Denver Climate Action Rebates Program For Heatpumps & MiniSplits

Updated: 01/05/2023


The 2023 Denver rebate amounts have been announced on 12/21/2022 and are listed below. Most rebates have been significantly reduced compared to 2022.


January 5th, 2023 updates:

  • New Contractor Portal is scheduled to re-open the week of January 9th.
  • Rebates can reserved in advance with approved contracts for eligble customers.
  • SEER2 ratings will be coming into effect later in the year.


2023 Denver Heatpump Rebates - Updated
Denver County Climate Action Rebates - HVAC
Eligible Equipment & RebatesMax Rebate Amount (2023)
Max Rebate Amount (2022)
Typical Use CaseEfficiency Required

Typical Price Range (installed)Notes
Air Source Heat Pump (Including Dual Fuel)
$1,500$7,200Homes with existing furnace & ducts15+ SEER, 11.5+ EER, 9+ HSPF$12,000 -$22,000 before rebatesTypically in stock
Cold Climate Air Source Heat Pump$3,500$9,000Homes with existing furnace & ducts16+ SEER, 10.5+ EER, 9.5 HSPF & Listing$13,000 -$25,000 before rebatesHard to find
Mini-Split Heat Pump$1,500 $4,500 Homes with no ducts15+ SEER, 11+ EER, 9+ HSPF$4,800 & up depending on # of zones before rebatesTypically available
Cold Climate Mini-Split Heat Pump$3,500 $5,400 Homes with no ducts & no backup heating mechanism
16+ SEER, 9+ EER, 10.6+ HSPF & Listing$5,200 & up depending on # of zones before rebatesHard to find
Electrical Service Upgrade (Panel) if needed for ASHP or Mini$2,000 $2,000 Electrical work that's required for the heatpumpLicensed Electrician (Provided by UniColorado)$1,500-$7,000 before rebatesN/A

Eligibility Requirements for Denver Climate Action Rebate Program for Heatpumps

  • Denver County Resident
  • Single-Family & Multi-Family up to 4 units
  • Xcel Energy Gas & Electric Customer
Frequently Asked Questions

The rebate amount is applied as a discount by the contractor on eligible installations.

The rebate amount is sent via check or bill-credit to eligible Xcel account holders within 90-days. We do all the paperwork for our customers.

In 2023, the Denver rebate amounts were reduced up to 90% when compared to 2022, therefore the costs have increased.

For air source heatpumps, our customers are spending an average of $13,000 - $17,000 depending on the type of project.


For MiniSplit heatpumps, our customers are spending an average of $10,000 - $22,000 depending on the type of project.


The rebates help pay for the cost of the project if you already needed or planned on getting work completed.

No. The property must be located in Denver County.

AC only provides cooling function in the summer. Heatpump provides cooling in the summer and electric heating in the winter to varying degrees.

We do.

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


Click here to schedule.

2023 Xcel Rebates for Heatpumps

Xcel Energy Rebates are processed & paid after installation directly to Xcel Energy Gas & Electric customers via check or bill credit.


Terms are set by Xcel Energy & subject to change. Table shows simplified information for 2023. For full terms, click below.

System Type2022 Rebate2023 Rebate
Air Source Heatpump$800$1,500
Cold Climate Air Source Heatpump$1,000$2,000
MiniSplit Heatpump$500$1,500
Cold-Climate MiniSplit Heatpump$600$2,000

*Based on Xcel’s announcements for the year 2023. Includes bonus rebates. Subject to change.

The Inflation Reduction Act (IRA) Heatpump Incentives
This incentive is restricted by income. Full program terms have not been announced. Your installation may not be eligble for this incentive.
Electrification ProjectMaximum Benefit
HVAC Heatpump$8,000
Electrical Service Upgrade$4,000
Heatpump Waterheater$1,750

*The full terms of the inflation reduction act tax credits for heatpumps have not been fully announced. The information displayed is based on currently available information and subject to change.

Income ClassificationRequirements
Low-Income HouseholdLess than 80% of your area’s median family income 
Moderate-income households80% to 150% of your area’s median income for families

The Biden adminstration signed the Inflation Reduction Act of 2022 (IRA) into law on August 16. The IRA includes an extended rebates program for heat pumps.

