Building Electrification Rebates

• Advocacy organizations (such as Community Advocacy, Social Service Advocacy, or similar)
• Affordable housing providers
• After-school providers
• Childcare centers
• Community centers
• Community financial institutions (like credit unions, non-profit lenders, etc)
• Disability service providers
• Domestic violence centers
• Emergency service organizations
• Family support organizations
• Food pantries
• Homeless shelters
• Hospitals, healthcare facilities, and clinics
• Housing service providers
• Immigration service providers
• Job training and workforce development services
• Law/legal centers (non-profit and pro-bono services to income-qualified communities)
• Libraries (not owned by the City and County of Denver)
• Mental and behavioral health facilities
• Places of worship
• Rehabilitation providers
• Senior centers (not owned by the City and County of Denver)
• Transitional or supportive housing
• Women's or children's shelters

1. Submit an application.
2. Michaels Energy, the program administrator will review your application to determine eligibility.
3. Once Michaels Energy verifies your eligibility, the program administrator will issue an Equipment Rebate Preapproval. This reserves your rebate.
4. Work with an eligible contractor to install the heat pump equipment. Contractors must be licensed with the City and County of Denver to be considered eligible.
5. When the project is complete, you or your contractor will submit documents for the program administrator to review:
   1. The invoice(s)
   2. Final permit inspection document
   3. Any specification sheets
6. After review is complete, you will receive an Equipment Rebate Approval Letter.
7. The program administrator will issue the equipment rebate via check to one of the following:
   1. The building owner
   2. The tenant responsible for space conditioning or water heating equipment
   3. The contractor if the rebate has been signed over to them

Rebate amounts are subject to change. Rebates are currently available for:

• Heat pump rooftop units (HP RTUs)
• Split air-source heat pumps (ASHPs)
• Mini-split air-source heat pumps (mini-splits)
• Heat pump water heaters

Rebates for additional equipment types are forthcoming.

• The program administrator must preapprove your application before they can reserve a rebate for you.
• We recommend that you wait until you receive your application preapproval before you buy equipment. Preapproval reserves a rebate for you.
• Equipment purchased prior to 03/01/23 is not eligible for a rebate.
• Equipment Installed prior to application pre-approval is not eligible for a rebate.
• Equipment that does not meet the qualifications listed in the Eligible Equipment table is not eligible for a rebate. 
• Rebate amounts are capped at:
  • $60,000 per building owner/tenant per calendar year for standard buildings
  • $120,000 per building owner/tenant calendar year for equity priority buildings
• Rebate amounts cannot exceed total project costs. If total project costs are less than the rebate, we will adjust the rebate.
• Participants will only participate in one program offered by Denver’s Office of Climate Action, Sustainability and Resiliency (CASR) for each piece of installed equipment. By participating in this rebate program, the participant is not eligible for any other rebates offered by CASR on that specific piece of installed equipment.
• You must inform the program administrator if you are receiving another rebate or tax credit from:
  • The state
  • The federal government
  • Xcel Energy
  • Any other gas or electric utility
  • Any other entity
• Building owners/tenants/contractors must submit IRS W9 forms and an Xcel Energy (or other utility) Data Release form to receive a rebate.
• For the program administrator to issue the rebate, you or your contractor must submit the following for approval:
  • Itemized invoice(s)
  • Equipment spec sheets
  • Final permit inspection document(s)
  • Other supporting documents
• Building owners or tenants who are responsible for their own space conditioning or water heating equipment can sign the rebate over to their contractor.
• After Michaels Energy preapproves your application, your contractors will have 180 days to install the equipment. If this timeline is problematic for your project, especially considering current supply chain issues, please reach out to us before the 180 days is up:
  • DenverElectrification@michaelsenergy.com
  • 720.782.7661
• After 180 days, you will have to reapply unless you are granted an extension to the timeline in writing.

