Denver Climate Action Rebates Program
Heat Pumps, MiniSplits & Water Heaters
2024 Denver Heat Pump & EV Charger Rebates
Eligibility Requirements for Denver Climate Action Rebate Program for Heat Pumps
| Eligible Equipment & Rebates | Rebate Amount | Efficiency Required |
|---|---|---|
| Air Source Heat Pump (ASHP) | $1,500 | 15.2 SEER2, 11.7 EER2, 7.8 HSPF2 |
| Cold Climate Air Source Heat Pump (ccASHP) | $3,500 | 15.2 SEER2, 10.0 EER2, 8.1 HSPF2 & 70%+ Cold Heat |
| MiniSplit Heat Pump (MSHP) | $1,500 | 15.2 SEER2, 11.5 EER2, 7.8 HSPF2 |
| Cold-Climate MiniSplit Heat Pump (ccMSHP) | $3,500 | 16.0 SEER2, 9.0 EER2, 9.5 HSPF2 & 70%+ Cold Heat |
| Electrical Service Upgrade if needed for ASHP or Mini | $2,000 | Licensed Electrician |
| EV Charger | $500 | Energy Star Level 2 Certified |
| Heat Pump Water Heater | $1,000 - $1,750 | Energy Star Certified |
- City & County of Denver Residents
- Single-Family, Duplex and townhomes
- Xcel Energy Gas & Electric Account
The exact cost of your new heat pump system will vary depending on your specific needs and the complexity of the installation. However, to give you a general idea, in the first quarter of 2023, our Denver customers typically spent between $10,000 and $22,000 for air source heat pumps and mini-split heat pumps. The good news is that the Denver Climate Action Rebates program can significantly reduce these costs, and current incentives for heat pumps are particularly high! For a more personalized estimate, you can contact us at Controlling Systems Heating & Air or 720-445-8906.
Absolutely! We offer two options for electric heating and cooling with heat pumps:
- Mini-Split Systems: These ductless systems are fully electric and perfect for homes without existing ductwork.
- Heat Pumps with Furnace Electrification: For homes with existing ductwork, we can convert your furnace to electric operation and pair it with a heat pump to create a fully electric HVAC system.
Getting a free estimate for your new heat pump system is easy! Just click here to schedule an appointment with one of our qualified technician. They’ll assess your specific needs and provide a personalized quote for your project.
Qualify for additional savings with
2024 Xcel Rebates for Heat Pumps
| System Type | 2024 Xcel Rebate |
|---|---|
| Air Source Heat pump | $1,700 |
| Cold Climate Air Source Heat pump | $2,200 |
| MiniSplit Heat pump | $1,700 |
| Cold-Climate MiniSplit Heat pump | $2,200 |
We handle the Xcel Energy rebate application process for you, taking the complexity out of saving money. After your qualifying heat pump system is installed, Xcel will typically send your rebate directly via check or apply it as a credit to your bill within 90 days. Keep in mind that rebate terms are set by Xcel Energy and subject to change. The table below provides a simplified overview for 2024.
2024 Xcel HVAC Rebates
| System Type | Requirements | Rebate |
|---|---|---|
| High Efficiency Gas Furnace | 95%+ AFUE Rating | $300 |
| High Efficiency Central AC | Discontinued | N/A |
| Air Source Heat Pump (ASHP) | 15.2 SEER2, 11.7 EER2, 7.8 HSPF2 | $1700 |
| Cold Climate Air Source Heat Pump (ccASHP) | 15.2 SEER2, 10.0 EER2, 8.1 HSPF2 & 70%+ Cold Heat | $2200 |
| MiniSplit Heat Pump (MSHP) | 15.2 SEER2, 11.5 EER2, 7.8 HSPF2 | $1,700 |
| Cold-Climate MiniSplit Heat Pump (ccMSHP) | 16.0 SEER2, 9.0 EER2, 9.5 HSPF2 & 70%+ Cold Heat | $2,200 |
| Tankless Waterheater | 0.87 UEF, Medium or High Draw | $100 |
| EV Charger | Xcel Approved Charger | $500 |
| Heat Pump Water Heater | Energy Star Certified | $800 |
*Based on Xcel’s announcements for the year 2024. Includes bonus rebates. Subject to change.
New Inflation Reduction Act Heat Pump Incentives
- Income Restrictions: One incentive, the High-Efficiency Electric Home Rebate Act (HEEHRA), is designed to assist low-income households. Full program details and eligibility requirements haven’t been officially announced yet, so your project may not qualify for HEEHRA rebates.
- 25C Tax Credit: The other incentive, the 25C Tax Credit, is expected to be more widely available for homeowners. This tax credit can significantly reduce the cost of your new heat pump system.
We'll Keep You Updated!
While we await full details on HEEHRA, Controlling Systems is here to help you navigate these new incentives. We’ll keep you updated on the latest developments and ensure you benefit from all applicable savings opportunities.
HEEHRA rebates will work similar to Denver rebates for eligible homeowners.
