Colorado HVAC Energy Rebates 2024

Heating and cooling are almost

50%

of your bill

For most Colorado homeowners, heating and cooling costs represent over 50% of the energy bills they pay every month.

Making the switch to an energy-efficient furnace or HVAC system can result in massive yearly savings for many local residents.

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High Efficiency Furnace Rebates

State and federal rebate plans can help you reduce costs and save BIG.

Benefits:

energy-star-logo

Rebate Offers

30% of cost up to $600


Equipment Requirements

Less than 97% AFUE


Eligibility

Principal Residence Owners

Must be an existing home & your principal residence. New construction and rentals do not apply.

A principal residence is the home where you live most of the time. The home must be in the United States. It can include a house, houseboat, mobile home, cooperative apartment, condominium, and a manufactured home.

You can stay up to date on the latest Energy Star furnace rebates by visiting their website.

xcel-energy

Rebate Offers

Natural gas furnace: $300 rebate

Natural gas boiler: $250

Natural gas boiler w/sidearm water heater: $350


Equipment Requirements

95% AFUE efficiency


Payment

You can expect your rebate check in eight weeks or less. Make sure your rebate application reaches us by the deadline – September 30 of the year after your new system was installed. 


Eligibility

To qualify, you must:

  • Be a Colorado Xcel Energy residential natural gas customer with an active billing account
  • Have qualifying, 95% efficiency furnace or boiler equipment installed by a contractor
  • Equipment model numbers on the invoice and the rebate form must match exactly. Check with your contractor to ensure that your unit will qualify for a rebate.
  • If you have multiple furnaces installed, you may receive rebates for each. One application form is needed for each furnace.
  • Boiler rebates are available only for equipment installed on or after November 5, 2021.


Rental Property Rebate Eligibility

Rental properties are also eligible for rebates. If you are the person who receives the energy bill and a tenant of the rental property, the property owner will likely pay for the project and will want the rebate. That is accomplished by you signing the rebate over to the property owner on the rebate application form in the Alternate Rebate Recipient section.

You can stay up to date on the latest Xcel Energy furnace rebates by visiting their website.

Inflation Reduction Act

Tax Credit

Amount: 30% of the cost paid by the consumer, up to $600 per year.

How to access: Submit IRS Form 5695 when filing your taxes if you meet the requirements detailed on IRS.gov. Subject to a cumulative, annual cap of $1,200.

Learn More


Rebate

Amount: Up to $8,000 for an ENERGY STAR-certified electric heat pump for space heating and cooling.

How to access: Visit our Rebates portal to check the status of your locality’s program.

Learn More


Eligibility

CEE highest tier below Advanced Tier

Oil furnaces and hot water boilers can also qualify if they…

During 2023-2026: meet 2021 Energy Star and are rated by manufacturer for use with at least 20 percent biofuel blends

During 2027-2032: meet at least Annualized Fuel Utilization Efficiency (AFUE) of 90, and are rated by manufacturer for use with at least 50 percent biofuel blends

CO applied: 03/26/24

Energy Efficiency Terms

Helping you understand energy ratings and terminology:

AFUE — AFUE, or Annual Fuel Utilization Efficiency, is a measure of the efficiency of a heating appliance in converting fuel to energy over the course of a year.

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High Efficiency Air Conditioner Rebates

Save BIG on AC Bills this Year with 888 Heating and Air Conditioning

By upgrading to a high-efficiency cooling system, you may qualify for significant rebates, in addition to enjoying a noticeable reduction in your monthly energy bills ranging from 40-60%!

energy-star-logo

Rebate Offers

30% of cost up to $600


Equipment Requirements

16 SEER2 & Above


Eligibility

Principal Residence Owners

Must be an existing home & your principal residence. New construction and rentals do not apply.

A principal residence is the home where you live most of the time. The home must be in the United States. It can include a house, houseboat, mobile home, cooperative apartment, condominium, and a manufactured home.

You can stay up to date on the latest Energy Star air conditioner rebates by visiting their website.

xcel-energy

Rebate Offers

Standard Efficiency A/C: $200

High Efficiency A/C: $500


Equipment Requirements

Stnd Eff: Below 15.2 SEER2, any EER2

High Eff 15.2 SEER2, 12.5 EER2


Eligibility

You must be an Xcel Energy Residential Electric Customer.

If you have more than one qualifying new AC system, you may receive rebates for each system. One application form is required per system.

Air conditioning rebates are not eligible for invoices dated after 01/01/2024. Invoices dated before January 1, 2024 can be submitted or postmarked no later than September 30, 2024, following installation of qualified equipment.

Rental properties are eligible for rebates. If you are the homeowner/landlord and not listed on the account for your tenant’s premise, or unsure, please have your tenant complete the “Alternate Rebate Recipient” section of the rebate application and authorize payment to you.

