Heat Pump Rebates for Existing Buildings

Overview

Attention commercial heat pump contractors! For a limited time contractors will receive a bonus that is equal to the standard equipment rebate of the installed equipment. This will apply to rebated installs with the Denver Building Electrification Rebate program. Bonuses are capped at $100,000 per submitting company. Equipment must be installed between 05/01/2024 and 2/28/2025. Bonuses do not apply to heat pumps installed with Home Energy Rebates.

Apply for a rebate to help offset the cost of upgrading your air conditioning system, furnace, or hot water heater to a heat pump. We offer rebates for existing commercial and multifamily buildings to install:

  • Ducted split air-source heat pumps
  • Non-ducted mini-split air-source heat pumps
  • Heat pump hot water heaters
  • Heat pump roof top units 
  • Variable refrigerant flow heat pumps
  • Packaged terminal heat pumps
  • Single packaged vertical heat pumps
  • Water source heat pumps
  • Ground source heat pumps 

Application preapproval is required prior to equipment installation.

Start your Equipment Rebate Application

Applicants that prefer to apply using a Spanish language application can find one here: (PDF, 489KB)Spanish Application(PDF, 1MB). Complete the application and send it via email to DenverElectrification@michaelsenergy.com or by mail to Michaels Energy, Attn: Denver Building Electrification Pilot, 400 Main Street, Suite 200, La Crosse, WI, 54601. If you need help completing the application, please give us a call at 720-782-7661.

Program Eligibility

Participant Eligibility 

To be eligible for the Heat Pump Rebate for Existing Buildings, you must confirm:

  • Your building is located within the City and County of Denver.
  • Your building 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. 
  • The building is an existing commercial building, multifamily apartment, or multifamily condominium.
  • Equipment you plan to install must meet applicable code requirements. 

You must also commit to: 

  • Follow the program processes.
  • Follow he program rules.
  • Agree to the rebate terms and conditions, including working with an eligible contractor.
  • Stack rebates according to the city's rebate stacking rules. 

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

  • 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:

Contractor Eligibility

We require contractors to be licensed to pull a permit for commercial and multifamily buildings with the City and County of Denver. Contractors with only a residential license are not eligible for this rebate. Rebate participants are responsible for ensuring that the contractors they hire:

  • Are licensed with the City and County of Denver
  • Have the appropriate license to work on commercial and multifamily buildings
    • Contractors who are only licensed to work on residential buildings are not eligible for this rebate
  • Properly pull a permit for the work and for the permit to be "finaled"

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. 

Rebate Equipment and Amounts

The equipment you install must meet the following requirements:

Equipment Type Equipment Requirements Standard Rebate Equity Priority Rebate
Dual Fuel Heat Pump Rooftop Unit <5.4 tons (<65,000 Btu/h)

10.5+ EER @95ºF outside air & 14.1+ SEER & 8+ HSPF

or

10+ EER2@95ºF outside air & 13.4+ SEER2 & 6.7 HSPF2

$3,000 per Cooling Tonnage

$6,000 per Cooling Tonnage
Dual FuelHeat Pump Rooftop Unit ≥5.4 tons - <11.25 tons (≥65,000 - <135,000 Btu/h)

 

11.3+ EER @95ºF outside air & 3.4+ COP@47°F outside air & 2.25+ COP@17°F outside air

or

14.1+ IEER & 3.4+ COP@47°F outside air & 2.25+ COP@17°F outside air

 $2,750 per Cooling Tonnage $5,500 per Cooling Tonnage

 
Dual Fuel Heat Pump Rooftop Unit ≥11.25 – <20 tons (≥135,000 – <240,000 Btu/h) 11.1+ EER @95ºF outside air & 3.3+ COP@47°F outside air & 2.05+ COP@17°F outside air

 

or

14.1+ IEER & 3.3+ COP@47°F outside air & 2.05+ COP@17°F outside air

$2,500 per Cooling Tonnage

 

$5,000 per Cooling Tonnage

 
Dual Fuel Heat Pump Rooftop Unit≥20 tons (≥240,000 Btu/h)

10.9+ EER @95ºF outside air & 3.2+ COP@47ºF outside air & 2.05+ COP@17ºF outside air

or

14.1+ IEER & 3.2+ COP@47ºF outside air & 2.05+ COP@17ºF outside air

 $2.250 per Cooling Tonnage $4,500 per Cooling Tonnage
High Efficiency Heat Pump Rooftop Unit Energy Star adder Energy Star Compliant $500 per Cooling Tonnage $1,000 per Cooling Tonnage
All-Electric Heat Pump Rooftop Unit adder All-electric with no fossil fuel backup $1,000 per Cooling Tonnage $2,000 per Cooling Tonnage
Ducted Split Air Source Heat Pump <5.4 tons (<65,000 Btu/h) 15.2+ SEER2 & 11.7+ EER2 @95ºF outside air & 7.8+ HSPF2 $3,000 per Condensing Unit $6,000 per Condensing Unit

