes the air through a ducts.

For ductless systems, also known as mini-splits, the heat pump is linked to individual indoor units mounted on walls or ceilings in each room. These units deliver heated or cooled air directly to the space they serve, without the need for ductwork.

Mitsubishi heat pump installation
What
Is Best for Your Home?

What type of heat pump is best for me?

Ducted vs. Ductless:

  • If your house has ductwork, a ducted heat pump system may be the best option. It can easily integrate with your current setup.
  • If your house lacks ductwork, a ductless (mini-split) heat pump system is a great choice. It offers flexibility in zoning and can be installed without the need for extensive or disruptive HVAC work.

Dual Fuel vs. Fully Electric:

  • A dual fuel system combines a heat pump with a gas furnace, providing flexibility in fuel choice. This can be a good option if you want to maintain a gas backup, have a leaky house or subpar insulation.
  • A Fully electric heat pump is typically best for homes around 1800 – 2200 sqft, homes with solar or plans to get solar, newer construction and optimal ductwork.

High Efficiency vs. Cold Climate:

  • If your primary goal is to electrify most or all of your heating needs, a cold climate heat pump is recommended. These systems can electrify 80-100% of your heating needs.
  • If you don’t necessarily want to dip your toe in all the way, high efficiency heat pumps are a great choice. These systems typically provide heating in temperatures between 30°F and 60°F.

Regardless of the type of heat pump you choose, you’ll also benefit from central air conditioning, which is included with all heat pump systems.

Ducted
mitsubishi ducted svz air handler for heat pump
Ductless
mitsubishi indoor wall mount unit installation
High Efficiency
high efficiency Heat pump
Cold Climate
mitsubishi hyper heat heat pump installation with denver care rebates
What does It All
Mean?

Heat Pump Definitions

NameDefinitionCommon Benefit
Heat PumpUnit produces heat using electricity in addition to regular cooling functionElectrifies heating function, reduces fossil fuel usage
Air Source Heat PumpUnit uses ductwork/conventional forced-air infrastructureRetrofits into ducted systems easily
MiniSplit Heat PumpUnit designed for ductless systems w/ smaller form factorFor homes with no ductwork
Cold Climate Heat PumpUnit can produce more heat using electricty compared to regular heatpumpMore electrification than regular heatpump/replacing fossil fuel
What is a heat pump?

 In the most simplified terms, a heat pump is an air conditioning unit that can also absorb heat from the outside using electricity in addition to providing cooling in the summer.

Learn More

Are heat pumps fully available?

 Since mid-2021, heat pumps have been hard to come by due to supply chain disruptions. Quality equipment availability is not guaranteed & often sparse.

What type of heat pump do I need in Colorado?

If you have a gas furnace, the most common system for Colorado homeowners is an air source heat pump. If you do not have a centralized ductwork system, ductless Minisplits are often the most cost effective.

Is it possible that I don't get the rebate?

 Denver County reserves the right to pull or modify the items they pay rebates on at any time. If you intended on getting a heat pump, the sooner, the better.

Should I even get a heat pump?

If you planned on upgrading your HVAC system to something more efficient and comfortable, heat pumps are a great choice. These units will increase your comfort due to the way they’re designed and reduce your bills over time. Heat pumps can also bring certain features like invert-driven compressors that reduce noise in the outdoor unit.

How much will I save with a heatpump versus AC?

Based of our empirical & anecdotal findings in the field, most heat pumps systems typically reduce energy use by around 10-15% over time when compared to a conventional system. In the lab settings, efficiency gains may be as high as 30%.

What are the next steps?

We’re happy to provide a free estimate to see if heat pumps are a good fit for your project and budget. Click here to schedule.

Heat Pump Electrification Benefits

We understand you that may want to participate in the Denver Climate Action Program. The program is limited in scope and also limited by supply chain issues.

All energy savings, estimates & benefits depend on the structure, its construction, the existing system type and a multitude of factors.

The benefits displayed are simplified estimates and for educational purposes only.

System TypeCompared toCommon Benefits
Air Source Heat PumpRegular Furnace + ACApprox 50% of heating will be electrified
Cold Climate Air Source Heat PumpRegular Furnace + AC50-100% of heating electrified
MiniSplit Heat PumpSwamp CoolerHigh Efficiency Cooling + Some Heating
Cold-Climate MiniSplit Heat PumpBoilerFully Electrified Heating + Cooling Capacity
Cost
of Central Heat Pumps

Denver heat pump installation costs

Ducted Air Source Heat Pump Costs
In 2023, most of our customers spent around $11,500 to $18,800 to install a ducted air source heat pump system* before rebates. The total cost can vary widely depending on the property and the customer’s specific needs. 
It’s important to note that most ducted air source heat pump units require a new or compatible furnace to function at high efficiency. We do not recommend installing an air source heat pump on an old furnace. However, if your furnace is less than 5 years old, it may be compatible with an air source heat pump system.

Ductless Mini-Split Heat Pump Costs
In 2023, most of our customers spent around $11,700 to $24,700 to install a multi-zone mini-split heat pump system before rebates. The total cost can vary significantly based on the number of zones, the complexity of the installation, and the customer’s specific requirements. On average, Denver mini-split heat pump installation costs range from $9,500 to $22,500, which typically includes the installation of an outdoor heat pump condenser, indoor wall-mounted units, materials, labor, and tax.

System TypeCost range before incentives
Air Source Heat pump$8,800 - $17,500
Cold Climate Air Source Heat pump$10,200 - $24,500
MiniSplit Heat pump$5,500 - $22,800
Cold-Climate MiniSplit Heat pump$5,800 - $27,100
Need a rough estimate right now?
Try out our 100% online HVAC pricing calculators today!
What People
Wonder About Heat Pumps

frequently asked questions

What are Denver Heat Pump Rebates?

