The Complete Guide to Denver Climate Action Rebate (CARe) Program

Interested in saving money on home energy upgrades? The Denver Climate Action Rebate (CARe) program might be a good option for you. This initiative offers significant discounts to Denver residents on qualifying energy-efficient equipment and installation costs, making it easier to enhance your home’s value, improve comfort, and reduce your energy consumption.

The Climate Protection Fund (CPF) is a critical financial resource supporting the CARe program and other local climate initiatives.

What is the Denver CARe Program?

The Denver Climate Action Rebate (CARe) program helps Denver residents upgrade their homes with energy-efficient equipment while reducing upfront costs through instant rebates. These improvements can enhance your home’s value, improve comfort, and lower your energy bills. Additionally, the Colorado Energy Office offers further rebates and tax incentives that can be combined with the CARe program to maximize savings.

What Energy Efficiency Products Qualify for the CARe Rebate?

To help make your home more energy-efficient, the CARe program offers rebates on several high-impact upgrades. Eligible products include:

Adding to the affordability and advantages, electric heating solutions that qualify for the CARe rebate can efficiently heat and cool spaces, providing a versatile option for homeowners looking to upgrade their HVAC systems.

Heat Pump Incentives – Currently suspended March 15, 2025. The Denver CARe program is reviewing funds on a first come, first serve basis. You can join a waitlist for potential rebates to come.

• Cold Climate Air Source Heat Pump: Up to $1,200, not to exceed 40% of project cost.
• Ground Source Heat Pump: Up to $1,200, not to exceed 80% of project cost.
• Cold Climate Mini-Split Heat Pump: Up to $1,200, not to exceed 40% of project cost.
• Smart Heat Pump Water Heater: Up to $500, not to exceed 60% of project cost.

EV Charger & Wiring Incentives

• Level 2 EV Charger Wiring: 80% of the project cost.
• Bi-Directional EV Charger: 80% of the project cost.
• Not Available for: New construction or gut rehab projects.

Solar Incentives

• Solar Panels: Up to $2,000 ($1 per watt) or 80% of the project cost, whichever is lower.
• Eligibility: Homeowners must have already installed a heat pump, heat pump water heater, or bi-directional EV charger to qualify.
• Not Available for: New construction or gut rehab projects.

Battery Storage

• Standard Battery Rebate: Up to $500, covering 80% of the project cost.
• Enhanced Battery Rebate: Up to $2,750, covering 80% of the project cost (Available only if you have a heat pump, heat pump water heater, or bi-directional EV charger installed).

Electrical Service Upgrade Incentives

• Electric Service Upgrade: Up to $1,000, covering 80% of the project cost.
• Eligibility: Must be paired with a heat pump (any type), heat pump water heater, solar, or battery storage rebate.
• Not Available for: New construction or gut rehab projects.

Who Qualifies for the Rebates?

To qualify for the CARe program, you must meet these criteria:

• Location: Equipment must be installed within the City and County of Denver.
• Customer Status: The resident at the installation address must be an Xcel Energy customer.
• Utility Bill: A recent Xcel Energy utility bill must be provided to the contractor.
• Building Types: Only single-family homes, duplexes, and townhomes are eligible.
• Consent Form: The resident must complete the Consent to Disclose Utility Customer Data Form and give it to the contractor to allow the City & County of Denver to track emissions reductions from the new equipment.

The CARe program is also committed to equity, particularly through initiatives that benefit low-income households.

For existing commercial buildings and multi-family units, the Building Electrification Program offers rebates. For details, visit Denver’s Building Electrification Rebates or contact DenverElectrification@MichaelsEnergy.com. For commercial and multi-family building information, check out the Energize Denver Hub.

For EV Charger, Solar, and Battery Storage Rebates:

• Must have “Residential” service from Xcel Energy.
• Equipment should connect to the residential meter.
• Residents must own or have approval to install solar panels.

How the Rebate Process Works

1. Choose a qualified contractor from the approved list
2. Contractor verifies funding availability
3. Sign contract and provide required documentation
4. Contractor completes installation
5. Rebate is instantly applied to your purchase price

The CARe program is funded by a sales tax increase aimed at financing climate action projects.

Work with an Xcel Energy Qualified Contractor – REenergizeCO

To take advantage of the CARe rebate, you must use an Xcel Qualified Contractor.  REenergizeCO is one of them.  As a qualified contractor, we handle all the paperwork for you. We’ll submit your rebate application and necessary documentation through the program portal, ensuring a hassle-free process for you.

