Colorado

Heat pump incentives in Colorado

Colorado Energy Office Heat Pump Incentive

verified 2026-07

up to $4,000

Colorado Energy Office heat pump incentive: up to $4,000 statewide. Named utility programs stack on top and a homeowner claims the one that serves their address, not the sum. Xcel Energy, Black Hills Energy, Holy Cross Energy, Colorado Springs Utilities, and Tri-State member co-ops each run their own downstream rebates.

Program source: energyoffice.colorado.gov

Utility programs in Colorado

These are the named utility and ratepayer rebates on file for Colorado. You claim the one that serves your address, not the total. Each card carries the program’s own terms: what equipment qualifies, who is eligible, what the cap actually is, and whether it stacks.

Xcel Energy

xcelenergy.com

$9,000

maximum

$2,250 per ton

You claim it after installPaid per ton

$2,250 per heating ton for cold-climate ducted or ductless (raised Nov 2025); a typical 3-4 ton system lands about $6,000-$9,000.

Equipment that qualifies
Cold-climate ducted or ductless air-source heat pump (ccASHP).
Who qualifies, and the cap
Xcel Colorado electric customers. Rate raised to $2,250 per heating ton Nov 2025. One HP rebate per system.
Stacking
Per-ton payout scales with system size; a typical 3-4 ton system lands about $6,000-$9,000.

Black Hills Energy

blackhillsenergy.com

$1,500

maximum

You claim it after installFlat amount

Black Hills Energy Colorado electric prescriptive rebate: air-source heat pump $1,500 (>=15.2 SEER2 / 11.9 EER2 / 8.1 HSPF2); ductless mini-split $1,500 (>=15.2 SEER2 / 11.7 EER2 / 7.8 HSPF2). Downstream. Ready Home Electric is a separate whole-home path.

Equipment that qualifies
Air-source heat pump SEER2 15.2+/EER2 11.9/HSPF2 8.1; ductless mini-split same tier.
Who qualifies, and the cap
Black Hills Energy Colorado electric customers; installed 2026. One HP rebate per system.
Stacking
Air-source $1,500 OR ductless mini-split $1,500 (one path per system, not additive).

Holy Cross Energy

holycross.com

$3,500

maximum

You claim it after installFlat amount

Holy Cross Energy co-op (western Colorado): heat pump rebate $3,500 for all members, $7,000 for income-qualified households. Downstream; 2026 rebate rules.

Equipment that qualifies
Qualifying air-source heat pump; confirm SEER2/HSPF2 tier with Holy Cross.
Who qualifies, and the cap
Holy Cross Energy members (Eagle, Pitkin, Garfield, Mesa counties). Per 2026 rebate rules.
Stacking
Income-qualified tier ($7,000) is the enhanced alternative, not additive with the $3,500 standard.

Income-qualified households: up to $7,000 on this program. Check the terms against your household size and area median income.

Colorado Springs Utilities

csu.org

$1,500

maximum

You claim it after installFlat amount

Colorado Springs Utilities municipal: $1,500 electric bill credit for approved heat pumps under 3 tons, effective 1/1/2026. Downstream.

Equipment that qualifies
Heat pump under 3 tons; confirm SEER2 tier with CSU.
Who qualifies, and the cap
Colorado Springs Utilities electric customers. $1,500 for approved heat pumps under 3 tons; effective 1/1/2026.
Stacking
Bill-credit rebate; confirm additional CSU efficiency measures.

Tri-State (Electrify and Save member co-ops)

tristate.coop

$5,500

maximum

You claim it after installVaries by measure

Tri-State Generation & Transmission co-op wholesaler: heat pump rebates of $675 to $5,500 delivered THROUGH its member distribution co-ops via the Electrify and Save program (10,000+ electrification/efficiency rebates issued; 1,864 rebates in 2025, +46% YoY). Tri-State serves 15 distribution co-ops across Colorado (e.g., San Isabel, Mountain Parks, Sangre de Cristo, Y-W, Highline). The exact amount is set by your local member co-op; confirm with them. On-bill repayment up to 10 years available.

Equipment that qualifies
Qualifying air-source heat pump; efficiency tier set by the member co-op. Confirm SEER2/HSPF2 with your co-op.
Who qualifies, and the cap
Members of Tri-State's distribution co-ops. Tri-State serves 15 distribution co-ops across Colorado (e.g., San Isabel, Mountain Parks, Sangre de Cristo, Y-W, Highline). Rebate amount varies by member co-op ($675-$5,500 program range); confirm current terms with your local co-op before quoting.
Stacking
Electrify and Save also covers HPWH, insulation/air sealing, panel upgrades, thermostats and EV charging as separate measures; on-bill repayment is an alternative to an upfront rebate.

What your system should be sized for

A heat pump in Colorado should carry the house on the coldest design day, not the average one. These are the winter design temperatures our engine sizes against, in AHRI heating region V (6,100 heating degree days at the Denver reference metro).

CityDesign tempBasis
Denver1°Festimated
Colorado Springs-1°Festimated
Grand Junction7°Festimated
Alamosa-17°Festimated

Get notified when instant quoting opens in Colorado

One email when your market goes live, plus an alert if a program on this page changes. Nothing else.

  • Rebate amounts are estimates and subject to change. Verify current program terms and eligibility before quoting a final net price.
  • Eligibility varies by income, equipment efficiency, utility territory, and program funding availability.
  • State and utility programs only. Federal 25C/25D tax credits expired 12/31/2025 and the DOE HEAR/HOMES rebate programs ended 5/29/2026; neither is included.
  • After-install rebates are claimed by the homeowner after installation and are not guaranteed at the point of sale.