The Power Ahead Colorado Incentives Program offers rebates for qualifying equipment installed by contractors participating in the Power Ahead Colorado Contractor Network. As an attachment to the Power Ahead Colorado Contractor Participation Agreement, this Contractor Manual serves as a practical guide for participating contractors, outlining program requirements, roles and responsibilities, and the steps required to successfully reserve and receive rebates on eligible projects.
This document explains the rebate application process from preapproval through payment, including customer authorization, required documentation, and timelines. It also establishes training expectations, documentation standards, and quality installation requirements, including the Quality Installation Verification (QIV) process. Participating contractors are responsible for following the requirements described in this manual, ensuring installations meet program and industry standards, and communicating relevant program information to customers. This is a living document and may be updated periodically as program requirements evolve; contractors will be notified of any changes.

Version 1.1
Updated 7/22/2026

Annual Training Requirements

At least one technician per Participating Member must complete at least one heat pump related training from a provided list through the Colorado Contractor Hub on an annual basis. Trainings obtained through other regional programs would be accepted.
Any of the following heat pump related trainings would be acceptable to meet the requirement:

1. NATE Certification with Heat Pump Installation (or service) Specialty
2. Any heat pump training recognized by the Department of Energy’s “Energy Skilled” recognition (see bsesc.energy.gov)
3. Xcel Energy online assessment AND proof of in-person training with a Colorado HVAC distributor or manufacturer 

This section will be updated with additional program-accepted trainings or any changes to annual training requirements. 
Training opportunities and additional support can be found at ColoradoContractorHub.org. 

Compliance with Davis-Bacon and Related Acts

Power Ahead Colorado participating contractors are required to comply with Davis-Bacon and Related Acts (DBRA) when those regulations are applicable to a specific project. DBRA requires that all contractors and subcontractors performing construction, alteration, or repair work under federally-funded contracts pay their laborers and mechanics prevailing wage rates, fringe benefits, and overtime pay for hours worked over 40 hours in any one work week. These regulations apply to mechanics, laborers, and other workers that engage in manual or physical labor, including but not limited to carpenters, electricians, and plumbers (collectively, “Covered Workers”). 
When Participating Contractor employs Covered Workers on projects to which DBRA labor standards apply, Participating Member will be responsible for: 

• Paying Covered Workers locally prevailing wages and fringe benefits weekly.  
• Submitting certified payroll records to and as specified by the Program. 
• Including labor standard provisions in subcontracts. 
• Posting prevailing wage information and other notices at the work site. 
• Maintaining specific records and granting access for auditing purposes.

Contractors should reach out to Power Ahead Colorado with any questions about DBRA applicability. DBRA may be applicable to buildings such as public housing or multifamily buildings with spaces available to the public. DBRA is generally not applicable to privately-owned single-family residences. Final determination on Davis Bacon reporting requirements is made by Power Ahead Colorado and the Program Administrator.
If DBRA is determined to be applicable, further information regarding prevailing wage determinations, record keeping, and the process for submitting required documentation will be communicated to participating contractors for any Power Ahead Colorado rebate programs that require DBRA compliance. 
More information on Davis Bacon and Related Acts is available at https://www.epa.gov/grants/davis-bacon-and-related-acts-dbra.

Program Eligibility Requirements

In order to qualify for Power Ahead Colorado rebates, equipment must meet program eligibility requirements and customers must agree to the program terms and conditions. Please visit PowerAheadColorado.org/Program-Requirements for the most up-to-date program eligibility information, Qualified Products List, and full program terms and conditions. 
Participating contractors are responsible for communicating program requirements to customers and ensuring that installed equipment meets program requirements.

Qualifying Equipment

Cold Climate Air-Source Heat Pump

• Rebate is per system (including an outdoor unit and one or more indoor units). 
• For ducted systems, eligibility is based on a combination of outdoor unit model and indoor unit model number. (Eligibility for centrally ducted systems that utilize the furnace air handler is based on outdoor unit model number only.)

Rebates Application Requirements 

Rebate Application Process 

All projects must be submitted for preapproval by the participating contractor via the online rebate application portal to reserve a rebate. This section outlines the process for reserving a rebate and submitting a final rebate claim once the project is complete, and includes tips for specific questions on the application. Data and documentation requirements for rebate applications are described in the following section. 

Step 1: Gather required documentation  

The following documents are required for rebate preapproval:  

• Manual J 
• AHRI certificates for equipment to be installed

Step 2: Apply for the rebate preapproval

1. Visit Power Ahead Colorado Online Rebates at rebates.poweraheadcolorado.org
2. Create an account or sign in, and begin the application by clicking Start a Rebate and selecting Contractor Installed Products.  

3. Follow the on-screen prompts to fill in information about the project. 

   • Enter customer information including installation address and contact information.