You can stay up to date on the latest Xcel Energy air conditioner rebates by visiting their website.

Inflation Reduction Act

30% of cost up to $600*

Tax Credit: 30% of the cost paid by the consumer, up to $600. Subject to a cumulative, annual cap of $1,200.

How to access: Submit IRS Form 5695 if you meet the requirements detailed on IRS.gov.

Learn More 


Equipment Requirements

CEE highest tier below Advanced Tier

Energy Efficiency Terms

Helping you understand energy ratings and terminology:

EER — EER, or Energy Efficient Ratio, is a measurement of the cooling capacity of an air conditioning system in relation to the amount of energy it consumes.

SEER SEER, or Seasonal Energy Efficiency Ratio, is a measurement of the cooling output of an air conditioning system over a typical cooling season, divided by the energy it consumes in Watt-hours.

Heat Pump Rebates

energy-star-logo

Rebate Offers

30% of cost up to $2,000


Equipment Requirements

Ducted:

Heat pumps designated as ENERGY STAR Cold Climate that have an EER2 > 10

Ductless (Mini-splits)
SEER2 > 16
EER2 > 9
HSPF2 > 9.5 


Eligibility

Principal Residence Owners

Must be an existing home & your principal residence. New construction and rentals do not apply.

A principal residence is the home where you live most of the time. The home must be in the United States. It can include a house, houseboat, mobile home, cooperative apartment, condominium, and a manufactured home.

You can stay up to date on the latest Energy Star heat pump rebates by visiting their website.

xcel-energy

Rebate Offers

Excel Energy offers the following Heat Pump standard rebates:

High Efficiency
ASHP Rebate: $1,700

ccASHP: $2,200

MSHP: $1,700

ccMSHP: $2,200

GSHP with Quality Installation: $600 per heating ton


Equipment Requirements

High Efficiency
15.2 SEER2, 11.7 EER2, 7.8 HSPF2

ccASHP: 18 SEER2, 11.7 EER2, 8.1 HSPF2

High Efficiency
MSHP: 15.2 SEER2, 11.5 EER2, 7.8 HSPF2

ccMSHP: 18 SEER2, 11.5 EER2, 8.5 HSPF2

GSHP with Quality Installation: 16 EER2, 3.3 COP


Eligibility

Heat Pump Rebate Eligibility

To qualify for a rebate on a heat pump, you must:

  • Be a residential electric customer of Xcel Energy in Colorado
  • Equipment must be installed by a current participating contractoropens in a new window
 

Installation Requirements
In order to qualify for this rebate, your contractor must be a current participating contractor.

Rental Property Rebate Eligibility
Rental properties are eligible for rebates. If you are the homeowner/landlord and not listed on the account for your tenant’s premise, or unsure, please have your tenant complete the Alternate Rebate Recipient section of the rebate application and authorize payment to you.

You can stay up to date on the latest Xcel Energy heat pump rebates by visiting their website.

State of Colorado Tax Incentive

Air-source:

  • Total tax credit amount (2024): $1,500
  • Minimum required customer discount for heat pumps installed in 2024: $499.95


Ground-source, water-source, or combined-source:

  • Total tax credit amount (2024): $3,000
  • Minimum required customer discount for heat pumps installed in 2024: $999.90


Heat pump water heater

  • Total tax credit amount (2024): $500

Minimum required customer discount for heat pumps installed in 2024: $166.65″


Eligibility

The heat pump tax credit is available to install the following types of heat pumps or other technology:

  • Air-source heat pump
  • Ground-source heat pump
  • Water-source heat pump
  • Combined-source heat pump
  • Heat pump hot water heater
  • Thermal energy network
  • Variable refrigerant flow heat pump system


All heat pumps must be Energy Star certified. Air source heat pumps must be variable speed, and in split systems, must be Air-Conditioning, Heating, and Refrigeration Institute (AHRI) ‘matched’ systems. Heat pumps for space heating/cooling must be designed to meet at least 80% of annual heating needs.

Learn More

denver-logo

Denver Climate Action Rebates Program

Denver offers the following standard rebates, with up to 100% of the actual cost available to income-qualified residents:

ASHP: $1,500

ccASHP: $3,500

MSHP: $1,500

ccMSHP: $3,500

GSHP: $3,500



ASHP: Efficiency Minimums

  • (15.0 SEER, 11.5 EER, 9.0 HSPF)*
    OR equivalent SEER2/EER2/HSPF2 performance
  • (15.2 SEER2, 11.7 EER2, 7.8 HSPF2)


ccASHP: Efficiency Minimums:

