2026 Cost Data
How Much Does a Heat Pump Cost in Denver?
Normal Range:$8,000 – $19,000
Heat pumps cost $13,000 on average in Colorado, based on 42 real homeowner quotes.
Get Your EstimateData from BLS · ENERGY STAR · EIA · 42+ homeowner reports · Updated March 2026
Get Your Personalized Estimate
Uses BLS labor data for your metro area, NREL electricity rates for your ZIP, and ENERGY STAR equipment pricing.
Where is your home?
We'll use your ZIP code to find local prices, rebates, and climate data.
Denver at a Glance
Average Cost
$13,000
median
42 crowdsourced quotes from Colorado
Electricity Rate
15.1¢
near 16¢ avg/kWh
EIA · Public Service Co of Colorado
Climate Zone
Zone 5
IECC 2021
Rebates
$0
1 program
DSIRE · EnergySage
A heat pump in Denver typically costs $8,000–$19,000 installed, based on 42 real quotes from Colorado homeowners. Denver's electricity runs 15.1¢/kWh (Public Service Co of Colorado) — near the national average. You're in Climate Zone 5, which means cold winters are the main concern — your system needs to handle temperatures below 10°F. There are currently 1 rebate program that could save you up to $0.
Cost by Project Type
What Will It Cost?
Cost depends more on what you're installing than your home size. A single ductless unit for one room is very different from a whole-home multi-zone system.
Ductless mini-split (3 zones)
Three rooms — common for smaller homes without ducts
$17,300 – $18,810
median $17,300 · 3 quotes
Central ducted heat pump
Replaces existing furnace — uses your current ductwork
$9,500 – $12,250
median $9,500 · 3 quotes
Dual-fuel / hybrid system
Heat pump + gas furnace backup for coldest days
$19,000 – $25,500
median $22,000 · 5 quotes
Based on real homeowner-reported costs in Colorado. Your actual cost depends on equipment brand, local labor rates ($31/hr in Denver), and site conditions.
What Colorado Homeowners Actually Paid
Based on 42 crowdsourced quotes from real homeowners. These are what people reported paying — not contractor estimates.
Budget (25th)
$8,000
Median
$13,000
Premium (75th)
$19,000
Lowest
$1,000
Highest
$30,000
In Their Own Words
"Minimum price after local rebates; commenter mentions four quotes in that price range but only provides this post-rebate minimum ($13k)."
$13,000
"Contractor quoted 10,200 for a lesser Mitsubishi system."
$10,200
"3-ton heat pump + 80% backup gas. 21 SEER2, 10.5 HSPF2. Quoted/paid $16000 after rebates last July; also states EfficiencyWorks inspected…"
$16,000
Source: crowdsourced homeowner reports, collected and verified by WattFax.
Cost by System Type
There are a few different kinds of heat pump systems. The right one depends on whether your home has ductwork (the air vents in your walls and ceiling that blow hot/cold air).
Ductless Mini-Split
$11,642
median · 17 quotes
Wall-mounted units in individual rooms, no ductwork needed. Each room gets its own temperature control. Great for older homes or additions.
Dual-Fuel Hybrid
$21,600
median · 5 quotes *
A heat pump paired with a gas furnace as backup. The gas kicks in on the coldest days. Best in very cold climates where temps regularly drop below 10°F.
Ducted
$11,333
median · 3 quotes *
Connects to the air vents (ducts) already in your walls and ceiling. Best if you have existing ductwork from a furnace or AC system.
* Small sample size — may not reflect typical pricing.
Source: 42 homeowner reports from Colorado.
What Drives the Price in Denver
$31/hr
Local HVAC Labor Rate
Labor is the biggest variable between cities. The Bureau of Labor Statistics reports that HVAC installers in the Denver area earn a median of $31/hr. After business overhead (insurance, trucks, office), contractors typically charge around $109/hr. A typical install takes a 2-person crew 8–12 hours, putting Denver labor at $1,308–$2,180. That's near the national median of $28/hr.
Source: BLS Occupational Employment Statistics, SOC 49-9021
Zone 5
Your Climate Zone
Denver is in IECC Climate Zone 5. Zone 5 has cold winters with regular temps below 10°F. Heating dominates. Cold-climate models maintain 70–80% capacity at 5°F. This affects what size and type of system you need: since winters are harsh, your system needs enough heating power to keep up without backup electric heat.