     Tip: Address validation
     The customer installation address must be located in a municipality or county that is a participating government of the Denver Regional Council of Governments (DRCOG) at the time of rebate application submission. Participating governments are listed at drcog.org/about-drcog/member-governments. 
     The rebate application will automatically validate the installation address provided to determine program eligibility. If the address is not automatically validated, a warning message will be displayed. Rebate applications for non-validated addresses can be submitted, and the address will be manually verified for eligibility by the Power Ahead Colorado rebate processing team.  

   • Enter contact information for the participating contractor.

    

4. Answer the questions and upload the required documentation listed in Step 1.

   • Answer the questions and upload the required documentation listed in Step 1.

     Tip: Total Project Cost and Estimated Total Incentives for Other Programs
     The Power Ahead Colorado rebate plus Estimated Total Incentives from Other Programs cannot exceed the Total Project Cost. Please provide the total cost of the project, including labor and equipment, before any incentives are applied, as well as an estimate of the total amount of incentives the project is expected to receive from other programs. If the Power Ahead Colorado plus Estimated Total Incentives for Other Programs is greater than the Total Project Cost, the Power Ahead Colorado rebate will be prorated. 

5. Fill in proposed measures for the project by clicking Add a Product. 
    

   • Tip: Definitions for Single Family, Multifamily, and Commercial 
     Once Product Category is selected, a new drop-down list for Product will appear. The products listed include the technology name (e.g. Heat Pump) and customer sector. Please select the product that most closely matches the customer sector, based on the following definitions: 

     i. Single Family: a building with only one unit 
     ii. Multifamily: a building with two or more units (has shared walls with other units)
     iii. Commercial: a non-residential building used primarily for business, service, industrial, institutional, or hospitality purposes, including offices, retail, manufacturing, and mixed-use buildings with a majority of square feet commercial use
     Please select Multifamily for products installed in condos, townhomes, and apartments, even if just one unit is completing work.

     For mixed-use buildings, please select Commercial if the majority of the project square footage is Commercial. Otherwise, please select the residential sector (Single Family or Multifamily) that aligns with the majority of residential square footage. 

     For products installed in a residential rental property owned by a commercial company, please select either the Single Family or Multifamily sector based on the number of units in the building.

   • Add product details

     Tip: Entering Purchase Date and Install Date for a Preapproval Application
     Please select today’s date for both the Purchase Date and Install Date. This information will need to be updated in the final rebate claim submission once the project is completed to reflect the actual equipment Purchase Date and Install Date.  

     Tip: Model Number
     For heat pumps, please enter the model number for the outdoor unit. Indoor unit model number(s) will be provided on the next page

     Tip: Entering Quantity for projects with more than one unit of equipment being installed
     Product quantity should reflect the number of unique outdoor model units being installed. For example, if two outdoor units of the same brand and model number are being installed, enter 2 for Quantity. 
     If two outdoor units with different model numbers are being installed, please add a new product to the claim for each model. 

     Tip: Auto-Qualification
     By clicking on Check Qualification, the rebate application will automatically validate the equipment brand and model number provided against the program Qualified Products List (QPL).

     If the product is auto-validated, a pop-up message will appear indicating that the product is qualified, and the product Heat Pump Configuration and Rated Cooling Capacity (BTU/hr) at 95 degrees F will automatically populate. 

     If the model is not found on the QPL, Heat Pump Configuration and Rated Cooling Capacity (BTU/hr) at 95 degrees F must be added manually. The Power Ahead Colorado rebate processing team will manually review the information submitted to determine whether the equipment meets the program performance requirements. 

     Tip: Existing Primary Heating System 
     Please select the type of heating system that the heat pump is replacing.

     Tip: Fossil Fuel Backup Heat
     If the customer plans to use any type of fossil fuel heating system as backup heat, or if the heat pump installed is part of a dual fuel heating system, please select with Fossil Fuel Backup Heat. For customers who are fully replacing their heating system with heat pumps (i.e., the heating system is fully electric), please select Without Fossil Fuel Backup Heat. 

6. Add supplemental product details

   Tip: Heat Pump (Equipment and Material) Cost
   The rebate is intended to offset the purchase price of the equipment. Please provide the cost of the equipment being installed (as charged to the customer). Do not include labor costs. This information will not be visible to the customer when they review the rebate application. 

7. Review the application and click ‘Submit for Pre-Approval.’ 
8. A confirmation email will be sent indicating that the application has been submitted. 

  
Step 3: Customer review and sign-off

After the Power Ahead Colorado team has completed an initial review of the application, the customer specified in the application will receive an email. They will need to click the link in the email to review and sign off on the application within 30 days. The customer must sign the program terms and conditions in the application before the project can be preapproved and the rebate reserved.  
A confirmation email will be sent once the customer has reviewed and signed off on the application.

