Colorado homeowners and renters hoping to make their homes more energy-efficient and climate-friendly now have access to thousands of dollars in state rebates.
The Colorado Energy Office has officially launched its Home Electrification and Appliance Rebate (HEAR) Program, allowing eligible households to apply for up to $14,000 in incentives for modern electric appliances and home energy improvements.
Understanding Colorado’s New HEAR Rebates
The HEAR program opened applications on Thursday, giving Coloradans an opportunity to receive rebates for a wide range of Energy Star-certified electric home upgrades, including:
- Electric stoves
- Heat pumps
- Heat pump water heaters
- Insulation upgrades
- Electrical wiring enhancements
- Panel upgrades
This major rebate effort is financed through the Inflation Reduction Act (IRA), the signature climate and health law passed under President Biden in 2022.
Despite previous efforts by the Trump administration to reduce federal climate investments, the IRA’s $4.5 billion funding stream remains intact, and the rebate program is continuing under the current federal leadership.
According to Colorado Energy Office Executive Director Will Toor, the federal government has not interfered with states—Republican or Democratic—implementing federally funded electrification rebates.
Why the Program Matters Now
Though the new rebates are available immediately, they arrive just weeks before the federal tax credit for home energy upgrades is set to expire. That timeline has created urgency for households ready to switch to electric appliances or invest in efficiency improvements.
Who Qualifies for the Colorado HEAR Rebates?
Eligibility Requirements
Rebates are available for Coloradans living in:
- Single-family homes
- Manufactured homes
- Rental homes (with landlord approval)
To receive the maximum rebate amount, a household must earn below 80% of the Area Median Income (AMI) for its county. Families earning 80%–150% of AMI qualify for half of the maximum rebate.
Applicants can use state income charts to verify whether they meet their county’s AMI threshold.
How to Apply for Colorado Home Electrification Rebates
Step-by-Step Application Guide
- Begin with the online application on the Colorado Energy Office’s website.
- Submit all required income verification documents.
- Once approved, applicants must work with a state-registered contractor.
- Contractors help evaluate which electric appliances and home energy upgrades are best suited for the home.
- The state reviews the proposed work and sends rebate funds to the contractor. The contractor then applies the discounts directly to the customer’s upfront cost.
Senior program manager Raine Queenan emphasized the program’s commitment to ensuring quality, trained professionals, especially for low-income households.
Are There Enough Contractors Available?
Current Contractor Status
Not yet.
Only four contractors have fully completed registration so far. An additional 40+ companies across Colorado are currently working through the registration process.
Colorado Energy Office spokesperson Ari Rosenblum acknowledged that some households may experience delays in securing a contractor. The sooner residents apply and confirm eligibility, the sooner they can be matched with an approved contractor.
Boulder-based electrification company Elephant Energy is still awaiting state approval, but co-founder D.R. Richardson believes the program will significantly help low-income residents despite early communication issues.
Are Other States Offering Similar Rebates?
Yes.
Colorado is one of 13 states, plus the District of Columbia, that have launched versions of the federally funded electrification rebate initiative. Many other states are currently waiting for the U.S. Department of Energy to finalize guidance before they can proceed.
Colorado avoided those delays by launching an early prototype of the program last year, enabling quick federal approval before the administration changed.
How Many Colorado Households Will Benefit?
Colorado received an initial $70 million federal grant. Of that, $46 million is designated specifically for rebates in:
- Single-family homes
- Manufactured homes
- Small multifamily buildings
The rebate program is expected to run until 2029 or until funding runs out. Will Toor estimates the program could assist at least 6,500 households, though the final number depends on whether residents choose lower-cost items (like induction stoves) or higher-priced upgrades (like heat pumps or insulation).
Additional Incentives for Home Energy Upgrades in Colorado
Other available rebate opportunities include:
- Local government rebates (e.g., Boulder County programs)
- Xcel Energy’s Clean Heat Program, which provides discounts on heat pumps
- Upcoming 2026 expansions, including:
- Rebates for small multifamily buildings
- Launch of Colorado’s Home Efficiency Rebate (HER) Program, offering $56 million for energy-saving improvements
Additionally, the Denver Regional Council of Governments (DRCOG) has received a $200 million federal grant to improve building efficiency across the metropolitan region.
Though the growing list of incentives is beneficial, the complexity of overlapping programs can be confusing for consumers and HVAC contractors alike.
Colorado’s Home Electrification and Appliance Rebate Program marks a significant opportunity for residents to transition to cleaner, more efficient home energy systems.
With up to $14,000 available, households—especially low-income families—can dramatically cut the cost of electric appliances and essential energy upgrades.
Although contractor availability is still growing and the energy-rebate landscape is evolving rapidly, applying early will help Coloradans secure their spot and benefit from one of the most substantial electrification incentives in the nation.
