LICENSED, CERTIFIED & INSURED
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LICENSED, CERTIFIED & INSURED
Updated: 01/05/2023
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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.
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January 5th, 2023 updates:
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| Eligible Equipment & Rebates | Max Rebate Amount (2023) | Max Rebate Amount (2022) | Typical Use Case | Efficiency Required | Typical Price Range (installed) | Notes |
|---|---|---|---|---|---|---|
| Air Source Heat Pump (Including Dual Fuel) | $1,500 | $7,200 | Homes with existing furnace & ducts | 15+ SEER, 11.5+ EER, 9+ HSPF | $12,000 -$22,000 before rebates | Typically in stock |
| Cold Climate Air Source Heat Pump | $3,500 | $9,000 | Homes with existing furnace & ducts | 16+ SEER, 10.5+ EER, 9.5 HSPF & Neep.org Listing | $13,000 -$25,000 before rebates | Hard to find |
| Mini-Split Heat Pump | $1,500 | $4,500 | Homes with no ducts | 15+ SEER, 11+ EER, 9+ HSPF | $4,800 & up depending on # of zones before rebates | Typically 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 & Neep.org Listing | $5,200 & up depending on # of zones before rebates | Hard to find |
| Electrical Service Upgrade (Panel) if needed for ASHP or Mini | $2,000 | $2,000 | Electrical work that's required for the heatpump | Licensed Electrician (Provided by UniColorado) | $1,500-$7,000 before rebates | N/A |
Eligibility Requirements for Denver Climate Action Rebate Program for Heatpumps
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.
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For MiniSplit heatpumps, our customers are spending an average of $10,000 - $22,000 depending on the type of project.
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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.
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Xcel Energy Rebates are processed & paid after installation directly to Xcel Energy Gas & Electric customers via check or bill credit.
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Terms are set by Xcel Energy & subject to change. Table shows simplified information for 2023. For full terms, click below.
| System Type | 2022 Rebate | 2023 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.
| Electrification Project | Maximum 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 Classification | 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 |
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.
The terms & conditions for this program will be announced in the Spring of 2023 by the Department of Energy (DOE).
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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.
Air Source Heatpump
Regular Heatpump
| System Type | Cost 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.Â
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.
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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.
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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.
| Name | Definition | Common Benefit |
|---|---|---|
| Heatpump | Unit produces heat using electricity in addition to regular cooling function | Electrifies heating function, reduces fossil fuel usage |
| Air Source Heatpump | Unit uses ductwork/conventional forced-air infrastructure | Retrofits into ducted systems easily |
| MiniSplit Heatpump | Unit designed for ductless systems | For homes with no ductwork |
| Cold Climate Heatpump | 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 Heatpump | Regular Furnace + AC | Approx 50% of heating will be electrified |
| Cold Climate Air Source Heatpump | Regular Furnace + AC | 50-100% of heating electrified |
| MiniSplit Heatpump | Swamp Cooler | High Efficiency Cooling + Some Heating |
| Cold-Climate MiniSplit Heatpump | Boiler | Fully 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.
 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.