To get started:

1. Review eligible improvements and rebate amounts
2. Get an estimate for your desired upgrades
3. Ensure you have required documentation
4. Schedule your installation

Contact climateactionrebates@denvergov.org for general program inquiries or visit the official Denver Climate Action Rebate website for more information.

Double Your Savings with Federal Tax Credits

One of the best features of the CARe program is that you can stack these rebates with federal tax credits. That means even bigger savings when you upgrade your home with energy-efficient solutions. By combining both, you can significantly lower the upfront costs of your investment while increasing your home’s value and comfort.

Additionally, the Inflation Reduction Act provides further incentives and rebates for energy-efficient upgrades, which can also be stacked with CARe rebates.

Real Success Story

One of our recent projects in a historic Denver neighborhood preserved the home’s original charm while upgrading it with solar energy.  This project received $9,500 in rebates through the City of Denver’s CARe program, plus additional savings are available through the Federal Tax Credit.  This ended up being 20% of their total cost was paid for through the rebate program.

Frequently Asked Questions

What exactly is the Denver Climate Action Rebate (CARe) program?

The Denver CARe program is a city initiative that provides instant rebates to help residents upgrade to energy-efficient home equipment. The program covers various improvements including heat pumps, solar panels, EV chargers, and water heaters, with rebates applied directly to the purchase price. These rebates are designed to make energy-efficient upgrades more affordable while helping Denver reach its climate action goals.

How do I know if I qualify for the CARe program?

You must own or live in a qualifying property within the City and County of Denver, and be an Xcel Energy customer with a recent utility bill. The program is specifically for single-family homes, duplexes, and townhomes, but not for larger multi-family buildings except for certain solar and EV charger installations. Your contractor will need to verify your eligibility before proceeding with any installation.

Can I combine CARe rebates with other incentives?

Yes, the CARe program is designed to work alongside other incentive programs for maximum savings. You can stack these rebates with federal tax credits, Xcel Energy rebates, and income-qualified additional rebates when available. This combination of incentives can significantly reduce your total out-of-pocket costs for energy-efficient upgrades.

How does the instant rebate process work?

The rebate process is handled entirely by your qualified contractor, who will verify funding availability and submit all necessary documentation on your behalf. Once your project is approved, the rebate amount is deducted directly from your purchase price at the time of installation. Your only responsibility is to provide the required documentation, including your Xcel Energy bill and signed consent form.

What’s required to get the highest solar panel rebate?

To qualify for the maximum solar rebate of $4,000 ($1.00 per watt-DC), you must already have either a heat pump space heater, heat pump water heater, or vehicle-to-building EV charger installed. Your roof needs to be in good condition with minimal shading and not require replacement within 15 years. The installation must be completed by a licensed electrician, and the total rebate cannot exceed 80% of the project cost.

Do I need to use a specific contractor for my project?

Yes, you must work with contractors who meet specific qualifications based on the type of installation you’re planning. Heat pump installations require an Xcel Registered Trade Partner, water heater installations need a licensed Colorado plumber, and solar or electrical work must be done by a licensed Colorado electrician. The contractor must be registered with the CARe program to process your rebate.

What happens if I sell my home after receiving CARe rebates?

The CARe rebates are tied to the installation address and don’t need to be repaid when selling your home. The energy-efficient improvements you’ve made using the rebates become a permanent part of the property and can actually increase your home’s value. However, you may need to repay the rebate if the program determines the equipment was never installed or if the rebate was obtained fraudulently.

How does the CARe program help reduce greenhouse gas emissions?

The CARe program helps reduce greenhouse gas emissions by promoting energy-efficient upgrades such as heat pumps, solar panels, and EV chargers. These upgrades lower the energy consumption of homes, thereby reducing the overall carbon footprint. By making these technologies more affordable, the program supports Denver’s goal of achieving net-zero emissions.

What impact do energy-efficient upgrades have on indoor air quality, particularly for low-income families with respiratory illnesses?

Energy-efficient upgrades can significantly improve indoor air quality by reducing pollutants and improving ventilation. This is especially beneficial for low-income families with respiratory illnesses, as better air quality can lead to improved health outcomes. The CARe program’s focus on sustainable practices helps create healthier living environments for all residents.