Colorado as a whole, and specifically the Denver Metro Area, is on the road to electrification in a big way. We continue to see top-down incentives roll out in order to reduce the burning of fossil fuels, and in our case, natural gas to heat our homes in favor of moving towards all-electric high-efficiency cold climate heat pumps.
If you live in a certain slice of east Denver and central Aurora, Xcel Energy is offering one of the single biggest heat pump incentives in Colorado right now (up to $15,000 per heat pump). In the case of what they call the Aurora F3 project, it only applies to homes inside a specific map (see below for specifics).
I’d like to walk you through what the Aurora F-3 Project is, whether your home is inside the boundary, what it pays for, and the one big rule you need to know before you get excited. I’ll keep it short and practical. Let’s get into it!
What Is the Aurora F-3 Project?
Xcel Energy has a natural gas line in this part of the metro (called “F-3”) that, as we understand it, gets maxed out on the coldest winter mornings. Rather than building a bigger gas pipeline, Xcel decided it makes more sense to pay homeowners to switch to electric heat instead. In Xcel’s terms, this is a “non-pipeline alternative.”
That’s good news for you (if you live within the map boundary)! Xcel’s usual heat pump rebate is calculated per ton. The F-3 program instead covers 100% of your project cost, up to a cap, which is a much bigger number.
Are You Inside the Boundary?
Eligibility is decided by where your home physically sits, not by your city. That matters here, because the zone covers parts of Aurora and Denver (the Lowry neighborhood is in Denver, but inside the loop). Xcel’s territory map overrides city limits.
The zone is a closed loop with these edges:
- North: E. Montview Blvd, then E. Colfax Ave, then E. 13th Ave
- East: Chambers Rd, Sable Blvd, and I-225
- South: E. Mississippi Ave and E. Alameda Ave
- West: Monaco St Pkwy, E. 8th Ave, and N. Quebec St
Landmarks inside the loop include Lowry and the Community College of Aurora area. The Anschutz Medical Campus sits just north of the Colfax edge.
Not sure if you’re inside the line? Send us your address and we’ll check it against Xcel’s official map.
To qualify, you also need to:
- Be an Xcel natural gas customer (gas only, or gas and electric). Everyone in this boundary should be one.
- Have existing gas heating equipment you’re replacing (boiler or furnace).
- Have no existing electric resistance heat (like baseboards). Those homes can still get Xcel’s standard rebates, just not F-3.
- Be replacing heat in an existing, previously conditioned home – new construction and newly conditioned space don’t qualify.
What Does F-3 Pay For?
Each is “100% of project cost, up to” the amount shown (equipment plus labor, but not taxes or shipping). We here at Just Heat Pumps install only heat pumps, but can certainly help you with some good partners to do the other work if you like, as these incentives are not ones to pass up on.
| Upgrade | F-3 Rebate |
| Ducted cold climate heat pump | Up to $15,000 |
| Ductless mini split (cold climate) | Up to $15,000 |
| Ground source heat pump | Up to $15,000 |
| Air sealing | Up to $1,200 |
| Wall insulation | Up to $3,600 |
| Attic insulation | Up to $2,550 |
While we only install the heat pump side of the projects, we love helping homeowners figure out what makes the most sense in terms of start-to-finish full efficiency measures. For instance: doing air sealing and insulation work is some of the best bang-for-your-buck investment you can do for your home.
You can then pair a brand new all-electric heat pump to match your new, reduced heat load that you need for the home. Results are more comfort and lower bills all around, with these elevated Aurora F3 rebates as icing on the cake!
The fine print on the weatherization: air sealing needs at least a 20% drop in leakage (we do the blower door tests), wall insulation is for empty wall cavities (to R-13 or better), and attic insulation is for attics under R-24 getting to R-60 or better.
The Golden Rule: The Gas Furnace Has to Go
This is the big one. To get the heat pump rebate, you and your contractor have to certify that your old gas furnace or boiler is fully removed. You can’t keep it as a backup.