Step 4: Confirmation and preapproval 

Once the Power Ahead Colorado team has received a completed application, the application status will update from “Pre-Approval Pending” to “Pre-Approved” if the application is approved within 5 business days. Preapproval may be delayed for applications that are incomplete or require follow-up to resolve any issues.   
Incentive funds will be reserved for the project for 90 [MB11.1]days from the date of preapproval by the program.

Step 5: Complete project and gather final project documentation

Projects must be completed (including the installation of preapproved measures) before final project documentation can be submitted. The purchase and installation of materials must take place during the 90-day reservation period.  
The following documents are required for the final rebate submission:

• Manual S 
• Project installation invoice
• Commissioning form
• Installation photolog
• Project permit
   

Step 6: Submit final project documentation

1. Visit Power Ahead Colorado Online Rebates at rebates.poweraheadcolorado.org/paco/home
2. Log in and locate the project in the ‘Pre-Approved’ section of My Rebates. 
3. Under Options, click ‘Review & Submit.’ 

4. Review all project and product information to ensure accuracy. 

   Tip: Update Product Brand and Model Number
   If the equipment selection changed between preapproval and installation, please update these fields. Projects will be disqualified if installed equipment does not meet program requirements. Please resubmit AHRI certificates for updated equipment.

   Tip: Update Purchase Date and Install Date
   The Purchase Date and Install Date must be updated to reflect the actual dates these events occurred. Please enter the same date for both the Purchase Date and Install Date. Both fields should reflect the date that the equipment was installed. 

5. Upload the required documentation listed in Step 5. 
6. Designate the Rebate Check Recipient. (This should be discussed with the customer prior to submitting the final rebate claim.)
7. Click ‘Send to Customer to Complete.’ 
8. A confirmation email will be sent indicating that the application has been submitted. 

Step 7: Customer review and sign-off 

The customer will receive an email. They will need to click the link in the email to review and sign off on the application within 30 days. The customer must attest in the application that the equipment has been installed before the rebate can be paid.  
A confirmation email will be sent once the customer has reviewed and signed off on the application. 
Once the application is received, the Power Ahead Colorado team will endeavor to follow up within 5 business days to address any potential issues.  

Step 8: Payment

The rebate will be sent to the party designated as the Rebate Check Recipient in the application. Please allow up to 60 days for receipt of the rebate.   

Step 9: Quality installation verification

The customer’s building may be selected for a quality control post-installation inspection by Power Ahead Colorado. Buildings may be selected up to 12 months after the installation is complete. If selected, the inspection will be scheduled at least 10 business days in advance. Please see ‘On-Site Inspections’ in the Quality Installation Verification Protocol section of this manual for more information.  
 

Rebate Application Statuses

All rebate applications can be found on the My Rebates page of the online rebate application portal. The table below describes the different sections and claim statuses and their meanings. 

Data and Documentation Requirements

To qualify for rebates, installing contractors must submit the documentation listed in the following table with the rebate application, either during the rebate preapproval stage or as part of the final rebate submission. The model numbers of the installed equipment must match all corresponding documentation.

Details on documentation submission requirements are outlined below the table, and technical guidance and verification requirements are described in the Quality Installation Criteria section of this manual.

Load Calculations (ACCA Manual J)

The Load Calculation submission must include the full PDF export of the calculation, showing all room-by-room or whole-house inputs, including R-values, window types, and the specific Colorado design temperatures used. 

Verification Note: "Summary-only" pages are generally insufficient; verifiers must be able to see the building component details required to ensure that there was a reasonable approximation of building characteristics. 

Sizing Selection (ACCA Manual S)

This Sizing Selection must include the manufacturer’s performance data showing the heat pump's capacity at local site conditions and at design heating and cooling air temperatures. 

AHRI Certificate

The serial numbers on the indoor unit, outdoor unit, and coil must match those on the rebate application and AHRI certificate. All systems must be a certified match in the AHRI Directory.

Commissioning Checklist

Every system must be commissioned according to ACCA Standard 5 requirements. The program accepts Xcel’s commissioning form or OEM/trade partner equivalent when the following data points are included.

• Installation Data. Customer address, date of commissioning, outdoor air temperature, and commissioning technician. 
• Equipment Data. System type, auxiliary heat type, and switchover temperature. 
• System Sizing and Selection Data. Load calculation summary, heat pump heating and cooling capacity max/min, auxiliary heat capacity, compressor and air handler amperage. 
• Airflow and Temperatures. Supply/return dry and wet bulb temperatures, system total external static pressure (I.W.C.), measured airflow (CFM during highest fan speed). 
• Refrigerant Charge. Refrigerant type, liquid line temperature/pressure, suction line temperature, OEM subcool target, measured subcool value (or weigh-in data in pounds and lineset length).

Note on seasonal commissioning: Commissioning data from either heating or cooling mode is acceptable for initial rebate approval. However, contractors remain responsible for completing a full cooling-mode startup and commissioning per manufacturer requirements to protect equipment warranty and performance.