In the meantime, you can learn more about the 25C Tax Credit to see if you qualify.
| Incentive | Available | Benefit | Description | Restriction |
|---|---|---|---|---|
| 25C Tax Credit | Yes | Up to $2,000 | A tax credit that reduces tax liability | Must have tax liability to offset |
| HEEHRA Rebates | No | Up to $8,000 | An income restricted rebate that is not available yet | Heavily income restricted |
| HEEHRA Measure | Maximum Benefit |
|---|---|
| Eligble Heat Pump | Up to $8,000 |
| Electrical Service Upgrade | Up to $4,000 |
| Heatpump Waterheater | Up to $1,750 |
| Income Classification (HEEHRA) | Requirements |
|---|---|
| Low-Income Household | Less than 80% of your area’s median family income |
| Moderate-income households | 80% to 150% of your area’s median income for families |
Our Heat Pump Services
At Controlling Systems, we’re proud to be a leading provider of heat pump solutions in the Denver metro region. With extensive experience and thousands of successful installations across a wide range of properties, we have the expertise to ensure your comfort and energy efficiency. Look no further for a reliable and qualified Denver heat pump contractor. Contact Controlling Systems today and let’s discuss your project!
Heat Pump
Mini-Splits
Air Source Heat Pumps vs. Mini-Splits
Air Source
These heat pumps work with existing ductwork and furnaces for efficient heating and cooling throughout your home.
Mini-Splits
Ductless systems ideal for homes without ductwork or those wanting zone-controlled comfort in specific rooms.
Heat Pumps: Choosing the Right Option for Denver
Standard Heat Pump
Great for cooling and providing some heating in moderate climates (typically works effectively down to 40°F).
Cold Climate Heat Pump
Ideal for Denver's climate, offering both cooling and efficient heating even in colder temperatures. While more expensive upfront, these models can significantly reduce your reliance on alternative heating sources.
Heat Pump Costs: A Smart Investment
Heat pump installation costs vary depending on your specific needs and property. To give you a general idea, in 2024, most of our Denver customers spent:
- $9000 – $18,000++ for air source heat pumps
- $12,000 – $50,000++ for multi-zone mini-split systems
Ready to get a precise quote? Contact Controlling Systems today for a free consultation! We’ll assess your needs and provide an accurate estimate for your project.
| System Type | Cost range before incentives |
|---|---|
| Air Source Heat pump | $9,000 – $18,000+ |
| Cold Climate Air Source Heat pump | $10,000 – $24,000+ |
| MiniSplit Heat pump | $9,000 – $50,000++ |
| Cold-Climate MiniSplit Heat pump | $9,000 – $50,000++ |
Heat Pump Definitions
| Name | Definition | Common Benefit |
|---|---|---|
| Heat Pump | Unit produces heat using electricity in addition to regular cooling function | Electrifies heating function, reduces fossil fuel usage |
| Air Source Heat Pump | Unit uses ductwork/conventional forced-air infrastructure | Retrofits into ducted systems easily |
| MiniSplit Heat Pump | Unit designed for ductless systems w/ smaller form factor | For homes with no ductwork |
| Cold Climate Heat Pump | Unit can produce more heat using electricty compared to regular heatpump | More electrification than regular heatpump/replacing fossil fuel |
Heat Pump Electrification Benefits
| System Type | Compared to | Common Benefits |
|---|---|---|
| Air Source Heat Pump | Regular Furnace + AC | Approx 50% of heating will be electrified |
| Cold Climate Air Source Heat Pump | Regular Furnace + AC | 50-100% of heating electrified |
| MiniSplit Heat Pump | Swamp Cooler | High Efficiency Cooling + Some Heating |
| Cold-Climate MiniSplit Heat Pump | Boiler | Fully Electrified Heating + Cooling Capacity |
The Denver Heat Pump Rebates Program offers incentives for switching to energy-efficient heating and cooling. While it’s a great program, keep in mind:
- Limited Availability: Rebates may have limitations or be subject to supply chain constraints.
- Varied Savings: Energy savings depend on your home’s specific features and existing system.
The estimates provided are for informational purposes only.
Frequently Asked Questions
Imagine an air conditioner that can also heat your home efficiently. That’s the magic of a heat pump! During the summer, it acts like a regular AC, removing warm air to keep you cool. But in the winter, it flips the script, extracting heat from the outdoor air to warm your space. This makes heat pumps a versatile and energy-saving option for Denver’s climate. Learn More
Supply chain challenges have impacted the availability of some heat pump models since mid-2021. While Controlling Systems works hard to maintain a good stock, guaranteeing immediate availability for every model might be difficult.
The good news is that we can still help you plan for your future comfort and energy savings. Contact Controlling Systems today for a free consultation. We can discuss your needs, explore available options, and get you on the waitlist for your preferred heat pump system, if necessary.
Choosing the perfect heat pump depends on your existing system. Here’s a quick guide:
- Homes with Gas Furnaces: Air source heat pumps work seamlessly with your existing ductwork to deliver efficient heating and cooling.
- Homes Without Ductwork: Ductless mini-split systems are a cost-effective option, providing targeted comfort in specific rooms without needing duct installation.
The Denver Heat Pump Rebate program is a fantastic initiative, but like many programs, it’s subject to change. While we can’t guarantee future availability, we recommend getting started on your heat pump project as soon as possible to maximize your chances of qualifying for the current rebate program.
Heat pumps offer a compelling solution for many homeowners looking to upgrade their HVAC systems. They provide several advantages:
- Enhanced Comfort: Heat pumps are designed for year-round comfort, offering both efficient heating and cooling.
- Energy Savings: Over time, heat pumps can significantly reduce your energy bills compared to traditional systems.
- Advanced Features: Many heat pumps come with features like inverter-driven compressors, which minimize noise from the outdoor unit.
Absolutely! Heat pumps are known for their energy efficiency. Compared to traditional air conditioners, real-world data suggests that heat pumps can reduce your energy use by around 10-15% over time. In controlled lab settings, these savings can be even higher, reaching up to 30%.
Great! We’d be happy to help you explore the possibilities. Click here to schedule a free consultation with one of our qualified technicians.
