Electrification Feasibility Reports (EFRs)

The back of a wood structure with a heat pump and the denver skyline in the background

1. Overview

Denver has expanded equipment replacements for commercial and multifamily buildings allowed to be permitted as a Quick Permit. Check the Quick Permit website to verify if the scope of the project qualifies. When the scope of a project does not qualify for a quick permit, then you need to provide extra information to the city to permit natural gas heating and cooling equipment. These permits will go through a full review process. The Electrification Feasibility Report is one option you have to meet the Denver Energy Code requirements.

Who Does this Apply To?

This requirement applies to all existing commercial and multifamily buildings in Denver. The Denver Energy Code Commercial Provisions regulate these buildings. This includes commercial buildings, multifamily apartment buildings, and multifamily condominium buildings. If the project only replaces existing equipment and qualifies for a Quick Permit, then this would not apply.

What is an Electrification Feasibility Report (EFR)?

The EFR helps you assess the practicality and cost of switching from gas to electric equipment.

It will tell you:

The estimated energy consumption of the gas and electric replacement systems
The estimated energy and carbon savings for switching to an electric system
The estimated energy bills with the gas and electric replacement systems
The estimated costs for installing a replacement gas and electric system

You can use the EFR to make an informed choice about whether to convert a building's heating and cooling systems to electric. You will find out whether it is cost-effective compared to a like-for-like gas system.

Filling Out the Electrification Feasibility Report

Some building owners may be able to complete the report on their own. However, most owners will need to work with a contractor, engineer, or energy consultant. This professional will provide information about:

The types and costs of both gas and electric replacement equipment
The building's utility rate structure
Site-specific information on electrical, ductwork, or space constraints

We encourage building owners to refer to the list of contractors who completed our in-person or online training. These contractors are not preferred, and we have not vetted their work. They have attended our training and passed our comprehension quiz. Do you want to get onto that list? Complete the online training and quiz.

Submitting the Electrification Feasibility Report

Submitting an EFR to the City and County of Denver is easy.

Complete the report using the online tool
Denver will review and approve the report you submit.
You will receive a PDF copy of the report.
Attach this PDF report to the online permit application.

That's it! If you have trouble figuring out where to submit the completed EFR after Denver has reviewed it, please reach out to us.

2. Accessing the EFR 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:

3. Preparing to Complete an EFR

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.

4. Frequently Asked Questions

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

How long is an Electrification Feasibility Report valid for?

You can complete an Electrification Feasibility Report up to two years before applying for a building permit. You may need to update it during that time. For example, you can use a 2024 report for a 2026 building permit, but not for a 2028 building permit.

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
Gas water heaters

This is triggered 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. They will contact you with questions or to provide results. This will happen within 10 business days 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?

You will only be able to see reports that you have created. Your competition won’t be able to view your reports.

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. They can give you the results from the two Electrification Feasibility Reports from the two bids. This will let you compare them.

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? 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. Then complete separate Electrification Feasibility Reports for each system. You can do this by duplicating the tab in the online tool. If you need help doing this, please contact Michaels Energy:

Email: DenverElectrification@MichaelsEnergy.com
Call: (720) 782-7661

If the owner only wants to replace one piece of equipment, then only complete one Electrification Feasibility Report. Put all the design costs there.

How is the cost effectiveness/cost parity of replacing gas equipment with heat pump equipment determined?

We compare the net present value (NPV) of a new gas system to the NPV of a new electric system. If the NPV of the electric system is less than or equal to 15% more than the gas system, the electric system is cost-effective.

NPV is a financial tool used to determine the value of an investment over its lifetime. The NPV includes:

The capital cost to install the new equipment (equipment + labor + other expenses)
The cost to operate the piece of equipment over the equipment’s expected lifetime
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)."