Photolog Checklist

• Nameplates. Legible photos of the model and serial number stickers on the outdoor unit, the indoor unit/coil, and the air handler/furnace (if applicable). This assists in verifying the AHRI match and ensures the physical equipment matches the rebate application. 
• Indoor Unit Placement. A wide-angle shot showing the installed indoor unit to verify clearances for airflow and accessibility for future maintenance. 
• Outdoor Unit Placement. A photo showing the unit’s position relative to the structure, specifically showing the snow stand or wall bracket and the clearance from the roofline (to verify protection from snow shed). 
• Electrical Disconnect. Photos of the outdoor service disconnect with the cover open and with the cover closed as needed to show the wiring and the presence of a surge protector (if installed) to verify National Electrical Code (NEC) compliance and safety. 
• Thermostat and Controls. A photo of the thermostat display, ideally showing the "Installer Setup" screen on which the auxiliary heat lockout or switchover temperature is programmed. 
• Lineset Insulation and Wall Penetrations. Close-up photos showing the insulation thickness/type and the weathertight sealing of the point where the lineset enters the building. 
   

Project Invoice

The invoice must include contractor name, address, and phone number, the make and model number of the installed equipment, and the total invoiced amount. 

Project Permit

Open permits are accepted. The address on the permit must match the installation address submitted in the incentive application. The Permit must include the installation of the cold climate heat pump as part of its scope if part of a larger permit. Projects may require additional permits based on requirements from the local building authority. 

Quality Installation Verification Protocol
 

The Power Ahead Colorado Quality Installation Verification (QIV) protocol is designed to help contractors deliver safe, high-performing systems that operate reliably in Colorado’s cold, dry, and high-altitude conditions. The QIV protocol evaluates installation quality against minimum code requirements, recognized industry standards, and program-specific criteria for local conditions. Relevant design documentation and installed system conditions will be verified using a combination of desk review and on-site inspection. 

The QIV protocol applies to the following equipment eligible for Power Ahead Colorado Rebates for Contractor-Installed Equipment, and will be updated as additional rebate offers are available:

• Ducted and ductless cold-climate air-source heat pumps (ccASHPs), including dual-fuel heat pump systems
   

The QIV process is intended to provide contractors with feedback on opportunities to improve installation quality. Contractors are expected to follow the QI best practices highlighted in this manual, and will be evaluated based on the following key pass/fail criteria:

Guidance for achieving these criteria are described in the Quality Installation Criteria section of this Contractor Manual.

Contractors experiencing a failure in any of the above criteria are expected to complete timely remediation, per the Nonconformance and Corrective Actions process described in this manual, to remain a participating contractor in the program. Failure of critical criteria may prompt an additional on-site inspection, during which attendance by installation contractors will be required. 

Verification Requirements

All installations supported by the program are subject to a desk audit of submitted documents and photos. Based on desk audit results or random selection, projects may also be subject to on-site inspection for further verification of compliance with the pass/fail criteria as outlined in Table X above. While all submitted documentation will be reviewed in some capacity, onboarding contractors and an ongoing random sample will be thoroughly reviewed and inspected as a part of program participation.

Verification activities include: 

• Technical Review. A desktop review of submitted documentation, photos, and commissioning records to assess conformance with the QI criteria defined in this document
• Field Verification. An on-site inspection to confirm equipment installation, commissioning, and configuration

Project Verification and Selection

Projects will be selected for technical review and on-site inspections based on the criteria outlined in the table below. Random sampling should not exceed more than 3 installations per year per contractor; however, flagged applications or customer requests may result in more inspections for a participating contractor.

        
On-Site Inspections

Contractor attendance at all on-site inspections is mandatory. The Power Ahead Colorado team will give scheduling preference to the rebate recipient (home or business owner) and provide 10 business days' advance notice to contractors. The team will attempt to accommodate scheduling conflicts where reasonable. Inspections are scheduled for two hours between Monday-Friday, 8:00am—5:00pm.

Contractor responsibilities include:

• Informing customers of program requirements, including the potential for on-site inspections. 
• Attending all scheduled inspections and initiating test mode as applicable. 
• Providing access to thermostat programming, including changeover configuration and temperature setpoints, during inspections. 

Scheduling

The Power Ahead Colorado team will give scheduling preference to the rebate recipient (home or business owner) and provide 10 business days' advance notice to contractors. The team will attempt to accommodate scheduling conflicts where reasonable. Inspections are scheduled for two hours between Monday-Friday, 8:00am—5:00pm.

Safety

All program participants must adhere to safety standards and program requirements. Some potential concerns are listed below, but inspectors have the right to forgo an inspection if any other safety concerns arise.

