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.
| Eligible Equipment & Rebates | Efficiency Required | Typical Use Case | Max Rebate Amount (2022) | Max Rebate Amount (2023) | Typical Price Range (installed) |
|---|---|---|---|---|---|
| Air Source Heat Pump (ASHP) | 15 SEER, 11.5 EER, 9 HSPF+ | House w/ ductwork or existing forced-air system | $7,200 | $1,500 | $12,000 - $22,000 before rebates |
| Cold Climate Air Source Heat Pump (ccASHP) | 16+ SEER, 10.5+ EER, 9.5 HSPF & Neep.org Listing | House w/ ductwork or existing forced-air system | $9,000 | $3,500 | $13,000 - $25,000 before rebates |
| MiniSplit Heat Pump (MSHP) | 15+ SEER, 11+ EER, 9+ HSPF | No ductwork | $4,500 | $1,500 | $4,800 & up depending on # of zones before rebates |
| Cold-Climate MiniSplit Heat Pump (ccMSHP) | 16+ SEER, 9+ EER, 10.6+ HSPF & Neep.org Listing | No ductwork | $5,400 | $3,500 | $5,200 & up depending on # of zones before rebates |
| Electrical Service Upgrade (Panel) if needed for ASHP or Mini | Licensed Electrician (Provided by UniColorado) | Electrical work for Heat Pump | $2,000 | $2,000 | $1,500 - $6,000 before rebates |
Eligibility Requirements for Denver Climate Action Rebate Program for Heat Pumps
The eligible rebate amount is applied as a discount by the contractor on eligible installations at the time of purchase.
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.
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.
No. The property must be located in the City & County of Denver.
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.
We do.
MiniSplit systems (for ductless setups) are fully electric; For traditional systems with duct work, we offer furnace electrification services.
We provide free estimates on replacement or installation of new heatpump systems.
| System Type | 2022 Rebate | 2023 Rebate |
|---|---|---|
| Air Source Heat pump | $800 | $1,500 |
| Cold Climate Air Source Heat pump | $1,000 | $2,000 |
| MiniSplit Heat pump | $500 | $1,500 |
| Cold-Climate MiniSplit Heat pump | $600 | $2,000 |
Equipment eligible for Denver Climate action rebates are also eligible for Xcel Energy HVAC Rebates.
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 2023. For full terms, click below.
*Based on Xcel’s announcements for the year 2023. Includes bonus rebates. Subject to change.
The Inflation reduction act includes two different measures for heat pumps:
Details for each measure are listed below:
| Incentive | Currently Available | Benefit | Simplified Description | Restriction |
|---|---|---|---|---|
| 25C Tax Credit | ✅ | Up to $2,000 Tax Credit | A tax credit that reduces your tax liability. Currently Available. | Must have tax liability to offset |
| HEEHRA Rebates | ❌ | Up to $8,000 point-of-sale rebate | An income restricted rebate that is yet to be anounced by individual states and will likely become active in the summer of 2023. | Heavily income restricted |
*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.
| HEEHRA Measure | Maximum Benefit |
|---|---|
| Eligble Heat Pump | Up to $8,000 |
| Electrical Service Upgrade | Up to $4,000 |
| Heatpump Waterheater | Up to $1,750 |
Most homeowners are expected to be only eligible for the 25C Tax credit 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.
| Income Classification (HEEHRA) | Requirements |
|---|---|
| Low-Income Household | Less than 80% of your area’s median family income |
| Moderate-income households | 80% 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.
Air Source
Regular Heat Pump
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 Type | Cost 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.
| Name | Definition | Common Benefit |
|---|---|---|
| Heat Pump | Unit produces heat using electricity in addition to regular cooling function | Electrifies heating function, reduces fossil fuel usage |
| Air Source Heat Pump | Unit uses ductwork/conventional forced-air infrastructure | Retrofits into ducted systems easily |
| MiniSplit Heat Pump | Unit designed for ductless systems w/ smaller form factor | For homes with no ductwork |
| Cold Climate Heat Pump | Unit can produce more heat using electricty compared to regular heatpump | More electrification than regular heatpump/replacing fossil fuel |
| System Type | Compared to | Common Benefits |
|---|---|---|
| Air Source Heat Pump | Regular Furnace + AC | Approx 50% of heating will be electrified |
| Cold Climate Air Source Heat Pump | Regular Furnace + AC | 50-100% of heating electrified |
| MiniSplit Heat Pump | Swamp Cooler | High Efficiency Cooling + Some Heating |
| Cold-Climate MiniSplit Heat Pump | Boiler | Fully 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.
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.
Since mid-2021, heat pumps have been hard to come by due to supply chain disruptions. Quality equipment availability is not guaranteed & often sparse.
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.
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.
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.
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%.
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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