How do I claim HVAC rebates in Denver?

Your contractor handles all rebate paperwork. At UniColorado, Xcel Energy 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. Denver metro homeowners typically combine Xcel Energy ($2,250/ton cold-climate), Power Ahead Colorado ($1,500), and the Colorado state tax credit ($1,000). That's around $7,750 on a 3-ton install, or up to $12,250 on a 5-ton system.

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, Xcel, Power Ahead, and the state credit cover most of the gap.

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 and the Colorado state tax credit are applied as instant discounts at the time of sale. Power Ahead processes after installation. The state credit is claimed by the contractor, not on your tax return.

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. Xcel Energy offers a $2,250 rebate for qualifying heat pump water heaters. These are separate from space-conditioning heat pump rebates and can be stacked on the same project.

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 $900/ton. The rebate is applied as an instant discount on your invoice. See our full Xcel rebate breakdown for details.

What is the Power Ahead Colorado program?

Power Ahead Colorado is a $273 million DRCOG program offering $1,500 for Energy Star cold-climate heat pumps across the Denver metro. No income requirements, no utility requirement - it stacks with Xcel and the state credit.

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. Power Ahead requires Energy Star cold-climate certification (ducted or ductless). The Colorado state tax credit applies to heat pumps installed in a primary residence. We verify eligibility for every program during your estimate.

Denver metro homeowners save around $7,750 on a 3-ton cold-climate heat pump by stacking Xcel Energy and the Colorado state tax credit. We handle every application and guarantee the amount on your invoice.

Updated April 16, 2026•By Editorial Staff

Get Free Estimate (303) 250-1000

12,000+ installations completed

~$7,750

typical rebates on a 3-ton cold-climate heat pump

Xcel Energy

$6,750

CO Tax Credit

$1,000

Top Rebate

$2,250/ton

Typical Stack

~$7,750

Programs

2 Active

Paperwork

We Handle It

Xcel Energy

Up to $11,250+

Available

CO Tax Credit

Up to $1,000

Available

HEAR

Up to $8,000

Funding Limited

Power Ahead

Up to $1,500

Coming Soon

2026 Update

What HVAC Rebates Are Available in Colorado in 2026?

Programs for 2026

Xcel Energy: $2,250/ton for cold climate heat pumps (active)
CO state tax credit: $1,000 (active)
HEAR: up to $8,000 (income-qualified, Front Range funding ended Apr 28, 2026; Region 2 counties still have funding)
Power Ahead Colorado: $1,500 (DRCOG region, no income limit — not yet launched)
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 Colorado ($1,500 heat pump rebate) included in every estimate

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.

Most Common

Standard Denver Metro

3-ton cold-climate heat pump, Xcel customer. No income requirement.

Xcel Energy$6,750

+CO Tax Credit$1,000

Up to Total Savings

$7,750

Max System (5-ton)

Larger 5-ton cold-climate, Xcel customer. Whole-home replacement.

Xcel Energy$11,250

+CO Tax Credit$1,000

Up to Total Savings

$12,250

Based on 3-ton cold climate heat pump. Xcel amounts assume standard rebate tier. Power Ahead Colorado is for DRCOG-region customers. 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	Power Ahead	CO Tax Credit
Cold climate heat pump	$2,250/ton	$1,500	$1,000
Standard heat pump	$900/ton	—	$1,000
Heat pump water heater	$2,250	—	—

Cold climate heat pump

Xcel

$2,250/ton

Power Ahead

$1,500

CO Credit

$1,000

Standard heat pump

Xcel

$900/ton

Power Ahead

—

CO Credit

$1,000

Heat pump water heater

Xcel

$2,250

Power Ahead

—

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
CO Heat Pump Tax Credit	$1,000	Any Income	Stackable	Active
HEAR (80-150% AMI) Front Range (Region 1) funds ended Apr 28, 2026. Region 2 counties still have funding through other participating contractors.	$8,000	Income-Based	Stackable	Funding Limited
HEAR (<80% AMI) Front Range (Region 1) funds ended Apr 28, 2026. Region 2 counties still have funding through other participating contractors.	$8,000	Income-Based	Stackable	Funding Limited
United Power Ducted >2 ton. Brighton, Erie, Firestone area.	$1,000	Any Income	Stackable	Active
Longmont / Efficiency Works Per unit + $2,000 bundling bonus	$2,000	Any Income	Stackable	Active
EnergySmart (Boulder County) Income-qualified (≤100% AMI). 50% stacking cap.	$2,000/yr	Income-Based	Stackable	Active
Power Ahead (DRCOG) Cold climate certified. No income limit.	$1,500	Any Income	Stackable	Summer 2026
Denver CARe	-	-	-	Ended May 2025
Federal 25C	-	-	-	Ended Dec 2025