• Rooftop. Equipment installed on rooftops is excluded from required inspections due to safety requirements for rooftop access. Contractors are responsible for providing alternative equipment verification in accordance with program requirements. 
• Attic and Crawlspace. Attics and crawlspaces may only be accessed when conditions are free of excessive debris, standing water, or pests, and when a second qualified individual is present to support safe access. 
• Flue Gas and Combustion Safety. If flue gas or combustion-related safety issues are identified, the inspector will immediately cancel the inspection and seek emergency assistance when necessary. 
• Refrigerant Handling. All inspectors and installers must hold a valid EPA Section 608 refrigerant handling certification. 
• Weather Conditions. Inspections must be conducted under safe weather conditions. Additionally, ambient temperatures must be suitable for accurate testing (approximately 65°F or warmer). Inspections will be postponed if conditions are unsafe or testing accuracy cannot be assured. 
• General Safety. An inspector may use their discretion to forgo an inspection because of any safety concern.

Testing Requirements

The following conditions must exist during an on-site inspection:

• Test Mode. For inverter-driven systems, the unit must be placed at maximum capacity (also referred to as test, charge, or force mode) to ensure the compressor is operating at a fixed, maximum capacity. This mode must be initiated by the installing contractor or a qualified technician. 
• Stabilization. System stabilization must be confirmed to have reached steady-state operation before testing criteria (see next section) are recorded. This is typically within 30 minutes of test mode initiation but varies by specific equipment. 
• Outdoor Ambient Temperature. A minimum outdoor temperature of 65°F must exist for testing reliability. This will be measured using a psychrometer or a thermometer at the heat pump location. Inspections will be rescheduled if temperature forecasts fall below this minimum.

Performance Criteria

On-site inspections will validate actual site conditions and equipment installation against the reported commissioning data and manufacturer specifications. 

• Airflow (P/F). Per ACCA Standard 5, Section 4.1.1, a quality installation must achieve an airflow target of 400 CFM per ton (±15%) or as required by the manufacturer. If the manufacturer's airflow targets fall below this threshold, documentation must be provided. The total system airflow will be validated using a calibrated TEC Trueflow Plate.
• ACCA Manual D Velocity Targets (P/F). To ensure quiet and efficient operation, duct velocities should align with ACCA Manual D guidelines: 
  • Supply Air. Maximum of 900 Feet Per Minute (FPM)
  • Return Air. Maximum of 700 FPM
• Supply and Return Temperatures. Individual room registers or duct test ports will be measured for supply and return temperatures to ensure adequate discharge temperatures and temperature differential across the heat pump. 
• Refrigerant Charge (P/F). System charge will be verified using the subcool method against manufacturer-specified targets. The measured subcool value must be within ±5°F of the manufacturer’s design target.
• Subcool Measurement (P/F): The primary method for systems equipped with a Thermostatic Expansion Valve (TXV) or Electronic Expansion Valve (EEV). Per ACCA QI 5 guidelines, the measured subcool should be within ±3°F of the manufacturer-specified target.
• Superheat Measurement. Used primarily for fixed-orifice (piston) metering devices. If referenced by OEM install guidance, the measured superheat should be within ±3°F of the manufacturer-specified target. 
• Refrigerant Weigh-In Charge. For units charged by refrigerant weigh-in, the subcool target metric is not applicable if there is no established manufacturer subcool target. Refrigerant data (pressures and temperatures) will be measured and compared with the contractor’s commissioning data and manufacturer temperature/pressure charts when applicable.

Nonconformance and Corrective Actions

The Nonconformance and Corrective Action process is intended to ensure that rebated heat pump installations achieve the program’s core outcomes of cold-weather capacity, operational efficiency, durability, and safety, while providing clear, consistent expectations for participating contractors.

Inspection Feedback and Notification

Contractors will be notified of the results of desk reviews and field inspections. Feedback includes a summary of verified items, identified deficiencies (if any), and required or recommended corrective actions, with reference to the underlying program objectives and applicable QI criteria. 

Deficiency Identification

Identified deficiencies will be categorized to support consistent response and resolution, with consideration given to their potential impact on system performance and safety: 

• Minor Deficiencies. Items that do not present an immediate safety risk or materially compromise cold-weather capacity, operational efficiency, or system durability, but should be corrected or clarified (e.g., documentation gaps, labeling issues, or minor installation details). 
• Major Deficiencies. Items that may impact system safety, code compliance, cold-weather operation, significant energy performance, or long-term reliability. Major deficiencies require corrective action and will trigger follow-up verification (either via on-site inspection or photo review).

Corrective Action and Re-Inspection

When corrective action is required, the contractor will be notified of identified deficiencies and provided an opportunity to complete corrections within established timelines. Corrected items may be verified through additional documentation review, photo review, or follow-up inspection as appropriate. 

Corrective Action Timelines

Contractors will be provided with a defined time period to address identified deficiencies. Correction timelines may vary based on the severity and potential impact of the deficiency, particularly where issues affect safe operation or code compliance, or long-term system durability.
A typical correction timeline of 30 days should be expected unless otherwise specified by the program. Extensions may be considered on a case-by-case basis.

