Can I still get heat pump rebates in Denver?

Yes, more than ever. Denver CARe ended, but Xcel Energy ($6,750+), Power Ahead Colorado ($1,500), and the Colorado state tax credit ($1,000) are all available now. Typical combined savings of around $9,250 on a 3-ton install (up to $13,750 on 5-ton) - no income check required.

What replaced Denver CARe?

CARe wasn't replaced by a single program. Instead, Xcel Energy increased rebates significantly (from ~$2,500 to $6,750+), and DRCOG launched Power Ahead Colorado ($1,500) in April 2026. The combination exceeds what CARe offered, with no income requirements.

Why did Denver CARe end?

Success. The program was fully subscribed and all allocated funds were claimed by March 2025. It achieved its goal of accelerating Denver's transition to electric heating. The sales tax that funded it continues, but is now directed to other climate initiatives.

Do I need to be income-qualified to get rebates?

No. Any Denver homeowner with Xcel gas service qualifies for around $9,250 (Xcel + Power Ahead + state credit) on a 3-ton cold-climate install with no income check. Income-qualified households under 150% AMI can choose HEAR (up to $8,000) instead of Power Ahead, but Front Range HEAR funding is nearly depleted as of April 2026.

How does the Xcel rebate work?

UniColorado applies it as an upfront discount on your invoice. You pay the net price, not full price. We handle the application and Xcel pays us directly. No waiting for reimbursement checks.

Is Power Ahead Colorado live?

Yes, Power Ahead Colorado launched April 2026 for the DRCOG region (Denver metro, 58 communities). UniColorado includes the $1,500 rebate in every estimate. It stacks with Xcel and the state credit for a typical $9,250 total on a 3-ton cold-climate install.

What's the difference between AC and heat pump?

An AC only cools. A heat pump cools in summer and heats in winter. In Colorado, cold climate heat pumps can cover 80-100% of your heating needs while qualifying for the largest rebates.

What are the next steps?

Schedule a free estimate. We'll assess your home, calculate your rebate eligibility across all programs, and provide a quote showing your net price after all discounts.

What is the Denver Climate Action Rebate (CARe)?

Denver CARe was a rebate program funded by a 0.25% sales tax that ran from 2021 to May 2025. It offered $1,200 for heat pumps, $1,000 for electrical upgrades, and rebates for water heaters and solar. The program ended after all funds were fully subscribed.

Can I stack Denver rebates with Xcel and federal credits?

Yes, but note that Denver's CARe program ended in 2025. What's still available for Denver residents: Xcel Energy rebates ($2,250/ton for cold-climate), Colorado state tax credit ($1,000), and HEAR (up to $8,000 if income-qualified). Denver homes on Xcel gas service qualify for the highest Xcel tier. We verify your Xcel account type during the estimate and apply all qualifying rebates as upfront invoice discounts.

3 Programs Active

Denver Heat Pump Rebates

Name: Denver Heat Pump Rebates
Brand: Unicolorado
Availability: LimitedAvailability
Rating: 5 (1280 reviews)

Denver CARe ended in May 2025. Xcel Energy, Power Ahead Colorado, and the Colorado state tax credit stack to around $9,250 on a typical 3-ton cold-climate heat pump - up to $13,750 on 5-ton systems. No income check.

Updated April 10, 2026•By Editorial Staff

Get Free Estimate (303) 250-1000

Blue^TM AI Summary

CARe ended May 2025. Xcel + Power Ahead + state credit = ~$9,250 for a 3-ton cold-climate heat pump (no income check). Up to $13,750 on 5-ton. HEAR still exists but Front Range funding is nearly depleted as of April 2026.

Denver CARe

Ended May 2025

Current Max

$7,750

HEAR Status

Region 1 Reserved

Active Programs

Xcel + State

Blue can make mistakes. Check important info.

Denver CARe Amounts (Historical)

For reference. This program ended May 2025. Current programs above offer more.

Denver CARe Equipment (Ended)	Was	Notes
Cold Climate ASHP	$1,200	Xcel now offers $6,750+ for same equipment
Cold Climate MiniSplit	$1,200	Xcel now offers $6,750+ for same equipment
Electrical Upgrade	$1,000	HEAR covers electrical work up to $4,000
Heat Pump Water Heater	$500	Xcel offers $2,250; HEAR up to $1,750

Denver Heat Pump Rebates

If you came here looking for Denver CARe rebates, you're in good company. This page still gets hundreds of visits each month. The program ended in May 2025 after all funds were claimed. Read the full story of why it ended.

