Home ComfortExplained
What is a Heat Pump?
An efficient home comfort system that transfers heat between indoor and outdoor air to maintain your desired temperature year-round.
Heat Pump (n.): An efficient home comfort system that transfers heat between indoor and outdoor air to maintain your desired temperature year-round.
How Does a Heat Pump Work?
Unlike a furnace that burns fuel to create heat, a heat pump transfers existing heat from outdoor air into your home.
The Refrigeration Cycle
See how the reversing valve changes the flow of heat.
What's happening?
The outdoor coil absorbs heat from the cold outside air. The compressor pressurizes the refrigerant, making it hot. The indoor coil then releases this heat into your home.
The Magic of Refrigerant
Refrigerant boils at very low temperatures. Even when it's 5°F outside, the refrigerant is colder, allowing it to absorb heat energy from the outdoor air.
Types of Heat Pumps
The most common types for Colorado homes. Ground source units are rare due to higher installation costs.
Ground Source (Geothermal)
Uses underground temperatures for heating and cooling. Rare in Colorado due to $30,000-$40,000+ installation costs.
- Large properties
- Maximum efficiency
- Long-term investment
Top Heat Pump Models for Colorado
We install cold-climate heat pumps from leading manufacturers. All models qualify for Xcel Energy rebates.
IDS Ultra
25VNA4
MXZ-SM HyperHeat
Which Heat Pump is Best for Colorado?
The air source forced-air heat pump is the most affordable and common type of heat pump system in Colorado. However, many properties in CO don't have ductwork and use mini-split systems instead.
Ground source units are rare and costly in Colorado; these units typically require digging vertically down or a large land surface. Due to the associated cost (which can be upwards of $30,000 - $40,000) they're fairly rare and not typical in the large majority of homes.
For most Denver metro homeowners, a cold-climate air source heat pump provides the best balance of efficiency, comfort, and cost.
Interactive Performance Curve
See how a cold-climate heat pump performs as the temperature drops.
Is a Heat Pump More Efficient?
To simplify, yes. A heat pump is typically around 10-15% more efficient when compared to a conventional heating and cooling system in total energy usage in real world settings. In lab and theoretical settings, the efficiency gain may be as high as 25-30%.
Heat pumps achieve this through their Coefficient of Performance (COP), typically ranging from 2.5-4.0. This means they produce 2.5-4 units of heat for each unit of electricity used, by moving heat rather than generating it.
Traditional heating systems can't exceed a COP of 1.0 since they create heat directly. While lab tests show impressive theoretical gains, real-world factors like outdoor temperature, installation quality, and maintenance needs result in more modest but still significant efficiency improvements.
Heat Pump Pros and Cons
We believe in giving you the full picture. Heat pumps aren't right for every situation: here's what to consider.
Advantages
2-in-1 System
Heats and cools with a single system, reducing equipment costs and maintenance.
Lower Operating Costs
20-40% lower energy bills compared to furnace + AC combos in most Colorado homes.
$8,000+ in Rebates
Xcel rebates up to $7,500 + Colorado state tax credit up to $1,200. Federal 25C credit ended Dec 2025.
No Combustion
No gas line, no carbon monoxide risk, no pilot light. Safer for indoor air quality.
Dehumidification
Better humidity control than traditional AC, especially during shoulder seasons.
Considerations
Higher Upfront Cost
Cold-climate heat pumps cost $13,000-$18,000 installed vs $8,000-$12,000 for a furnace + AC.
May Need Electrical Upgrade
Many Colorado homes need a 200A panel upgrade ($2,000-$4,000) to run a heat pump.
Less Efficient in Extreme Cold
Below -10°F, efficiency drops. Dual fuel setups are recommended for coldest nights.
Outdoor Unit Noise
Heat pumps run more often than AC. Some models produce 50-60 dB at the outdoor unit.
Bottom line: For most Colorado homeowners with 1,500-3,000 sq ft homes and existing ductwork, a cold-climate heat pump is the best long-term investment. If you have an undersized electrical panel or extremely cold microclimate, dual fuel may be the better choice.
How Much Does a Heat Pump Cost?
Costs depend on system type and home size. See your estimated net cost after Xcel Energy rebates.
Interactive Cost Estimator
See what rebates you qualify for based on your home size.
Rebates shown are for cold-climate models. Income-qualified households may be eligible for up to $8,000 in additional HEAR rebates. Click above to see our complete pricing guide including equipment, labor, and permits.
Heat Pump vs Furnace vs AC
How do the three main HVAC options compare? Here's a data-driven breakdown for Colorado homes.
Heat Pump
- Heating Efficiency
- 250-400% (COP 2.5-4.0)
- Cooling Efficiency
- 20-26 SEER2
- Installed Cost
- $13,000 - $18,000
- Rebates Available
- Up to $8,000+
- System Lifespan
- 15-20 years
- Best For
- Mild-to-moderate winters, homes with good insulation
Gas Furnace + AC
- Heating Efficiency
- 80-98% AFUE
- Cooling Efficiency
- 14-21 SEER2
- Installed Cost
- $8,000 - $14,000
- Rebates Available
- Up to $3,500
- System Lifespan
- 20-25 years (furnace), 15-20 years (AC)
- Best For
- Extremely cold climates, homes with existing gas lines
Central AC Only
- Heating Efficiency
- N/A (no heating)
- Cooling Efficiency
- 14-26 SEER2
- Installed Cost
- $5,000 - $9,000
- Rebates Available
- Up to $1,500
- System Lifespan
- 15-20 years
- Best For
- Cooling-only needs, homes with separate heating
What is a Dual Fuel Heat Pump?
A dual fuel system pairs an electric heat pump with a gas furnace backup. The heat pump handles heating and cooling for 80-90% of the year, when it's most efficient. When temperatures drop below 30-35°F (the "switchover point"), the gas furnace takes over.
This combination is popular in Colorado because it gives you the efficiency of a heat pump during mild weather while maintaining reliable heating during our coldest nights. Many homeowners who already have a working furnace choose dual fuel to maximize their existing investment.
Lower Bills
Heat pump efficiency for 80%+ of heating hours
Cold Weather Backup
Gas furnace kicks in below 30-35°F
Extends Furnace Life
Furnace runs less, lasts longer
Rebate Eligible
Qualifies for Xcel and federal incentives
Switchover point: When outdoor temps drop below 30-35°F, the system automatically switches to the gas furnace. You never have to think about it.
Are Heat Pumps the Future of HVAC?
From our point of view as professionals in the HVAC trade, the trend towards heat pumps and electrification has large governmental and institutional support behind it. Whether heat pumps and electrification are the future of the HVAC industry is still hotly debated.
As of now, when we look at the near-future (5-10 years), it seems that we're in the beginning stages of the trend towards heat pumps and HVAC electrification. So, for the time being, heat pumps are likely the best choice for future-proofing your heating and cooling system.
CommonQuestions
Frequently Asked Questions
Colorado's Heat Pump Experts
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