Reinspection and Verification of Corrections

Verification of corrective actions may be completed through additional documentation review, photo submission, or follow-up field inspection, as appropriate. Reinspection scope is generally limited to corrected items, unless additional deficiencies are identified that could affect safety or system functionality. 

Escalation and Repeated Nonconformance

Repeated or unresolved deficiencies that indicate systemic installation, configuration, or documentation issues may result in escalated responses. These may include a performance coaching plan, targeted corrective training, additional documentation requirements, or other program-defined actions. Persistent noncompliance may result in further administrative action in accordance with program policies.

 
Quality Installation Criteria

Participating contractors are expected to adhere to the following quality installation criteria to ensure that incentivized systems achieve the following outcomes.

• Cold-Weather Capacity. Systems must maintain reliable heating performance under Colorado’s conditions while avoiding unnecessary oversizing. Verification includes reviewing equipment backup or supplemental heat selection, confirming that sizing calculations align with program and manufacturer limits, and validating low-ambient temperature operation. 
• Operational Efficiency. Systems must operate at optimal energy efficiency. Verification includes inspection of thermostat configuration, control setpoints, airflow, refrigerant charge, equipment clearances, and commissioning documentation. 
• Durability. Systems must be installed to minimize mechanical stress and reduce the likelihood of premature failure. Verification includes evaluation of installation practices, unit placement, refrigerant charge, and duct and piping integrity. 
• Safety. Systems must fully comply with all applicable municipal and national codes. Verification includes inspecting electrical and plumbing connections and ensuring compliance with manufacturer safety requirements.

This section includes technical guidance and verification requirements for sizing documentation, physical installation practices, and equipment-specific requirements and exceptions.

Sizing Documentation

The following sizing documentations are required as part of incentive applications.

Load Calculation (ACCA Manual J)

Per ACCA Standard 5, contractors must perform a building load calculation for which an ACCA Manual J (or an approved equivalent) is a recognized procedure. ACCA Standard 9 directs verifiers to confirm that this calculation is a "reasonable approximation" of the home's needs. 

Equipment Selection (ACCA Manual S)

Following the load calculation, ACCA Standard 5 requires contractors to use original equipment manufacturer (OEM) performance data to select equipment in accordance with ACCA Manual S procedures.

 
Reference ACCA Manual S, Section N2, for sizing equipment. For example, guidance for dry-climate conditions applicable to the DRCOG region establishes the following simplified requirements for commonly installed variable capacity systems (ACCA Manual S, Table N2.3.4).

• The system isn’t oversized for cooling when operating at minimum cooling capacity.
  • Minimum cooling capacity/cooling load ≤ 0.8 
• The system isn’t oversized for heating when operating at minimum heating capacity.
  • Minimum heating capacity/heating load ≤ 0.8 
• Heating is appropriately sized for the total heating load.
  • Heating capacity/heating load > 1.0 

Third-party tools may be used by contractors to streamline the ACCA Manual S process, but the final submission must always be backed by the specific OEM performance data for the installed equipment and project location.

Alternative Sizing and System Selection

Manuals J and S serve as the primary standards, but the program recognizes that certain applications, particularly in existing home retrofits, may benefit from alternative data-driven sizing methods. Any sizing alternative must be approved by the Department of Energy (DOE) with backup methodology documentation and data inputs. The final outputs must align with accurate home conditions, and unit selection must fall within the allowance sizing tolerances. 

Historical energy consumption models may be used in addition to an approved ACCA Manual J, as a best practice, to confirm the accuracy of heating and cooling loads. Similarly, the NEEP sizing tool may be used in addition to an ACCA Manual S to confirm accurate equipment sizing and the best backup heating approach for installation. However, ACCA Manuals J and S calculations or equivalent must both be completed.

Physical Installation Practices

Physical expectations for equipment installation are described below. These installation practices are expected to be followed unless the manufacturer’s documentation states otherwise.

Visual Inspection

Duct sealing (P/F): No visible duct leaks should be present. Per ACCA 5.1.1, all duct sealing materials will be listed and labeled in accordance with UL 181A or EL 181B specifications and will be used in strict accordance with OEM instructions.

Filter restriction: The filter size and MERV rating must be compatible with the system’s airflow requirements. Undersized or overly restrictive filter racks may cause high static pressure and negatively impact system operations. 

Outdoor Unit Placement

Snow clearance (P/F): Units must be installed at least 6” above the ground for condensate drainage and snow clearance. The height should be increased to 12” or more based on local climate for clearance above the local 10-year average snow depth or per local code requirements. 

Airflow clearance (P/F): Units must be installed with at least 12” clearance from walls, fences, and other equipment or per manufacturer installation requirements. 

