There has been a whirlwind of rebate activity throughout Colorado and for heat pumps within the last year or two, which of course isn’t a bad thing!
Power Ahead Colorado and DRCOG (Denver Regional Council of Governments) has also recently come onto the scene with a nearly $200M grant from the EPA as well, with much of that slated for heat pump rebates.
There has also been some confusion from homeowners lately regarding the actual details and launch date for this upcoming rebate, so we wanted to provide some clarity on all the details, and how you can take advantage of it.
What is Power Ahead Colorado and DRCOG?
Power Ahead Colorado is a landmark building decarbonization initiative launched by the Denver Regional Council of Governments (DRCOG), a planning organization representing 58 local governments in the metro area
DRCOG led a regional coalition to secure a $199.7M grant from the EPA with the goal of reducing climate pollution. The funding was provided by the Inflation Reduction Act and was one of the largest of its kind in the country. Additional goals include:
- Reduction of greenhouse gases and air pollution by 70% focused on Denver’s building sector by 2050.
- Improve local Denver Metro air quality (a big goal of ours too!).
- Lower energy burdens for Denver residents.
Nearly $40M in financial incentives is planned for heat pumps and electric appliances for those who live in the Denver Metro. The program is also planning to help over 2,000 low-income households with sustainable measures such as free energy retrofits and innovative community grants, among other things.
One of the most exciting goals from our end (as a heat pump contractor) is the focus on workforce development in this space, which includes a plan to train over 4,000 skilled people to help physically install the equipment in the green energy trades (not just heat pumps). This is so needed!
What is the $1,500 Power Ahead Rebate and When Does It Become Available?
This is a big question we’re hearing from Denver Metro residents lately and we wanted to provide clarity on it, because there’s some differing information out there in other articles and in AI searches, among other resources.
As of April 2026: The Power Ahead $1,500 rebate is not available yet, and the official rollout or plan for it is not live. The earliest it might become available is early summer.
I spoke to Mac Prather, Program Manager for Power Ahead and Dr Cog and here is what he told me (mid April 2026):
Thanks so much for reaching out Erin and team,
We are not rolling out incentives “early to mid-April” and don’t have any official launch communications out to the public yet, thanks so much for checking.
Homeowners will be eligible (and eligibility will be based on project install date) early summer. We are waiting on a few final pieces to be approved by our partners at US EPA before we can accept applications and before we finalize this date.
He also shared that the incentive will be integrated into the Colorado Contractor Hub, which is a great resource to find good contractors doing great things in all of the eco-trades around Colorado (we are included for heat pumps as well).
What Heat Pump Equipment Qualifies For The Rebate?
While it’s not official yet, we did attend the latest EEBC meeting at the Denver Museum of Science, where the Power Ahead / DRCOG team presented the initial details of the program.
Similar to the Xcel Heat Pump Rebates, and the Colorado HEAR rebates, these are the initial requirements on the equipment:
Ductless / Mini Split (Replaces/Supplements Your Gas Boiler) Cold Climate Air Source Heat Pumps:
- Must meet ENERGY STAR non-ducted cold climate heat pump criteria
- SEER2 must be greater than 15.2
- HSPF2 must be greater than 8.5
- COP at 5 degrees Fahrenheit must be great than 1.75
- Capacity ratio must be greater than 70% when 5 degrees Fahrenheit is compared to 47 degrees Fahrenheit
- $1,500 Customer Incentive
Ducted (Replaces Your Gas Furnace) Cold Climate Air Source Heat Pumps:
- Must meet ENERGY STAR non-ducted cold climate heat pump criteria
- SEER2 must be greater than 15.2
- HSPF2 must be greater than 8.1
- COP at 5 degrees Fahrenheit must be great than 1.75
- Capacity ratio must be greater than 70% when 5 degrees Fahrenheit is compared to 47 degrees Fahrenheit
- $1,500 Customer Incentive
Coincidentally (or planned), the above requirements pretty much exactly map what Xcel Energy needs for their heat pump rebates as well.
Updates Into The Future
That’s all we have for now! We just wanted to provide real information and to clear up any confusion on timing for these specific Power Ahead / DRCOG heat pump rebates for Denver Metro and Colorado residents.
We’ll update this article as soon as we hear more into the near future. And if you’d like help with your own heat pump design and installation in the meantime, please contact us here. Thank you!