The High Efficiency Electric Home Rebate Act (HEEHRA) is the official name of the IRA’s heat pump incentive program.

  • HEERHA is a part of the Inflation Reduction Act of 2022.

  • The rebate helps cover costs to electrify homes in low- to moderate-income households.

  • Qualifying households below or close to median incomes can save up to $14,000 on electrification measures.

  • Equipment used for Denver Heatpump Rebates program may be eligible for these tax incentives but the full program terms have not been announced.

The terms & conditions for this program will be announced in the Spring of 2023 by the Department of Energy (DOE).


This information is for reference only and will be subject to change.

HEEHRA is restricted by income. You can find your areas median income by clicking the button below.

Our Heatpump Services

Air Source Heatpump Installation

Free Estimate
  • Conventional Forced-Air Systems
  • Cold-Climate Air Source Heatpumps Available
  • Price Beat Guarantee
  • Authorized Dealer of 30+ brands

MiniSplit Heatpump Installation

Free Estimate
  • Ductless systems
  • Cold-Climate MiniSplits available
  • Price Beat Guarantee
  • Authorized Dealer of 30+ brands

Electrical Service Upgrade

  • Electric work needed for installation of heatpumps
  • Eligble for rebates
Common Heatpump Systems

Air Source Heatpump

Varieties of Heatpumps

Regular Heatpump

Cold Climate Heatpump
+ more
Heatpump Installation Cost
System TypeCost range before incentives
Air Source Heatpump$6,400 - $17,500
Cold Climate Air Source Heatpump$9,200 - $24,300
MiniSplit Heatpump$4,800 - $19,800
Cold-Climate MiniSplit Heatpump$5,500 - $28,200

*Based on UniColorado’s average Installation costs during 2021-2022. 

Based on total paid for basic system installation in an average home – standard efficiency (equipment + labor)

HVAC Installation cost is variable & determined by a site visit. We offer free estimates for installations.

We’ve listed the common cost ranges we see when using equipment eligible for the Denver Heatpump Rebates program. Heatpump installation costs differ widely between properties & customers needs.


In 2022, most of our customers spent around $8,700 – $14,800 to install an air source heatpump*. The total cost to install a heatpump can vary widely.


MiniSplit installation costs differ widely between properties & customers needs. In 2022, most of our customers spent around $10,700 – $23,400 to install a multi-zone minisplit heatpump*. The total cost to install a minisplit system can vary widely.

Heatpump Definitions
NameDefinitionCommon Benefit
HeatpumpUnit produces heat using electricity in addition to regular cooling functionElectrifies heating function, reduces fossil fuel usage
Air Source HeatpumpUnit uses ductwork/conventional forced-air infrastructureRetrofits into ducted systems easily
MiniSplit HeatpumpUnit designed for ductless systemsFor homes with no ductwork
Cold Climate HeatpumpUnit can produce more heat using electricty compared to regular heatpumpMore electrification than regular heatpump/replacing fossil fuel
Heatpump Electrification Benefits
System TypeCompared toCommon Benefits
Air Source HeatpumpRegular Furnace + ACApprox 50% of heating will be electrified
Cold Climate Air Source HeatpumpRegular Furnace + AC50-100% of heating electrified
MiniSplit HeatpumpSwamp CoolerHigh Efficiency Cooling + Some Heating
Cold-Climate MiniSplit HeatpumpBoilerFully Electrified Heating + Cooling Capacity

We understand you that may want to participate in the Denver Heatpump Rebates 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.

Heatpump FAQ

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

 Since mid-2021, heatpumps have been hard to come by due to supply chain disruptions. We expect the stock situation to improve & end-customer options to become more widely available in 2023 & beyond minus any further disruptions. We will quote equipment based on currently available stock. Equipment availability is not guaranteed & often sparse.

If you have a gas furnace & AC, best way would be a dual fuel air source heatpump using your existing ducts. If you do not have a central system, Minisplits are often the most cost effective. To schedule a free estimate, contact us.

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

 If you care about environmental sustainibility & are looking to modernize your HVAC system, yes. The incentives are very good & historically high. It all depends on your preference & budget.

 It varies widely between properties due to insulation,construction, windows, position & many other factors. The heat-pump units are more efficient than a regular unit.

 Give us a call, shoot us a text, email or schedule an appointment online.

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