Colorado heat pump rebates have already delivered millions in savings. Here's what’s still available for homeowners.
Colorado's heat pump incentives are working.
So far in 2026, Elephant Energy customers alone have received more than $2.7 million in rebates to upgrade their home's heating and cooling:
- $1,248,685 through Colorado's HEAR program
- $1,519,925 through Xcel Energy rebates
That's a total of $2,768,610 in savings returned directly to Colorado homeowners.
And for many families, these weren't just small discounts. We've seen homeowners reduce project costs by tens of thousands of dollars — in some cases covering nearly 100% of a heat pump installation.
For others, rebates turned what would normally be a $20,000+ HVAC replacement into a project costing just a few thousand dollars out of pocket.
To give you an idea, here's a breakdown of the upfront rebates one of our homeowners received... and they paid $0 for their heat pump earlier this year, thanks to the HEAR program.
The result? More Colorado homeowners have been able to make the switch to efficient electric heating and cooling systems (and water heaters) that previously felt financially out of reach.
The HEAR Program created huge demand across Colorado
Colorado's High-Efficiency Electric Home Rebate (HEAR) program launched with a simple goal: make home electrification more affordable for income-qualified households.
And demand showed up fast.
The program helped thousands of homeowners upgrade aging HVAC systems with high-efficiency cold-climate heat pumps while dramatically reducing upfront costs.
At Elephant, we saw firsthand how impactful these rebates were for homeowners across the Front Range. Many customers who had been putting off a replacement for years suddenly had a path forward.
The success of the program also helped accelerate broader heat pump adoption in Colorado, particularly among homeowners looking for:
- Lower energy bills
- Better comfort during extreme temperatures
- Air conditioning upgrades
- Cleaner, more efficient heating and cooling
This year, Elephant Energy was also recognized as a top rebate installer by both:
A reflection of just how much demand Colorado homeowners showed for these programs.
HEAR funding is changing — but not gone everywhere
Due to overwhelming demand, HEAR funding for single-family homes in Colorado's Front Range is now exhausted.
But that doesn't mean rebates have disappeared entirely.
Single-family homeowners in some rural areas of Colorado can still access HEAR funding, including communities like Steamboat Springs. (Psst... consider this our soft launch announcement that we're officially serving and installing heat pumps in Steamboat.)
We're also expecting multifamily HEAR rebates to roll out later this year across Colorado.
That's an important next phase for electrification in the state because it expands eligibility beyond single-family homeowners to include multifamily properties and more renters as well.
For apartment buildings and multifamily housing providers, these programs could significantly reduce the cost of upgrading older heating systems while improving comfort and efficiency for residents – who often don’t have cooling at all.
Xcel Energy rebates are still some of the best in the country
Even with HEAR changes, Colorado homeowners still have access to some of the strongest utility incentives in the country through Xcel Energy.
Current Xcel Heat Pump Rebates
Cold-Climate Heat Pumps
Xcel currently offers:
- $2,250 per heating ton (measured at 5°F)
For a typical 3-ton system, that can mean:
- Up to $6,750 off
Standard Heat Pumps
- $900 per cooling ton
Heat Pump Water Heaters
- Flat $2,250 rebate
- Equipment must be ENERGY STAR certified
These incentives continue to make heat pumps much more affordable for homeowners replacing aging furnaces, boilers, AC units, or water heaters.
Some Colorado cities have additional local incentives
Depending on where you live, your city or local utility may offer additional rebates that stack on top of state and utility programs.
Longmont: Efficiency Works Rebates
Homeowners served by Longmont Power & Communications can currently access:
- $2,000 for cold-climate ducted systems
- $500–$1,000 per ton for non-ducted mini-splits
There's also an additional:
- $2,000 bundling bonus
when homeowners combine a heat pump project with insulation or air sealing improvements.
Boulder: EnergySmart Boulder
Income-qualified households in Boulder may be eligible for:
- Up to $2,000 per year in additional incentives
These programs are designed to help lower-income households reduce energy costs and improve home comfort.
Colorado state tax credits still apply
Colorado also continues to offer statewide tax credits for electrification projects.
Current State Credits
- Heat Pumps: $1,000
- Heat Pump Water Heaters: $250
One thing many homeowners don't realize is that these credits are typically applied upfront by a registered contractor as an immediate discount on your invoice — not something you have to wait to claim later on your taxes.
That means the savings can show up right away when your project is installed.
More rebates are expected this summer (2026)
Colorado's rebate landscape continues to evolve.
One of the most anticipated upcoming programs is Power Ahead Colorado (DRCOG), which is expected to launch in summer 2026 for homeowners in the Denver metro area.
The program is expected to offer:
- $1,500 flat rebates for cold-climate heat pumps
- No income limits
- Full stackability with Xcel rebates and Colorado state tax credits
For many homeowners, that could mean even bigger savings later this year.
When new rebates launch, we typically see a surge in demand, and installation spots can fill up quickly. To help homeowners get ahead of the rush, we're offering a "get in line" option. With a fully refundable $100 deposit, you can reserve your place in our installation queue and be ready to move forward once the rebates become available.
Interested? Just email hello@elephantenergy.com, and our team will help you secure your spot.
The bottom line
Colorado has become one of the leading states in the country for heat pump incentives, and the response from homeowners has made one thing clear: when electrification becomes more affordable, people move quickly.
While portions of the HEAR program have already been exhausted, there are still substantial rebates available today — and more programs are expected to launch in the coming months.
If you're considering replacing an aging furnace, adding AC, lowering utility bills, or improving comfort in your home, 2026 remains one of the best opportunities yet to make the switch.
Ready to see what rebates you qualify for? Connect with our Home Comfort Advisor team and we'll help you understand your options.
Rebates and incentives vary by location and may change over time. Contact us for the most current information.