Rebates for Heat Pumps and Other Upgrades

Overview

Upgrade your home with Denver's Home Energy Rebates! These rebates can help you

  • Get new, more efficient heating and cooling equipment for your home
  • Get home upgrades that make it easier to stop using natural gas
  • Improve your home's indoor air quality

Rebates are available for owners of single family homes, duplexes, and townhomes. Commercial and larger multifamily buildings can qualify for our Building Electrification Rebates

Not sure what type of building yours qualifies as? Check out our handy guide to help you figure it out.

The rebates act as an instant reduction in cost for homeowners. the contractor you work with will deduct the rebate upfront from the project's cost. No need to pay full price and wait for a reimbursement later!

All rebates require pre-approval before the work begins. You may also be able to stack these rebates with tax incentives and other rebates from

  • Xcel Energy
  • The State and Federal government
  • The Inflation Reduction Act. 

Do you have concerns about projects or installers participating in the program? Report them using our contractor feedback form

Application and Eligibility

How to Apply for Denver's Rebates as a Customer

  1. Research and choose the equipment you want to install (see list on next page). 
  2. Get quotes from approved contractors. Make sure to emphasize that you're interested in Denver's Climate Action rebates. Also mention that you want to use rebates from Xcel Energy and the Inflation Reduction Act. 
  3. Take a look at our Registered Contractor List. We recommend you get at least three quotes from different contractors to compare.
  4. Choose a contractor and schedule an installation. Rebates should show up on your quote/invoice as a credit or a discount. 
    1. Note that Denver’s rebates require pre-approval before the work begins. Your contractors will reserve rebates for you before the project is complete.
    2. A signed contract is not required to reserve a rebate.
    3. See Contractor Resources for more information on application processes for contractors and installers.
  5. Your contractor will submit paperwork about the rebate on your behalf.

 

Program Eligibility

To qualify for this program, the home must be:

  • In the City and County of Denver  
  • A single-family dwelling, two-family dwelling (duplexes), or townhome.
  • Served by Xcel Energy Residential Service. If you do not have an Xcel Energy bill yet, you may submit a dated letter verifying future Xcel Energy services at that address.

As of 2024, existing homes, rehab projects, and new construction all qualify for this rebate.

Interested in EV charging or Solar?

  • For EV charger, rooftop solar, and battery storage rebates, households with ‘Residential’ electrical service from Xcel Energy also qualify for these measures.
  • EV charger, solar, or battery storage equipment must be connected to an eligible residential meter.
  • To qualify for the rooftop solar rebate, you must own your roof. If not, you must show approval to install solar panels on your roof.
  • Please download your latest Xcel Statement to confirm you are a residential customer.

 

Stacking Rebates

These rebates can be stacked with rebates from Xcel Energy and the Colorado Energy Office. The equipment you choose and your income must match the requirements for each program. You may also be able to take advantage of tax credits and other incentives offered by the state.

Learn how to combine rebates 

Eligible Equipment

Eligible Equipment

Standard Rebate

Electric Vehicle charger*

80% of the project cost, up to $200

Bi-Directional EV charger**  80% of the project cost, up to $2,000

Air source heat pump

40% of the project cost, up to $1,500 for ‘High-Efficiency’ Air Source Heat Pumps

40% of the project cost, up to $3,500 for ‘Cold Climate’ Air Source Heat Pumps

Ground source heat pump

80% of the project cost, up to $3,500

Mini-split heat pump

40% of the project cost, up to $1,500 for ‘High-Efficiency’ Mini-Split Heat Pumps

40% of the project cost, up to $3,500 for ‘Cold Climate’ Mini-Split Heat Pumps

Heat pump water heater

60% of the project cost, up to $1,000 for heat pump water heaters

60% of the project cost, up to $1,750 for smart heat pump water heaters

Solar

80% of the project cost, up to $4,000

Solar rebates are only available to residents who have already installed a heat pump, heat pump water heater, or bidirectional EV charger.

Battery storage

80% of the project cost, up to $500 (available to all residents)

80% of the project cost, up to $2,750 (only available if you have a heat pump, heat pump water heater, or bidirectional EV charger installed).

Electric service upgrade***

80% of the project cost, up to $2,000

Electric service upgrades are only available when paired with a rebate for a heat pump (any type), heat pump water heater, solar, or battery storage.

*The charger installed must be a Level 2 ENERGY STAR Certified Electric Vehicle Charger, or a Ford Charge Station Pro.

**Charger must be able to charge an electric car battery from the power grid and also be able to send stored power from the car battery back to the grid.

***Electric Service Upgrade: Your home electrical panel may need an upgrade to support the extra electrical load. This add-on rebate helps cover the cost of an electrical upgrade. This includes a new panel, associated wiring, or a new circuit required to install new equipment.  

  • Up to $2,000 is available to applicants applying for another rebate through the Climate Action Rebate program.
  • Heat pump, heat pump water heater, solar, and battery storage rebates are eligible to pair with Electric Service Upgrade rebates. EV charger rebates cannot be combined with the Electric Service Upgrade rebate. 
  • You can work with any of our registered contractors to install this equipment.

The program reserves the right to:

  • Conduct field inspections to verify information about equipment installation. You may receive an email request from the city requesting a field visit at your home. Any communication will come directly from:
    • A City and County of Denver email address (@denvergov.org) OR
    • An APTIM email address (@aptim.com) OR
    • A Group 14 Engineering email address (@group14eng.com)
  • Conduct field inspections to verify purchase and installation of eligible equipment. These inspections would happen before the rebate is paid. Inspections are scheduled in advance with the contractor and homeowner.  
  • Limit the total incentive dollars to any single developer (entity working on multiple projects) to $60,000 per calendar year.

Program performance is monitored on an ongoing basis, and rebate amounts and requirements may be adjusted as needed. Advance notice of any changes will be provided at least 60 days prior to any changes taking effect.  

For full Terms and Conditions and Program requirements see the program portal.