Which utility serves you?
Colorado's rebate landscape splits mainly along utility lines. Xcel Energy is the state's dominant investor-owned utility and covers most of the Front Range, including Denver, Aurora, and Boulder. Two of our five covered cities run their own municipal utilities with a separate rebate menu: Colorado Springs Utilities (Colorado Springs) and Fort Collins Utilities, whose rebates run through the regional Efficiency Works program. Pick your city below to see the rebates that actually apply to you.
Statewide programs that apply no matter your utility
🔥 Heat Pump Tax Credit
Colorado's state heat pump tax credit, claimed by your contractor at point of sale if they're registered with the Colorado Energy Office. Once per address, for 2026 and beyond. Colorado Dept. of Revenue — DR 1322 →
🔌 Battery Storage Tax Credit
Colorado's Innovative Energy Storage Tax Credit applies statewide to qualifying battery installations, regardless of utility.
🏠 HEAR / Power Ahead Colorado
The federal HEAR single-family program closed in both Colorado regions during 2026. DRCOG's Power Ahead Colorado (up to $1,500, no income limit) has stepped in for Front Range heat pump rebates. Colorado Energy Office status →
🌴 Federal 25C / 25D Credits
The One Big Beautiful Bill Act ended the federal energy-efficiency (25C) and residential clean energy (25D) tax credits for installations after December 31, 2025. Neither applies to 2026 installs in Colorado. ENERGY STAR federal credit status →
Quick Questions
Why did Xcel Energy stop taking rebate applications?
Xcel's Colorado rebate budgets are set annually and split into cycles. When a cycle's funding runs out, Xcel has to pause new applications in that category until the next cycle opens or more funding is added — it isn't a sign the rebate is gone for good. This has happened before with high-demand categories in Colorado. As of this writing, Xcel's heat pump rebate applications remain open (through September 30, 2027), but funding availability can shift during the year, so it's worth applying and locking in your rebate before you start work rather than waiting.
Should I install my heat pump before October 1?
If you're set on a cold-climate heat pump and can get it invoiced before October 1, 2026, yes — it's worth the push. Xcel Energy's cold-climate heat pump rebate drops about 33% on that date, from $2,250 per ton of heating capacity down to $1,500 per ton. On a typical 3-ton system that's roughly $6,750 versus $4,500. To lock in the higher amount, the installation needs to be complete and invoiced before October 1, with your application submitted by October 15. If you can't make that timeline, the lower rate still stacks with Colorado's $1,000 state heat pump tax credit — confirm the exact current numbers with Xcel before signing a contract, since utility rebate amounts can change again.
Is my contractor's rebate quote a scam?
It can be, if the promised rebate is doing most of the work to make an inflated price look reasonable. Check the real rebate cap before you sign →
Sources
- Xcel Energy — Colorado residential rebates
- Colorado Springs Utilities — HVAC & heat pump rebates
- Efficiency Works — Fort Collins Utilities rebates
- Colorado Dept. of Revenue — DR 1322 Heat Pump Tax Credit
- Colorado Energy Office — Home Energy Rebates (HEAR/HOMES) status
- ENERGY STAR — federal tax credit status