Incentive Program Details and FAQs

The Power Ahead Colorado rebate requires heat pumps to be able to efficiently heat at an outdoor temperature of 5°F, which means that these heat pumps can satisfy most heating needs for Coloradans. If you have an older furnace, you may be able to extend its life span by pairing it with a heat pump and only using it on the coldest days.

Whether a heat pump, space heater, or any combination of heating equipment is a more cost-effective option in the long run depends on your use and preferences. A secondary heat pump has a much higher upfront cost than a space heater but may be cheaper per unit of heating energy.
 

Adding a heat pump will increase annual electricity use, so will require a larger solar system to meet home energy demand. For most people, sizing their solar system to meet (but not exceed) annual electricity use will result in the most cost savings. 

Some utilities offer a Time-of-Use (TOU) rate, where the price of electricity is set much higher during peak demand hours and significantly lower during the rest of the day compared to the standard rate. Homes and businesses with solar energy systems can opt into their utility's TOU rate to reduce monthly energy costs. A TOU rate may or may not be the right fit for someone depending on how they plan to use their heat pump, due to coincidence between heating and cooling loads and peak demand hours.

We encourage you to reach out to our energy advisors regarding your current solar energy system and discuss how you plan to use your heat pump. Energy Advisors can help you identify key points to bring up with your contractor and utility as you design the system and select the rate that best meets your goals.

While Power Ahead Colorado offers free over-the-phone energy advising, we do not currently offer in-person advising for residential homeowners. Many utilities and municipalities offer rebates for energy audits that can provide meaningful in-person insight into your HVAC system setup. Reach out to us at 844-303-9333 and we can point you in the right direction! 

Heat pumps use refrigerants to move heat from one space to another. Refrigerants can even extract heat from very cold air temperatures below zero, so the heat pump can continue to provide heating for your home even during the coldest weather. 

Installing a mini-split or ducted heat pump typically involves adding an outdoor heat pump unit, one or more indoor units (or an indoor air handler for a ducted system), refrigerant lines, electrical wiring, controls, and a condensate drain. The work usually includes mounting the equipment, connecting the system, and testing it to ensure it operates properly. For ducted systems, existing ductwork may need to be modified. In some homes, an electrical panel upgrade may also be needed if the current panel lacks sufficient capacity. 

Heat pump systems typically have an air filter on the indoor air handler that should either be cleaned or replaced routinely based on manufacturer’s guidance. It is best to discuss these guidelines with your contractor during the installation. We encourage having a contractor perform regular maintenance on your heat pump as you would with any heating or cooling equipment. We have more specific guidance coming soon!

Heat pumps offer many benefits! Heat pumps are generally more efficient in heating and cooling spaces than conventional equipment like gas furnaces and air conditioners. Heat pump systems are better separated from outdoor conditions than vented heating and cooling equipment, which can mean cleaner indoor air when wildfire smoke is prevalent. Despite most modern systems being sealed, gas furnaces and boilers still require combustion within the home, which can introduce chemicals that can produce negative health effects. A small leak in a gas system can introduce deadly carbon monoxide gas. There is no risk of this with a heat pump system. 

We highly recommend your space be properly weatherized before installing a heat pump. Insulation will reduce how hard your heat pump has to work on the warmest and coldest days, saving you money. Air sealing improvements will help keep your cooled or heated air inside the home, while also keeping outdoor air from leaking in. 

Ductless heat pumps typically have lower upfront installation costs because they are simpler units that require a same-day installation. Ductless heat pumps, or mini splits, do not rely on a central ductwork system, so they are generally a better option for cooling or heating a part of the home. 

Ducted heat pumps are more complex systems that are typically more expensive to install. Ducted heat pumps are connected to central ductwork to provide efficient whole whole-home heating and cooling. They can be connected to a furnace to create a dual fuel system where the furnace serves as back up. Ducted heat pumps can be an ideal choice for someone who wants balanced heating and cooling throughout the home and has the existing ductwork.

You can contact us at info@advising.poweraheadcolorado.org or 844-303-9333. One of our Energy Advisers will be able to look at your project and provide guidance. 

Heat pumps installed on or after June 29th, 2026 without program pre-approval are eligible for rebates on a case-by-case basis. Have your contractor consult with Power Ahead Colorado Energy Advisors (844-303-9333) to learn more. Retroactive rebates are not available for heat pumps installed before June 29th, 2026.