You can now save more than CARe ever offered. Denver is 100% Xcel Energy territory. Every Denver homeowner with gas service qualifies for Xcel's rebates with no income check and no application lottery. Add Power Ahead Colorado ($1,500, no income check) and the Colorado state credit ($1,000), and you're looking at around $9,250 on a typical 3-ton system - up to $13,750 on a 5-ton install.

That's more than the $14,500 max that was possible when CARe was running for most installs, and it doesn't require income verification.

How does the Denver heat pump rebate work?

UniColorado applies all qualifying rebates as upfront discounts on your invoice. You pay the net price, not full price. We handle all applications to Xcel, Power Ahead Colorado, and the state.

Who is eligible for Denver heat pump rebates?

Any Denver homeowner with Xcel gas service qualifies for the full $9,250 stack (Xcel $6,750 + Power Ahead $1,500 + state $1,000) on a 3-ton cold-climate heat pump, with no income check. Income-qualified households under 150% AMI used to have the option of HEAR (up to $8,000) instead of Power Ahead - but HEAR Region 1 (Front Range) funding is fully reserved as of April 28, 2026 (per Clearesult, April 24). Power Ahead is the path forward for all new Denver metro customers.

After stacking all rebates, a typical 3-ton cold climate heat pump costs between $11,000 and $21,000 before rebates. After $7,750 to $15,750 in discounts, your net cost drops significantly. Financing is available for the remainder.

Denver Rebate Programs (2026)

Program	Amount	Who Qualifies
Xcel Energy	$6,750–$9,000	Any Xcel gas customer
Power Ahead Colorado	$1,500	All Denver metro homeowners
CO Tax Credit	$1,000	All Colorado residents
HEAR	Up to $8,000	Under 150% AMI — Region 1 (Front Range) fully reserved Apr 28, 2026; Region 2 still available

How to Stack Your Rebates

These programs stack. You're not choosing between them. You're combining them.

If you have Xcel gas service (and most of Denver does), you automatically qualify for Xcel's rebate. That's $6,750 for a typical 3-ton cold climate heat pump, applied as an instant discount. Add the $1,000 Colorado tax credit and you're at $7,750 without even checking your income.

Add Power Ahead Colorado ($1,500 flat, no income check) and you're at $9,250 for a 3-ton cold-climate install. That's the new default stack - available to every Denver metro Xcel customer.

If your household income is under 150% AMI (about $168,000 for a household of 2), you used to have a choice between Power Ahead and HEAR (they don't stack - both are federally funded). HEAR provided up to $8,000 which beats Power Ahead's $1,500, but HEAR Region 1 (Front Range) funding is fully reserved as of April 28, 2026. All new income-qualified Denver metro customers now use Power Ahead. Region 2 counties (outside the Front Range) still have HEAR funding.

UniColorado handles all the paperwork. You sign a few forms, we submit everything to Xcel, Power Ahead, and the state, and your invoice reflects the discounted price from day one.

What Happened to Denver CARe

Denver CARe ran from 2021 to 2025. Funded by a 0.25% sales tax that Denver voters approved, it offered rebates on heat pumps ($1,200), electrical upgrades ($1,000), water heaters, and solar. The program was wildly successful, so successful that it ran out of money.

By March 2025, all heat pump rebates were fully subscribed. The program officially ended in May 2025 after achieving its goal: accelerating Denver's transition to electric heating. UniColorado helped hundreds of Denver homeowners through this program.

Read the full story →

Power Ahead Colorado: The Regional Replacement

The Denver Regional Council of Governments (DRCOG) launched Power Ahead Colorado in April 2026. It's not a direct replacement for CARe. It's a regional program covering 58 communities across the Denver metro, backed by $273 million in federal funding through 2030.

The program offers a $1,500 rebate for cold climate certified heat pumps with no income limits. It also includes a low-income component offering free home upgrades worth an average of $20,000. Power Ahead stacks with Xcel and the Colorado state tax credit, but not with HEAR (both federally funded).

UniColorado includes Power Ahead in every Denver metro estimate.