When it comes to making upgrades to your heating and cooling, HVAC rebates and other home improvement incentives can make a huge difference in the overall cost of your new system. Rising energy expenses are a real concern for Colorado homeowners trying to balance their household budgets while ensuring their homes have the best, safest and most energy efficient systems and appliances possible.
Fortunately, there are several ways you can leverage local, state and federal incentives to help you make changes like a new heat pump or an energy efficient water heater more affordable. Unfortunately, those incentives can also be difficult to find! We created a handy guide to help busy homeowners know where to go for research when it comes time to make your next big purchase. We hope it will help you save hundreds — or even thousands — of dollars on your next energy upgrade. Let’s get the savings hunt started!
Table of Contents
Types of Incentives Available to Colorado Homeowners
The major challenge for homeowners in the search for HVAC rebates and other energy incentives is that they are scattered amongst a variety of agencies and manufacturers, each with their own set of rules and regulations. Here are the four key areas to check when selecting a new HVAC system, adding a heat pump, making an upgrade to your water heater, updating your electrical system and more!
Federal Tax Credits
Let’s start at the top with federal tax credits and work our way down! The Inflation Reduction Act and the Energy Efficient Home Improvement Credit are two examples of federal tax credits that help homeowners save money on qualifying purchases like energy efficient furnaces, heat pumps, water heaters and more. These credits typically require you to fill out the proper IRS forms and maintain your receipts as proof.
State and Local Energy Incentives
Your state and local agencies also provide helpful HVAC rebates and other energy savings. Colorado has been very focused on providing economic relief for residents upgrading their home systems while encouraging them to invest in safer, more energy efficient options. Colorado’s Heat Pump Tax Credit is just one example.
Colorado Home Energy Rebate Program
Utility Company Rebates and Savings
Local utility companies may also provide instant savings, billing credits or other incentives when purchasing a new HVAC system or making other energy upgrades in your home. These savings are specific to the provider, so it’s important to check carefully to ensure your new system qualifies with their individual program. We’ve included a helpful list of the major utility providers in Colorado below.
Manufacturer Rebates
Manufacturer rebates can offer some of the biggest savings, with huge plumbing, electrical and HVAC rebates on top products. The manufacturer rebate requirements can also be the most frustrating. Anyone who has ever had to process a mail-in rebate with multiple receipt copies, serial numbers and forms knows how tedious it can get! However, they are worth the savings versus the time spent and you should absolutely consider rebates as a factor in your purchase.
How to Find Rebates, Credits and Incentives
Now that you know the types of offers available, you can begin to dig deeper to find your potential savings. Let’s take a look at ways to zero in on the deals that matter to you.
Utilize Rebate Finder Tools
There’s a tool or app for everything these days and saving money on HVAC is no exception. Here are some of the top rebate-finder tools available. Remember, these tools may not find every rebate available, so be sure to lean on other tips in this guide to ensure you don’t leave thousands of dollars on the table.
Review Your Local Utility Company Incentives
The easiest way to find local credits is to check out your provider’s website. You can usually find their website on your energy bill or look them up online. If you can’t find an obvious link on the homepage, use the search bar and terms like “rebate,” “incentive” or “savings.”
List of Top Utility Providers in Colorado with Direct Links to Their Energy Savings Pages:
- Colorado Springs Utilities
- Black Hills Energy
- Xcel Energy
- Mountain View Electric Association
- San Isabel Electric
- Colorado Natural Gas
- Pueblo West Water
Remember, if you don’t see your individual utility company on here, they may still provide a rebate or incentive! Search their website, contact customer service or ask your neighbors to ensure you’re not missing out on saving!
Ask Your HVAC Service Provider
Your HVAC provider should be in the know about all the potential rebates and savings associated with the systems they sell. At Flow Right, we make it a point to track all of the current rebates offered by the brands we install and inform our customers of potential savings. Depending on the type of system purchased and the rebate/incentive, we can often help our customers process some of these savings.
Boost Your Savings — Stack Incentives
While you may be limited at how much you can save under a single rebate or incentive, you are not limited in stacking your potential benefits to maximize your savings. It is quite possible to get a manufacturer rebate, a tax credit, a utility company rebate and state and local incentives all on the same purchase. Use that knowledge to guide you when you begin the hunt for the right upgrade. Tools like the Energy Star Rebate Finder make it easier than ever to gather up potential savings and guide your final decision.
Examples of Eligible Upgrades
There are many different upgrades that may be eligible for HVAC rebates, energy credits or other savings. Systems must qualify under the parameters of the individual incentive program.
- Heat pumps
- Central AC
- Furnaces
- Boilers
- Heat pump water heaters
- Tanked water heaters
- Electrical panel upgrades
Take These Steps to Avoid Making Mistakes When Trying to Save
It is really important to pay attention to the details when trying to save money on HVAC upgrades and other home improvements. Many of the incentive programs available are run by government agencies and have strict requirements for homeowners to qualify. Take these steps to avoid costing yourself money.
- Read the fine print. Many of these programs require specific energy ratings, types of equipment, professional/licensed installation or other parameters in order for you to receive your savings. Sometimes you can skim the fine print. This is not one of them.
- Purchase a qualifying product — right down to the exact make and model. This is a very common mistake that can be costly!
- Use a licensed installer for your system. Not only can it be required for incentives, it is likely required for your warranty.
- Keep all your paperwork. This is particularly important for federal and state tax incentives. Make additional copies and keep a set with your tax return in the event of an audit (if you use state or federal incentives).
- Watch those deadlines! Manufacturer rebates may have a time limit for applying. Some programs may also have a first come, first served system with limited funding that could run out before you’ve sent in your paperwork.
Make Your Energy Upgrades Pay You Back
Energy incentives are a great way to get the upgrades you need in your home without breaking your bank account. Use this guide to help you research your upcoming purchase and collect every possible incentive, rebate or credit possible to save money.