How to Get HVAC Rebates in Colorado

Colorado offers many incentives to homeowners and business owners who want to be more energy-efficient. These incentives come in the form of rebates and bonuses from the state itself and private companies. While there are several types of rebates, many of them revolve around heat pumps, evaporative coolers, and water heaters.

Equipment Up for Rebates

Heat Pumps

Heat pumps provide a more efficient option for heating and cooling a home. Rather than burning fuel, the pump warms and cools air by transferring heat inside or outside, depending on the preferred inside temperature. A heat pump may use air, the ground, or water as the heat source.

Heat pumps are becoming an increasingly popular option for heating and cooling a home, especially when paired with tax credits and rebates. 

Evaporative Coolers

Some Colorado residents opt for evaporative coolers over air conditioners. These devices cool the air by circulating evaporated air throughout the room. This also adds moisture to the air, which is often needed in our dry Front Range climate.

Water Heater

While most of us are familiar with water heaters, there are more energy-efficient models that can cut down on your energy bill while still effectively warming your water.

Types of Rebates

Xcel Energy Rebate and Bonus

Xcel Energy customers may be qualified to receive a large rebate and accompanying bonus for installing a new heat pump. The standard rebate is calculated per heating or cooling ton of the heat pump. While an air-source heat pump can receive a rebate of $300/cooling ton, a ground-source heat pump can receive $1,100/heating ton. As many homes install a three-ton heat pump, homeowners can save thousands of dollars from this rebate.

Starting in October 2026, customers may also receive a bonus if they don’t use an existing electric heat system as their primary heating source. So if you’re switching from a gas furnace to a heat pump, you could be eligible for this bonus, which can double the eligible rebate amount. 

Xcel also offers rebates for evaporative coolers — from $400 to $1,500 — and water heaters. If you’re an Xcel customer, learn more about their rebate and bonus details. 

Region-Specific Rebates

Efficiency Works

Customers in Fort Collins, Loveland, Longmont, and Estes Park may be eligible to receive rebates through Efficiency Works, a program only offered to residents of these cities. The rebate amount varies, from air-source heat pumps receiving up to $2,000 per unit to ground-source pumps receiving $3,000 per unit.

Efficiency Works also offers rebates for whole home mechanical ventilation and the installation of smart thermostats. 

Efficiency Works rebates can be applied in addition to Colorado state tax credits and rebates/bonuses from Xcel Energy. Learn more about Efficiency Works rebates to see if your home is applicable.

Poudre Valley REA

Customers of Poudre Valley REA may be qualified to receive rebates as well. For air-source heat pumps, rebates can reach up to $1,500 for pumps larger than 1.5 tons. Electric ground-source heat pumps can get rebates up to $500 per ton of capacity. Heat pump water heaters can also receive rebates up to $350. 

If you’re a Poudre Valley REA customer, learn more about their rebates to see if you qualify.

Choose A Plus for Your HVAC Installation

Many homeowners are taking advantage of these rebates while they’re still active. If you’re interested in upgrading any aspect of your HVAC system, from heat pump to AC installation, contact our experts at A Plus Heating & AC today.