Shed protection: Outdoor units will not be located immediately below roof snow and water runoff or where ice buildup can lead to operational issues or mechanical damage. If this is unavoidable, proper protective measures must be taken. 

Thermostat Configuration
 

Thermostat compatibility (P/F): Inverter-driven systems must be installed with a manufacturer-specified thermostat capable of meeting rated efficiencies. Avoid noncommunicating thermostats that restrict the staging of a variable-speed unit or otherwise degrade the system efficiency. 

Staging configuration: For multistage equipment, the control wiring and thermostat settings must be configured to allow the heat pump to operate at the low stage for as long as possible before "ramping up" or engaging auxiliary heat. 

Outdoor sensors: An outdoor temperature sensor (either physical or wireless) is required for balance-point control or dual-fuel switchover. 

Switchover (balance point) temperature configuration: Most heat pump controls will enable auxiliary heating sources as needed to meet minimum comfort needs. Additional parameters (heat pump lockout, auxiliary lockout, changeover temperature, etc.) are available to disable heat pump operation or force backup heating sources to operate at certain outside air temperatures.

Heat pump lockout/changeover temperature (P/F): To meet decarbonization goals, heat pump lockout or dual fuel changeover temperatures should be set to maximize efficient heat pump operation. Heat pump lockouts and changeover temperatures must be programmed below 25°F for cold-climate heat pump systems. 

Auxiliary heat lockout: Controls may automatically enable backup heating when space temperature exceeds a certain distance from setpoint—even if the heat pump is able to heat the space. This can cause backup heat sources to be unnecessarily enabled in warm weather when occupants increase setpoint or as a result of thermostat schedules. Consider an auxiliary heat lockout temperature to prevent backup heat from engaging when the outdoor temperature is mild. 

Defrost controls: Defrost controls (timed vs. demand-based) must be configured according to the manufacturer's recommendations for cold climates. "Demand defrost" is preferred because it initiates a cycle only when frost is actually detected, saving energy. 

Supplemental heat integration during defrost: In ducted systems, consider programming the auxiliary heat to engage during the defrost cycle to "temper" the air and prevent cold drafts from being blown into the living space. 

Refrigerant Lineset

Lineset insulation (P/F): Suction and liquid lines should be insulated for their full length to an R-Value of R-3 or greater per NEEP best practices and IECC Section R403.4. 

Insulation integrity: Exterior lineset insulation should be UV-resistant or shielded by a rigid "line hide" or metal cladding, as needed, to prevent degradation from solar exposure and pest damage, per NEEP best practice guidance. 

Environmental sealing (P/F): All building penetrations must be sealed using durable, weathertight material. 

Lineset sizing and length: The lineset length and diameter should meet manufacturer specifications and limits for the installed system. 

Electrical

Code: Installations must comply with NEC and all local codes. 

Service disconnect: A weathertight electrical disconnect must be installed within line-of-sight of the outdoor unit, readily accessible, and unobstructed per NEC Article 440.14. 

Surge protection: Proper grounding and bonding are required to protect the system from electrical faults. 

Conduit and wiring integrity: All outdoor wiring must be housed in liquid-tight flexible conduit (or equivalent) that is properly secured to the structure. 

Labeling: Circuit breakers and disconnects should be clearly and accurately labeled. 

Condensate

Indoor drainage: Condensate from the indoor coil must be run to a suitable termination point away from crawl spaces, walkways, and outdoor equipment, and should use a condensate pump when necessary. Secondary "overflow" pans are required for units in attics or above finished ceilings.

Outdoor freeze protection: Outdoor units must be positioned so that defrost meltwater drains away from the unit and does not create an ice hazard on walkways or driveways.

Equipment-Specific Requirements and Exceptions

This section details supplemental testing requirements for ductless mini-splits and ducted crossover systems. 

Ductless Mini-Split and Multi-Split Systems

Mini-split systems are ductless installations that use an indoor wall-mounted unit or ceiling cassette for heating, cooling, and air distribution. The single indoor unit is typically powered by the outdoor unit. Multi-split systems use a single outdoor unit to serve multiple indoor heads. 

Additional Verification Checklist

• Individual Zone Sizing. The sum of the indoor head capacities must be properly matched to the outdoor unit’s capacity, adhering to manufacturer-allowed connection ratios (typically 100% to 130%). 
• Communication Wiring. The wiring must be the specific gauge and type (e.g., 14/4 stranded) required by the OEM to prevent signal interference caused by nonstandard low-voltage communication. 
• Indoor Unit Location. Indoor heads should not be obstructed by furniture, curtains, or architectural soffits that could cause the unit to short-cycle by sensing its own conditioned air before the rest of the room has reached the setpoint. 
• Condensate Management. Condensate tubing must maintain a 1% pitch in the direction of discharge per IRC M1411.3 and IMC 307.2. A safety overflow switch must be installed If gravity drainage is not possible. 
• Clearance from Obstructions. Indoor heads must have the required clearance (typically 6+ inches) from ceilings and side walls to allow for proper return air intake per NEEP Cold-Climate ASHP guidance. 

