HVAC Contractors, Electricians, Plumbers and Mechanical Engineers play an important role helping building owners and individual condo owners select, purchase and install the best HVAC options for a building. The resources here will help you navigate permitting a heat pump, using the Electrification Feasibility Report, and building electrification. For permitting specific information please refer to Community Planning and Development E-permits.
The permitting process for installing heat pumps has not changed, but it might be new for contractors used to applying for a Quick Permit. When a gas-fired warm-air furnace, Unitary AC, or gas-fired hot water heater is replaced with a heat pump or partial (dual fuel) heat pump equipment, it cannot be permitted as a Quick Permit.
You will have to apply using the Building Log application in E-permits. Some things to consider:
- You will be asked to provide mechanical and electrical drawings prepared by a professional engineer
- A zoning review will be required for new exterior equipment
- A wastewater review will be required for new ground mounted equipment
- A landmark review may be required if the building is an individually designated landmark or within a historic district
- A structural review may be required for new roof mounted equipment
See E-Permit FAQs and Video Tutorials
Using E-Permits
After logging in with your Username or E-mail and password, click on "Apply for a Permit"
Be sure to select the Building Log application and follow the instructions from there.
If you didn’t have a chance to attend an in-person training on how to use the Electrification Feasibility Report Tool, a recorded version is now available. Watch all seven modules, which contain the same content as the live training did. Afterwards, complete the quiz we have provided. After we have reviewed and scored your quiz, you will be added to our list of contractors who have completed the training.
What professionals can expect to gain from this training:
Contractors
- Knowledge: Understand how 2022 Denver Building and Fire Code requirements mandated by the Energize Denver Ordinance affect your work and your customers' needs. Learn about permitting changes and city resources. Learn how the Electrification Feasibility Report can help you and your clients comply with new code requirements and decide if replacing with electric equipment makes sense. Get ahead of the curve now by attending the training instead of getting stuck trying to figure out how to fill out an Electrification Feasibility Report on your own.
- Hands-on Training: Participate in hands-on exercises with sample reports on various types of buildings and walk away with the confidence to begin using the Electrification Feasibility Report the next day. You will also learn about heat pump technologies, allowing you to confidently bid projects as the city moves toward requiring heat pump technology.
- Competitive Advantage: By completing the training course, your name will be included in our list of contractors who have completed the training. You can also add Electrification Feasibility Reports to your offerings, allowing you to broaden your services, be a leader in the market, communicate Denver's requirements with confidence, and provide more competitive bids.
- Learn About Incentives: During the training you will learn about Denver’s electrification pilot and forthcoming programs. Taking advantage of the incentives for Electrification Feasibility Reports and building electrification will help you sell jobs. You’ll also be invited to provide input on Denver’s pilot and programs to make sure they are easy for you and your customers to navigate.
- Learn About Permitting Changes: As quick permits go away, contractors will be required to submit Mechanical and Electrical drawings prepared by a design professional or Professional Engineer for review. Learn how to submit the Electrification Feasibility Report and other requirements for permitting space heating and cooling, and water heating in the Denver.
Energy Professionals
- Knowledge: Understand how 2022 Denver Building and Fire Code requirements mandated by the Energize Denver Ordinance affect your work and your customers' needs. Learn about permitting changes and city resources. Learn how the Electrification Feasibility Report can be used in capital planning and facility assessments and audits. Understanding the costs to electrify now will help your customers plan when electrification is required by the city (phased in by equipment type starting in 2025). The Electrification Feasibility Repot can also be used as a tool for compliance with the city’s energy performance requirements.
- Hands-on Training: Participate in hands-on exercises with sample reports on various types of buildings and walk away with the confidence to begin using the Electrification Feasibility Report the next day.
- Competitive Advantage: By completing the Electrification Feasibility Report training course, your name will be included in our list of contractors who have completed the training. You can also add Electrification Feasibility Reports to your offerings, allowing you to broaden your services and be a leader in the market.
- Learn About Incentives: During the training you will learn about Denver’s electrification pilot and forthcoming programs. Informing your customers of these incentives will allow them to plan for electrification and include YOU in their plan to electrify. You’ll also be invited to provide input on Denver’s pilot and programs to make sure they are easy for you and your customers to navigate.
Design Engineers
- Knowledge: Understand how 2022 Denver Building and Fire Code requirements mandated by the Energize Denver Ordinance affect your work and your customers' needs. Learn about permitting changes and city resources. Learn how the Electrification Feasibility Report can help you and your clients comply with the new code requirements and decide if replacing with electric equipment makes sense. Get ahead of the curve now by attending the training instead of getting stuck trying to figure out how to fill out an Electrification Feasibility Report on your own.
