Heat Pump Water Heater Rebates, Tax Credits, and Discounts
An electric heat pump water heater (HPWH) is a wise investment in your Fort Collins, CO home.
HPWHs are more efficient than conventional water heaters and can save money on utility bills. At Horsetooth Heating and Air, we can show you how to offset the purchase price through local, state, and federal incentives.
What Is a Heat Pump Water Heater?
An electric HPWH uses refrigerant to transfer heat from the air inside your home directly into your water tank.
Heat pump water heaters highly efficient compared to natural gas, propane, or electric resistance heaters and can significantly lower water heating costs.
Plus, they do not require the bulky flue piping needed for traditional water heaters because they do not produce harmful flue gases.
There is no better time to install an HPWH because financial incentives, such as tax credits, rebates, and discounts, can defray installation costs. Combining incentives adds up to significant savings. Here are a few examples:
Federal Tax Credit
You can take advantage of the 25C federal energy efficiency tax credit by installing an HPWH and other high-efficiency HVAC equipment through 2032. The government will cover 30 percent of the project cost, up to $2,000 for HPWHs.
Colorado Energy Office Discount
Homeowners can benefit from upfront discounts for installing heat pumps, including HPWHs.
Colorado requires HVAC companies to offer at least 33 percent of the discount upfront, but at Horsetooth Heating, Air & Plumbing, we provide the full discount to help homeowners switch to an HPWH.
Local Energy Provider Rebates
Utility company rebates can make HPWHs more affordable. Here are two examples:
Xcel Energy: For a limited time, Xcel Energy offers a bonus rebate to electric and gas customers installing an HPWH. For each HPWH installed, you will receive a check for $2,250.
Efficiency Works
Efficiency Works electric customers in Fort Collins, Longmont, Loveland, and Estes Park are eligible for HPWH rebates, which can be combined with others to increase your savings.
| Provider | Source | Amount |
| Federal Government | Tax Credit | $2,000 |
| Colorado Energy Office | Upfront Discount | $500 |
| *Xcel Energy | Rebate Check | $2,250 |
| **Efficiency Works | Rebate Check | $400 |
| TOTAL Savings | $5,150 | |
Maximize Your Savings Today
Let Horsetooth Heating, Air & Plumbing install a high-efficiency HPWH in your Fort Collins, CO. You will save energy, lower utility bills, and reduce your carbon footprint while avoiding hazards associated with combustion appliances. Financing is available with approved credit.
Eligibility Requirements
*To qualify for rebates on HPWHs or HVAC systems, you must be an Xcel Energy electric or gas customer.
**To qualify for the Efficiency Works rebate, you must be an Efficiency Works electric customer in Fort Collins, Longmont, Loveland, or Estes Park.
Note: All rebate opportunities are subject to change and outside our control at Horsetooth Heating, Air & Plumbing.