Participant Eligibility 

To be eligible for the Equipment Rebate, you must confirm that your building:

• Is located within the City and County of Denver.
• Is not owned by the City and County of Denver.
• Owners or tenants applying are responsible for the space heating, cooling, or water heating equipment being installed. 
• Is an existing commercial or existing multifamily building with five or more units. Single family, duplex, triplex and four-plex buildings qualify for our Climate Action Rebates
• Is regulated by Denver Commercial Building Code (for example, public and charter schools are regulated by state of Colorado Building Code and are not eligible for this rebate).
• Has at least one of the following:
  • Existing gas-fired space heating
  • Existing gas-fired water heating
  • Existing electric air conditioning equipment

You must also commit to:

• Only installing equipment in an existing building/space that is not undergoing a major rehab. 
• Only participating in one program offered by Denver’s Office of Climate Action, Sustainability and Resiliency (CASR) for each piece of installed equipment.
  • Understanding that you will not be eligible for any other rebates offered by CASR on that specific piece of installed equipment.
• The program processes.
• The program rules.
• The rebate terms and conditions, including working with an eligible contractor.

Program participants will receive facilitation services, including, but not limited to:

• Technical support in selecting contractors to perform an Electrification Feasibility Report
• Translation and interpretation support
• Assistance with program processes and documents
• Program navigation support
• Vetting bids
• Advising on the best equipment options
• Assistance identifying additional incentives and rebates

Facilitation and service support will be capped at:

• 30 hours for Equity Priority Buildings
• 15 hours for Standard Buildings

Contractor Eligibility

We require contractors to be licensed to pull a permit with the City and County of Denver. Rebate participants are responsible for ensuring that the contractors they hire:

• Are licensed with the City and County of Denver
• Properly pull a permit for the work

Any equipment installed without a permit or by a contractor not licensed with the City and County of Denver is not eligible for the Equipment Rebate.

Equity Priority Buildings

Equity Priority Buildings serve frontline communities with less access to resources and who may face more barriers adapting to a changing climate. If your building falls into this category, you could be eligible for additional funding and facilitation services. Equity Priority Buildings include: 

• Deed-restricted multifamily affordable housing.
• Naturally occurring affordable housing (at least 66% of the building's units must have rents at or below 80% of area median income rent limits).
• Individual condo or townhome unit owners who meet certain income requirements
• Human service providers, defined as a non-profit tax-exempt entity that offers critical services, such as:
  • Advocacy organizations (e.g., Community Advocacy, Social Service Advocacy, or similar)
  • Affordable housing providers
  • After-school providers
  • Childcare centers
  • Community centers
  • Community financial institutions (e.g., credit unions, non-profit lenders)
  • Disability service providers
  • Domestic Violence Centers
  • Emergency service organizations
  • Family support organizations
  • Food pantries
  • Homeless shelters
  • Hospitals, healthcare facilities, and clinics
  • Housing service providers
  • Immigration service providers
  • Job training and workforce development services
  • Law/legal centers (non-profit/pro-bono services to income-qualified communities)
  • Libraries (not owned by the City and County of Denver)
  • Mental and behavioral health facilities
  • Places of worship
  • Rehabilitation providers
  • Senior centers (not owned by the City and County of Denver)
  • Transitional or supportive housing
  • Women’s or children’s shelters 

The equipment you install must meet the following requirements:

Learn More About Heat Pumps

1. Fill out an application indicating one piece of equipment to look at with an Electrification Feasibility Report.
2. Michaels Energy, the program administrator, will review and preapprove your application within 10 business days.
3. Select a contractor who has completed an Electrification Feasibility Report training.
4. Work with your contractor to complete and submit the Electrification Feasibility Report.
5. The program administrator will review and approve the completed Electrification Feasibility Report within 10 business days.
6. The contractor will invoice the program administrator for the cost of the Electrification Feasibility Report.
7. The program will pay up to $2,500 to the contractor to cover the cost of the Electrification Feasibility Report. Contractors are not permitted to invoice customers for any remaining balance.  

