Make a plan for your home
Not sure how to get started with home electrification? This step-by-step guide will help you get started with navigating this process.
Get an energy audit
An energy audit will help you identify the most effective steps you can take to improve energy efficiency and comfort in your home. Xcel Energy provides low-cost energy audits to homeowners in their service territory, along with a wealth of resources. While an energy audit is not a requirement, we do recommend it as a place to get started. Be sure to consider other utility programs at this stage of the project by searching on your local utilities website. You can get started by using the incentive calculator imbedded below.
Based on the results of your energy audit, consider adding insulation or air sealing your home.
This will increase your home's comfort and tends to be more affordable. Often, people living in less insulated or leaky homes end up having to get larger heating and cooling equipment to make up for all the conditioned air that escapes. By adding insulation to your home you may be able to reduce the size of heating and cooling equipment and save money on both utility bills and new equipment.
You can also consider adding smart panels to your home, which will help maximize your electrical connection. This can potentially save you from having to upgrade your electrical service if you plan to move forward with electrification.
Research and choose the equipment you want to install.
If your furnace, air conditioner or water heater is more than 10 years old, it’s time to start making a plan for replacement. There isn’t one heat pump configuration that’s best for every home. Home size and layout, existing heating and cooling systems, building envelope insulation values, budget, comfort expectations, and environmental goals should all inform your heat pump selection. Check out the ”Why Heat Pumps?” page to learn more about the different kinds of equipment available.
Research rebates and incentives
Many rebates can be stacked with rebates and tax incentives from other sources like Xcel Energy, the Colorado Energy Office, and your local utility. Our friends at Rewiring America put together a great tool to help you find all of the rebates you might qualify for.
More Power Ahead Colorado incentives are planned for later in 2026, but several programs are available to help with your project right now.
Get quotes from contractors.
Once you have picked the equipment you think you want to install, you will need to find a contractor to work with who will help you evaluate the best options for your home, complete the installation, and ensure everything is working correctly. Start by visiting the Colorado Contractor Hub to view contractors signed up to offer incentives and benefits from a variety of programs. We recommend that you get at least three quotes from three different contractors so that you can make the best decision about who to work with and what work needs to be done.
Need more help? Power Ahead Colorado energy advisors will be available early 2026 to help you understand the available incentives and plan a project.
Pick your installer
Once you have gotten quotes from approved contractors, you can decide which contractor to work with. Make sure to emphasize which programs and incentives you are interested in. Some incentive programs require that your installer gets pre-approval for the your rebate before starting the work.
Need help picking a contractor? The ENERGY STAR Bid Comparison Checklist can help you ask the right questions as you talk to contractors.
Work with your chosen contractor to get a scope of work and a cost estimate.
The Home Energy Rebate should be accounted for in your cost estimate up front as a line-item discount. Ensure that you are comfortable with the final cost of the project, the project timeline, and the work that you have both agreed on. Denver’s rebates require that all work is permitted appropriately, this process should be handled by your installer as well.
Look for financing
If you need help covering the gap between the rebate(s) and incentives you received and the total cost of the project, financing can help. The Colorado Clean Energy Fund offers below-market-rate financing for clean energy projects such as installing the equipment covered by many local programs.
Schedule your installation, and pardon the bustle while work happens in your house.
Depending on the scope of work, you can generally expect your new equipment to be installed within a few days.