Denver, CO Heat Pump Leasing & Installation
Benefits of Palmetto Heat Pumps
Say goodbye to clunky old systems and surprise repairs. Palmetto Comfort Plan gives you a brand-new heat pump, installation, and full support, all wrapped into one subscription.
Year Round Comfort
A high-efficiency heat pump keeps your home cool in summer, warm in winter, and your energy use in check all year long.
Forget the maintenance
With a Comfort Plan subscription, installation and maintenance are fully covered, no surprise bills, no weekend DIY.
Rewards for renewing
Stick with us and earn credits toward your next system upgrade. It’s our way of saying thanks for building a cleaner, comfier future with us.
Denver, CO Heat Pump Load Calculator
Use our calculator below to estimate your home’s heating and cooling needs based on square footage. It uses ACCA-standard design conditions for Denver, CO: 91°F for cooling and -5°F for heating, with a 72°F indoor target. For a precise Manual J load calculation and personalized quote, connect with Palmetto’s team. Get in touch with our team for an official quote.
Home location & size
Your home’s location and size directly impact heating needs.
- ZIP Code
- Number of residents
- Home Square Footage (sq ft)
- Home Ceiling Height (ft)
Home attributes
- Amount of sunlight: Low, Moderate, High
- Insulation: Poor, Standard, Good, Excellent
- Number of Windows
- Window and Door Seals: Poor fit & Seal, Typical fit & Seal, Good fit & Seal
Additional details
- Do you have a kitchen? Yes/No
- Do you have any glassed-in rooms? Yes/No
- Extra Device Wattage (W)
Estimated Heating Needs
Your home’s location falls within a climate zone with the average extreme winter falling between 10° – 15° F.
Home Details
Recommended equipment capacity
- 60,000 BTU (5 Tons)
- Calculated Cooling Mode: 102,000 BTU (8.5 Tons)
Buy it or finance it. Your comfort, your call
Here's how the options stack up, so you can choose what works best for you.
| Comfort Plan | Cash | Loan | |
|---|---|---|---|
| Payment schedule | $0 upfront, then monthly subscription | Full price upfront | $0 upfront, then monthly payment |
| Term length | 10 or 12 years | None | Variable |
| End of term options | Flexible with 25% renewal term credits to new system | No credits to new system | No credits to new system |
Local Incentives
Denver, CO Heat Pump Rebates & Incentives
Colorado HEAR Rebate
Up to $8,000
Colorado State Heat Pump Tax Credit
Up to $1,000
Power Ahead Colorado
Varies
Federal IRA Tax Credit
Up to $2,000
Denver homeowners have access to multiple heat pump rebate and incentive programs in 2026. The Colorado HEAR program offers up to $8,000 in rebates for income-qualified households (up to 150% of area median income), while the Colorado State Heat Pump Tax Credit provides up to $1,000 through registered contractors. Additionally, the new Power Ahead Colorado program, backed by a $200 million federal grant, offers $40 million in heat pump incentives for the Denver metro area. These programs can be combined with the federal IRA tax credit (up to $2,000) to maximize savings.
Climate Zones
Denver sits in IECC Climate Zone 6, which means cold winters (design temps around -5°F) and warm summers (up to 91°F). This temperature range matters—your heat pump needs to handle both extremes efficiently.
Climate Zone 6
Cool climate zone with cold winters and warm summers.
Climate Zone 6A
Avg. extreme winters: -10° to -5° F
Climate Zone 6B
Avg. extreme winters: -5° to 0° F
Denver Electricity Prices
Understanding Denver's electricity costs is essential when choosing a heating and cooling system that protects your budget long-term. Colorado electricity rates have climbed steadily from 13.1 cents per kWh in 2021 to 15.1 cents in 2024.
Price of Energy: Colorado vs National Average
Denver Area Utility Providers
Denver residents are served primarily by two utility providers: Xcel Energy at 14.3¢ per kWh and CORE Electric at 14.5¢ per kWh (2023 data).
Denver Utilities Electricity Rates
- CORE Electric: 14.50¢
- Xcel Energy: 14.30¢
- CO Average: 14.30¢
- US Average: 16.0¢
Repair versus replace
When a heat pump is in need of repair it is worth considering whether a replacement would be a better investment.
| Potential repair | Cost range | Description |
|---|---|---|
| Capacitor Replacement | $150 - $400 | Common issue when unit struggles to start or makes a humming noise. |
| Refrigerant Recharge | $250 - $750 | Needed when the system loses cooling or heating efficiency due to low refrigerant levels. |
| Reversing Valve Replacement | $450 - $900 | Required when the unit cannot switch between heating and cooling modes. |
| Compressor Replacement | $1,500 - $3,000 | Major repair needed when the unit fails to heat or cool entirely. |
| Evaporator/Condenser Coil Replacement | $1,200 - $2,800 | Replacement needed when coils develop leaks or corrosion. |
| Control Board Replacement | $500 - $1,200 | Required when the system has electrical failures or erratic behavior. |
| Full System Replacement | $4,500 - $8,000+ | When repairs exceed the value of the unit or multiple major components fail simultaneously. |
Frequently Asked Questions
Do heat pumps make sense in Denver?
Yes, heat pumps make sense in Denver. Modern cold-climate heat pumps work efficiently even at Denver's design heating temperature of -5°F.
How efficient are heat pumps in Denver's climate?
Heat pumps perform remarkably well in Denver's Climate Zone 6, even when temperatures drop to the design heating temperature of -5°F.
Should I lease or buy a heat pump in Denver?
The choice between leasing and buying a heat pump in Denver depends on your financial priorities and homeownership plans.
How much does a heat pump cost in Denver?
Heat pump installation costs in Denver typically range from $5,000 to $20,000 depending on your home's size, existing infrastructure, and the system's capacity needed for Colorado's Climate Zone 6 conditions.
Is a heat pump worth it financially?
Yes, heat pumps are typically worth it financially in Denver. Modern heat pumps can reduce heating and cooling costs by 30-50% compared to traditional systems.
Who installs heat pumps in Denver?
Heat pumps in Denver are installed by licensed HVAC contractors who specialize in heating and cooling systems suitable for Colorado's Climate Zone 6 conditions.
What is the difference between a heat pump and HVAC?
A heat pump is actually a type of HVAC system. HVAC stands for Heating, Ventilation, and Air Conditioning—it's an umbrella term for any equipment that controls your home's temperature and air quality.