How do I claim HVAC rebates in Denver?

Your contractor handles all rebate paperwork. At UniColorado, Xcel rebates, HEAR, and the Colorado state tax credit are all applied as instant discounts on your invoice. The state credit is claimed by the contractor on your behalf - you don't need to do anything at tax time.

Can I stack multiple rebates?

Yes. In 2026, Denver area homeowners can combine Xcel Energy ($2,250/ton), HEAR (up to $8,000 if income-qualified), and the Colorado state tax credit ($1,000). Combined savings of $15,000+ are possible for cold climate heat pumps.

Is the federal 25C tax credit still available?

No. The federal 25C heat pump tax credit ended December 31, 2025. If you installed a heat pump in 2025 or earlier, you can still claim it on your tax return. For 2026 installations, the remaining programs (Xcel, HEAR, state credit) often exceed what the federal credit provided.

Are rebates available for all HVAC systems?

In 2026, rebates are only available for heat pumps, heat pump water heaters, and related electrification upgrades (electrical panels, insulation). There are no rebates for gas furnaces or standard AC units. Visit individual rebate pages for eligibility requirements and equipment specifications.

How long do rebates take to process?

Xcel rebates, HEAR, and the Colorado state tax credit are all applied as instant discounts at the time of sale. The state credit is claimed by the contractor, not on your tax return. Processing timelines vary by program but most are handled before or at the time of installation.

Is a heat pump worth it in Colorado?

At current rebate levels, a cold climate heat pump that replaces both your furnace and AC can cost less out-of-pocket than a furnace-only replacement. Operating costs depend on your electricity rate and home size, but most Colorado homeowners see lower combined heating and cooling bills after switching. We assess your home's electrical capacity and run the numbers during every estimate.

Are there furnace rebates in Colorado?

No. As of 2026, no Colorado utility, state, or federal program offers rebates for gas furnaces or standard air conditioners. All active programs are limited to heat pumps, heat pump water heaters, and electrification upgrades like electrical panels and insulation.

Do heat pump water heaters qualify for rebates?

Yes. Both Xcel Energy and HEAR offer rebates for qualifying heat pump water heaters. These are separate from space-conditioning heat pump rebates and can be stacked on the same project for additional savings.

How do Xcel Energy heat pump rebates work?

Xcel offers per-ton rebates for heat pumps installed by Xcel gas account holders. Cold climate units receive $2,250/ton; standard units receive $1,400/ton. The rebate is applied as an instant discount on your invoice. See our full Xcel rebate breakdown for details.

What is the DRCOG Power Ahead program?

Power Ahead is a $273 million regional rebate program funded by DRCOG, expected to launch mid-2026 for the Denver metro area. Program details haven't been finalized yet. See what we know so far on our Power Ahead page.

Colorado HVAC Rebates 2026

How Much Can You Save on a Heat Pump?

Q: What equipment qualifies for rebates?

Each program has different requirements. Xcel requires cold climate heat pumps rated at 5°F or standard air-source units rated at 95°F. HEAR covers heat pumps, heat pump water heaters, electrical panels, insulation, and wiring. The Colorado state tax credit applies to heat pumps installed in a primary residence. We verify eligibility for every program during your estimate.

Q: What is the HEAR program in Colorado?

HEAR (Home Electrification and Appliance Rebates) is a federal, income-qualified rebate program administered by the Colorado Energy Office. If your household income is under 150% of Area Median Income, you may qualify for up to $8,000 toward a heat pump. See full HEAR eligibility details and calculator on our HEAR rebates page.

Colorado homeowners save $7,750 to $15,750 by stacking Xcel, HEAR, and state tax credit programs. We handle every application and guarantee the amount on your invoice.

Updated February 9, 2026•By Editorial Staff

Get Free Estimate (303) 250-1000

12,000+ installations completed

$7,750 – $15,750

in rebates on a 3-ton heat pump

Xcel Energy

$6,750

HEAR (if qualified)

Up to $8,000

CO Tax Credit

$1,000

Top Rebate

$2,250/ton

Max Stack

$20,250

Programs

4 Active

Paperwork

We Handle It

Xcel Energy

Up to $11,250+

Available

HEAR Rebates

Up to $14,000

Available

CO Tax Credit

Up to $1,000

Available

Power Ahead

Up to TBD

Mid 2026

2026 Update

What HVAC Rebates Are Available in Colorado in 2026?

4 Active Programs

Xcel Energy: $2,250/ton for cold climate heat pumps
HEAR: up to $8,000 if income-qualified
CO state tax credit: $1,000
Not on Xcel? See United Power, Longmont Power, or EnergySmart

What Changed for 2026

Federal 25C tax credit ended Dec 2025
Remaining programs exceed what 25C provided for most homeowners
Power Ahead ($273,000,000) expected mid-2026

Heat Pumps Only

No furnace rebates in 2026
No AC rebates in 2026
A cold climate heat pump replaces furnace + AC in one system
Only equipment category with active incentives. Learn about electrification

How Much Can You Save?

Colorado lets you stack utility rebates, federal programs, and state tax credits on the same installation. Answer two questions to see your estimated total.

Interactive Calculator

RebateStacking

How Your Rebates Stack Up

Real savings scenarios for a 3-ton cold climate heat pump in Denver. Compare all income levels at a glance.

Any Income

All Xcel customers, no income requirement.

