What heat pump rebates pay in Fort Collins
We read Efficiency Works' heat pump sheet, retail sheet and rebate page on October 5, 2026, along with the state tax credit page and the Colorado Energy Office page. The program serves residential electric customers of Fort Collins Utilities, and also Estes Park, Longmont and Loveland. The Xcel rebates on our Denver page do not apply to Fort Collins Utilities customers.
Ducted heat pump, Tier 2 (cold climate)
Needs 8.1 HSPF2 or better, a cold-climate certification, and sizing for 100% of your design heating load. Tier 1 pays $1,500 per unit.
Ductless (non-ducted) heat pump
Cold-climate certified, 21.0 SEER2 or better. Replacing electric baseboard heat, with the baseboard removed, pays $1,000 per ton.
Ground-source heat pump
Closed-loop systems, ENERGY STAR certified.
Bundling bonus
When you do a heat pump and an envelope upgrade (air sealing, windows or doors) within six months of each other. Water heaters do not count.
Rental bonus
Rental properties served by Fort Collins Utilities get twice the standard retrofit rebate, with a 12-month lease and approval before work starts. It does not double the bundling bonus.
State heat pump discount
$667 for ground-source. Taken off your invoice by a contractor registered with the state.
State income-based rebates (HEAR)
Up to $8,000 for a cold-climate heat pump while open. Larimer County was in the Front Range region, now closed.
Federal tax credit (25C)
Ended for spending after December 31, 2025.
Working it out
A homeowner puts a ducted Tier 2 cold-climate heat pump in and air seals the house within six months: $2,000 + $2,000 bonus + the air sealing rebate (from $310 to $770 depending on how much air leakage drops) + at least $333 from the state. With the lowest air sealing tier that is $4,643. A landlord doing the same job on a rental could get the $2,000 heat pump rebate doubled to $4,000, with the bonus staying at $2,000. Total incentives above $2,500 need approval before work starts, or the total is capped at $2,500. Rebates and bonus can never exceed the project's cost.
What Fort Collins homes look like
The American Community Survey (2020 to 2024) counts 74,558 homes in Fort Collins. About 52% of households own and 48% rent. About 52% of homes are detached houses, and 9% are in buildings of two to four units, the highest share of the five Colorado cities we cover. Only 31% were built before 1980, the lowest share among them, and 37% were built in 2000 or later.
With nearly half of households renting, the rental bonus matters. A landlord with a 12-month lease can double the retrofit rebate, and a tenant can show this page to an owner who has not heard of it.
What Fort Collins heats with
The same survey says 66% of households heat with utility gas and 31% with electricity. The rates reward replacing electricity first: ductless units that remove electric baseboard heat pay twice the standard $500 per ton. The program page lists no separate gas-to-heat-pump rate for heat pumps, so a gas home gets the standard amounts. Heat pump water heaters are different: they pay $600 replacing electric or propane and $400 replacing gas.
How the program works
Work must be done by an Efficiency Works listed service provider, on a home at least one year old, with new equipment. You apply within 45 days of finishing. A rebate package above $2,500 needs approval first, and without it the whole package is capped at $2,500. Funding is limited and the program says it can change measures without notice. Ducted air-source rates on the sheet are labelled effective October 1, 2026, while the other measures carry January 1, 2026.
Fort Collins winters
Our climate file, built from ten Januaries (2015 to 2024), gives Fort Collins an average January low of about 16°F and a coldest day near minus 28°F. The $2,000 tier asks for a cold-climate certification from NEEP, CEE, AHRI or ENERGY STAR, and for the system to be sized for 100% of your design heating load, so the heat pump has to be able to carry the house on its own.
Do you need insulation first?
Not for the heat pump rebate. But the bonus pays you $2,000 for doing a heat pump and an envelope measure within six months, and Efficiency Works' insulation rebates require an assessment first. If you are planning both, do the assessment before you sign a heat pump contract, since a tighter house may let you buy a smaller unit. See our Fort Collins insulation page.
Top-rated installers in Fort Collins
Ranked by Google reviews (minimum five). We don't take referral fees or paid placements. Only an Efficiency Works listed service provider can do the work for the rebate, so check that list before you sign.
See all Fort Collins installers →
How to claim Fort Collins heat pump rebates
- Check that Fort Collins Utilities is your electric company.
- Choose an Efficiency Works listed service provider and ask for a quote for each tier.
- If your package will be over $2,500, get approval before work starts.
- If you plan insulation, windows or air sealing, schedule it within six months of the heat pump to earn the $2,000 bonus.
- Apply within 45 days of finishing. The state discount appears on your invoice with no extra form.
Common questions
How much can I get for a heat pump in Fort Collins?
From Efficiency Works: $1,500 or $2,000 per ducted unit, $500 per ton ductless ($1,000 replacing baseboard), $3,000 ground-source, plus up to $2,000 bundling bonus, and at least $333 from the state.
Do landlords get more?
Yes, rental properties served by Fort Collins Utilities can get double the standard retrofit rebate with a 12-month lease and approval before work.
Does the $2,000 bonus apply to a water heater?
No. Heat pump water heaters do not count towards the bundling bonus.
Is the Xcel rebate available in Fort Collins?
Xcel's rebates are for Xcel customers. Fort Collins Utilities customers use Efficiency Works.
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
Plan the heat pump and any insulation together, because the bonus is worth $2,000. Then see our Fort Collins insulation page or the Fort Collins rebate hub.
By Sam Menard. Sources, last read October 5, 2026: Efficiency Works home rebates (Fort Collins Utilities), Efficiency Works heat pump and HVAC incentive sheet, State heat pump tax credit page (Colorado Energy Office), Colorado Home Energy Rebate Program. All Fort Collins rebates → Every Efficiency Works home rebate →