Heat Pump Installation Bonus for Contractors

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1. Overview

Denver is pleased to announce the launch of heat pump bonuses for contractors. The bonuses apply to equipment that both:

Michaels Energy will implement the program on behalf of the city. We designed the program to incentivize the supply chain to adopt heat pump technologies. This will make it easier for building owners to comply with Denver regulations. It will also help to advance the city's climate goals.

The Contractor Install Bonus covers:

  • Ducted split air-source heat pumps (ASHPs)
  • Non-ducted mini-split air-source heat pumps (mini-splits)
  • Heat pump hot water heaters 
  • Heat pump rooftop units (HP RTUs)
  • Variable refrigerant flow (VRF) systems
  • Packaged terminal heat pumps (PTHPs)
  • Single packaged vertical heat pumps (SVPHPs)
  • Water source heat pumps (WSHPs)
  • Ground source heat pumps (GSHPs)

2. Incentive Structure

  • The bonus incentive will be available for a company’s rebated pieces of equipment with the Denver Building Electrification Rebate program.
    • For a limited time, contractors will receive a bonus that is equal to the standard equipment rebate of the installed equipment.
    • The bonus amount is the same regardless of whether the building is a standard building or an Equity Priority Building.
    • Contractor bonuses are capped at $100,000 per submitting company.
  • Equipment must be installed in existing buildings between 05/01/2024 and 2/28/2025.
    • New construction is not eligible for the contractor bonus, even if the building received a heat pump rebate.
  • Quality install verification will require the submission of a completed manufacturer’s startup checklist. You may also submit a third-party verification of installation.
  • For more information or to sign up, please contact the program administrator Michaels Energy at DenverElectrification@MichaelsEnergy.com.

Program procedures, rules, requirements, and bonus incentive amounts are subject to change or cancellation at any time.

3. Program Process

  1. Contractor submits an application for the Equipment Rebate
  2. The Equipment Rebate application is preapproved by the Michaels Energy Customer Support Center (CSC)
  3. You install the equipment
  4. You send final installation documentation to the CSC:
    1. Final itemized invoices
    2. Permitting documentation
    3. Project verification from the building owner to confirm installation
    4. W9s (when needed) for payments
    5. Updated spec sheets/AHRI (if the project changed from the bid)
    6. Quality installation verification
  5. The CSC will calculate the finalized Equipment Rebate incentive and will send the final approval letter. This letter will contain the rebate amount going to the applicant or contractor, whomever is claiming the incentive
  6. The CSC will begin the payment process for the Equipment Rebate
  7. The CSC will calculate the Contractor Bonus amount
    1. Even if the contractor is claiming the Equipment Rebate, the Contractor Bonus will be paid separately
  8. The CSC will send an email to the contractor letting them know how much their bonus will be and what their status is
  9. The CSC will begin the contractor Bonus payment process
  10. The program procedures, rules, requirements, and incentive levels are subject to change or cancellation without notice. They are subject to available program funds.

4. Verification Points

  1. Equipment meets program eligibility requirements.
    1. Verified using model information provided with application (bid and/or specs) and cross referencing with:
      1. Equipment Program Requirements
      2. AHRI Database
      3. Energy Star Database
      4. NEEP ccASHP Product List
      5. NEEP HPWH Qualified Products List
  2. Equipment is installed and working properly:
    1. Verified after receiving final project documentation:
      1. Final invoices
      2. Permitting documents
      3. Building owner project verification
      4. Quality Installation Verification
  3. Contractor is eligible for bonus:
    1. Contractor or subcontractor is licensed with the City and County of Denver (verified using permitting resources on the Denver website)
    2. The Project is permitted properly
    3. The CSC received contractor W9
    4. Company has not hit maximum cap for install bonuses ($100,000)