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2024 Colorado Heat Pump Rebates

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With the current federal and Colorado State incentives and rebates available, now is a great time to swap your furnace (and AC) for a dual-purpose heat pump.

The Federal Inflation Reduction Act (IRA), along with state and local programs, encourage the adoption of energy-efficient heat pumps.

The Federal IRA Tax Credit

Coloradans and all American taxpayers are currently eligible for the heat pump incentives available through the Infaltion Reduction Act.

  • Any home can claim a 30% tax credit, up to $2,000, to install an air-source heat pump. You claim the tax credit with tax form 5695, the same form you would use for a solar tax credit.

Statewide Tax Incentives

As of January 1, 2024, a law was enacted that makes Energy Star-certified air-source heat pumps eligible for a $1,500 tax credit.

The Colorado Energy Office has guidelines on obtaining the tax credit. Here are a few key guidelines:

  • Must be installed by a registered contractor (Independent Power is registered!)
  • Registered contractors are required to provide customers with tax credits as a discount on installation costs.
  • Registered contractors complete and submit the necessary paperwork to the Department of Revenue for the installed equipment.
  • You don’t need to file any paperwork to receive the discount.

Utility Company Incentives

Xcel Energy, the main electrical utility in the Denver and Boulder metro areas, offers heat pump rebates if you work with a qualified contractor:

  • $2,200 off the total installation cost for a cold-climate heat pump or mini-split.
  • $1,700 for other air-source heat pumps that meet more modest efficiency and performance specs.

Different utility company? They probably have a rebate, too. Check DSIRE, a database for incentives in Colorado and America.

Boulder County Rebates

Boulder County offers additional rebates that can be stacked on the utility and state rebates.

  • 25% of project cost, up to $300
  • Must be installed by a registered contractor (Independent Power is registered!)

City Of Boulder Rebates

The City of Boulder offers additional rebates:

Town of Erie Rebates

The Town of Erie added additonal rebates in 2024, including heat pumps:

  • Up to $400 on cold climate heat pumps
  • Check out other rebate offers on the link above

City of Longmont, Ft. Collins, Town of Lyons (and more cities) Rebates

Head to Energy Smart to learn more about rebates available in your city or town. You can also search online with your “Town’s Name” and “Heat Pump Rebates”.

 

We Can Install Your Heat Pump System In 2024

Federal and State governments can remove programs for a variety of reasons. So, there’s never been a better time to upgrade your old HVAC system! Contact us for a free quote to get a custom design. We’ll help you understand all of the benefits available to you.

Request Your Free Quote

Read What People Have To Say About Us!

