Denver HVAC Contractor UniColorado

Denver Climate Action Rebates Program Heat Pumps, MiniSplits & Water Heaters

The Denver Climate Action Rebates program includes multiple measures to help Denver homeowners electrify their heating and air conditioning equipment. Heat pump related measures are listed below.

UniColorado is proud to participate in this historical program.

2024 Denver Heat Pump Rebates

Denver Heat Pump Rebates - UniColorado Heating & Cooling
Eligible Equipment & RebatesRebate AmountEfficiency RequiredTypical Use CaseTypical Price Range (installed)
Air Source Heat Pump (ASHP)$1,50015.2 SEER2, 11.7 EER2, 7.8 HSPF2+House w/ ductwork or existing forced-air system$13,000 - $22,000 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$14,000 - $28,000 before rebates
MiniSplit Heat Pump (MSHP)$1,50015.2 SEER2, 11.5 EER2, 7.8 HSPF2No ductwork$5,800 & 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$6,200 & 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$1,500 - $6,000 before rebates
EV Charger$500Energy 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

Eligibility Requirements for Denver Climate Action Rebate Program for Heat Pumps

  • City & County of Denver Residents
  • Single-Family, Duplex and townhomes
  • Xcel Energy Gas & Electric Account
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.

How does the Xcel Rebate work?

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.

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 $13,000 – $17,000 in first quarter of 2023.

For MiniSplit heat pumps, our customers are spending an average of $10,000 – $22,000 in first 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

Most heat pumps are also eligble for:

2024 Xcel Rebates for Heat Pumps

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

We complete the application on behalf of our customers.

Xcel’s 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 2024. For full terms, click below.

*Based on Xcel’s announcements for the year 2024. Includes bonus rebates. Subject to change.

The Inflation Reduction Act (IRA) Heat Pump Incentives

The Federal HEEHRA incentive is restricted by income. Full program terms have not been announced. Your project may not be eligible for this incentive.

The Inflation reduction act includes two different measures for heat pumps:

– The 25C Tax Credit & HEEHRA Rebates (The High-Efficiency Electric Home Rebate Act)

Most homeowners are expected to be only eligible for the 25C tax credits incentives  as HEEHRA is designed for low-income households and eligibility requirements have not yet been fully announced.

HEEHRA rebates will work similar to Denver rebates for eligible homeowners.

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
HEEHRA MeasureMaximum Benefit
Eligble Heat PumpUp to $8,000
Electrical Service UpgradeUp to $4,000
Heatpump WaterheaterUp to $1,750
Income Classification (HEEHRA)Requirements
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

You can find your areas median income by clicking the button below and visiting the HUD’s website.

Our Heat Pump Services

UniColorado is the most experienced heat pump contractor in the Denver metro region; we’ve installed thousands of heat pumps in multiple varieties and properties. If you’re looking for a Denver heat pump contractor, your search has found the best one out there. Talk soon!

What does Air Source or MiniSplit Mean?

Air Source

Regular vs Cold Climate Heat Pump?

Regular Heat Pump

Cold Climate Heat Pump
Previous Work

Heat Pump Installation Cost

We’ve listed the common cost ranges we see when using equipment eligible for the Denver Heat pump Rebates program. Heat pump 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 heat pump*.

The total cost to install a heat pump 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 heat pump*.

The total cost to install a minisplit system can vary widely.

System TypeCost range before incentives
Air Source Heat pump$6,400 - $17,500
Cold Climate Air Source Heat pump$9,200 - $24,300
MiniSplit Heat pump$4,800 - $19,800
Cold-Climate MiniSplit Heat pump$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.

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

Heat Pump Electrification Benefits

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

We understand you that may want to participate in the Denver Heat Pump 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.

Frequently Asked Questions

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.

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