Heat Pump Rebates in Denver: Everything You Need to Know to Save Big
As Colorado leads the charge toward clean energy, homeowners in the Denver metro area are seeing more opportunities than ever to improve energy efficiency, save money, and reduce emissions. One of the most impactful upgrades? Heat pumps.
With new incentives through Denver heat pump rebates, families can now afford to replace their outdated heating systems with clean, electric solutions without blowing their budget. Utility companies are rolling out clean heat plans (CHP) that prioritize electric heating over natural gas, giving homeowners added motivation to electrify their homes and reduce their reliance on fossil fuels.
Why Heat Pumps Are a Smart Investment
A high-efficiency heat pump is like a two-in-one HVAC upgrade. It provides heating and cooling from a single unit, meaning you no longer need to rely on gas-powered furnaces or energy-hogging AC systems. When paired with a heat pump water heater, it opens the door to running your entire system on clean electricity.
The upfront costs for these systems used to scare homeowners off, but that’s exactly where Denver heat pump rebates are making a difference. These rebates reduce installation costs significantly, making modern HVAC and water heating systems more affordable and accessible.
What to Know About Xcel CHP Bonus Rebates
Xcel Energy's CHP program in Colorado aims to reduce gas utility emissions to meet state-mandated goals. The plan, filed in August 2023 and approved in June 2024, covers the years 2024-2027 and focuses on achieving these emissions reduction targets. It's the first CHP of its kind in any state, and Xcel will file another CHP in 2026 to address the 2030 target. The Custom Heating and Cooling rebate program through Xcel Energy offers substantial financial incentives to Colorado residents who upgrade to qualifying electric heat pump equipment. It covers both space conditioning systems and water heaters—perfect for anyone considering full-scale home upgrades.
Here’s the key: these Denver heat pump rebates are in addition to other standard rebates from Xcel. Programs like Xcel's Custom Efficiency incentives may also apply, helping further reduce the upfront cost of new HVAC or water heating systems. That means if you act soon, you could stack savings, increase your ROI, and enjoy more comfortable year-round heating and cooling. Starting with an Energy Audit, homeowners can find ways to improve their homes’ energy efficiency, allowing them to save money when properly sizing the new Heat Pump equipment.
It’s important to note that these rebates aren’t unlimited. Xcel offers them on a first-come, first-served basis. If you're considering a home upgrade, now is the time to check your eligibility and lock in your savings.
Why These Rebates Matter More Than Ever
The Colorado Energy Office has made it clear—future buildings in our state are moving toward clean energy by default. And in cities like Denver, homeowners are already seeing the shift. From new building codes that limit gas hookups to rising utility prices, the smartest move is to prepare your home now. Taking advantage of heat pump rebates helps you future-proof your property. Beyond energy savings, you’re also improving indoor air quality and overall comfort by using systems designed to maintain consistent temperatures year-round.
Home Electrification and the Path Forward
More homeowners are adopting home electrification strategies—upgrading heating, cooling, and water systems to clean, quiet electric alternatives. Not only does this support a healthier planet, but it also reduces long-term maintenance costs and removes reliance on volatile gas markets.
If you're not ready to go all-electric in one leap, starting with a heat pump is a manageable, strategic move. You’ll get immediate energy savings, qualify for generous rebates, and lay the groundwork for future upgrades like battery storage, solar, or EV Charger installations.
Electrifying your home not only maximizes the use of your home’s energy, but it can also reduce your carbon footprint, lower long-term utility costs, and future-proof your property against rising fuel prices and evolving energy regulations.
Make the First Step Toward Savings
At My Electric Home, we stay ahead of every rebate and incentive that’s available, so you don’t miss out. We help homeowners throughout the Front Range assess their space, choose the right equipment, and handle installations that qualify for maximum rebate value.
Contact us today to learn how we can help you unlock your energy savings and start your journey toward smarter and more sustainable home living!