 
Ducted Cold Climate Split Air Source Heat Pump <5.4 tons (<65,000 Btu/h) 15.2+ SEER2 & 10+ EER2@95ºF outside air & 8.1+ HSPF2 & the heating capacity at 5°F must be at least 70% of the 47°F rated heating capacity & COP@5°F outside air ≥1.75 $5,500 per Condensing Unit $11,000 per Condensing Unit

 
Non-Ducted Mini-Split/Multi-Split Heat Pump <5.4 tons (<65,000 Btu/h) 15.2+ SEER2 & 11.7+ EER2 @95ºF outside air & 7.8+ HSPF2 $3,000 per Condensing Unit

 

 $6,000 per Condensing Unit

 
Non-Ducted Cold Climate Mini-Split/Multi-Split Heat Pump <5.4 tons (<65,000 Btu/h)

16+ SEER2 & 9+ EER2 @95ºF outside air& 9.5+ HSPF2 & the heating capacity at 5°F must be at least 70% of the 47°F rated heating capacity & COP@5°F outside air ≥1.75

 $5,500 per Condensing Unit

 

 $11,000 per Condensing Unit

 
Light Commercial Heat Pump Water Heater Tier 1 ≥2.8 – <3.5 UEF $5,500 per Water Heater $11,000 per Water Heater
Light Commercial Heat Pump Water Heater Tier 2 ≥3.5 UEF $6,500 per Water Heater $13,000 per Water Heater
Smart Heat Pump Water Heater adder CTA-2045-B (EcoPort) Demand Response Enabled* $200 per Water Heater $400 per Water Heater
Variable Refrigerant Flow Heat Pump <5.4 tonsα(<65,000 Btu/h) 15+ SEER & 11.5+ EER @95ºF outside air & 9+ HSPF $2,000 per Cooling Tonnage¤ $4,000 per Cooling Tonnage¤
Variable Refrigerant Flow Heat Pump ≥5.4 – <11.25 tonsα(≥65,000 – <135,000 Btu/h) 11.0+ EER @95ºF outside air & 14.6+ IEER & 3.3+ COP@47°F outside air & 2.25+ COP@17°F outside air $2,000 per Cooling Tonnage¤ $4,000 per Cooling Tonnage¤
Variable Refrigerant Flow Heat Pump ≥11.25 tonsα(≥135,000 Btu/h) 10.6+ EER @95ºF outside air & 13.9+ IEER & 3.2+ COP@47°F outside air & 2.05+ COP@17°F outside air $2,000 per Cooling Tonnage¤ $4,000 per Cooling Tonnage¤
Packaged Terminal Heat Pumps (standard size) (≤ 15,000 Btu/h) 11.9+ EER @95ºF entering air & 3.3+ COP@47°F entering air $200 per Packaged Unit $400 per Packaged Unit
Packaged Terminal Heat Pumps (standard size) (>15,000 Btu/h) 9.5+ EER @95ºF entering air & 2.9+ COP@47°F entering air $200 per Packaged Unit

 

 $400 per Packaged Unit
Packaged Terminal Heat Pumps (nonstandard size§) (≤ 15,000 Btu/h) 9.3+ EER @95ºF entering air & 2.7+ COP@47°F entering air $200 per Packaged Unit

 

 $400 per Packaged Unit
Packaged Terminal Heat Pumps (nonstandard size§) (>15,000 Btu/h) 7.6+ EER @95ºF entering air & 2.5+ COP@47°F entering air $200 per Packaged Unit $400 per Packaged Unit
Cold Climate Packaged Terminal Heat Pumps (standard size) (≤15,000 Btu/h) 11.9+ EER @95ºF entering air & 3.3+ COP@47°F entering air & 1.5+ COP@5°F entering air $500 per Packaged Unit $1,000 per Packaged Unit