Customers need to take action at two points in the rebate process. The first point occurs after the program pre-approval review is completed. You will receive an email prompting you to sign the program's Terms and Conditions. After your contractor installs the equipment and submits post-work documents, you will receive a second email asking that you provide a final sign off. Both pre-approval and final review processes each take 5-10 business days. 

Once the equipment is installed and the final review has been completed, please allow up to 60 days for disbursement of payment.

Power Ahead Colorado rebates require participating contractors to install eligible equipment, and those contractors are best able to submit rebate claims. 

Yes, you can work with the contractor and still redeem the Power Ahead Colorado rebate, but they must first apply to enroll in our program, file a claim for your project, and get the claim pre-approved.

While possible, this is not something we recommend. Contractors typically apply for and receive pre-approval for projects to confirm they are meeting the program requirements. 

If your heat pump was installed after June 29th by a contractor who was not enrolled in Power Ahead Colorado at the time, but is currently enrolled in the program, you may be able to claim the rebate. Please consult Energy Advisors for more guidance (844-303-9333).

There are multiple factors to take into account that can influence cost. Talking with Power Ahead Colorado energy advisors (844-303-9333) can help you understand the pros and cons of different arrangements so you can balance cost in meeting your heating and cooling goals.

Energy bills can go up or down depending on how your heat pump fits into your home’s HVAC system. The amount by which monthly bills change varies depending on your lifestyle, whether the home is properly weatherized and air sealed, and the heat pump size and model, among other factors. RMI’s Green Upgrade Calculator can help you understand how your specific project can impact your bills. 

The price range for a residential ducted heat pump project, before incentives are applied, is typically $15,000-$25,000. The price range for a residential mini split project before incentives is typically $8,000-$15,000. Multi-zone systems with several indoor head units can be over $20,000.

There are a variety of factors that can affect the cost of your project. A good rule of thumb to keep in mind, though, is that the labor costs for these projects typically amount to 50% of the equipment cost.

Ducted heat pump projects may require that the installer purchase additional pieces to ensure that the heat pump is properly connected to the ductwork and “matches” the furnace. Although Mini Split systems are generally more economic than ducted heat pump systems, the cost rises substantially when adding multiple zones to the project.

The size of the equipment, model selection, and additional electrical work that may be required can also impact the cost of the project. Heat pumps that can efficiently heat at -15°F temperature, for example, will be much more expensive than those that can only efficiently heat at temperatures of 30°F. More heating capacity correlates to a more expensive unit.

Power Ahead Colorado can be stacked with all available utility, municipal and state incentives. Because Power Ahead Colorado is federally funded, it cannot be stacked with other federally funded programs. If you’d like assistance in navigating incentives, our Energy Advisors can be reached at 844-303-9333 or at info@advising.poweraheadcolorado.org.

Most utilities and municipalities offer incentives designed for low-income residents. At the state level, the Colorado Energy Office offers a Weatherization Assistance Program that provides free weatherization and heating assistance to qualifying residents. There are also federally funded programs such as the Home Electrification and Appliance Rebates, available to select customers.

Installed equipment must be on the Qualified Products List or meet program requirements to be eligible. Rebate submissions go through a pre-approval process that will verify that your equipment is eligible for rebate. 

Power Ahead Colorado contractors must have proper licensure, refrigerant handling certifications, liability insurance, technical training, and agree to program requirements.

You can determine if the contractor is enrolled in Power Ahead Colorado by filtering for “Power Ahead Colorado contractors” on the Find a Contractor Tool. Enrolled contractors will have a lime green Power Ahead Colorado logo on their company card.

Power Ahead Colorado is a program run by the Denver Regional Council of Governments (DRCOG). In 2024, DRCOG received nearly $200 million in federal funding to help cut air pollution and greenhouse gas emissions. That funding is being used to improve homes and buildings across the Denver metro area by making them healthier, more comfortable, and more energy-efficient.

Power Ahead Colorado is aware of concerns about funding running out. Program funding is intended to last to 2029, and we are not nearing the end of funding. Additionally, our pre-approval process ensures that funding can be reserved for your project before installation.

All of these home types are eligible for Power Ahead Colorado. New construction is ineligible. Installed equipment must meet program requirements or be on the Qualified Products List to be eligible.

Power Ahead Colorado is funded through the EPA Climate Pollution Reduction Grant and must comply with federal requirements while ensuring quality project outcomes.
Federal requirements include:

• Davis-Bacon and Related Acts (DBRA) compliance when applicable
• Build America, Buy America (BABA) requirements (currently covered by a small project waiver for rebate work under $250,000)
• Debarment checks
• EPA Section 608 certification for refrigerant handling

Quality installation requirements help ensure systems perform correctly, reduce emissions, maintain customer comfort, and support long-term market confidence.
 

