Combining Rebates

Final requirements and rules for Federal tax incentives are still pending. Information on this page represents the best information currently available. Please consult a tax professional when making plans and determining what equipment is eligible for incentives

Xcel Energy, the Denver Office of Climate Action, Sustainability, and Resilience (CASR), and the federal government offer heat pump rebates and incentives. This guide will help you stack those rebates for maximum savings. You can also check out LoveElectric's guide to help you find and combine rebates.

Xcel Energy and CASR rebates can only be claimed by the installing contractor (not the end consumer). In many cases, only contractors on Xcel Energy's registered partner list can claim these rebates. Remember this as you select a contractor and ask how the contractor will represent the rebates on an installation quote. You will claim federal and state tax credits on your tax return. For more information about tax credits and incentives offered by the State of Colorado, check out their website.

If your household has a total income of less than 80% of the Area Median Income, you may qualify for additional Denver and state funding. Ask Denver about their Healthy Homes program, Home Energy Rebates for Income Qualified households and the State Energy Office about the Inflation Reduction Act HOMES rebates (up to 150% Average Median Income).  

Funding Eligibility Requirements for Heat Pumps

You can now find all eligibility requirements for different funding sources on their respective websites:

  • Xcel Energy Residential Heating and Cooling Rebate1 Eligibility: available on the Xcel Energy Program Website.
  • City and County of Denver Home Energy Rebates2: equipment requirements are listed in the FAQ section of the installer rebate portal.
  • Colorado Heat Pump Tax Credit Equipment Requirements: listed in the program website for more information.
  • Rebates and Tax Credits from the Inflation Reduction Act: Requirements are still being finalized. Visit the program websiteto learn more.

1Additional Xcel Energy Requirements for cold climate models: The unit must be listed here and must have a minimum capacity ratio of 70% for 5°F OAT/ 47 °F OAT 

2Additional CASR Requirements: all cold climate models must be listed here, have COP ≥ 1.75 @ 5°F, and a minimum capacity ratio of 70% for 5°F OAT/ 47 °F OAT. GSHP must have minimum heating COP ≥ 3.3. All installations must adhere to quality installation standards.    

Funding Eligibility Items of Note

  • Funding for cold climate models requires more stringent heating capacity ratios than the IRA tax credits (25C). A minimum capacity ratio of 70% for 5°F OAT/ 47 °F OAT is required to ensure the best performance in Denver's cold climate. 
  • The city and Xcel Energy require cold climate products to be listed on the NEEP website.
  • To qualify for all three funding sources, your equipment must adhere to the most stringent efficiency (the highest number for each category (SEER (2)/EER (2)/HSPF (2)), be listed on the NEEP website, and have a minimum capacity ratio of 70% for 5°F/ 47 °F.