 
Cold Climate Packaged Terminal Heat Pumps (standard size) (>15,000 Btu/h) 9.5+ EER @95ºF entering air & 2.9+ COP@47°F entering air & 1.5+ COP@5°F entering air $500 per Packaged Unit $1,000 per Packaged Unit
Cold Climate Packaged Terminal Heat Pumps (nonstandard size§) (≤15,000 Btu/h) 9.3+ EER@95ºF entering air & 2.7+ COP@47°F entering air & 1.5+ COP@5°F entering air $500 per Packaged Unit $1,000 per Packaged Unit
Cold Climate Packaged Terminal Heat Pumps (nonstandard size§) (>15,000 Btu/h) 7.6+ EER @95ºF entering air & 2.5+ COP@47°F entering air & 1.5+ COP@5°F entering air $500 per Packaged Unit $1,000 per Packaged Unit
Single Package Vertical Heat Pumps (<65,000 Btu/h) 11+ EER@95ºF entering air & 3.3+ COP@47ºF entering air $400 per Packaged Unit $800 per Packaged Unit
Single Package Vertical Heat Pumps (≥65,000 -<135,000 Btu/h) 10+ EER @95ºF entering air & 3.0+ COP@47ºF entering air $400 per Packaged Unit $800 per Packaged Unit
Single Package Vertical Heat Pumps (≥135,000 -≤240,000 Btu/h) 10.1+ EER@95ºF entering air & 3.0+ COP@47ºF entering air $400 per Packaged Unit $800 per Packaged Unit
Cold Climate Single Package Vertical Heat Pumps(<65,000 Btu/h) 11+ EER @95ºF entering air & 3.3+COP@47ºF entering air & 1.5+COP@5ºF entering air $1,000 per Packaged Unit $2,000 per Packaged Unit
Cold Climate Single Package Vertical Heat Pumps(≥65,000 -<135,000 Btu/h) 10+ EER@95ºF entering air & 3.0+ COP@47ºF entering air and 1.5+COP@5ºF entering air $1,000 per Packaged Unit $2,000 per Packaged Unit
Cold Climate Single Package Vertical Heat Pumps (≥135,000 -≤240,000 Btu/h) 10.1+EER@95ºF entering air & 3.0+ COP@47ºF entering air & 1.5+COP@5ºF entering air $1,000 per Packaged Unit $2,000 per Packaged Unit
Water Source Heat Pumps<1.4 tons (Water-to-air, water loop <17,000 Btu/h) 12.2+ EER @86ºF entering water & 4.3+ COP@68ºF entering water $3,600 per Cooling Tonnage¤ $7,200 per Cooling Tonnage¤
Water Source Heat Pumps≥1.4 tons - <11.25 tons (Water-to-air, water loop ≥17,000 - <135,000 Btu/h) 13.0+ EER@86ºF entering water & 4.3+COP@68ºF entering water $3,600 per Cooling Tonnage¤ $7,200 per Cooling Tonnage¤
Water Source Heat Pump<11.25 tons (Water-to-water, water loop <135,000 Btu/h) 10.6+ EER @86ºF entering water & 3.7+COP@68ºF entering water $3,600 per Cooling Tonnage¤ $7,200 per Cooling Tonnage¤
Ground Source Heat Pumps<11.25 tons (Water-to-air, groundwater <135,000 Btu/h) 18+ EER@59ºF entering water & 3.7+ COP@50ºF entering water $3,600 per Cooling Tonnage¤ $7,200 per Cooling Tonnage¤
Ground Source Heat Pumps<11.25 tons (Water-to-water, groundwater <135,000 Btu/h) 16.3+ EER@59ºF entering water & 3.1COP@50ºF entering water $3,600 per Cooling Tonnage¤ $7,200 per Cooling Tonnage¤
Ground Source Heat Pumps<11.25 tons (Brine-to-air, ground loop <135,000 Btu/h) 14.1+ EER @77ºF entering water & 3.2COP@32ºF entering water $3,600 per Cooling Tonnage¤ $7,200 per Cooling Tonnage¤
Ground Source Heat Pumps<11.25 tons (Brine-to-water, ground loop <135,000 Btu/h) 12.1+ EER@77ºF entering water & 2.5COP@32ºF entering water $3,600 per Cooling Tonnage¤ $7,200 per Cooling Tonnage¤

If efficiency metrics differ than those listed in the table (i.e., EER vs. EER2 and SEER vs. SEER2 and HSPF vs. HSPF2) conversions will be done internally based on standards set by CEE.

*EcoPort is the brand name for CTA-2045 certified products. Find out more about EcoPort, CTA-2045, and Open ADR.

αQuality installation documentation will be required. This includes installation by a manufacturer-trained and certified technician, factory-provided startup, and a factory-provided first-year labor warranty. Pre-start and factory startup reports must be submitted along with the factory labor warranty documentation.

§Nonstandard size units must be factory labeled as follows: "MANUFACTURED FOR NONSTANDARD SIZE APPLICATIONS ONLY; NOT TO BE INSTALLED IN NEW STANDARD PROJECTS." Nonstandard size efficiencies apply only to units being installed in existing sleeves having an external wall opening of less than 16 inches (406 mm) high or less than 42 inches (1067 mm) wide and having a cross-sectional area less than 670 square inches (0.43 m2).

