How To Guide

Many utilities offer energy audits at very low cost, which is an excellent first step and will guide you towards the improvements that will have the most benefits. Insulation and air sealing are relatively low-cost improvements that can reduce your home’s energy use by as much as 20%, while also increasing comfort.

An energy audit may cost about $100 or less with utility rebates, and insulation and air sealing improvements will cost about $1,000 dollars, and adding more insulation may cost $2,000 – $8,000, but utility rebates and tax credits will cover some or most of these costs. To learn more about these actions and the rebates and tax credits, go here: (see “reduce energy use – more details” below).

Heat pumps efficiently perform both heating and cooling, reducing your home’s reliance on gas or propane and significantly reducing carbon and other air pollutant emissions. We also recommend getting an energy audit while you explore your heat pump options, to reduce your home’s heating needs and improve comfort. (See “reduce energy use and improve comfort” tab above.)

A new heat pump system will cost about $2-3,000 more than replacing your central AC system, but utility rebates and state tax credits will cover most of this cost difference. To learn more about the most practical scenarios for installing heat pumps, and rebates and tax credits available, go here (see “install a heat pump – more details” below). To learn more about heat pumps, go here.

If your existing water heater is more than 10-12 years old, replacing it with a HPWH could be a great solution. Heat pump water heaters (HPWHs) are very efficient and will reduce your energy costs for hot water if your current water heater is either standard electric or propane.

HPWHs cost about $1500 more than conventional water heaters (standard electric, propane, or gas). Utility rebates and state and federal tax credits will make up for most of that difference. However, if you are replacing a propane or gas water heater with a HPWH, you will need a new 220 Volt electrical circuit, which will add about $1,000 to the installation costs. To learn more about heat pump water heaters, go here. For more details on rebates and tax credits available, go here (see “install a new water heater – more details” below.)

The newer generation of electric ranges and induction or radiant electric cooktops are much more efficient and perform better than older electric ranges and cooktops. Radiant electric cooktops perform about as well as gas cooktops; induction cooktops perform better than gas.

A new electric range with induction cooktop will cost several hundred dollars more than a gas or propane version. Utility rebates and tax credits will offset some of this cost difference. If you are replacing a gas or propane range with electric, you will need a new 220 Volt electrical circuit, which will add about $1,000 to the total cost.

To learn more about induction cooking, go here. For information on utility rebates, go to your electric utility’s website. In addition, if your household income does not exceed 80% of the Area Median Income (AMI) (which you can check here); in late 2024 the Colorado Energy Office will offer additional rebates for electric ranges/cooktops.

Installing new home EV charging will allow you to charge your EV at home during off-peak hours when many utilities offer lower rates. An EV charger and new 220 Volt circuit will cost about $1,500 – $2,000. Utility rebates and tax credits will cover some of those costs.

To learn more about electric vehicles and EV charging, go here. For more information on utility rebates, go to your electric utility’s website. Home EV charging is also eligible for a federal tax credit of 30% of installation costs, up to a maximum of $1,000.

Many utilities offer rebates for solar PV systems, and the Colorado Energy Office offers a low-interest loan program to help homeowners finance solar PV and other home energy improvements.

For more information on utility rebates, go to your electric utility’s website. New solar PV systems (installed after 2022) are also eligible for a federal tax credit of 30% of the installation costs.