Independent Power
Excellent
Independent Power
4.8
Based on 249 reviews
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Ian H.
We had a terrific experience going solar with Independent Power. As a first step, we used Energy Sage to help us meet and negotiate with three solar vendors in our area (Larimer Co., CO). Independent was the most responsive and cost-competitive of all the vendors we spoke with. Installation of our system was complicated, in part because we asked Independent to also include an EV Charger in our scope of work, and in part because we had to work w/ our local utility to upgrade our area's transformer, wiring, and breaker panel to accommodate these new systems before they could be activated. Independent's team was with us every step of the way, liaised w/ the utility so we didn't have to, and met every single one of our needs! Special shout outs to electricians Dave and PJ, project tech Jan (an incredible young Navajo woman who not only serve's Independent's clients but also is working to promote solar energy with American Indian nations across America), and our project manager, Kyle. Independent Power is a great company run with exceptional staff. I wouldn't hesitate to recommend them to anyone wanting to go solar across the Front Range.
Response from the owner: Thank you for the wonderful 5-star review, Ian. Our team enjoyed working with you! Our mission is to help you and all of our customers receive a system that will fit your needs and wishes. Our goal is to do as much of the leg work as possible so you don't need to stress about contacting the utility company. We are grateful you took the time to write such a thoughtful review! Please let us know how we can be of service in the future.
Jyoti W.
Josh with Independent Power was knowledgeable and very thorough in his work. He was friendly, professional, and shared with me, step by step, what the plan was for installing equipment and finishing the job, and what I could expect.I am very happy with the end result and how he managed it all.
Response from the owner: Thank you for the 5-star review, Jyoti! Josh and our entire HVAC team are on a mission to provide the best customer experience from the moment you reach out through install day and any questions you have. We are grateful you chose to work with us, and we hope your heat pump system brings you comfort throughout the year. Please let us know if we can be of service in the future.
Dan S.
From start to finish, working with Independent Power (IP) was an exceptional experience. After interviewing several solar companies, it became clear that IP stood out from the competition. Many companies function like general contractors (GCs), where the sales team sells you a system and then subs out the installation. With IP, you work with one dedicated team from start to finish, ensuring consistent communication and quality throughout the process.As a mechanical engineer by education—and admittedly a very detail-oriented client—I came with a lot of technical questions. The team at IP, from the sales representatives to the installation crew and support staff, always had informed and thoughtful answers. Their expertise was evident every step of the way.In terms of cost, most solar installations range from $2.75–$3.25 per watt installed before incentives, and IP’s pricing was right in line with the market. However, what sets them apart is their quality. Their craftsmanship and attention to detail far surpassed what I’ve heard from others’ experiences. We opted for QCells panels to support American manufacturing and paired them with Enphase inverters for their reliability and performance. It felt great to “go American” with this investment!The installation crew was phenomenal—professional, efficient, and friendly. A special shout-out to Jan, Dave, Rhys, Harrison, Lee, and the rest of the team (apologies if I missed anyone!) for making the process smooth and enjoyable. I highly recommend Independent Power for anyone considering solar energy.
Response from the owner: Thank you for the 5-star review, Dan, we are humbled. Our mission is to help transition our community to solar and home electrification and help customers gain energy independence, save money and live in a cleaner, more comfortable home. Our passion is to provide the best service and offer products we believe in. We are grateful for this detailed review, and we hope to be of service in the future.
tom H.
I had my first semi annual check up and The service was excellent. The technician showed up on time, Ward booties into the house, did they thorough check of my furnace and provided verbal and written comments about the performance of my furnace. I highly recommend this company as well as the technician, Dakota.
Response from the owner: Thank you for the 5-star review, Tom! Dakota is passionate about helping customers in need. He knows that when a furnace breaks as temperatures drop or A/C fails when it's roasting outside, it can be distressing for people. We are lucky to have him on the HVAC team. We appreciate you choosing us for your service. Please reach out if we can help in the future.
P M.
The heat zones in my home haven't been right for years and its just something that I thought was normal for a boiler system, cold in some rooms, hot in others. Dakota came to diagnose the problem and was so thorough and spent so much time explaining the system to me, and then diagnosed it perfectly! The price was fair as well.When the part came in, he made sure that I had heat before the first cold spell, and now the heat in all the rooms is so even. I am so happy with Independent and Dakota!
Response from the owner: Thank you for the 5-star review! Dakota is a pro at evaluating an issue and coming up with a solution. The reason we truly enjoy having him on the Independent Power team is his commitment to helping every customer. He is passionate about making sure everyone is taken care of. We're grateful for your detailed review, and we're thrilled to hear you're cozy in every room of your home. Please let us know if we can be of service in the future.
Anna P.
The entire team was very communicative and kind.
Response from the owner: Thank you for the 5-star review, Anna! We appreciate you taking the time to recognize our team, and we hope we can be of service in the future.
Kevin H.
Great team! Everyone was very helpful and considerate of my home both inside and out. I especially appreciated a run-down of the exterior and interior electrical changes that Josh did. He also helped me out with some extra electrical accommodations that were specific to my home.
Response from the owner: Thank you for the 5-star review, Kevin! We love helping our community upgrade to a heat pump! It was smart of you to get your project finished in time for our cold months ahead. Your going to be cozier, more comfortable, and enjoying a cleaner environment. We appreciate you choosing us for your installation. Please let us know if we can be of service to you or your friends in the future.
Agaf D.
Outstanding work, very efficient and thorough. Did a great job pulling wire through a long run without putting more holes in my ceiling. I'd definitely recommend them.
Response from the owner: Thank you for the 5-star review, Agaf. We sure appreciate you trusting us for your project. Getting the job done well while keeping your home's aesthetics in mind. We hope to be of service in the future.
ALEX M.
I cannot recommend them Highly enough. The entire team from office staff to technicians was professional, and involved with trying to get my system going again after Xcel's meter upgrade. After Xcel replaced my meters, the inverters started throwing errors. I called Xcel and they claimed that the problem was with the solar system. I called IPS and they came out and checked and everything was OK with the system. Xcel came back and again claimed it was the solar system, so Rick Roser came out. checked it yet again, took pictures showing the issue was with the meter, explained to me what was going on and offered to make himself available for Xcel. Xcel claimed it could not be the meter, but eventually came out and replaced the meter.. Of course it turned out that it was the meter.
Response from the owner: Thank you for the 5-star review, Alex! We know it can feel frustrating when utility company's give you the run around and we do our best to help navigate the system. We sure appreciate your patience as we helped you get the situation remedied with Xcel. Rick is one of our original crew members and we're happy he's part of the team.Please let us know if we can be of assistance in the future. We love our Denver community!
John K.
Response from the owner: Thank you for the 5-Star review, John. We are grateful for your decision to work with us for upgrading your HVAC system. Please let us know if we can be of service in the future.
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Independent Power
4.8
Based on 249 reviews
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