¤Equipment rebates that are per cooling ton are calculated using the AHRI rated cooling BTU/h divided by 12,000.

Learn More About Heat Pumps

Program Process

See a step-by-step guide for how to apply for and receive the Heat Pump Rebates.

Before You Apply

Before you start your application, you should gather the documents required to verify your eligibility and get you preapproved.

  • IRS W9 for the person or company claiming the rebate funds
  • Itemized bid for equipment you plan to install
  • Equipment spec sheets for the equipment you plan to install
  • Equity Priority Building documentation, if you believe you qualify

We recommend that you gather these documents before you begin your application. This will ensure a smooth and timely review of your application materials.

Ready to Apply?

  1. Ensure you have the required documentation ready to go.
  2. Complete your application with all requested information, and submit it through the application form.
  3. Michaels Energy, the program administrator will review your application to determine eligibility.
  4. Once Michaels Energy verifies your eligibility, the program administrator will issue an Equipment Rebate Preapproval. This reserves your rebate.
  5. Work with an eligible contractor to install the heat pump equipment. See contractor eligibility above.
  6. When the project is complete, you or your contractor will submit documents for the program administrator to review:
    1. The invoice(s) for the equipment installed
    2. Final permit inspection document
    3. The manufacturer's start-up checklist
    4. Any specification sheets
  7. After review is complete, you will receive an Equipment Rebate Approval Letter.
  8. 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

 Program Rules

  • You must submit and application and be preapproved before you purchase equipment.
  • Equipment purchased prior to 03/01/23 is not eligible for a rebate.
  • Equipment must be AHRI certified.
  • Equipment must be new, never-installed, and never-used, with the full manufacturer's warranty.
    • Leased equipment is not eligible for a rebate.
  • Equipment must meet applicable code requirements.
  • New construction is not eligible. New construction projects qualify for our New Construction Rebates.
  • Equipment that does not meet the qualifications listed in the Eligible Equipment table is not eligible for a rebate. 
  • For standard buildings, Denver reserves the right to cap rebates at $100,000 per building owner/tenant per calendar year.
    • Subject to available funds, Equity Priority Buildings may be eligible for additional funding above and beyond the $100,000 cap for standard buildings.
  • Rebate amounts cannot exceed total project costs. If total project costs are less than the rebate, we will adjust the rebate.
  • 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 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.  
  • After 180 days, you will have to reapply unless you are granted an extension to the timeline in writing via DenverElectrification@MichaelsEnergy.com. Please note that due to limited program funding, you should not count on being granted an extension. Please plan to install your equipment within 180 days of preapproval.
  • Rebate amounts are subject to change and subject to available program funds

Stacking Rebates and Incentives

These building electrification rebates can be stacked and combined with rebates and incentives from Xcel Energy and other sources, provided the equipment you choose matches the requirements for each program. You may not stack this rebate with any other rebates from Denver's Office of Climate Action, Sustainability and Resiliency for the same piece of equipment.

Other sources are also available to potentially fund the cost of your project, provided the equipment you choose matches the requirements for each program.

Provider

Type

Commercial

Multifamily

Xcel Energy

Rebates

Heat Pump Prescriptive Rebates

Multifamily Buildings Program

Colorado Department of Revenue

Tax Incentive

Climate Focused Tax Incentives

Climate Focused Tax Incentives

Colorado Clean Energy Fund

Loan

Commercial & Industrial Loan Products

Colorado Residential Energy Upgrade Loan (RENU)

Colorado Commercial Property Assessed Clean Energy (C-PACE)

Loan

C-PACE for Building Owners

N/A

Denver Regional Council of Governments (DRCOG)

Rebates

Building Decarbonization Program

Building Decarbonization Program

Energy Outreach Colorado

Grants/Rebates

Nonprofit Energy Efficiency Program

Multifamily Energy Efficiency Program

Internal Revenue Service

Tax Credits

Energy-Efficient Commercial Building Tax Deduction

Home Energy Tax Credits

Energy Efficiency Home Improvement Credit

U.S. Department of Energy (Inflation Reduction Act)

Loan

Better Buildings Financing Navigator

Better Buildings Financing Navigator

U.S. Department of Energy

(Inflation Reduction Act)

Rebates

N/A

Home Energy Rebates (HOMES)
Colorado Energy Office  Tax Credits Colorado Heat Pump Tax Credits Colorado Heat Pump Tax Credits

Other Electrification Rebates

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