Denver Climate Action Rebates Program

Heat Pumps, MiniSplits & Water Heaters

Denver’s Climate Action Rebates program offers incentives for homeowners to electrify their homes with energy-efficient systems. Learn more about heat pump rebates below.

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
It’s easy! When you choose Controlling Systems to install a qualifying electric heating or air conditioning system, like a heat pump or water heater, we’ll apply the rebate amount directly to your purchase price. This reduces the upfront cost of your new system and makes upgrading to energy-efficient technology more affordable.
Great question! In addition to the Denver Climate Action Rebates, you may also be eligible for rebates from Xcel Energy. We handle all the paperwork for these rebates, so you can relax and enjoy the savings. After your qualifying system is installed, Xcel will typically send your rebate via check or apply it as a credit to your bill within 90 days.

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.

The Denver Climate Action Rebates program is unfortunately limited to properties located within the City & County of Denver. However, many local municipalities and utility companies offer similar rebate programs for energy-efficient upgrades. We recommend contacting your local government or energy provider to see what programs they have available in your area.
While traditional AC units only cool your home in the summer, heat pumps offer both heating and cooling. In the summer, heat pumps act like ACs, pulling heat out of your home. In the winter, they reverse the process, extracting heat from the outdoors to warm your space. This makes heat pumps a versatile and energy-efficient option for Denver’s climate.

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

The Inflation Reduction Act offers exciting new opportunities to save on heat pumps! However, there are two key points to consider:
  • 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
Click below to see your area’s median income on HUD’s website.

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

Controlling Systems has been a leader in Denver’s heat pump revolution since 1976. We offer a wide range of heat pump solutions to meet your specific needs, including:


Controlling Systems installs ductless mini-splits for easy, personalized comfort. Enjoy targeted heating & cooling, perfect for any room. Get a free quote today!

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.


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 TypeCost 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.

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