Testing Exceptions

• Refrigerant Subcool Targets. System performance will be confirmed using system supply and return air temperatures in each zone.
• Physical Installation. Applicable measures are lineset insulation, clearances, and wall penetration. 

Ducted Crossover Systems

Ducted crossovers (or compact-ducted units) use mini-split technology to serve a small network of ducts. 

Additional Verification Checklist

• Individual Zone Sizing. When incorporated into a multi-zone system, the sum of the indoor unit capacities must be properly matched to the outdoor unit’s capacity, adhering to manufacturer-allowed "connection ratios" (typically 100% to 130%). 
• Communication Wiring. The wiring must be the specific gauge and type (e.g., 14/4 stranded) required by the OEM to prevent signal interference caused by nonstandard low-voltage communication. 
• Crossover Duct Static Pressure. The ductwork for ducted crossover systems must not exceed the low external static pressure (ESP) limits of certain units per manufacturer specifications (sometimes as low as 0.2 to 0.3 i.w.c.). 

Testing Exceptions

• Refrigerant Subcool Targets. System performance will be confirmed using system supply and return air temperatures in each zone.
• Physical Installation. Applicable measures are lineset insulation, clearances, and wall penetration.

Applicable Standards

This section outlines the codes, regulations, and industry standards applicable to qualified equipment in the program. Minimum requirements, design methodologies, and installation best practices are defined in these resources and inform program quality installation (QI) criteria and verification methods.

Codes and Regulations

All heat pump systems incentivized by the program shall comply with applicable federal, state, and local codes and regulations as adopted and amended by the authority having jurisdiction (AHJ). Applicable codes are determined by the AHJ and include state-adopted model codes and any local amendments, which will govern where applicable. 

The State of Colorado has adopted the following code versions, as amended:

• 2021 International Mechanical Code (IMC) 
• 2021 International Residential Code (IRC)
• 2023 National Energy Code (NEC) 
• These codes establish minimum requirements related to mechanical and electrical system, equipment safety, and residential construction practices. The code editions listed above reflect those adopted by the State of Colorado as of program inception and contractors are responsible for confirming and complying with the most current AHJ-approved code versions at the time of permitting and installation. 

Technical Standard References

System design, installation practices, and QI verification concepts in the program reference the third-party technical standards in this section. These standards represent industry-recognized best practices and requirements that may exceed the minimum code requirements.
The referenced resources are not exhaustive. Installations should also comply with manufacturer-specific documentation. 

Air Conditioning Contractors of America (ACCA) Standards:

• ACCA Manual 5: HVAC Quality Installation Specification. Establishes industry-recognized requirements and best practices for the proper installation, setup, and commissioning of HVAC equipment. 
• ACCA Manual 9: HVAC Quality Installation Verification Protocols. Defines verification protocols for confirming that installed systems meet applicable quality installation requirements. 
• ACCA Manual 12: Home Evaluation and Performance Improvement. Provides a framework for assessing existing building conditions and identifying performance improvement opportunities that may affect heat pump design and installation. 

Design Resources

Industry-recognized design standards for system sizing, selection, and air distribution provide standardized methodologies for heat pump installations. Quality installation criteria reference the following documentation.

• ACCA Manual J—Residential Load Calculation. Provides guidance for determining building heating and cooling loads based on local climate conditions, building envelope, orientation, infiltration, and internal gains. 
• ACCA Manual S—Equipment Selection. Provides guidance for sizing and selecting heat pump equipment appropriate for calculated loads and site-specific climate conditions. 
• ACCA Manual D—Air Distribution Design. Provides guidance for designing duct systems that efficiently and effectively deliver design airflow to occupied spaces. 

The inclusion of these manuals does not imply endorsement of any specific design assumptions or requirements unless explicitly stated in the program criteria.

Climate and Geographic Considerations

Colorado’s climate and geography influence the design and application of heat pump systems. These conditions provide context for the development and application of QI criteria. Key considerations include the following.

• Heating-Dominant Climate. Colorado’s climate is predominantly heating-dominated, which makes low-temperature system efficiency, supplemental heating control, and defrost performance critical to occupant comfort and energy performance. 
• Low Winter Temperature Conditions. Heating load calculations, equipment selection, and system design should account for occasional performance at very low outdoor temperatures. 
• High-Elevation Conditions. Increased elevations reduce air density, which impacts heat transfer, equipment capacity, fan performance, and delivered airflow. These effects influence load calculations, equipment selection, and air-distribution design 
• Dry-Climate Conditions. Low ambient humidity affects indoor comfort, humidification needs, and system operation. It also reduces the need for summer dehumidification typical of other regions.