Denver Heat Pump Rebates: How the $15,750 Stack Works (and What's Claimable Now)

Update: Colorado HEAR stopped accepting new Front Range (Region 1, including Denver) applications on April 28, 2026. The $8,000 HEAR rebate below is not available for a new Denver installation right now, so the dependable Denver stack today is the Xcel rebate plus the state credit ($7,750). HEAR remains open in Region 2 (the mountain and Western Slope counties, including Eagle, Pitkin, and Garfield). Funding cycles reopen, so we keep the full breakdown -- but verify current status for your address before you install.

When all three programs are open, a Denver-area heat pump install can stack them on a single installation to reach $15,750. Here is how each program works, what you need to qualify, and which ones are open on the Front Range today.

Amounts below are program ceilings, not typical awards. Your actual per-household amount depends on your income tier, the equipment installed, and whether program funding is still available. Verify current program status with the Colorado Energy Office and Xcel Energy before relying on any specific dollar figure.

Program 1: Colorado HEAR ($8,000)

The Colorado HEAR (Home Electrification and Appliance Rebates) program provides up to $8,000 toward a qualifying heat pump. This is a point-of-sale rebate. The discount comes off the contractor invoice at the time of purchase. You do not wait for a check. Note the regional status above: the Front Range (Region 1, including Denver) stopped accepting new HEAR applications on April 28, 2026, while Region 2 (mountain and Western Slope) remains open.

Income requirements apply. Households at or below 80% of area median income receive the maximum $8,000. Households between 80% and 150% AMI receive a partial rebate. Households above 150% AMI are not eligible for HEAR.

The equipment must be a cold-climate heat pump rated for Colorado winters. The contractor must be registered with the HEAR program. They handle the paperwork at the time of installation.

Program 2: Xcel Energy Rebate ($6,750)

Xcel Energy offers a rebate of up to $6,750 for qualifying heat pump installations. This program has no income requirement. Any Xcel customer in its Colorado service territory is eligible.

The contractor submits the Xcel rebate application after completing the installation. Xcel processes the rebate and sends payment directly to the customer, typically within six to eight weeks.

Program 3: Colorado State Rebate ($1,000)

Colorado maintains a separate $1,000 state-level rebate for heat pump upgrades. This stacks on top of both HEAR and the Xcel rebate. The contractor handles this application as well.

The Math

Colorado HEAR: $8,000. Xcel Energy rebate: $6,750. Colorado state rebate: $1,000. Full stack: $15,750.

On the Front Range today, with HEAR closed to new applications, the two programs still open -- the Xcel rebate and the state credit -- come to $7,750. The full $15,750 applies where all three are open (Region 2), or on the Front Range if and when HEAR reopens.

A typical heat pump installation in Denver runs between $12,000 and $18,000 before rebates. For income-qualifying households, the effective out-of-pocket cost after all three rebates ranges from $0 to roughly $2,250. For households above 150% AMI who do not qualify for HEAR, the Xcel and state rebates still reduce cost by $7,750.

One Requirement That Matters

To access all three programs, you need a contractor who is both HEAR-registered and Xcel-approved. These contractors handle all three applications as part of the installation process. WattGap connects you to contractors who meet both requirements in the Denver area.