Colorado Opens its Home Energy Rebates Program

WASHINGTON — Colorado has begun the first phase of its Home Energy Rebates program, supported by the federal Inflation Reduction Act.

The state is launching the Home Electrification and Appliance Rebates (HEAR) portion of the program to cut residential energy bills by lowering costs for energy-efficiency improvements, according to a press release from the U.S. Department of Energy (DOE).

“We are focused on saving Coloradans money on energy bills by increasing access to high-efficiency heat pumps and better insulation for homes,” said Colorado Gov. Jared Polis. “Upgrades like these save Coloradans money on utilities, make homes more comfortable year-round, and protect our clean air.”

Colorado’s HEAR program, one of the two Home Energy Rebates programs, will be overseen by the Colorado Energy Office (CEO) and launched in phases. The state’s total allocation for both Home Energy Rebates programs is more than $70 million.

Initially, Colorado’s HEAR program will be delivered through its Weatherization Assistance Program (WAP), which provides income-qualified residents with home improvements that increase energy efficiency. Colorado is the first state to fully integrate WAP with a Home Energy Rebates program. By leveraging the program’s existing processes and network of local service providers, the state’s energy office is building upon WAP’s foundation to deploy HEAR funds to low-income residents. Households earning 60% or less of the state median income, or 80% or less of their county’s median income, may qualify for the WAP program.

Eligible clients receive all energy efficiency and electrification services at no cost. The energy office will use the HEAR program to expand WAP’s reach to more households and provide electric appliances and materials to those who would not have previously been eligible for electrification upgrades through WAP.

The state expects to broaden HEAR in 2025 with direct-to-consumer rebates to income-qualified households (those with an income below 150% of the area median income). Eligible owners of single-family homes and multifamily buildings will be able to save up to $14,000 per dwelling unit, including up to $8,000 for an Energy Star-certified heat pump.

Colorado plans to launch a second Home Energy Rebates program in 2025. Under the Home Efficiency Rebates (HER) program, eligible multifamily buildings and residents of manufactured homes can save money on retrofits that reduce home energy consumption.

“From folks living in the Plains to those in the Rockies, big cost savings are coming for Coloradans looking to adapt their home’s energy needs to face the new challenges posed by climate change,” said Secretary of Energy Jennifer M. Granholm. “Colorado’s HEAR program presents a historic opportunity for residents in the state to save hundreds to thousands of dollars on energy-efficient upgrades and reduce energy bills for seasons to come.”