Based on our conversations with several builders of all-electric homes, the home may cost slightly more to build than a similar dual-fuel home, for example about $10,000 more for an average size new home (including more efficient building shell and electric heating and appliances). However, some Colorado utilities are increasing their rebates to builders for all-electric homes, which will offset part of this additional cost.
The cost to the homebuyer for the all-electric home will be very close to the cost of a similar dual-fuel home. (For example, if the cost is $20,000 more, that is less than 4% of the total cost if the new home costs more than $500,000.) And, beginning in 2023, the homebuyer can take advantage of tax credits for a heat pump or heat pump water heater: 30% up to $2,000 for the federal tax credit, and 10% of the equipment cost for the state tax credit. These tax credits will help to further offset the small cost difference for the electric home.