The Denver Climate Action Rebates program includes multiple rebates to help Denver homeowners electrify their home. Homeowners can save up to $14,500 on a heat pump system when combining Denver CARe + other incentives. UniColorado is proud to be a top participant in this historical program.
Note: This program is now fully subscribed for 2025 for most heat pump incentives.
Click here to learn more
All heat pump rebates are now fully subscribed for 2025. Some measures are still available. Read more about the end of the Denver CARe Program by clicking here.
All incentives are now fully subscribed for 2025.
| Eligible Equipment & Rebates | Max Rebate | Efficiency Required | Use Case | Average Final Cost After Rebates |
|---|---|---|---|---|
| Cold Climate Air Source Heat Pump (ccASHP) | $1,200 | 15.2 SEER2, 10.0 EER2, 8.1 HSPF2 & 70%+ Cold Heat | House w/ ductwork or existing forced-air system | $12,800 average out of pocket & up |
| Cold-Climate MiniSplit Heat Pump (ccMSHP) | $1,200 | 16.0 SEER2, 9.0 EER2, 9.5 HSPF2 & 70%+ Cold Heat | No ductwork | Single Zone: $5,400 & up Multi-Zone: $7,500 and up |
| Electrical Service Upgrade if needed for ASHP or Mini | $1,000 | Licensed Electrician (Provided by UniColorado) | Electrical work for Heat Pump | Varies |
| EV Charger | $200 | Energy Star Level 2 Certified | Electric Vehicle Charging | Varies |
| Smart Heat Pump Water Heater | $500 | Energy Star Certified | Water Heater Replacement | $3,500 |
| Solar | $2,000 | Previous heat pump or EV rebate recipients only | Solar PV | Varies |
| Battery Storage | $500 - $2,750 | High rebate for previous heat pump or EV rebate recipients only | Energy Storage | Varies |
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:
at a substantially reduced cost.
The eligible rebate amount is applied as a discount by the contractor on eligible installations at the time of purchase.
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.
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.
The Xcel Energy Rebate is provided to UniColorado customers upfront as a discount. The rebate will be assigned to us.
For a free online heat pump pricing calculator, click here.
For air source heat pumps, our Denver customers average out of pocket cost to install a cold climate heat pump (full system with labor) was around $12,800.
For MiniSplit heat pumps, our customers spent an average of $3,200 – $26,500 in fourth quarter of 2024.
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.
Xcel rebates were significantly increased for 2025 but may not last long.
Xcel’s Rebates are provided as up front discounts by UniColorado.
The typical cold climate heat pump rebate from Xcel is ~$6,000 to $8,500 with the new incentives.
✅ Available
| System Type | 2025 Xcel Rebate |
|---|---|
| Air Source Heat pump | $900/cooling ton at 95°F |
| Cold Climate Air Source Heat pump | $2,250/heating ton at 5°F |
| MiniSplit Heat pump | $900/cooling ton at 95°F |
| Cold-Climate MiniSplit Heat pump | $2,250/heating ton at 5°F |
Terms are set by Xcel Energy & subject to change. Table shows simplified information for 2025. For full terms of the Xcel energy rebates, click here.
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.
✅ Available
| System Type | Minimum Discount | UniColorado's Discount |
|---|---|---|
| Air Source Heat pump | $499.50 | $1,000+ |
| Heat Pump Water Heater | $166.60 | $300+ |
There’s three programs currently in the works through the State of Colorado. The below information is speculated based on current available information and subject to change as more information becomes available. These programs are currently not available to the public.
New point-of-sale rebates to replace Denver CARe.
🚫 Late 2025
The Denver Regional Council of Governments (DRCOG) is working on a major rebate program funded by the EPA’s Climate Pollution Reduction Grant. DRCOG rebates are expected to follow a similar structure to Denver CARe & be available to additional counties.
This rebate is currently in the works and not available yet. This program is the likely replacement for Denver CARe.
Income restricted federal incentives.
🚫 Mid 2025
The HEAR rebates are an income-qualified program targeting individual appliance upgrades and electrification, funded by the Inflation reduction act (IRA) and adminstered through the Colorado Energy Office. This program is income-qualified.
This program has been soft-launched through the Colorado Weatherization Assistance Program starting October 30, 2024, with a full rollout planned for Spring 2025.
Whole-home energy efficiency
🚫 Mid 2025
The HOMES rebates focuses on whole-home energy efficiency, rewarding major improvements with higher energy savings. This program is likely to follow a similar income qualification pathway as HEAR, but may be more available to more homeowners due to its focus on whole house efficiency and not individual appliances.
This program is currently in the works and not available yet.
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.
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.
Ducted vs. Ductless:
Dual Fuel vs. Fully Electric:
High Efficiency vs. Cold Climate:
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.
| 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 |
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.
Ducted Air Source Heat Pump Costs
In 2025, most of our customers are spending around $11,500 – $13,400 out of pocket to install a ducted air source heat pump system* after rebates. The total cost can vary widely depending on the property and the customer’s specific needs.
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 2024, most of our customers spent around $7,700 to $24,200 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 Type | Cost range after incentives |
|---|---|
| Air Source Heat pump | $8,800 - $12,500 |
| Cold Climate Air Source Heat pump | $8,200 - $14,500 |
| MiniSplit Heat pump | $5,500 - $22,800 |
| Cold-Climate MiniSplit Heat pump | $3,400 - $27,100 |
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 $14,500 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.
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 Q2 2025, 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.
Denver CARe has anounced significant changes and reductions to take effect on March 15th, 2025. At UniColorado, we believe that the Denver CARe rebate program will sunset in Q2 of 2025.
As of March 15th, 2025, the Denver CARe rebate program has anounced significant reductions to rebates and a goal to sunset by end of quarter 2, 2025.
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.
The Denver CARe rebate program is scheduled to sunset by Q2, 2025.
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.
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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