Xcel Energy$6,750

+CO Tax Credit$1,000

Up to Total Savings

$7,750

Most Common

Income-Qualified

Under 150% AMI (~$168K for household of 2).

Xcel Energy$6,750

+HEAR (50%)$8,000

+CO Tax Credit$1,000

Up to Total Savings

$15,750

Lower Income

Under 80% AMI (~$84K for household of 2).

Xcel Energy$6,750

+HEAR (100%)$8,000

+CO Tax Credit$1,000

Up to Total Savings

$15,750

Based on 3-ton cold climate heat pump. Xcel amounts assume standard rebate tier. HEAR amounts depend on income level and household size. State credit is $1,000 for heat pumps.

Looking for furnace or AC rebates? There are none in 2026. All active Colorado programs are heat pump only. Learn why homeowners are switching

How It Works

This Is What Your Invoice Looks Like

We don’t just install heat pumps. We maximize your savings. Every rebate shows up as a line-item discount before you pay.

UniColorado invoice showing rebate line-item discounts

Real customer invoice

Rebates applied as upfront discounts

Every eligible rebate is deducted directly on your invoice. You pay the reduced price at installation. No waiting for reimbursement checks.

We handle all the paperwork

Our team submits every application, gathers documentation, and follows up with program administrators. You sign, we do the rest.

Guaranteed amount or we cover it

If a rebate is denied after we quoted it, we absorb the difference. The discount on your invoice stands.

Xcel Energy Qualified Partner3,000+ Rebate ApplicationsRegistered CO Heat Pump ContractorBBB Accredited

Eligibility

What Equipment Qualifies for Rebates?

Equipment	Xcel Energy	HEAR	CO Tax Credit
Cold climate heat pump	$2,250/ton	Up to $8,000	$1,000
Standard heat pump	$900/ton	Up to $8,000	$1,000
Heat pump water heater	$2,250	Up to $1,750	—
Electrical panel	—	Up to $4,000	—
Insulation / weatherization	—	Up to $1,600	—

Cold climate heat pump

Xcel

$2,250/ton

HEAR

Up to $8,000

CO Credit

$1,000

Standard heat pump

Xcel

$900/ton

HEAR

Up to $8,000

CO Credit

$1,000

Heat pump water heater

Xcel

$2,250

HEAR

Up to $1,750

CO Credit

—

Electrical panel

Xcel

—

HEAR

Up to $4,000

CO Credit

—

Insulation / weatherization

Xcel

—

HEAR

Up to $1,600

CO Credit

—

Equipment eligibility varies by program. During your free estimate, we verify which equipment qualifies and calculate your exact savings for each program.

All Programs

Rebate Program Comparison

Every active, upcoming, and ended program. Sort by column, search by name, or filter by status.

Program	Max Rebate	Income Req.	Stackable	Status
Xcel Energy (cold climate) Per heating ton at 5°F	$2,250/ton	Any Income	Stackable	Active
Xcel Energy (standard ASHP) Per cooling ton at 95°F	$900/ton	Any Income	Stackable	Active
HEAR (80-150% AMI) Up to 50% of project cost	$8,000	Income-Based	Stackable	Active
HEAR (<80% AMI) Up to 100% of project cost	$8,000	Income-Based	Stackable	Active
CO Heat Pump Tax Credit	$1,000	Any Income	Stackable	Active
United Power Ducted >2 ton. Brighton, Erie, Firestone area.	$2,500	Any Income	Stackable	Active
Longmont / Efficiency Works Per unit + $2,000 bundling bonus	$2,000	Any Income	Stackable	Active
EnergySmart (Boulder County) 70% of project cost cap	Varies	Any Income	Stackable	Active
DRCOG Power Ahead	TBD	Any Income	Stackable	Mid 2026
Denver CARe	-	-	-	Ended May 2025
Federal 25C	-	-	-	Ended Dec 2025

Amounts shown are maximums for a 3-ton cold climate heat pump where applicable. HEAR income thresholds vary by household size and county.

The table above includes ended programs (Denver CARe, Federal 25C) with their historical details and status badges.

Income-Based Rebates

Do You Qualify for HEAR?

The HEAR program (Home Electrification and Appliance Rebates) is a federal, income-qualified rebate administered by the Colorado Energy Office. If your household income is under 150% of Area Median Income, you qualify for up to $8,000 toward a heat pump. Under 80% AMI, HEAR covers up to 100% of costs. Enter your county and household size below.

Our Process

How We Handle Your Rebates

Estimate

We check all 4 programs and calculate exact amounts before you commit.

$5M+ saved

Invoice Discount

Rebates applied as upfront deductions. You pay the after-rebate price.

Same-day pricing

We Submit Everything

Xcel, HEAR, state forms. All applications filed on your behalf.

5,000+ applications

State Credit Handled

$1,000 claimed on your behalf. No tax forms for you.

No tax forms for you

Estimate

We check all 4 programs and calculate exact amounts before you commit.

$5M+ saved

Invoice Discount

Rebates applied as upfront deductions. You pay the after-rebate price.

Same-day pricing

We Submit Everything

Xcel, HEAR, state forms. All applications filed on your behalf.

5,000+ applications

State Credit Handled

$1,000 claimed on your behalf. No tax forms for you.

No tax forms for you

Typical timeline: 1-2 weeks for HEAR income verification, same-day for Xcel pre-approval. Most customers have their final discounted price confirmed before equipment is ordered.

Proven Results