What heat pump rebates pay in Colorado Springs
We read the 2026 Colorado Springs Utilities rebate form, its HVAC page and its rules page on October 5, 2026, plus the state tax credit page and the Colorado Energy Office page. The Xcel and Power Ahead Colorado rebates that Denver gets do not apply here, since Colorado Springs Utilities is your utility and El Paso County is not on Power Ahead Colorado's county list.
Cold-climate heat pump, 3 tons and over
The model must be NEEP certified. For Colorado Springs Utilities electric and/or gas customers. Equipment bought and installed in 2026.
Cold-climate heat pump, under 3 tons
Same NEEP rule. Customers approved for a heat pump under three tons also get a $1,500 electric bill credit starting January 1, 2026.
ENERGY STAR heat pump
Meant for a heat pump that does all the cooling and part of the heating, with a control that switches to your furnace at a set temperature.
Air-to-water heat pump
Listed on the 2026 rebate form for electric or gas customers.
State heat pump discount
Off your invoice for an air-source heat pump from a contractor registered with the state.
State income-based rebates (HEAR)
Up to $8,000 for a cold-climate heat pump while open. El Paso County was in the Front Range region, now closed.
Federal tax credit (25C)
Ended for spending after December 31, 2025.
Working it out
A 3-ton NEEP-listed cold-climate heat pump in a gas-heated house: $3,000 from Colorado Springs Utilities plus at least $333 from the state is $3,333. Under 3 tons the first line is $1,500, so the total is $1,833. The utility's page also lists a $1,500 bill credit for electric customers approved under three tons, but we did not find how it combines with the $1,500 rebate, so we do not add the two. Ask Springs Utilities by email at [email protected] before you count it.
What Colorado Springs homes look like
The American Community Survey (2020 to 2024) counts 211,353 homes in Colorado Springs. About 61% of households own and 39% rent. Roughly 60% are detached houses, the highest share among the five Colorado cities we cover, and 6% are in buildings of two to four units. About 39% were built before 1980, only 5% before 1940, and 30% in 2000 or later.
Detached houses with their own yard and meter are the simple case for a heat pump rebate: one owner, one address, one permit. If you own a duplex or fourplex, each address has its own rules, so ask the utility whether each unit counts as a separate service address.
What Colorado Springs heats with
About 70% of households heat with utility gas, 27% with electricity and almost none with oil. Colorado Springs Utilities sells both electricity and gas, and that matters here. It pays $900 for a new natural gas furnace and $1,200 for a gas boiler. A heat pump rebate is $1,500 or $3,000, so the utility is paying more to move to the heat pump, but it still pays for the gas option too. Compare lifetime running costs, not just rebates.
If you already heat with electricity, the case is easy: a heat pump gives roughly two to three times as much heat per unit of power as a resistance heater in mild weather, and in a cold snap a cold-climate model still does better than baseboards.
The paperwork that matters
Colorado Springs Utilities runs a post-purchase program. You buy and install between January 1 and December 31, 2026 and mail or upload an application postmarked by January 31, 2027, with an itemized receipt. The work must be done by a Colorado contractor or by you with a permit from the Pikes Peak Regional Building Department, and it must pass the final inspection. Two rebates are allowed per service address every three years, and for ductless systems the rebate counts outdoor units, not indoor heads. The rebate arrives as a credit on your utility account and can take up to eight weeks. Funds are first come, first served.
Colorado Springs winters
Our climate file, built from ten Januaries (2015 to 2024), shows an average January low of about 17°F and a coldest day near minus 25°F. The utility allows you to keep a gas furnace in place for the coldest hours if a control system decides which one runs, so a cold-climate heat pump with a furnace behind it is an accepted setup here, not a loophole.
Top-rated installers in Colorado Springs
Ranked by Google reviews (minimum five). We don't take referral fees or paid placements. Ask each one if they pull the permit with Pikes Peak Regional Building Department and whether they are registered for the state heat pump discount.
See all Colorado Springs installers →
How to claim Colorado Springs heat pump rebates
- Confirm that Colorado Springs Utilities sends your electric and/or gas bill.
- Choose a model on the NEEP cold-climate list or the ENERGY STAR list, and keep the model number.
- Hire a Colorado contractor, or do the work yourself with a Pikes Peak Regional Building Department permit.
- Pass the final inspection, then keep an itemized receipt with the date, price, make, model and quantity.
- Apply by email, mail or My Account so it is postmarked by January 31, 2027.
Common questions
How much does Colorado Springs Utilities pay for a heat pump?
$1,500 for an ENERGY STAR heat pump or a cold-climate unit under 3 tons, and $3,000 for a NEEP-certified cold-climate unit of 3 tons or more, based on the 2026 rebate form.
Do I need to use Xcel?
No. Xcel's rebates are for Xcel customers. In Colorado Springs the rebate comes from Colorado Springs Utilities.
Can I keep my gas furnace?
Yes. The rules let an existing gas heating appliance stay for extreme conditions, as long as a control system decides which equipment runs.
When is the deadline?
Equipment must be bought and installed in calendar year 2026, and the application postmarked by January 31, 2027.
Is the state's income-based program still open?
No. The Colorado Energy Office says the single-family program is closed.
What to do next
Get two quotes that list the model number and its NEEP listing. Then see our Colorado Springs insulation rebate page, or the Colorado Springs rebate hub.
By Sam Menard. Sources, last read October 5, 2026: Colorado Springs Utilities HVAC and heat pump rebates, Colorado Springs Utilities rebate rules, Colorado Springs Utilities 2026 rebate application, State heat pump tax credit page (Colorado Energy Office), Colorado Home Energy Rebate Program. All Colorado Springs rebates → Colorado Springs Utilities rebate rules →