The Home Electrification and Appliance Rebate [HEAR] Program is a State initiative funded Federally in 2022 that gives low-to-moderate-income households an instant discount of up to $14,000 to switch to high-efficiency electric appliances. Unlike a tax credit that you wait months for, this rebate is applied at the time of purchase, essentially acting like a high-value coupon.

1. High-Value Instant Savings in Colorado

You don’t get a check in the mail; you get a lower price on the invoice.

• Heat Pump Water Heaters: Up to $1,750 off.

• Heat Pump Heating/Cooling: Up to $8,000 off.

• Electrical Panels/Wiring: Up to $6,500 off (if needed for new appliances). and more…

2. Eligibility is Income-Based

The program is designed for households earning less than 150% of the Area Median Income (AMI).

• Low Income (<80% AMI): The rebate covers 100% of the cost (up to the caps above).

• Moderate Income (80%–150% AMI): The rebate covers 50% of the cost (up to the caps above).

3. Point-of-Sale Convenience

Because this is a point-of-sale program, you must work with a state-approved contractor or retailer. You simply apply on the State portal and get your State Voucher. The contractor deducts the amount of the voucher directly from your quote.

How to Claim Your Rebate in Colorado (4 Simple Steps)

To get the rebate, you must follow the state’s official process before you buy your new water heater.

1. Check Your Eligibility

Visit the Colorado Energy Office (CEO) website to check your county’s Area Median Income (AMI) limits. Households earning 150% or less of the AMI qualify. If you already receive benefits like LEAP (LIHEAP), SNAP, or Medicaid, you are likely pre-qualified.

2. Submit an Application

Complete the online application at the Colorado Home Energy Rebate Portal. You will need to upload:

• Proof of Identity: A copy of your Colorado driver’s license or US passport.

• Proof of Residency/Ownership: A utility bill from the last 90 days and a property tax record or deed.

• Proof of Income: Tax returns (1040), W-2s, or a benefit award letter.

3. Coordinate Your “Home Upgrade Plan”

Unlike some states, Colorado requires you to work with a Registered Contractor to create a “Home Upgrade Plan” within the portal. The state will not prioritize or approve “incomplete” applications that don’t have a specific project and contractor attached to them.

4. Ready to find a contractor?

Select a participating contractor from the official CEO Registered Contractor List.

Alternatively, we invite you to come back to NewWaterHeaterDecisions.com and fill in the form at the bottom of this page. We will connect you with 3 qualified Colorado installers who are registered with the state, understand the HEAR requirements, and typically provide a competitive flat-price quote for a standard install.

• The HEAR discount is only valid if a Registered Contractor performs the work.

• Stacking Savings: If your utility (like Xcel or Black Hills Energy) offers a rebate, we show you how to stack it with the state funds.

By clicking “submit” on the form below, you provide your express written consent to be contacted by up to 3 local Colorado contractors regarding your quote request. You agree to receive communications via phone, text, or email, including the use of automated technology. Consent is not a condition of purchase.

5. Redeem Your Instant Discount

Once the state approves your Home Upgrade Plan and Income Verification, your contractor will reserve the funds. They will then perform the installation and deduct the rebate amount (up to $1,750) directly from your final invoice.

You only pay the remaining balance!