A Denver home under 1,500 sq ft typically needs a 2-ton system ($5,090–$9,244), while homes over 3,500 sq ft need 5 tons ($8,744–$15,116).
In Zone 5, NEEP-certified cold climate models are strongly recommended. These cost 10–20% more upfront but work efficiently down to -15°F, so you avoid expensive backup electric heat strips.
Source: IECC 2021 Climate Zone Map · NEEP Cold Climate Air Source Heat Pump List
15.1¢/kWh
Your Electricity Rate
This is what you pay per kilowatt-hour of electricity through Public Service Co of Colorado. It matters because a heat pump runs on electricity — so your electric rate directly affects how much it costs to heat and cool your home. Your rate is near average, so a mid-efficiency system (16–18 SEER2) usually offers the best balance of upfront cost and energy savings.
What's SEER2? It stands for Seasonal Energy Efficiency Ratio — think of it like MPG for your car. A 20 SEER2 system uses about 25% less electricity than a 15 SEER2 system. At Denver's rate, that's roughly $257/year saved on heating alone.
Source: EIA Electric Power Monthly · Public Service Co of Colorado
Will a Heat Pump Save You Money?
If you currently heat with a gas furnace and cool with a separate AC unit, here's how a heat pump compares — it replaces both in a single system. Based on Denver's electricity rate of 15.1¢/kWh.
Current: Gas Furnace + AC
With Heat Pump (Heating + Cooling)
In Denver, natural gas is relatively cheap compared to electricity, so a heat pump may cost slightly more to run per year. However, it eliminates gas dependency and gives you heating and cooling from one system — fewer things to maintain and replace.
Assumes 1,500–2,500 sqft home. Gas furnace at 95% AFUE, existing AC at SEER 10, heat pump COP 2.3. Rates from EIA.
Rebates You Can Use in Denver
Rebates reduce your upfront cost — some are taken off the price at purchase, others come as tax credits or utility bill credits. There are currently 1 program available worth up to $0.
Federal 25C Tax Credit
Expired December 31, 2025. May be renewed — check IRS.gov.
Colorado HEAR Program
State program
Source: DSIRE · EnergySage · Rewiring America
Frequently Asked Questions
How much does a heat pump cost in Denver?
Based on 42 real homeowner quotes, the median installed cost in Colorado is $13,000. Budget installs (25th percentile) come in around $8,000, while premium systems hit $19,000+. The price depends on your home size, system type, and whether you need new ductwork.
What rebates are available in Denver?
The federal 25C tax credit (up to $2,000) expired December 2025. Colorado currently has 1 active program worth up to $0. These include utility rebates, state incentives, and income-qualified programs.
Do heat pumps work in Denver's climate?
Yes. Denver is in Climate Zone 5. Zone 5 has cold winters with regular temps below 10°F. Heating dominates. Our recommendation: NEEP-listed cold-climate model with COP above 2.0 at 5°F.
What's the difference between ducted and ductless?
A ducted heat pump connects to the air vents already in your walls and ceiling — if you have a furnace now, you probably have ducts. It heats and cools the whole house through those vents. A ductless mini-split uses small wall-mounted units in individual rooms, connected by a thin pipe to an outdoor unit. It's ideal if you don't have existing ductwork, or want to control temperatures room-by-room. In Colorado: Ductless Mini-Split median $11,642 vs Dual-Fuel Hybrid median $21,600.
What does electricity cost in Denver?
15.1¢/kWh (Public Service Co of Colorado). That's near the national average of about 16¢. This rate directly affects your monthly operating cost since heat pumps run on electricity.
What brand should I get?
Based on what Colorado homeowners actually installed, the most popular brands are Mitsubishi (11 installs, median $13,636), Bosch (4 installs, median $14,910). Brand choice matters less than proper sizing and installation quality — a well-installed mid-tier system will outperform a poorly installed premium one.
Labor: BLS (SOC 49-9021) · Equipment: ENERGY STAR · Electricity: EIA / NREL · Rebates: Rewiring America · Climate: IECC 2021· Cold climate: NEEP · Quotes: 42+ homeowner reports · Updated March 2026