  • (16.0 SEER, 10.5 EER, 9.5 HSPF)*
    OR equivalent
  • SEER2/EER2/HSPF2 performance
    (15.2 SEER2, 10.0 EER2, 8.1 HSPF2)
    AND
  • Must be listed on ashp.neep.org
  • Must have a MAX COP at 5F > 1.75
  • Must have a minimum 70%, ratio of Capacity at 5F / Capacity at 47F


MSHP: Efficiency Minimums

as of September 1st, 2023

  • (15.0 SEER, 11.5 EER, 9.0 HSPF)*
    OR
  • SEER2/EER2/HSPF2 performance
    (15.2 SEER2, 11.5 EER2, 7.8 HSPF2)


ccMSHP: Efficiency Minimums:

  • 16.0 SEER, 9.0 EER, 10.6 HSPF*
    OR equivalent SEER2/EER2/HSPF2 performance
  • 16.0 SEER2, 9.0 EER2, 9.5 HSPF2
    AND
  • Must be listed on ashp.neep.org
  • Must have a MAX COP at 5F > 1.75
  • Must have a minimum 70%, ratio of Capacity at 5F / Capacity at 47F


GSHP: Efficiency Minimums:

  • 16 EER

Program Eligibility:
  • To receive an instant rebate through the Denver Climate Action Rebate Program (CARe), equipment must be installed at an address located within the City and County of Denver.
  • Resident at the installation address must be an Xcel Energy customer.
  • Resident at the installation address must provide contractor with a copy/photo of a recent Xcel Energy utility bill.
  • Resident at the installation address must complete the Consent to Disclose Utility Customer Data Form and provide it to contractor completing the work. This will allow the City & County of Denver to calculate any emissions reduction at the installation address as a result of the new equipment installed using rebate funds.
  • Only single-family dwellings, two-family dwellings (duplexes), and townhomes are eligible for this offering.
  • Existing commercial buildings, multi-family apartment buildings, and multi-family condominium buildings are eligible for Denver’s Building Electrification Program Rebates. For more information visit www.denvergov.org or reach out to DenverElectrification@MichaelsEnergy.com. For more information relevant to commercial and multifamily buildings visit the Energize Denver Hub.
  • For EV Charger, Rooftop Solar, and Battery Storage Rebates (available for multifamily apartments and condos):
  • Households with “Residential” electrical service from Xcel Energy.
  • EV charger, solar or battery storage equipment must be connected to the eligible residential meter.
  • To qualify for the rooftop solar rebate, resident must own their roof or have approval to install solar panels on their roof.
  • Please download your latest Xcel Statement to confirm you are a residential customer (please contact Xcel to get your most recent statement).
  • If you have questions about if your individual dwelling unit is considered a condominium or a townhome, please contact Denver’s Community Planning and Development at archstruc.review@denvergov.org.
  • Only existing construction is eligible, not new construction. New construction is defined as new buildings constructed on a vacant lot or following the demolition of an existing structure. For new construction projects please visit the Net Zero New Buildings and Homes Page.
  • Only applications for work completed on or after January 1, 2023, will be accepted.
  • Only registered contractors can submit applications to the CARe program on behalf of the Denver resident at the installation address.
  • The program reserves the right to conduct field inspections to verify information about equipment installation. The program reserves the right to conduct field inspections before rebate payment to verify purchase and, where necessary, installation of eligible equipment. Inspections will be scheduled in advance with the rebate applicant and residential customer. Applicant shall repay the full amount of the rebate in the event that the City and County of Denver or its consultant determines that at any time (a) the equipment was never installed at the address identified in this application, (b) the rebate was procured through intentionally misrepresented facts, or (3) the rebate was fraudulently obtained.

Learn more about Denver Climate Action, Sustainability & Resiliency.

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Inflation Reduction Act

Tax Credit

Amount: For air-source heat pumps, up to 30% of the cost paid by the consumer, up to $2,000/year, including installation. For geothermal heat pumps, up to 30% of the cost paid by the consumer.

Learn More



Rebate

Amount: Up to $8,000 for an ENERGY STAR-certified electric heat pump for space heating and cooling.

How to access: Visit our Rebates portal to check the status of your locality’s program.

Learn More



Eligibility

CEE highest tier below Advanced Tier

Maximum Credit for Property Per Year:
$2,000 total across heat pump water heaters, heat pumps, and biomass stoves. $1,200 annual limit does not apply

Learn More

Energy Efficiency Terms

Helping you understand energy ratings and terminology:

ASHP — ASHP, or Air Source Heat Pump, is a type of heating and cooling system that transfers heat between the inside and outside of a building.

ccASHP — A ccASHP, or Cold Climate Air Source Heat Pump, is a type of ASHP specifically designed to work efficiently in cold climates with low temperatures.

ccMSHP A ccMSHP, or Cold Climate Mini-Split Heat Pump, is a type of mini-split heat pump that is designed to operate efficiently in colder climates.

