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Colorado: HEAR has closed, the state credit is smaller, and your utility decides the rest.
Colorado’s federal appliance rebate closed to single-family homes on 1 August 2026, and the state’s heat pump tax credit, now a discount of at least $333 through the contractor, shrank in 2026. What pays now is the utilities, Xcel Energy, Colorado Springs Utilities, Black Hills, the Efficiency Works cities and co-ops such as Holy Cross, plus Power Ahead Colorado in the Denver region. Here is each program, read off its own pages.
Updated . The Colorado Energy Office’s programs, Xcel Energy, Power Ahead Colorado, Colorado Springs Utilities, Efficiency Works, Black Hills Energy, Holy Cross Energy and Boulder County, with Denver and smaller co-ops in tables; see “Not covered yet” for the rest.
The short version
HEAR is closed to single-family homes
Colorado’s HEAR paid up to $14,000 per household from November 2025; nothing submitted after 1 August 2026 is reviewed. HER and multifamily HEAR are expected in fall 2026.
source · verified 3 October 2026
The state credit reaches you as a discount
The heat pump tax credit goes to the registered contractor, who must take at least $333 off an air-source heat pump in 2026. The heat pump sales tax exemption ended with 2023.
source · verified 3 October 2026
Weatherization goes by a county chart
Free weatherization up to the highest of three income lines: $115,200 for four in Denver, $87,096 in Pueblo.
source · verified 3 October 2026
Statewide and regional
The Colorado Energy Office’s programs and the Denver region’s rebate.
HEAR and HER
closed
HEAR closed to single-family homes on 1 August 2026; HER has not launched.
Where it stands →
Heat pump tax credit
at least $333 off
A discount from a registered contractor: $333, $667 or $83 by type in 2026.
How it works →
Weatherization
free
Insulation, air sealing and furnace work under your county’s income line.
Income limits →
Power Ahead Colorado
$1,500
Per cold-climate heat pump system in DRCOG member areas, at any income.
Who qualifies →
Your electric utility
Heat pump money in Colorado comes from the utility that delivers your power: Xcel Energy, the city utilities or a co-op.
| Utility | Heat pump | Heat pump water heater | Insulation |
|---|---|---|---|
| Xcel Energy | $1,500 per heating ton with Xcel gas heat, $750 standard (cold-climate) | $1,500 or $750 | 30% of cost, capped at $350 to $500 |
| Colorado Springs Utilities | $1,500, or $3,000 for 3 tons and over (cold-climate) | $750 | 40% of cost, up to $1,250 a project |
| Efficiency Works (Fort Collins, Loveland, Longmont, Estes Park) | $1,500 or $2,000 ducted; $500 or $1,000 a ton ductless | $600 or $400 | $1.16 or $0.77 a sq ft |
| Black Hills Energy (electric) | $1,500; cold-climate $2,500; geothermal $1,700 | $500 | Only in homes with central cooling |
| Holy Cross Energy | $3,500 a project; $7,000 income-qualified | $1,000 | $1,500 a project, electric heat only |
Xcel’s amounts are those effective 1 October 2026. Colorado Springs Utilities pays as a credit on your account; the others pay by check or through the contractor.
source · verified 3 October 2026
Xcel heat pumps
up to $1,500 a ton
The bonus rate for homes heated with Xcel gas; standard rate for electric-heated homes.
What it pays →
Xcel insulation and furnaces
30% of cost
More with Xcel gas heat; $225 gas furnace rebate through 2026.
The rates →
Colorado Springs Utilities
$1,500 to $3,000
Heat pumps, furnaces and insulation, as credits on your utility bill.
What it pays →
Efficiency Works
$1,500 to $3,000
Four Northern Colorado cities; a $2,000 bonus for pairing a heat pump with envelope work.
What it pays →
Black Hills Energy
up to $2,500
Electric heat pumps and gas furnaces, with separate forms.
What it pays →
Holy Cross Energy
$3,500
A co-op paying per project, doubled under 150% of area median income.
What it pays →
Gas
Colorado’s gas utilities still pay for efficient gas equipment, and Xcel is ending its furnace rebate after 2026.
| Gas utility | Furnace | Insulation | Worth knowing |
|---|---|---|---|
| Xcel Energy gas | $225 (95%+, invoiced in 2026) | Bonus of 1.5 times the standard insulation rebate | Furnace and boiler rebates removed from 1 January 2027 |
| Black Hills Energy gas | $260 to $375 | Attic $0.49 or $0.60 a sq ft, up to $1,090 | Gas-fired heat pump with furnace backup $3,490 |
| Colorado Springs Utilities gas | $900 (condensing) | 40% of cost, up to $1,250 | Boiler $1,200 |
| Atmos Energy | Not read | — | Its Colorado rebate page did not load for us |
source · verified 3 October 2026
Local programs and other co-ops
Counties, cities and co-ops add their own money or discounts. These are read off their own pages; many more are not covered yet.
