Colorado Energy Rebates 2026

Colorado offers federal HOMES rebates (up to $8,000), HEAR point-of-sale rebates (up to $14,000 for low-income households), the state’s Heat Pump Incentive (up to $3,000), Xcel Energy utility rebates (up to $4,200 for cold-climate heat pumps), and the Weatherization Assistance Program for low-income households. Many of these programs stack for $20,000+ in combined savings. Note: HEAR Region 1 (Front Range) closed April 28, 2026; Region 2 remains open.

Through the Colorado Energy Office’s HOMES program, low-income households (under 80% AMI) can receive up to $8,000 and moderate-income households (80–150% AMI) up to $4,000 for whole-home energy retrofits. The rebate depends on the energy savings achieved by the project.

Yes, the Colorado Heat Pump Incentive is designed to stack with federal rebates. You can potentially combine it with HOMES or HEAR rebates, plus Xcel Energy utility rebates for significant total savings. The total combined incentives generally cannot exceed 100% of the project cost.

Xcel Energy offers up to $4,200 for qualifying cold-climate air-source heat pumps, $800 for heat pump water heaters, and additional rebates for insulation, air sealing, and smart thermostats. These utility rebates can typically be stacked with state and federal incentives for significant total savings.

Colorado’s HEAR program is available to households at or below 150% of the area median income (AMI). Low-income households (at or below 80% AMI) receive 100% cost coverage up to $14,000 total. Moderate-income households (80–150% AMI) receive 50% cost coverage up to $7,000. In the Denver metro area, 80% AMI for a family of four is approximately $72,800.

Yes. Households above 150% AMI cannot access HEAR point-of-sale rebates, but can still benefit from: Xcel Energy utility rebates (no income limit, up to $4,200 for heat pumps), the Colorado Heat Pump Incentive (up to $1,500 for market-rate households), Colorado Springs Utilities rebates, and the HOMES program via the modeled energy savings pathway. Together these can offset $5,000 or more of electrification costs.

As of 2026, the Colorado HEAR application is initiated by your contractor, not the homeowner. Start by confirming your income eligibility (households must be at or below 150% AMI) and checking whether your county is in Region 2 (open) or Region 1, which closed April 28, 2026. Then find a CEO-registered contractor at energyoffice.colorado.gov — they will open your application in the state portal, guide you through uploading income documents, and submit the project proposal on your behalf. Plan for 4 to 6 weeks from submission to rebate reservation. The rebate is applied as a point-of-sale discount at installation — your contractor deducts it directly from your invoice.

Colorado’s HEAR program covers six categories. For households at or below 80% AMI (100% cost coverage): heat pumps up to $8,000, electrical panel upgrades up to $4,000, home wiring up to $2,500, heat pump water heaters up to $1,750, insulation and air sealing up to $1,600, and electric stoves or induction cooktops up to $840. The household maximum is $14,000. For households at 80–150% AMI, the same dollar caps apply but coverage is 50% of project cost, up to a $7,000 maximum. Important: heat pump clothes dryers are NOT eligible in Colorado’s program. All equipment must be ENERGY STAR certified and installed by a CEO-registered contractor.