EER — EER, or Energy Efficient Ratio, is a measurement of the cooling capacity of an air conditioning system in relation to the amount of energy it consumes.

GSHP — GSHP, or Ground Source Heat Pump, is a type of heating and cooling system that uses the earth’s constant temperature to transfer heat between the ground and a building.

HSPF HSPF, or Heating Seasonal Performance Factor, is a measurement of the heating efficiency of a heat pump over the course of a heating season.

MSHP MSHP, or Mini-Split Heat Pump, is a type of heating and cooling system that uses an outdoor compressor unit and one or more indoor air-handling units to heat or cool individual rooms or zones in a building.

SEER SEER, or Seasonal Energy Efficiency Ratio, is a measurement of the cooling output of an air conditioning system over a typical cooling season, divided by the energy it consumes in Watt-hours.

Water Heater Rebates

energy-star-logo

Rebate Offers

30% of cost up to $600


Equipment Requirements

> 0.81 UEF for tanks less than 55 gallons

> 0.86 UEF for tanks greater than or equal to 55 gallons


Eligibility

Principal Residence Owners

Must be an existing home & your principal residence. New construction and rentals do not apply.

A principal residence is the home where you live most of the time. The home must be in the United States. It can include a house, houseboat, mobile home, cooperative apartment, condominium, and a manufactured home.

You can stay up to date on the latest Energy Star water heater tax credits by visiting their website.

xcel-energy

Rebate Offers

Natural Gas:

Medium Draw Standard Tank Water Heater: $50 rebate

High Draw Standard Tank Water Heater: $50 rebate

Tankless Water Heater: $100 rebate

Electric:

Electric Heat Pump Water Heater: $800 rebate


Equipment Requirements

Natural Gas:

Medium Draw Standard Tank Water Heater – 0.64 UEF

High Draw Standard Tank Water Heater – 0.68 UEF

Tankless Water Heater – 0.87 UEF

Electric Heat Pump Water Heater Qualifying Equipment & Installation:

  • Find qualifying equipment at AHRI.
  • Your heat pump water heater must be installed by a registered contractor. Visit Xcel Energy’s customer-facing list opens in a new windowto find contractors who have submitted these rebates in the past.
  • Indirect units, commercial water heaters and rated heat pump water heaters with storage volume greater than 80 gallons are not eligible.


To qualify for a rebate on a natural gas water heater, you must:

  • Be a residential natural gas customer of Xcel Energy in Colorado
  • Installation can be self-install or by a contractor on our list of current Water Heater Contractors


To qualify for a rebate on an electric heat pump water heater, you must:

  • Be a residential electric customer of Xcel Energy in Colorado
  • In order to be eligible for a rebate, a mixing valve MUST be installed for all heat pump water heaters, regardless of the rebate tier.

You can stay up to date on the latest Xcel Energy water heater rebates by visiting their website.

dep-enery-1

Inflation Reduction Act

Tax Credits

Hot Water Boilers:

Tax Credit: 30% of the cost paid by the consumer, up to $600

Hot Water: Heat Pump:
Amount: 30% of the cost paid by the consumer, up to $2,000/year.

Water Heater: Energy Efficient or Solar:
Tax credit: For solar water heaters, 30% of the cost paid by the consumer. For energy efficient water heaters, 30% of the cost paid by the consumer up to $600/year.

How to access: Submit IRS Form 5695 when filing your taxes. if you meet the requirements detailed on IRS.gov.


Rebates

Hot Water Boilers:
N/A

Water Heater: Heat Pump:
Rebate:
Amount: Up to $1,750 for an ENERGY STAR-certified electric heat pump water heater.

Water Heater: Energy Efficient or Solar:
N/A

How to access: Visit our Rebates portal to check the status of your locality’s program.



What is Eligible?

Consortium for Energy Efficiency (CEE) highest tier below Advanced Tier

Energy Efficiency Terms

Helping you understand energy ratings and terminology:

UEF —UEF, or Uniform Energy Factor, is a measurement of the overall energy efficiency of a water heater that takes into account both its hot water production and standby energy losses over a day.

Own A Rental Property?

As a rental property owner, you too may be eligible for these money-saving rebates from Xcel.

Tenants receiving the energy bill may sign over the rebate to the property owner (i.e. you) on the rebate application form under the Alternate Rebate Recipient section.

This provides you with an incentive to upgrade your furnace system, and your tenants with a safer and better forming heating unit.

Getting Your Xcel Rebate: The Process

Step 1

Purchase a qualifying system from 888 Heating and Cooling.

Step 2

Have our team of talented HVAC technicians install your new system.

Step 3

Fill out and return your rebate application form to Xcel for review and processing.