Enrollment applications are typically reviewed and approved within five business days. Incomplete applications may extend the review timeline.

No. Contractors should upload any available EPA 608 certifications during enrollment. A single EPA 608 certificate is sufficient for enrollment and establishing initial program compliance.

However, all technicians performing HVAC work must hold the appropriate EPA 608 certification. If certifications for all technicians are not submitted during enrollment, the Program Team will verify compliance during Quality Install Verification and may request additional documentation to confirm that all applicable technicians are properly certified.

Yes. Once an application reaches "Pre-Approved" status, contractors can edit customer contact information, enter or revise equipment and claim details, complete the project, and submit it for final approval.
Equipment and other project-specific information can be added or updated after pre-approval, as long as the application has not yet been submitted for final approval. 

Make sure to use the following portal address: https://rebates.poweraheadcolorado.org/paco

If issues persist, contact:
•    info@advising.poweraheadcolorado.org 
•    844-303-9333
 

Pre-approval and technical review responses are typically provided within five business days. Check spam folders before contacting support.

Yes. Multiple employees can have their own portal login credentials. However, each submitter will only be able to view and manage the rebate applications they submitted.

At this time, multiple logins cannot be linked to the same project or shared visibility across applications within the portal. Companies that need shared access may need to coordinate internally to manage project submissions.

1. Contractor submits a rebate pre-approval application.
2. Power Ahead Colorado reviews the application.
3. Customer reviews and signs the Terms & Conditions.
4. Power Ahead Colorado completes the final pre-approval review and reserves the rebate.
5. Contractor completes the installation and gathers final project documentation.
6. Contractor submits final project documentation and designates the rebate recipient.
7. Customer reviews the completed project and provides final sign-off.
8. Power Ahead Colorado reviews the final submission and issues payment to the designated recipient (allow up to 60 days for receipt).
9. The project may be selected for Quality Installation Verification (QIV), including documentation review or on-site inspection.

For more details, please see here: Power Ahead Colorado_ContractorManual.pdf - Google Drive
 

Customers or contractors generally receive payment 4 to 8 weeks after the claim is completed.

Eligible equipment must meet the program eligibility requirements outlined in the Contractor Manual, as outlined on p.5 and/or appear on the Qualified Products List (QPL). Contractors can verify eligibility during the rebate application process using the equipment model number. Existing heating systems do not affect eligibility. New construction projects are not eligible for incentives.

Yes. Rebates are issued per system, which is defined as an outdoor unit and one or more indoor units as defined in the Contractor Manual (page 5).  A customer may receive multiple rebates for multiple qualifying heat pump systems installed at the same address.

Yes. Dual-fuel and supplemental heating systems are eligible for the $1,500 incentive when all program requirements are met.

• Installations completed after June 29, 2026, may be eligible.
• Installations completed between June 15 and June 29, 2026, require additional review and may be considered on a case-by-case basis. 
• Installations completed before June 15, 2026, are not eligible.
   

The documentation required depends on the stage of the rebate application process. Required documents may include:

• ACCA Manual J (Load Calculation)
• ACCA Manual S (Sizing Selection)
• AHRI Certificate
• Commissioning Form
• Photo Log
• Project Installation Invoice
• Project Permit

For detailed documentation requirements, descriptions, and submission timing (pre-approval vs. final submission), see the documentation requirements table in the Contractor Manual (Page 11).

Yes. Power Ahead Colorado doesn't require a specific invoice template, but every invoice needs to include:

• Your company name, address, and phone number
• Make and model numbers for all installed equipment
• The Power Ahead Colorado incentive, clearly noted on the invoice
• Total invoiced amount

See our Example Invoice for what a complete invoice looks like. Aligning your invoice to the example helps us review your claim and get you paid faster!

Changes are common. Once your project status reads “Preapproved”, you can update the final application with revised information and an explanation. Customer and equipment eligibility requirements must still be met, and incentive amounts cannot exceed actual project costs.

Current funding extends through September 2029. A public funding dashboard is under development to provide updated funding availability.

Power Ahead Colorado Energy Advisors provide neutral, no-pressure guidance to customers. Advisors can:

• Answer heat pump questions
• Explain available incentives and rebate stacking opportunities
• Connect customers with additional programs and resources

Contact:

• 844-303-9333
• info@advising.poweraheadcolorado.org

Hours: Monday through Friday, 8:00 AM to 5:00 PM. Translation services are available.