Denver Heat Pump Rebates are part of the Denver Climate Action Rebates (CARe) program, which aims to reduce the city’s carbon footprint by encouraging homeowners to install energy-efficient heat pump systems. The rebates, which can be up to $8,000 for air source heat pumps and mini-split systems, help offset the upfront costs of installation, making it more affordable for homeowners to transition away from gas-powered heating and cooling systems. To qualify, homeowners must work with a participating contractor, such as UniColorado, who can guide them through the application process and ensure that the installed system meets all eligibility requirements.

What is the Denver Climate Action Rebate Program?

The Denver Climate Action Rebate (CARe) Program is an initiative launched by the City and County of Denver in 2021 to encourage residents to make energy-efficient upgrades to their homes. The program is funded by a 0.25% sales tax increase approved by Denver voters in 2020, which is dedicated to financing climate action projects.

CARe offers rebates for various home improvements, including insulation, air sealing, electric water heaters, solar panels, and heat pump systems. The program aims to reduce greenhouse gas emissions, improve energy efficiency, and help homeowners save money on utility bills.

Since its inception, the CARe program has helped numerous Denver residents make their homes more sustainable and energy-efficient. The program has been successful in promoting the adoption of clean energy solutions and contributing to Denver’s goal of reducing its carbon footprint.

However, the CARe program is scheduled to end in 2024, so homeowners interested in taking advantage of these rebates should act soon. By working with a participating contractor like UniColorado, homeowners can navigate the rebate application process and ensure they receive the maximum available incentives before the program expires.

Who is eligible for Denver CARe Rebates?

Denver CARe Rebates are available to homeowners and property owners within the City and County of Denver. To be eligible for the rebates, the following criteria must be met:

1. Property Location: The property must be located within the City and County of Denver boundaries.

2. Property Type: The property can be a single-family home, duplex, townhome, or multi-family building (up to 4 units).

3. Homeownership: The applicant must be the property owner or have the property owner’s permission to make the upgrades. Renters may be eligible if they have the property owner’s consent.

4. Contractor Selection: The upgrades must be completed by a participating contractor, such as UniColorado, who is registered with the CARe program.

5. Equipment Eligibility: The installed equipment, such as heat pumps, insulation, or solar panels, must meet the program’s efficiency and eligibility requirements.

6. Application Timeframe: The rebate application must be submitted within 90 days of the installation completion date.

Income-qualified homeowners may be eligible for additional rebates and assistance through the Denver Homes Renewable Rebates (DHRR) program, which is designed to help lower-income households access the benefits of energy-efficient upgrades.

It’s important to note that rebate funds are limited and available on a first-come, first-served basis. Homeowners should work with their participating contractor to ensure they meet all eligibility requirements and submit their applications in a timely manner.

When is the Denver CARe Program Scheduled to end?

The Denver Climate Action Rebate (CARe) Program is currently scheduled to end on December 31, 2024. This means that homeowners and property owners in Denver have until the end of 2024 to complete eligible energy-efficient upgrades and apply for the available rebates.

It’s crucial for homeowners who are considering making energy-efficient improvements to their homes to start planning and taking action soon to ensure they can take full advantage of the CARe program before it expires. The process of selecting a contractor, obtaining necessary permits, and completing the upgrades can take some time, so it’s advisable not to wait until the last minute.

Additionally, rebate funds are limited and distributed on a first-come, first-served basis. As the program deadline approaches, there may be an increased demand for rebates, which could lead to funds being depleted more quickly.

To ensure a smooth process and secure the maximum available rebates, homeowners should work closely with a participating contractor like UniColorado. These contractors are well-versed in the CARe program requirements and can help guide homeowners through the application process, ensuring that all eligibility criteria are met and the necessary documentation is submitted in a timely manner.

While there is a possibility that the CARe program could be extended or renewed beyond 2024, homeowners should not rely on this possibility and should instead focus on taking advantage of the current program before its scheduled end date.

What is the Denver minisplit rebate?

The Denver mini-split heat pump rebate offers an upfront discount of either $1,500 or $3,500, depending on the system’s efficiency rating. To qualify for the $1,500 rebate, the mini-split must have a SEER rating of at least 16 and an HSPF rating of at least 9.0. For the $3,500 rebate, the system must have a SEER rating of at least 18 and an HSPF rating of at least 10.0. The rebate is applied directly to the installation cost by the participating contractor, such as UniColorado.

Is it possible that I don't get the Denver CARe rebate?

Yes, it is possible that you may not receive the Denver CARe rebate, even if you have completed eligible upgrades. Reasons for this include:

1. Funds being exhausted before your application is processed
2. Not meeting all eligibility criteria
3. Errors or omissions in your application
4. Missing the 90-day deadline for submitting the application after installation
5. Potential program changes or cancellation

To minimize the risk of not receiving the rebate, work with an experienced contractor like UniColorado, who can help ensure you meet all requirements and submit a complete, accurate, and timely application.

Should I even get a heat pump?

If you planned on upgrading your HVAC system to something more efficient and comfortable, heat pumps are a great choice. Heat pump units will increase your comfort due to the way they’re designed and reduce your bills over time. Heat pumps can also bring certain features like invert-driven compressors that reduce noise in the outdoor unit.

How much will I save with a heatpump versus AC?

Based of our empirical & anecdotal findings in the field, most heat pumps systems typically reduce energy use by around 10-15% over time when compared to a conventional system. In the lab settings, efficiency gains may be as high as 30%.

What are the next steps?

We’re happy to provide a free estimate to see if heat pumps are a good fit for your project and budget. Click here to schedule.

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In Touch 😊
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Heatpump_Installation

Yay! You may be eligible for Denver County Heat Pump Rebates.

 

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