| Program | What it pays | Worth knowing |
|---|---|---|
| Boulder County EnergySmart | 50% of cost up to $2,000 a year, at or below 100% of area median income | All rebates combined capped at 50% of the project cost |
| Switch Together (Boulder County, Longmont, Erie) | Group buy, about 20% off market price | $150 refundable deposit |
| Denver | Group buy, savings up to 10% | The city’s own home heat pump rebate pages no longer load |
| La Plata Electric Association | Standard rebates capped at $1,500 a member a year; income-qualified $3,000 | Income-qualified up to 150% of area median income |
| Poudre Valley REA | Amounts on its sub-pages, not read | Under $250 as a bill credit, $250 or more by check |
Read 3 October 2026.
source · verified 3 October 2026
Which income line applies
Colorado programs use several yardsticks, most of them by county. Figures are for a household of four.
| Program | Income test | Family of four | Status |
|---|---|---|---|
| Weatherization | Highest of 60% of state median income, 80% of area median income or 200% of poverty, by county | $87,096 to $120,000 | Open |
| HEAR | Up to 150% of area median income, by county | By county | Closed to single-family homes |
| Boulder County EnergySmart | 100% of area median income | $150,000 | Open |
| Holy Cross income-qualified | Under 150% of area median income | By county | Open |
| Heat pump tax credit, Power Ahead | No income test | — | Open |
source · verified 3 October 2026
What closed, and what you will still be told to apply for
- Federal Energy Efficient Home Improvement Credit (25C) — ended for improvements after 31 December 2025. What it paid.
- Federal Residential Clean Energy Credit (25D) — ended for solar, batteries and geothermal placed in service after 31 December 2025. What it paid.
- Colorado HEAR, single-family — closed for submissions after 1 August 2026. What it paid.
- Colorado’s heat pump sales tax exemption and 10% credit — expired 31 December 2023.
- The 2024-25 heat pump credit amounts ($1,500 for air-source) — replaced by smaller 2026 amounts.
- Xcel Energy gas furnace and boiler rebates — removed from 1 January 2027.
- Denver’s home heat pump rebates — the city’s residential rebate pages no longer load.
Not covered yet
The Colorado Energy Office’s programs, Xcel Energy, Power Ahead Colorado, Colorado Springs Utilities, Efficiency Works, Black Hills Energy, Holy Cross Energy and Boulder County are here, with smaller programs in tables. Still missing:
- Atmos Energy and Colorado Natural Gas rebates, and Xcel’s income-qualified amounts.
- Most co-ops’ per-measure amounts, such as United Power’s, Poudre Valley REA’s and IREA’s.
- The RENU loan’s current rates, and the Colorado Affordable Residential Energy program.
- Local programs in Aspen and Pitkin County, Summit County and other mountain towns.
Questions people in Colorado actually ask
How much is the heat pump rebate in Colorado in 2026?
It depends on your utility. Xcel Energy pays $1,500 per heating ton for a cold-climate heat pump in homes heated with Xcel gas and $750 per ton otherwise, Colorado Springs Utilities $1,500 or $3,000, Black Hills Energy $1,500 to $2,500, Efficiency Works $1,500 or $2,000 for a ducted system and Holy Cross Energy $3,500. Power Ahead Colorado adds $1,500 per system in the Denver region, and the state’s tax credit gives you a discount of at least $333 on an air-source heat pump through a registered contractor. The federal HEAR rebate is closed to single-family homes.
Is Colorado's HEAR rebate still available?
Not for single-family homes. The Colorado Energy Office closed the program in both regions: applications and project proposals submitted after 1 August 2026 are not reviewed, and its dashboard shows no money left. HEAR for small apartment buildings and the whole-home HER rebate are expected to launch in fall 2026.
How does the Colorado heat pump tax credit work?
The credit goes to a contractor registered with the Colorado Energy Office, who must give you at least 33% of it as a discount on the invoice, shown as State of Colorado Heat Pump Discount. For equipment installed from 1 January 2026 that is at least $333 on an air-source heat pump, $667 on a ground-source system and $83 on a heat pump water heater. You file nothing yourself.
Who qualifies for free weatherization in Colorado?
Homeowners and renters under their county’s line on the Colorado Energy Office’s chart, the highest of 60% of state median income, 80% of area median income or 200% of poverty. For a family of four that is $115,200 in Denver and $87,096 in counties such as Pueblo and Mesa. Households on SNAP, SSI, TANF, AND or LEAP may qualify automatically.
Does Xcel Energy still give rebates for gas furnaces in Colorado?
Through 2026 only. Xcel pays $225 for a 95% gas furnace replacing a non-condensing one, if it is installed and invoiced in 2026; Xcel says gas furnace and boiler rebates are removed from 1 January 2027. Claims for 2026 invoices are accepted through 30 September 2027.
Does Denver still pay heat pump rebates to homeowners?
Denver’s own home heat pump rebate pages no longer load, and the city now points homeowners to a group buy that it says can save up to 10%, and to Xcel, the state and Power Ahead Colorado. Power Ahead pays $1,500 per cold-climate heat pump system across the Denver region.