- Hands-on Training: Participate in hands-on exercises with sample reports on various types of buildings and walk away with the confidence to begin using the Electrification Feasibility Report the next day.
- Competitive Advantage: By completing the Electrification Feasibility Report training course, your name will be included in our list of contractors who have completed the training. Learn where your knowledge and services will be needed for permitting review. You can also add Electrification Feasibility Reports to your offerings, allowing you to broaden your services, be a leader in the market, and provide more competitive bids.
- Learn About Incentives: During the training you will learn about Denver’s electrification pilot and forthcoming programs. Taking advantage of the incentives for Electrification Feasibility Reports and building electrification will help you sell jobs. You’ll also be invited to provide input on Denver’s pilot and programs to make sure they are easy for you and your customers to navigate.
Module 1 – Introduction and Why Electrify
Module 1 includes an introduction to the Electrification Feasibility Report training series. It covers why building owners should electrify, partial vs. full electrification, and discusses the City and County of Denver’s goal to eliminate greenhouse gas emissions by 2040. It also introduces heat pumps as a possible solution.
Module 2 – Denver Commercial and Multifamily Code Changes
Module 2 discusses Denver commercial and multifamily code changes, including the Energize Denver Ordinance and specifically the existing building electrification requirements that fall under it. Changes to the permitting process for gas space and water heating equipment are covered in detail.
Module 3 – HVAC Systems for Electrification
Module 3 focuses on electrification of HVAC systems, including the most immediate opportunities for electrification, specifically AC and rooftop units, as well as the next electrification opportunities for more complex systems in the future.
Module 4 – Plumbing Systems for Electrification
Module 4 focuses on electrification of plumbing systems, including the most immediate opportunities for electrification, specifically electric resistance tank water heaters, gas tank water heaters, and gas tankless water heaters, as well as the next electrification opportunities for more complex systems in the future.
Module 5 – Electrification Feasibility Report Introduction
Module 5 discusses the Electrification Feasibility Report, which is a screening tool that can be used to assess the feasibility of using an electric heat pump or dual fuel heat pump when replacing gas HVAC or water heating equipment. The tool compares a like-for-like gas replacement option to a heat pump option based on installed costs, estimated annual energy usage, estimated annual energy cost change, and the social cost of carbon dioxide over the lifetime of the equipment.
Module 6A – Electrification Feasibility Report Demo for HVAC Projects
Module 6A is specific to HVAC installers and contractors who want to complete an EFR for a building owner. Prior to watching this video, you should have requested and been granted access to the Electrification Feasibility Report tool online. This instructional video will walk HVAC contractors through the steps to complete and submit an EFR via the tool.
Module 6B – Electrification Feasibility Report Demo for Domestic Hot Water
Module 6B is specific to Domestic Hot Water installers who want to complete an EFR for a building owner. Prior to watching this video, you should have requested and been granted access to the Electrification Feasibility Report tool online. This instructional video will walk DHW contractors through the steps to complete and submit an EFR via the tool.
Module 7 – Building Electrification Program
Module 7 finishes the training series by providing an overview of the Building Electrification Program, including the Pilot Program and additional utility incentives and financing programs. The video concludes with a summary of the training series and provides additional resources. We have rolled out additional incentives since the recording of this video. For the most up-to-date information on incentives please see Building Electrification Incentives.
Electrification Feasibility Report Training Quiz
Once you’ve completed the training modules, please complete the quiz. You must score 80% or higher to pass and be included on the list of contractors eligible to work on projects receiving an incentive. If you do not pass, we will reach out to you to work through it.
Quiz results will be monitored weekly. Please allow up to two weeks for the updated contractor list to be posted online.
See the list of contractors who have passed
You can use the Electrification Feasibility Report Pre-Site Visit Checklist(PDF, 61KB) (Spanish version(PDF, 91KB)) to help you and the building owner prepare for an Electrification Feasibility Report. The checklist has both “must-have” and “nice-to-have” items listed. “Must-have” items are required to effectively complete the Electrification Feasibility Report. They should be addressed before beginning the Electrification Feasibility Report process. “Nice to have” items can be helpful, but we do not require them before the site visit. You can collect these items at a later time or during the site visit.
"Must Have" Items include:
- Total building square footage and square feet estimate of the area being served by the piece of equipment you are replacing.
- Access to mechanical system spaces for equipment being replaced. This may include roof and basement access as well as relevant mechanical rooms.
- Access to electrical rooms.
- If access is not permitted into a space where the equipment is located, the individual filling out the Electrification Feasibility Report will need details on the equipment serving that space. Equipment nameplate information is best.
