Colorado homeowners may soon get another price break on heat pump upgrades, and for some households, stacked incentives are already cutting as much as $12,000 from the total cost.

What's happening?

Power Ahead Colorado, a rebate program run through the Denver Regional Council of Governments, will take applications for its heat pump rebates this summer, CBS Colorado reported.

The new program features $1,500 rebates on top of incentives many residents are already using. Those rebates can be stacked, reducing the upfront cost of replacing older heating and cooling equipment with a heat pump.

Trevor Seeyle, president and CEO of Boulder-based installer Independent Power, told CBS Colorado that stacked rebates typically total about $6,000 to $12,000, with the amount varying by heat pump size. He said the usual heat pump installation costs around $15,000 to $25,000, meaning the incentives can cover a substantial share of the expense.

Denver homeowner Eric Gehringer is among those making the switch, choosing a heat pump to replace a swamp cooler rather than installing a more conventional HVAC system.

Why does it matter?

Heating and cooling systems are among the most expensive pieces of equipment to replace in a home. When rebates can shave about $10,000 off the cost, a project that once seemed out of reach can start to feel manageable. If you want to know how you can equip your home and reap these savings, companies such as EnergySage and Palmetto can help with buying and leasing these systems. 

CBS Colorado reported that heat pumps generally use energy more efficiently than standard heating and cooling setups, which can lower household energy use over time while giving homeowners a single system for both heating and cooling.

Rising demand suggests more people are finding that the numbers make sense. Independent Power told CBS Colorado it installs seven to eight heat pumps each week.

What's being done?

Residents can check which rebates can be stacked in their areas and whether waiting for the summer program could increase their savings. In the Centennial State, that added $1,500 from Power Ahead Colorado could further lower out-of-pocket costs.

Homeowners can also pair solar panels with efficient electric appliances, including heat pumps, to cut utility bills even further.

"With the rebates that are happening right now, it just made financial sense as well," Gehringer said.

Seeyle added, "It's a significant portion of the installation cost."

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