0

Home Energy Rebate Program Frequently Asked Questions

Home Energy Rebate Program FAQs

Please review all the information on this webpage before reaching out. If you still have questions regarding IRA Home Energy Rebates, reach out to ceo_buildingdecarb@state.co.us or call (720)-213-6797.

Where is Colorado in the process of receiving federal funding for the Inflation Reduction Act Home Energy Rebate programs?

The U.S. Department of Energy (DOE) has approved Colorado’s applications for both federal Home Energy Rebate programs. Colorado launched the initial phase of the Home Electrification and Appliance Rebate (HEAR) Program through the Colorado Weatherization Assistance Program (WAP) on October 30, 2024. 
Learn more about the Weatherization Assistance Program

Direct-to-consumer rebates are coming in 2025. Visit the DOE’s website to track the progress of Colorado’s program launch.

As Colorado launches its Home Energy Rebate Programs, we will share educational materials and more information on how to qualify and access the rebates.
Sign up for updates on the Home Energy Rebate Programs

What are the Home Energy rebates?

The Home Energy Rebates offer opportunities and financial incentives for eligible low- and moderate-income Coloradans to install electric appliances and make cost-saving home energy upgrades. These rebates are available thanks to the landmark Inflation Reduction Act.

Colorado will offer two income-qualified Home Energy Rebate Programs:

  • The Home Electrification and Appliance Rebate program (HEAR) is for homes and multifamily buildings that are upgrading electrical equipment and appliances. The initial phase of the HEAR program launched through the Colorado Weatherization Assistance Program in Fall 2024. Direct-to-consumer rebates to receive a discount on the upfront cost of qualified home energy upgrades will be available for eligible low- and moderate-income Coloradans through approved contractors starting sometime in 2025. More details about household and equipment eligibility, rebate amounts, and how to apply will be available when we launch the direct-to-consumer rebates.
  • The Home Efficiency Rebate program (HOMES) is designed for comprehensive energy efficiency upgrades in large multifamily buildings (50,000 square feet or larger) and for mobile/manufactured homes (see “What Counts as a Mobile Home“).

See “Who is eligible for the Home Energy Rebates?” section below for more information on eligibility.

Who is eligible for the Home Energy Rebates?

Rebates are intended to support low- to moderate-income households, including renters, homeowners, and building owners that house low-moderate-income tenants.

  • Direct-to-consumer Home Electrification and Appliance Rebates will only potentially be available to Coloradans with a household income below 150% of the area median income (AMI) in the county where they live. Rebate amounts will differ for low-income and moderate-income residents. Residents with a household income up to 80% of the AMI in their county are considered “low-income,” and residents with a household income between 81% and 150% of the AMI in their county are considered moderate-income. Eligibility is subject to change until these programs launch.
  • Home Efficiency Rebates will be available for large multifamily buildings (50,000 square feet or larger) and mobile/manufactured homes (see “What Counts as a Mobile Home”) taking a comprehensive set of actions to reduce energy usage. Projects must reduce home or building energy use by at least 20%, with larger rebates available for bigger reductions. Eligible property owners must house a majority income-qualified residents to qualify for Home Efficiency Rebates.

Contractors that are supporting a low-moderate-income household and aggregators or Eligible Entity Representatives, such as an existing energy efficiency service provider, may be able to access the rebate on behalf of the household/building.

How much are the rebates and what can I use them for?

Note: Rebates will not be available for past purchases made before an eligible Coloradan receives a rebate. Home Energy Rebate Program direct-to-consumer rebates are not yet available. They are expected to launch sometime in 2025.

Exact rebate amounts for the Home Efficiency Rebate program are to be determined. Larger rebates will be available for projects with at least 35% reduction in energy usage.

Through the Home Electrification and Appliance Rebate program, eligible households may receive up to $14,000 in rebates. Rebates can cover up to 100% of eligible costs for low-income households and up to 50% of eligible costs for moderate-income households. See “Who is eligible for the Home Energy Rebates?” section above for more details on eligibility. Rebates are available for the following improvements:

 

Home Electrification and Appliance Rebate Program Amounts
Appliance / Improvement TypeRebate Amount
Energy Star-certified electric cold-climate heat pump for space heating and coolingUp to $8,000
ENERGY STAR-certified electric non-cold-climate heat pump for space heating and coolingUp to $3,000
Electrical panel upgradeUp to $4,000
Electrical wiringUp to $2,500
Energy Star-certified electric heat pump water heaterUp to $1,750
Insulation, air sealing, and mechanical ventilation productsUp to $1,600
Energy Star-certified electric heat pump clothes dryer and/or an electric stove, cooktop, range, or ovenUp to $840

I need a home energy upgrade now. What should I do?

The Department of Energy (DOE) does not recommend that households wait to accomplish needed home energy upgrades or projects. Households looking for financial assistance to make home energy upgrades before these rebates are available may be eligible for Colorado’s Weatherization Assistance Program or other financial incentives, such as state tax credits, federal tax credits and utility rebates.  

Visit the DOE Energy Savings Hub for more information on energy-saving purchases that qualify for federal rebates and tax credits. You can take advantage of up to $3,200 in federal tax credits now. More information is available on the IRS website.

For heating emergencies in Colorado, call 1-855-469-4328.

When will state-administered, IRA-funded rebates be available?

We expect to launch both rebate programs this upcoming winter 2024-2025.

IRA Home Energy Rebate Program - Timeline image

Image description

When will state-administered, IRA-funded rebates be available?

We expect to launch both rebate programs this upcoming winter 2024-2025.

IRA Home Energy Rebate Program Timeline

Image description