- Gas and electric rate structure as identified on the building owner’s utility gas and electric bill.
"Nice to Have" Items include:
- Building floor plans
- Facility MEP drawings and mechanical schedules
- Electric service breaker capacity and an understanding of circuit capacities serving specific equipment being evaluated for replacement
- An understanding of existing electrical service capacity
Working with the building owner to gather and prepare this information ahead of time will make for a smooth site visit and help you to effectively complete the Electrification Feasibility Report.
According to the rules for the Electrification Feasibility Report Rebate, contractors must invoice Michaels Energy for the cost of the Electrification Feasibility Report and may not invoice the building owner. The invoice must include the following:
- Contractor Business Name, Address, and Phone Number
- Customer Name and Address
- Quantity of Electrification Feasibility Reports you are completing
- Equipment Type the Electrification Feasibility Report will be completed for
- Hours – only provide hours for completing Electrification Feasibility Report. Do not include repairs or other services, sales calls, etc.
- Hourly Rate
- Costs
You may find it helpful to check out a sample invoice(PDF, 71KB). Contractor invoices do not have to follow this exact format, but the required information must be included or it may delay or prevent rebates from being issued.
Rebate Programs
There are rebates available to help cover the cost of Electrification Feasibility Reports and electric heat pumps for commercial buildings. There are requirements for contractors who work with building owners hoping to take advantage of these rebates.
Learn More
Accessing the Electrification Feasibility Report Tool
To request access to the Electrification Feasibility Report tool, you will need to complete the short Contractor Access Request Form. You will receive a confirmation email following submission. Once the request has been reviewed, you will receive a second email indicating whether you have been Approved or Denied access to the tool. Please contact denverelectrification@michaelsenergy.com or call us at (720) 782-7661 if you have questions or run into issues.
Request Access to the Electrification Feasibility Report Tool
Once you’ve been granted access to the Electrification Feasibility Report Tool, please watch this short video about how to log in to the tool and add a building to your account:
Contact Us
Still have questions? Please contact the program administrator at DenverElectrification@MichaelsEnergy.com or 720.782.7661.
For questions about what documentation is required for permits now that quick permits are only allowed for emergency replacement, contact Community Planning and Development.
Permitting
Can contractors or building owners still pull a quick permit for emergency replacements?
Yes. Quick permits are still allowed for emergency replacements. Emergency replacement is not based on timeline. An emergency replacement is allowed if only one piece of heating, cooling, or service water heating equipment, or ventilation system is failing and will be replaced with the same heating or cooling capacity and no other alterations are made. If multiple pieces of equipment need to be replaced, it will not be considered an emergency replacement.
What are the requirements for historical buildings?
Section C501.5 of the Denver Energy Code provides provisions for application of the energy code to historic buildings. The permitting process is the same, however, the Landmark Team with Community Planning and Development would review any exterior work.
What is the plan review turnaround time for the permit?
We expect most of the equipment affected by the March 1, 2023 code change will qualify as a Minor Commercial Project. Average plan review times are available on Community Planning and Development’s dashboard.
Is the Electrification Feasibility Report required to get a permit?
The Electrification Feasibility Report is one of several options for compliance with new permitting requirements for gas space and water heating equipment in commercial and multifamily buildings. An Electrification Feasibility Report is NOT required to pull a permit for heat pump equipment.
Electrification Feasibility Report
What is the purpose of the Electrification Feasibility Report?
The Electrification Feasibility Report is a tool to help a building owner determine if they should get a bid for a heat pump. The tool considers items such as:
- Physical/location constraints
- Electrical infrastructure constraints
- Other infrastructure constraints (e.g., ductwork and electrical service capacity)
- Availability of equipment
- Upfront and operating costs of gas vs. electric alternatives
- Energy and carbon savings
If the results of the Electrification Feasibility Report indicate that electrification is cost-effective, does a building owner have to electrify?
Not now. Starting in 2025, electrification will be required for gas furnaces, unitary AC/condensing units serving a heated space, and gas water heaters when the Electrification Feasibility Report indicates that it is cost effective. In 2027 PTACs, VTACs, and boilers be required to be electrified when cost effective.
How long will the review of an Electrification Feasibility Report take?
Michaels Energy will review all Electrification Feasibility Reports and will contact you with questions or to provide results within one week of the date of submittal.
What if I’m bidding against other contractors? Will the Electrification Feasibility Report be tied to the building? Will the competition be able to see my Electrification Feasibility Report?
In the Electrification Feasibility Report tool, you will only be able to see reports that you have created. Your competition won’t be able to view your reports. If you are bidding against another contractor, only ONE contractor can receive a rebate to complete an Electrification Feasibility Report for each specific piece of equipment in a building. To receive a rebate, preapproval from Michaels Energy is required.
