If you're replacing a furnace or AC with a heat pump in the Denver metro area, the smartest money move isn't finding one rebate — it's stacking several. Right now, a qualifying cold-climate heat pump can combine the new Power Ahead Colorado incentive, your Xcel Energy rebate, and the Colorado state heat pump tax credit. Done right, that's roughly $9,250 off a typical 3-ton system.

Here's how each program works, how they fit together, and the one combination that isn't allowed.

The Three Programs That Stack

1. Power Ahead Colorado — ~$1,500

A flat incentive of approximately $1,500 toward a qualifying cold-climate heat pump or ductless mini-split, run by DRCOG for homeowners across the 9-county metro region. There's no income limit on the standard rebate, but you must use a participating contractor and get pre-approved before installation. See our full Power Ahead Colorado guide →

2. Xcel Energy Rebate — ~$2,250/ton

Xcel pays per ton of cold-climate capacity — about $2,250 per ton at 5°F for qualifying systems. On a 3-ton heat pump that's roughly $6,750. As a participating Xcel contractor, we credit this directly off your invoice so you don't wait for a check. See all Xcel rebates →

3. Colorado State Heat Pump Tax Credit — ~$1,000

Colorado offers a state-level heat pump credit (around $1,000) that stacks on top of the rebates above. It's separate from any federal credit — and importantly, the federal heat pump tax credit (25C) has ended, so it's not part of today's math.

The Stack, in Real Numbers

Here's a typical combined total on a 3-ton cold-climate heat pump in the Denver metro:

The One Thing That Doesn't Stack: HEAR

You can't combine Power Ahead Colorado with the income-based Colorado HEAR rebate on the same project — both draw on federal funding, so you choose one. For most Front Range homeowners that's an easy call: HEAR's regional funds were reported fully reserved in 2026, and Power Ahead has no income limit. We'll help you pick whichever path saves you more.

How to Claim the Full Stack

• Call us for a free estimate and cold-climate system design
• We pre-approve your Power Ahead project and reserve funds before installation
• We install a qualifying ENERGY STAR cold-climate heat pump
• We credit your Xcel rebate up front and file the Power Ahead paperwork
• You claim the Colorado state credit at tax time — we provide the documentation