Building owners are not required to follow the recommendations that come from an Electrification Feasibility Report. However, there will be changes coming in 2025 and 2027 that will require the electrification of systems when it’s cost-effective for replacements. It may be beneficial to electrify where it makes sense now.

• Electrification Feasibility Reports submitted before a rebate application is submitted and preapproved by the program administrator will not be eligible for a rebate.
• Your application must be preapproved before you can receive the rebate.
• An Electrification Feasibility Report looks at one type of equipment at a time. You will need to complete a separate Electrification Feasibility Report for each type of equipment.
• The Energize Denver Electrification requirements apply to all existing commercial and multifamily buildings regulated by the Denver Energy Code’s commercial provisions. This includes commercial buildings, multifamily apartment buildings, and multifamily condominium buildings.
• Single-family dwellings, two-family dwellings, and townhomes are not subject to the Energize Denver Electrification requirements. If you have questions about whether your building is regulated by the Denver Commercial Building Code, please contact Community Planning and Development's Architectural/Structural Plan Review team.
• Each building may submit up to three applications for Electrification Feasibility Report rebates per calendar year. These will cover three different types of equipment. If you would like to submit more than three applications, contact us.
  • DenverElectrification@michaelsenergy.com
  • 720.782.7661
• Only one contractor will be paid for an Electrification Feasibility Report for any single piece of equipment. Two or more different contractors cannot receive a rebate for the same piece of equipment.
• Contractors must invoice Michaels Energy for the cost of the Electrification Feasibility Report. They may not invoice the building owner.
• Your contractor has 120 days to complete the Electrification Feasibility Report and submit an invoice after your application has been processed and preapproved. After 120 days, you will have to reapply.
• Contractors must have an IRS W9 on file or submit an IRS W9 to receive the rebate.

Participant Eligibility

The Energize Denver Electrification requirements apply to all existing commercial and multifamily buildings regulated by the Denver Energy Code’s Commercial Provisions. This includes commercial buildings, multifamily apartment buildings, and multifamily condominium buildings. Single family dwellings, two-family dwellings, and townhomes are not subject to the Energize Denver Electrification requirements.

To be eligible for the Electrification Feasibility Report rebate, your building must:

• Be located within the City and County of Denver
• Not be owned by the City and County of Denver
• Owners or tenants applying must be responsible for their own space heating, cooling, or water heating equipment
• Be a commercial or multifamily building regulated by the Denver Commercial Building Code. This includes:
  • Triplexes and bigger multifamily buildings
  • Townhouses greater than three stories above grade
  • All commercial buildings
• Be regulated by Denver's Building Code (for example, public schools are regulated by the State of Colorado Building Code and are not eligible for this program)
• Have one of the following:
  • Gas-fired HVAC (space heating or cooling)
  • Gas-fired water heating
  • Electric cooling-only equipment

You must confirm that equipment will be installed in an existing building or space that is not undergoing a major rehab. You must also agree to follow the program rules, processes and terms, including working with an eligible contractor.

Contractor Eligibility

For contractors to be eligible to receive this rebate, they must be on our list of eligible contractors. To get on this list, you must have attended an Electrification Feasibility Report training and passed the comprehension quiz. If you missed the in-person trainings, you can now take the training online. Make sure that you also complete the comprehension quiz. This is the only way we can confirm that you have completed the training. After you pass the comprehension quiz, we will add you to the list of eligible contractors. Quiz results will be monitored weekly. Please allow up to two weeks to be added to the list.

Eligible Participants will Receive:

• Up to $2,500 for an Electrification Feasibility Report paid to eligible contractors.
• Facilitation services, which include but are not limited to:
  • Technical support in selecting contractors for Electrification Feasibility Report services
  • Translation and interpretation support
  • Assistance with program processes and documents
  • Program navigation support
  • Assistance identifying other incentives and rebates

• Facilitation service support will be capped as follows:
  • Equity Priority Buildings: up to 30 hours
  • Standard Buildings: up to 15 hours