Most City and County of Denver offices will be closed Monday, March 27 in observance of the César Chávez Day holiday.
Denver is offering incentives for 100% all-electric new buildings and homes. Choosing electric equipment over natural gas equipment will reduce Denver’s greenhouse gas emissions and the impacts of climate change we are already experiencing. All-electric new buildings and homes can be cheaper to build and operate with highly efficient technology like heat pumps.
Designing and building new space and water heating systems comes with a learning curve, so we’re here to help. Denver offers the following incentives to help our community create a healthier and more sustainable built environment. Funding is available for both design incentives and pilot projects (only one application is needed if you're applying for both).
Funding is limited to approximately 5-8 demonstration projects (contingent on available funding) – if you are interested, apply today.
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Equity Focus: 50% of the pilot project funds will be prioritized for affordable housing or otherwise serve or benefit under-resourced communities in Denver.
Apply for new building incentives if you want to fund your project and be featured as a case study on how to build all-electric buildings in Denver.
Generally, projects using higher efficiency products like air/ground source heat pumps and central heat pump water heaters will be prioritized over projects using less efficient products like electric resistance space or water heaters. Additionally, priority will be given to building types and/or electrification systems that are not currently enrolled in the pilot program to ensure diversity of building electrification projects.
*Note: Available funding is intended to help with the cost difference and learning curve to transition from mixed fuel to all-electric design, equipment, and installation. Projects funded and the amount of funding will be at the discretion of Denver’s Office of Climate Action, Sustainability and Resiliency staff, and will be based on projects costs, complexity, and replicability.
Lower ranges are intended for smaller projects like single- family homes, whereas the upper limits represent larger projects like large multifamily buildings.
Frequently Asked Questions
The intent of this funding is to:
The City and County of Denver is not currently considering mandates explicitly focused on small gas appliances. However there are individual and community health implications associated with some of these appliances, and less harmful alternatives are available.
Note: To be eligible for Denver's electrification incentives, buildings will need to be all-electric.
Yes, Denver has multiple incentives and financing opportunities for electrification equipment.
Denver’s electric grid should not need significant upgrades to accommodate medium or even high levels of electrification adoption. Coordinating the electrification transition with Denver’s electric and gas provider, Xcel Energy, will help Denver plan for and encourage smart, efficient electric appliances that mitigate impacts on the electric grid. See the Renewable Heating and Cooling Plan for more information.
Both gas and electric heating systems are affected by power outages. Natural gas furnaces do not work when the power is out. Natural gas furnaces use an electric starter to ignite and require an electric-powered fan to move heat through the home.
Yes, see this Minnesota study on cold climate air-source heat pumps as an example and a testament to heat pump ability to provide efficient heat down to -20F. More information is also available in Denver's Renewable Heating and Cooling Plan.
Our team has developed a webinar library with training resources to help with the building electrification learning curve. Denver is also investing in workforce training and development through the Climate Protection Fund.
The transition to renewable heating and cooling will cost-effectively benefit Denverites. Benefits include providing air conditioning as temperatures rise, reducing children’s exposure to carbon monoxide, and rapidly mitigating climate change by lowering potent methane emissions.
No, an RMI study found that all-electric homes have 2% lower annual utility costs than mixed-fuel homes. A literature review of multiple studies found that all-electric multifamily buildings were 1% cheaper to build than traditional construction and had operating costs that were 14% lower. In commercial buildings, upfront costs were 8% lower for all-electric and 3-9% higher for operating costs. However, this analysis was conducted before the recent increase in gas prices.
New building electrification incentives are reserved for projects that are 100% all-electric, meaning there are no gas lines connected to or extended to the development.
Funding is limited to approximately 5-8 demonstration projects (contingent on available funding). If you're ready, apply for Denver's New Building Electrification Rebates.
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