Short answer: Power Ahead Colorado is a $1,500 rebate per cold-climate air-source heat pump system for existing buildings in the Denver region. Your contractor gets preapproval before any work starts. There's no income limit, and it stacks with utility rebates like Xcel's. HEAR, the larger income-qualified state rebate, is closed for single-family homes.
Power Ahead Colorado
Who runs it
The Denver Regional Council of Governments (DRCOG) runs Power Ahead with federal Climate Pollution Reduction Grant funds. It budgeted $40 million in incentives for 2026 through 2029, and says funding extends through September 2029. As of its September 30, 2026 update, it reported $3.8 million in incentives reserved.
Where it applies
Your property must be in a municipality or county that participates in DRCOG. Member counties include Adams, Arapahoe, Boulder, Broomfield, Clear Creek, Denver, Douglas, Gilpin and Jefferson, along with member cities. Some cities in neighboring counties are also members. If you're near the edge of the region, check DRCOG's member list or ask Power Ahead's advisors.
What qualifies
- Equipment: cold-climate air-source heat pumps, ducted or ductless. They must meet ENERGY STAR cold-climate efficiency levels or appear on the program's qualified products list, with an AHRI certificate. Other types, including heat pump water heaters, aren't covered in this first phase.
- Buildings: single-family homes, mobile and manufactured homes, multifamily and commercial buildings. Retrofits only; new construction isn't eligible.
- Your furnace: you can replace it or keep it as backup. Power Ahead doesn't require removing fossil equipment.
- Amount: $1,500 per system. A system is one outdoor unit with one or more indoor units. Multiple qualifying systems at one address can each get a rebate.
How it works
- Pick a Power Ahead verified contractor from the official contractor finder. Only verified contractors can submit.
- Your contractor submits for preapproval before work begins. If work starts first, you can lose the rebate.
- Install.
- Your contractor submits final documents and names who receives the rebate, you or the contractor. If the contractor receives it, it should appear as a discount on your invoice.
- Payment takes about 4 to 8 weeks.
Power Ahead also runs free energy advisors at 844-303-9333 who can answer questions about eligibility and next steps.
How it stacks
Power Ahead's rules say it may be combined with utility or municipal rebates. For an Xcel customer in the metro, that means Power Ahead plus Xcel's heat pump rebate. It cannot be combined with HEAR, HER or other federal funds. The rules don't mention the state heat pump tax credit, which your contractor claims separately. We expect it to stack, but couldn't confirm it in Power Ahead's materials; ask your contractor.
HEAR: what happened
The Home Electrification and Appliance Rebates program (HEAR) was Colorado's share of federal funds for income-qualified households. It launched for single-family homes on November 13, 2025. It paid through registered contractors at the point of sale:
- 100% of project cost below 80% of area median income, and 50% between 80% and 150%;
- up to $8,000 for a cold-climate heat pump, $1,750 for a heat pump water heater, $4,000 for a panel, $2,500 for wiring, $1,600 for insulation and air sealing, and $840 for an electric stove;
- up to $14,000 per household.
Status as of October 8, 2026:
- Region 1 (Adams, Arapahoe, Boulder, Broomfield, Clear Creek, Denver, Douglas, Elbert, El Paso, Gilpin, Jefferson, Larimer, Teller and Weld counties) stopped accepting new proposals in late April 2026 and won't reopen. Sources differ by a day on the exact cutoff, April 27 or 28.
- Region 2 (all other counties): the Colorado Energy Office says proposals submitted after August 1, 2026 will be denied.
- The CEO page now reads: "The HEAR Single-Family Program for Region 1 and Region 2 is closed."
A federal change also matters for anything that reopens. DOE Program Notice 26-2, effective May 29, 2026, removes allowances for fuel-switching. In plain terms, it limits these funds to upgrades from existing electric equipment to more efficient electric equipment, rather than replacing gas appliances.
HER and multifamily
- HEAR multifamily: the Colorado Energy Office says rebates for small multifamily buildings will be available in 2026. Its FAQ says the remaining multifamily and HER programs are expected to launch in fall 2026.
- HER (Home Efficiency Rebates): performance-based rebates for manufactured and mobile homes and large multifamily buildings. A standard single-family house isn't eligible. It had not launched as of October 8, 2026.
If you were waiting for HEAR on a single-family home, stop waiting. Power Ahead, your utility and the state tax credit are what's available. See the full stack in our 2026 rebate guide.