Homeowners in Colorado can take advantage of various HVAC and energy rebates offered through state and local programs. These include substantial incentives for installing high-efficiency heat pumps, with many rebates tailored for low- to moderate-income households. Eligible equipment, such as heat pumps, insulation, and electric appliances, may qualify for direct-to-consumer rebates depending on income level. These rebates can often be combined with federal tax credits for even greater savings.

Income-Qualified HVAC Rebate Programs

The Colorado Energy Office (CEO) will receive $140 million in federal funding to support two rebate programs aimed at helping income-qualified homeowners and renters in Colorado enhance home energy efficiency and transition to electric appliances. These upgrades are designed to reduce greenhouse gas emissions, improve both indoor and outdoor air quality, and lower home energy costs.

These rebates are designed to assist low- to moderate-income households, including renters, homeowners, and building owners who house low- to moderate-income tenants.

• Direct-to-consumer Home Electrification and Appliance Rebates are available to Coloradans whose household income is below 150% of the area median income (AMI) in their county. Rebate amounts will vary based on income level: households with an income up to 80% of the AMI are considered “low-income,” while those with an income between 81% and 150% of the AMI are considered “moderate-income.” Eligibility may change until the program launches.
• Energy-Efficient Properties: Rebates for improving home efficiency are accessible to owners of larger multifamily properties, mobile homes, or manufactured homes. Eligible properties must demonstrate a 20% reduction in their energy consumption over time since improving their efficiency. Achieving this reduction can increase the rebate amount, providing greater incentives for enhanced energy savings. However, to qualify, these properties must primarily serve income-qualified residents, defined as those with low to moderate incomes.
• Contractors assisting low- to moderate-income households may be able to apply for the rebate on behalf of the household or building.

Xcel Energy HVAC Rebate Programs

As one of Colorado’s largest utility providers, Xcel Energy offers rebates for a variety of energy-efficient HVAC upgrades. The company encourages homeowners to invest in energy-saving systems to lower energy consumption. Available rebates include:

• High-Efficiency Furnaces: Homeowners can receive a rebate for replacing an old furnace with a new, energy-efficient model based on the system’s efficiency.
• Air Conditioning Systems: Rebates are offered for qualifying ENERGY STAR®-certified air conditioners, which use less energy to cool your home.
• Smart Thermostats: Upgrading to a smart thermostat helps optimize energy use, and Xcel Energy offers rebates for this upgrade.
• Heat Pumps: Installing a heat pump system that both heats and cools a home qualifies for a rebate due to its energy-saving capabilities.

Great Guys will help you select HVAC systems that qualify for Xcel Energy’s rebates and meet your home’s unique needs. Making those Energy-efficient upgrades will reduce your monthly utility bills while improving comfort. Our team ensures your new systems are installed to perform at their peak efficiency. Whether it’s upgrading to a smart thermostat or a new heat pump, we make your home smarter and greener.

Federal Tax Credits for Energy-Efficient Home Improvements

There is a tax credit that can be used towards your home which was called the 25C Tax Credit. It is now called the Energy-Efficient Home Improvement credit. This tax credit can be used towards your home if you made any improvements after January 1st, 2023. If you made these adjustments to your home after that date, you may be able to qualify for a $1,200 tax credit. This specific credit can be incredibly beneficial for homeowners when you are making changes and adjustments to your home’s HVAC, Electrical, or Plumbing systems. You can spread out these projects and claim these tax credits each year.

The improvements that are eligible within your home include:

• Energy audits (up to a $150 credit)
• Air sealing and insulation
• Heat pumps (up to a $2,000 credit)
• Heat pump water heaters (up to a $2,000 credit)
• Electric panel upgrades
• Energy-efficient HVAC systems
• Energy-efficient windows and doors (up to $500 total for all exterior doors)

Making energy-efficient upgrades to your home isn’t just good for the environment—it’s also great for saving money. From lowering monthly utility bills to qualifying for rebates and tax credits, these improvements are a smart investment. Our team specializes in helping homeowners make impactful, energy-saving changes to their HVAC and electrical systems.

We’ll help you navigate energy-efficient options that qualify for Colorado’s rebates and tax credits. Our HVAC and electrical solutions will meet or exceed energy efficiency standards, ensuring you maximize your savings. We are incredibly proud of our customer service excellence, which is why we work closely with you to identify the best solutions for your home and budget.

Colorado Tax Credits and Rebates: Heat Pump Incentives

Starting January 1, 2024, Colorado introduced a new state tax credit for the installation of heat pumps and heat pump water heaters. This credit applies to the installation of the following Energy Star-certified heat pump technologies:

• Air-source heat pumps
• Ground-source heat pumps
• Water-source heat pumps
• Combined-source heat pumps
• Heat pump water heaters
• Thermal energy networks
• Variable refrigerant flow heat pump systems

To qualify for these tax credits, customers must follow guidelines set by the Colorado Energy Office, which include the following key requirements:

• Heat pumps used for space heating and cooling must be capable of meeting at least 80% of the annual heating needs.
• A registered contractor must handle the installation of eligible heat pump technologies.
• Registered contractors are required to pass on the tax credit to customers as a discount on the installation cost.
• Contractors must complete and submit the necessary paperwork to the Department of Revenue for the installed equipment.
• The state will reimburse contractors via a tax credit when they file taxes.

By upgrading to an energy-efficient heat pump system, you reduce your energy bills and qualify for significant rebates and credits. Great Guys Colorado offers

top-quality heat pump systems that meet rebate standards and are tailored to your home’s needs. Heat pumps are one of the most energy-efficient HVAC solutions, keeping your home comfortable year-round.

Why You Should Take Advantage of HVAC & Energy Rebates — And How Great Guys Colorado Can Help

At Great Guys Colorado, we make upgrading your HVAC system more straightforward and affordable. We offer financing options for all projects. Great Guys Colorado is committed to helping low-income households find solutions that provide quality service, the right system, and payment plans that work for their budget. We provide a variety of HVAC systems that will qualify for these rebates, helping you save money over time.

Why Consider HVAC and Energy Rebate Programs?

Homeowners can benefit from these programs in several important ways:

• Lower Installation Costs: Rebates can significantly reduce the upfront expense of installing energy-efficient HVAC systems.
• Save on Energy Bills: Energy-efficient systems consume less power, leading to substantial savings on monthly utility costs.
• Improve Home Comfort: Modern systems enhance temperature control and air quality, providing a more comfortable living environment.
• Increase Home Value: Upgrading to energy-efficient equipment boosts your property’s value and appeal to future buyers.

Our team at Great Guys Colorado will work with you to find HVAC solutions that qualify for rebates and tax credits while meeting your home’s unique needs. Our team ensures that your system is installed correctly, maximizing efficiency and performance.

Upgrading your HVAC system in Colorado is a smart investment, and with available rebates, it’s more affordable than ever. By choosing energy-efficient equipment and taking advantage of local incentives, you’ll enjoy immediate savings and long-term benefits.

For detailed information on available rebate programs and eligibility, consult your local utility provider or the Colorado Energy Office. If you need help selecting and installing the right energy-efficient system, Great Guys Colorado is here to guide you every step of the way.