If you want to keep gas in the picture (a dual fuel setup), you’d be looking at a much smaller F-3 incentive: up to $3,000 for a new 95%+ efficiency furnace, and you’d give up the $15,000 heat pump rebate.
I know “no backup” can feel scary in a Colorado winter. Fear not! Today’s cold climate heat pumps are built to keep heating well below zero. When we size the system correctly with a Manual J / Manual S / Airflow calculation and more, we’re confident it handles our Front Range cold snaps.
Cold Climate Heat Pump Specification Requirements
Along with the requirement of removing your gas-firing heating appliance (furnace or boiler), you have to meet certain efficiency specification requirements as well. Check out the table below for specifics.
To keep things streamlined and simple (and to stay true to our mission), we only install the best cold climate heat pumps on the market, which all meet or exceed these Aurora F3 requirements. From your end, this means no worrying (or hours of research) if what you’re getting actually qualifies or not.
Cold Climate Air Source Heat Pump (ccASHP), Non-Ducted (mini split) Minimum Specifications
16 SEER2, 9 EER2, 9.5 HSPF2, COP at 5 F ≥ 1.75, and the heating capacity at 5 F must be at least 70% of the 47 F rated heating capacity. Qualifies for up to 100% of the project cost, up to $15,000.
Cold Climate Air Source Heat Pump (ccASHP), Ducted Minimum Specifications
15.2 SEER2, 10 EER2, 8.1 HSPF2, COP at 5 F ≥ 1.75, and the heating capacity at 5 F must be at least 70% of the 47 F rated heating capacity. Qualifies for up to 100% of the project cost, up to $15,000.
Cold Climate Air Source Heat Pump (ccASHP), Mixed Ducted and Non-Ducted Minimum Specifications
15.2 SEER2, 10 EER2, 8.1 HSPF2, COP at 5 F ≥ 1.75, and the heating capacity at 5 F must be at least 70% of the 47 F rated heating capacity. Qualifies for up to 100% of the project cost, up to $15,000.
There are also ground source heat pump (GSHP), 95% AFUE (must be replacing non-condensing furnace), and heat pump water rebates too. We don’t do those here, but again you can contact us to ask about great partners on these.
What Would You Actually Pay As An Example?
Let’s look at an example: a 3 ton cold climate heat pump project at roughly $25,000 installed.
| Estimate | |
| Project cost (before incentives) | $25,000 |
| Less: Xcel Aurora F-3 rebate | -$15,000 |
| Less: Power Ahead (if you qualify) | -$1,500 |
| Colorado Heat Pump Tax Credit | -$1,000 |
| Estimated out of pocket | $7,500 |
How the Process Works
- Verify your address and Xcel gas account. (Send it to us and we’ll check.)
- Room-by-room Manual J load calculation to size the system right.
- Install the heat pump and remove the gas furnace (including capping the flue).
- Commissioning. For ducted systems, Xcel requires a completed ACCA Standard 5 Quality Installation form. If airflow and static pressure aren’t dialed in, the application can be rejected, so we take this part seriously. (Ductless mini splits don’t need this form.)
- We submit the rebate paperwork with the invoice and equipment details.
A few program rules to keep in mind: you must use an Xcel Trade Partner (we are one), and the equipment has to stay installed for a year. Because funding is limited and first come, first served, it’s worth moving sooner rather than later.
Wrapping It Up
The Aurora F-3 Project is a rare one: a big utility incentive that pays for most of a heat pump and the weatherization that makes it work better. The catch is the map, and the rule that the gas furnace comes out. If you’re inside the boundary and ready to go all electric, this is a no brainer to look into.
There’s more to every home’s story than I can fit here, but I hope this helps as a start. If you have any questions at all, or if you’d like us to check your address and explore a heat pump under this program, please reach out to us here.
We love chatting through these with you, as we specialize in all-electric heat pumps, heat pump design, ductwork modifications needed to make the airflow work, and more, so this is right up our alley.
Thank you for reading!