Can a building owner that already paid for one Electrification Feasibility Report request the inputs so they don’t have to pay again for a second bid?
Building owners can contact Michaels Energy if they’re getting a second bid and want to compare the results of the Electrification Feasibility Reports from the two bids.
There is potential for an economy of scale for the design fees if multiple systems are replaced at once. Is there any way to reflect this or should I estimate the costs as if only one system is being replaced?
If the owner is likely to replace all the systems, divide the design cost across the systems and complete separate Electrification Feasibility Reports for each system. You can do this by duplicating the tab in the electrification feasibility report tool. Please contact Michaels Energy at DenverElectrification@MichaelsEnergy.com or 720.782.7661 if you need help doing this.
If the owner only wants to replace one piece of equipment, then only complete one Electrification Feasibility Report and allocate all the design costs there.
How is the cost effectiveness/cost parity of replacing gas equipment with heat pump equipment determined?
The net present value of a new gas system is compared to the net present value of a new electric (heat pump or partially electrified) system. If the net present value of the gas system is less than or equal to 15% greater than the electric system, the electric system is deemed cost effective.
Net present value is a financial tool used to determine the value of an investment over its lifetime in terms of today’s value of money. The net present value includes the capital cost to install the new equipment (equipment + labor + other expenses), the cost to operate the piece of equipment (the cost of the energy consumed by the equipment) over the equipment’s expected lifetime and the social cost of carbon over the equipment’s expected lifetime.
How is the social cost of carbon calculated?
The social cost of carbon is estimated using the methodology found in the building code:
- "Social cost of carbon dioxide means either seventy-nine dollars ($79.00) per metric ton of carbon dioxide with an annual escalation rate of two and one-half (2.5) percent from January 1, 2022, or the social cost of carbon dioxide as determined by the public utilities commission of the State of Colorado, whichever is greater."
- "Projections for the metric tons per therm are constant at .00528441 while metric tons per kWh are projections that reference Xcel Energy’s projected renewable electric generation through 2025 (reaching 80% renewable by 2030)."
Rebates
What is required to receive a rebate to do an Electrification Feasibility Report?
For building owners to be eligible for Building Electrification Program rebates, they must use a contractor who has attended an Electrification Feasibility Report training or watched the recording online, and passed the quiz administered at the end of the training.
See the list of eligible contractors
To receive a rebate, preapproval from Michaels Energy is required. Visit our Building Electrification Rebates page to learn more and apply.
Can more than one contractor get a rebate for doing an Electrification Feasibility Report on the same building?
No. Only one contractor will be paid for an Electrification Feasibility Report for any single piece of equipment.
An Electrification Feasibility Report is for one piece of equipment. If two contractors do Electrification Feasibility Reports for two different pieces of equipment, both contractors could receive rebates for their respective report.
What happens if a competitor is also bidding and creating their own Electrification Feasibility Report?
To be eligible for the Electrification Feasibility Report rebate, the building owner must submit a rebate application and be pre-approved prior to a contractor completing an Electrification Feasibility Report. This prevents the creation of two reports for the same piece of equipment.
Electrification
Is there enough electricity on the grid to handle building electrification?
Yes! According to Xcel Energy spokesperson Michelle Aguayo, "We are planning the grid to meet the anticipated demands of beneficial electrification of buildings, transportation and others reliably and affordably. Our Power Pathway transmission project and Electric Resource Plan, both of which were approved by the Commission last year, provide an important foundation for generating and delivering more clean energy that will support the city of Denver’s electrification and sustainability goals."
The City and County of Denver and Xcel Energy meet monthly to discuss any upgrades to the grid that might be needed via their Energy Future Collaboration. Additionally, we are conducting a study, in collaboration with Xcel Energy, of Xcel Energy’s Denver distribution system to identify any areas of capacity needs for building electrification, EV charging, or renewable energy integration.
What prevents a building from freezing if only electric is allowed? Is gas backup an option?
Gas backup, or dual fuel equipment, is allowed and may be the best, most cost-effective option for many buildings. Partial electrification (leaving some of the existing equipment in place) is also an option.
There are very effective cold climate heat pumps that can operate effectively at temperatures below zero. Northeast Energy Efficiency Partnerships (NEEP) has a list of residential-style cold climate air-source heat pumps.
Which Multifamily Buildings are affected by the Electrification requirements?
Multifamily buildings affected by Energize Denver’s electrification requirements in the 2022 Denver Building and Fire Code include 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 Energize Denver’s electrification requirements.