As we kick off 2026, Colorado homeowners have exciting opportunities to upgrade to energy-efficient heat pumps and other HVAC systems while saving big on upfront costs. With our state’s focus on cleaner energy and lower utility bills—especially important in our high-altitude, variable climate—these rebates make switching from traditional furnaces or older AC units more affordable than ever.
Whether you’re in Denver dealing with cold winters or the mountains facing extreme temperature swings, cold-climate heat pumps perform exceptionally well here, providing both heating and cooling efficiently.
Key Rebate Programs in 2026
1. Home Electrification and Appliance Rebates (HEAR) Program
Funded by the federal Inflation Reduction Act and administered by the Colorado Energy Office, the HEAR program is now fully active for single-family homes and expanding in 2026. It’s designed for low- to moderate-income households (at or below 150% of your county’s Area Median Income—AMI).
- Up to $14,000 total per household in point-of-sale rebates (applied as upfront discounts by registered contractors).
- Heat pump highlights:
- Cold-climate heat pumps: Up to $8,000
- Standard heat pumps: Up to $3,000 (varies by type and income tier)
- Other stackable upgrades: Electrical panel ($4,000), wiring ($2,500) and heat pump water heaters.
- Higher rebates for households below 80% AMI (often 100% of project costs covered, up to caps).
- Available now for single-family homes; multifamily expansions coming early 2026.
Check eligibility and apply via the Colorado Energy Office website.
credit image to justheatpumpsllc
How The Colorado HEAR Heat Pump Rebates Work (How To Apply) – Just …
2. Colorado State Heat Pump Tax Credit
This upfront discount (passed on by registered contractors) continues in 2026, though amounts have adjusted downward from previous years:
- Air-source heat pumps: $1,000 total credit (minimum $333 customer discount)
- Ground-source/geothermal: $2,000 total (minimum $667 discount)
- Heat pump water heaters: $250 total (minimum $83 discount)
Must use a registered contractor (Russell Comfort Solutions); systems need to be ENERGY STAR certified and meet efficiency standards (e.g., cover at least 80% of heating needs).
3. Xcel Energy Rebates (for Xcel Customers)
Xcel continues strong support for heat pump conversions, especially from gas heating:
- Cold-climate air-source heat pumps: Up to $2,250 per ton (often $6,000–$9,000 for a typical home system)
- These can stack with HEAR and state credits.
Contact Xcel or Russell Comfort Solutions (303-588-5712) for details.
Why Upgrade in Colorado?
Heat pumps are ideal for our climate—they extract heat even in cold weather and reverse for cooling in summer. At higher altitudes, properly sized cold-climate models maintain efficiency without supplemental heat strips. Pair with good insulation, and you’ll see lower bills, better comfort, and reduced emissions.
Programs like HEAR prioritize income-qualified homes, but everyone can benefit from state credits and utility rebates. Funds are limited, so act soon!
Ready to explore options for your home? Contact a registered contractor or visit the Colorado Energy Office for personalized guidance. At Russell Comfort Systems, we’re here to help Denver-area homeowners navigate these incentives—reach out via www.russellcomfort.com for expert advice on efficient HVAC upgrades tailored to Colorado living.
Follow @hvacolorado on X for more tips on energy-efficient upgrades!
Russell Comfort Solutions 
Leave a comment