February 11, 2026

Colorado HEAR Rebate: What Denver Homeowners Need to Know

The Colorado Home Energy Assistance Rebate (HEAR) offers up to $8,000 for income-qualified households making the switch from fossil fuel heating to an electric heat pump. If you qualify, this is the biggest single rebate available in 2026.

Colorado's HEAR program is specifically designed to make heat pumps accessible for low- and moderate-income households. If your household income falls within the qualifying thresholds, this rebate dramatically reduces your out-of-pocket cost — potentially to near zero when combined with other programs.

HEAR Rebate Amounts

The rebate amount depends on your household income relative to Area Median Income (AMI):

Income Level	HEAR Rebate
At or below 80% of AMI	Up to $8,000
80% to 150% of AMI	Up to $4,000
Above 150% of AMI	Not eligible for HEAR

AMI varies by household size and county. For reference, 80% AMI for a family of four in the Denver metro area is roughly $80,000–$90,000, though this figure is updated annually. The Colorado Energy Office publishes current AMI tables for each county.

What Qualifies Under HEAR

The HEAR rebate applies to the installation of an electric heat pump that replaces an existing fossil fuel heating system (gas, propane, or oil furnace). Key requirements:

Primary residence only — rental properties and second homes are excluded
Must be replacing a fossil fuel heating system, not just an old heat pump
Equipment must meet efficiency standards specified by the program
Installation must be performed by a registered HEAR program contractor
Income verification documentation is required at application

    The "replacing fossil fuels" requirement is key. HEAR is specifically designed to accelerate the transition away from gas heating. If you're replacing an existing electric resistance heating system, the rules may differ — check with a HEAR-registered contractor.
  

How HEAR Stacks with Other Incentives

The HEAR rebate is stackable with Xcel Energy's cold-climate heat pump rebate and the Colorado state heat pump tax credit. However, it cannot be combined with Power Ahead Colorado — you must choose one or the other if you're income-qualified.

Example scenario for an income-qualified household (≤80% AMI) installing a 3-ton system at $13,000:

Colorado HEAR rebate: $8,000
Xcel Energy cold-climate rebate (3 tons): $6,750
Colorado state tax credit: $1,000
Total incentives: $15,750

In this scenario, the total incentives exceed many installation costs, meaning income-qualified households may pay little or nothing out of pocket.

How to Apply

Check your income eligibility using the Colorado Energy Office's AMI tables for your county and household size
Find a HEAR-registered contractor — not every HVAC contractor is registered; ask before getting quotes
Get a pre-approval from the program before installation
Gather income documentation — typically last year's tax returns or pay stubs
Complete the installation with your registered contractor
Submit final documentation and receive your rebate

Program funding is limited. HEAR is funded through a combination of state and federal dollars. When funding rounds are exhausted, new applications are paused until additional funds are allocated. Apply early and don't wait on timing.

HEAR vs. Power Ahead Colorado: Which Should You Choose?

If you're income-qualified (at or below 150% AMI), you cannot stack HEAR and Power Ahead Colorado — you must choose one. The math is straightforward: HEAR at $8,000 (≤80% AMI) or $4,000 (80–150% AMI) is always larger than Power Ahead's $1,500. Income-qualified households should always prioritize the HEAR rebate.

For households above 150% AMI, HEAR isn't available, so Power Ahead Colorado is the relevant flat rebate to stack with Xcel and the state credit.

See If You Qualify for HEAR

Our installers are registered with the Colorado HEAR program. Get free quotes and we'll help you navigate every rebate you're eligible for.

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