Explore savings on home comfort upgrades.
Qualifying heating and cooling upgrades may be eligible for utility or regional incentives. Your available savings depend on your utility provider, location, equipment, installation date, and program requirements.
Colorado heat-pump installation discounts
For qualifying equipment installed in 2026, Colorado’s Heat Pump Tax Credit program requires participating registered contractors to provide minimum customer discounts of:
• $333 for an air-source heat pump.
• $667 for a ground-source, water-source, or combined-source heat pump.
• $83 for a heat-pump water heater.
The discount appears separately on the installation invoice. The installing contractor claims the tax credit; customers do not file a tax-credit application to receive this discount.
Qualifying equipment must meet the program’s certification and installation requirements. Heating and cooling heat pumps must be designed to meet at least 80% of the home’s annual heating needs.
Confirm the installing contractor’s program registration and the equipment’s eligibility before proceeding.
View Colorado heat-pump program details
Colorado HEAR program — check availability first
HEAR funding status
The Colorado Energy Office dashboard, last updated August 3, 2026 and checked October 11, 2026, lists single-family HEAR funding as fully reserved and the program closed in both the Front Range and all other Colorado counties.
The dashboard separately lists funding for small multifamily buildings, but states that those rebates are not yet available.
HEAR savings should not be included in a new project’s estimated cost unless the program administrator confirms eligibility and funding availability. Check the official dashboard for updates.
Check official HEAR funding status
Colorado Springs Utilities
Colorado Springs Utilities lists a $900 rebate for qualifying furnaces and heat-pump rebates of $1,500 or $3,000, depending on equipment specifications and size.
Utility-service eligibility, approved equipment, installation requirements, and application deadlines apply. Confirm the specific rebate before purchasing equipment.
View Colorado Springs Utilities rebates
Xcel Energy Colorado
Eligible Xcel Energy customers may qualify for heat-pump rebates. The equipment must meet program requirements and be installed by a participating contractor.
Rebate amounts depend on the qualifying system and current program terms. Confirm the applicable amount with the participating installer before installation.
View Xcel Energy heat-pump rebates
Power Ahead Colorado — Denver region
Power Ahead Colorado offers a $1,500 rebate for qualifying cold-climate air-source heat pumps in eligible Denver-region communities.
Projects generally require an approved participating contractor and submission before work begins. Existing buildings may qualify; new construction is excluded. The rebate may be combined with eligible utility or municipal incentives, but not Colorado HEAR/HER rebates.
View Power Ahead Colorado requirements
Before you choose equipment
Confirm your electric and gas providers, the exact equipment’s eligibility, contractor participation, and any required preapproval. Ask which incentives can be combined and whether savings appear as an invoice discount, rebate payment, or utility bill credit.
Program amounts and availability can change. The program administrator determines eligibility and approval; incentives are not guaranteed.
Have questions about your project?
Tell us your location, utility provider, and the upgrade you’re considering. We’ll follow up to discuss your options.