Colorado Heat Pump Rebates

With Colorado Springs Utilities, Colorado heat pump rebates go as high as $3,000; Black Hills Energy provides up to $2,500. For income-qualified households, Xcel Energy can cover up to the full cost; otherwise it pays per heating ton, ranging from $1,500 through $2,200.

Find the Colorado rebates for your ZIP code

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Cold-climate heat pump outdoor unit on a wall bracket beside a clapboard house in light snow, the kind of install Colorado heat pump rebates help pay for
Largest standard rebate available
$3,000 Colorado Springs Utilities HVAC & Heat Pump Rebates, open to customers of City of Colorado Springs
HEAR appliance rebates
Paused Run by Colorado Energy Office. Official page
HOMES whole-home rebates
Approved, but not open yet Paid on the energy saved by a whole-home upgrade. Official page
The federal 25C tax credit
Ended No credit for heat pumps installed after 31 December 2025

Colorado heat pump rebate programs

Check your electric and gas bills for the utility names to learn which programs cover your home.

ProgramWho can get itCentral heat pumpDuctless mini-splitHeat pump water heaterGeothermalStatusApply
Xcel Energy logoXcel Energy Colorado Heat Pump RebatesServed by Public Service Co of Colorado$1,500/heating ton at 5 F$500$1,500$2,200/heating tonOpenOfficial page
Black Hills Energy Colorado Electric Residential RebatesServed by Black Hills Colorado Electric, LLC$2,500$1,500$500$1,700OpenOfficial page
Colorado Springs Utilities HVAC & Heat Pump RebatesServed by City of Colorado Springs$3,000NoneUp to $750NoneOpenOfficial page
United Power Heat Pump RebatesServed by United Power, Inc$1,000$500None$1,000OpenOfficial page

Claiming Colorado Heat Pump Rebates Step by Step

Deadlines and contractor rules for your rebate are set by your utility company. A participating installer is required for most whole-home rebates, so read the rules before you sign a contract.

  • Primary heat pumps need a Trade Partner Network contractor under Xcel Energy; water heaters and single-room units may be self-installed.
  • Complete your Xcel installation by December 31, 2026, then file the rebate form no later than September 30, 2027.
  • Electric customers of Black Hills Energy install during 2026, then submit paperwork after the installation, no later than January 31, 2027.
  • Gas customers of Colorado Springs Utilities use a contractor or an approved building permit, then apply by January 31 of the following year.
  • After installation, United Power members have 90 days to submit an AHRI certificate, an invoice, and two photos.

The official lab sheet that proves your unit meets efficiency rules is an AHRI certificate.

Colorado Home Energy Rebates and Low-Income Help

The statewide federal rebate money for single-family houses is already spent. Up to $8,000 per heat pump was paid by the state appliance rebate program, which closed in both state regions on August 1, 2026. Mobile homes and large apartment buildings get a separate whole-home efficiency program starting in winter 2026, worth up to $16,000. That winter program excludes site-built single-family houses.

Area median income, the midpoint household income in your county, determines eligibility. Xcel customers with lower incomes can still get 50% to 100% of their heat pump costs covered, plus free insulation. Start with a free Income Qualified Home Energy Squad Plus visit, which verifies your income so you can claim those full-cost rebates. Households getting SNAP, SSI, TANF, or LEAP also automatically qualify for free upgrades under the Colorado Weatherization Assistance Program.

Colorado Heat Pump Tax Credit and Federal Rules

Here, the installer claims the credit, so state tax savings differ from those in most states. Air-source units get $1,000, ground-source systems $2,000, and water heaters $250 from the state tax credit program for 2026 installs. The contractor who claims the credit is registered with the Colorado Energy Office, and that contractor takes it off your bill.

The law requires your contractor to pass at least one-third of the credit to you as an upfront discount. On an air-source heat pump, that rule saves you at least $333; ground-source saves at least $667, and a water heater $83. Before signing, you can ask your contractor if more than the one-third minimum gets passed along. The federal 25C tax credit, meanwhile, ended under Public Law 119-21 for equipment installed after December 31, 2025.

Utility Rules and Cold-Climate Heating in Colorado

Across the Front Range and in mountain valleys alike, mild sunny days make heat pumps a practical choice. Per United Power, 55% of all heating fuel use in Colorado happens when temperatures are at 42 degrees or warmer. Gas utilities must trim emissions 22% by 2030 under state clean heat rules, and Xcel is committing $176 million a year to electrification.

What you get back also depends on the heating fuel you use now, because utilities reward switching from gas. The $1,500 gas-switching rate is not available to homes with electric baseboard heat; those homes get Xcel's standard rebate of $750 per heating ton instead. How much heat a system makes for your home is measured in heating tons. Xcel Energy will also stop all rebates for gas furnaces and boilers on January 1, 2027. Extra Mountain Energy Project rebates can be claimed by Xcel gas customers in seven mountain towns, among them Breckenridge, Frisco, and Leadville.

Common Questions About Colorado Heat Pump Rebates

Are new state heat pump rebates coming to Colorado in 2026?

The Colorado Energy Office still has two state offerings planned for late 2026. First, appliance rebates worth $13.7 million have not opened yet; they cover smaller multifamily buildings below 50,000 square feet. The second program, whole-home rebates for mobile homes, starts in winter 2026 and pays 50% of costs up to $4,000 for households above 80% income limits.

Does Xcel Energy have bonus rebates, or financing, available for Colorado heat pumps?

Yes, Xcel Energy pays a $600 bonus if qualifying insulation and air sealing are finished before your heat pump goes in. A 25% bonus on standard rebates is also available if you install three upgrades within two years. No upfront payment is needed to finance up to $50,000 through ClearPath On-Bill Repayment, if you are eligible.

What rules can make a heat pump installation ineligible for Colorado utility rebates?

Rebate programs at each utility rule out certain buildings and equipment setups. Black Hills Energy will not pay for heat pumps in garages or workshops. United Power leaves out new construction, and members get one unit rebate at most every rolling 12 months. Gas-only customers who purchase their electricity elsewhere do not qualify under Xcel Energy.

Can you still claim the federal heat pump tax credit in 2026?

No. A heat pump installed in 2026 is not eligible for the federal tax credit. Per Fact Sheet FS-2025-05, published August 21, 2025, the Internal Revenue Service confirmed the early end of residential energy credits. To qualify on a federal return, equipment must be placed in service no later than December 31, 2025.

Get Colorado installer quotes with the rebates taken off

Most rebates on this page are paid through the installer or need the installer's paperwork, so the quote is where the money is settled. Tell us the ZIP code and what you want installed, and installers who work with these programs send a written price with the rebates taken off.

You consent to up to three heat pump installers, or one firm that pairs homeowners with installers, in your ZIP code reaching you about this project by call, text or email at the number and address you entered when you send this request, and those calls and texts may be placed with automated dialing technology. Agreeing is not a condition of any purchase or rebate.