Pilot Rebate Program for All-Electric Affordable Housing

Overview

Denver is working towards a zero-emission future by 2040. Newly constructed buildings can plan to be highly efficient, all-electric and designed to leading standards such as Passive House. We intend to meet Denver's decarbonization goals by offering a monetary incentive for a limited number of new affordable housing projects to use all-electric space and water heating. Some of those projects may also pursue Passive House design and construction certifications.

This pilot program has funding to support about 10 new affordable housing projects, and may reach capacity quickly. Applications will be reviewed on a first-come, first-served basis. Once the program has reached capacity, new applications will be placed onto a waitlist.

Within the Pilot Rebate Program, approved affordable housing projects can get rebates to install the following heat pump equipment, up to a maximum amount of $600,000 per project:

• Heat pump rooftop units
• Ducted cold climate split air-source heat pumps 
• Non-ducted cold climate mini-split air-source heat pumps
• Heat pump hot water heaters 
• Variable refrigerant flow heat pumps
• Cold climate packaged terminal heat pumps
• Cold climate single packaged vertical heat pumps
• Water source heat pumps
• Ground source heat pumps 

Additionally, these projects can get rebates to help offset the cost of designing to Passive House standards through either Passive House Institute (PHI) or Passive House Institute US (Phius). 

Funding is available for projects at different points in the design and construction process:

This incentive program aligns with the Legislative Declaration establishing the Office of Climate Action, Sustainability and Resiliency (Sec. 2-404 D.R.M.C.) as well as the Permitted Uses of Revenue in the Climate Protection Fund (Sec. 2-405 of the D.R.M.C.). 

Start Your Application

Project Eligibility

Applicants must meet the following criteria to be eligible for consideration in this program:

• The building project is located within the City and County of Denver. 
• The building project is not owned by the City and County of Denver.
• The building project is a new affordable housing project.
  • Existing affordable housing projects seeking a Passive House Retrofit compliance path are eligible to apply for Passive House rebates.
• The building meets applicable code requirements.
• The project is an all-electric property as defined in the 2022 Denver Energy Code.
• The project must be pursuing funding and seeking funding from the Denver Department of Housing Stability (HOST)The project must comply with our Equity Priority Building affordable housing classification requirements:  
  • Two-thirds of the units must house families at or below 80% of Denver's Area Median Income (AMI).
  • Projects serving households at or below 30% AMI or formerly homeless households will receive priority consideration

For projects seeking Heat Pump Rebates:

• The equipment you install must meet applicable code requirements and minimum performances standards outlined in the eligible heat pump equipment guidelines.
• The equipment you install must be AHRI certified and new, never installed, and never used with the full manufacturer’s warranty.

For projects seeking Passive House Certification Rebates:

• The building is pursuing a Passive House certification through Phius or PHI through one of the following certification paths:
  • Phius CORE
  • Phius ZERO
  • Phius CORE REVIVE
  • Phius ZERO REVIVE
  • Phius CORE COMM
  • Phius ZERO COMM
  • PHI Classic
  • PHI Plus
  • PHI Premium
  • EnerPHit.
• That you will hire a Passive House consultant certified through either PHI or Phius to conduct a feasibility study
• That you will hold a design charrette early in the design process to align on Passive House strategies for the project. This charrette will be conducted with the help of your certified Passive House consultant.

You must also commit to: 

• Stack rebates according to Denver's rebate stacking rules. 
• The program rules and process.
• The rebate terms and conditions. 

Program participants can receive facilitation services upon request, including, but not limited to: 

• Translation and interpretation support 
• Assistance with program processes and documents
• Program navigation support
• Assistance identifying additional incentives and rebates 

Contractor Eligibility 

• We require contractors to be licensed to pull a permit with the City and County of Denver. Rebate participants are responsible for ensuring that the contractors they hire: 
• Are licensed with the City and County of Denver
• Properly pull a permit for the work 

Anything installed without a permit or by a contractor not licensed with the City and County of Denver is not eligible for any of the rebates for new construction.

Eligible Heat Pump Equipment

Buildings are limited to a total rebate amount of $600,000 for heat pump equipment.

Program Process

This section provides a step-by-step guide to help you prepare for and receive your funding.

Before You Apply

Before you start your application, you should gather the documents that you will have to submit with your application to show eligibility.

Your application will require the following documents to show eligibility and grant you preapproval:

• Documentation showing the project's physical address is located in the City and County of Denver
• Documentation showing which heat pump equipment type(s) you are planning to install (if pursuing funding for equipment)
• Documentation showing the Passive House certification pathway you are using (if pursuing funding for Passive House certification)
• Documentation showing your Passive House consultant's credentials (if pursuing funding for Passive House certification)
• Proof that your project is registered with either PHI or Phius (if pursuing funding for Passive House certification)
• Your company's W9 (which allows us to release the rebate to you)
• Documentation showing that the project will meet the Equity Priority Building affordable housing classification requirements

We recommend you gather this documentation before you start your application. This will ensure a smooth and timely review of your application materials.

You must also notify HOST that you plan to apply for funding through this CASR program.

Ready to Apply?

1. Double check that you have gathered all of the required documentation listed above and notify HOST that you plan to submit an application with CASR.
2. Complete the application with all requested information, and submit it through the application portal.

   Start Your Application

3. CASR will review your application to verify your eligibility.
   1. The city may request an interview as part of the evaluation process. Any such interviews will take place after CASR has conducted an initial review of submitted applications.
4. Once CASR verifies your eligibility, they will initiate the contract process. 
   1. Selected applicants will receive an award notice via email.
   2. You should be prepared to collaborate with the city to establish a formal written agreement. The agreement will not be effective or binding on the city until it has been fully executed by all required signatories of the City and County of Denver.
      

      See a Sample Agreement(PDF, 608KB)

   3. Contracts will contain reporting and milestone requirements that must be satisfied before the city will reimburse project costs.
   4. Once the contract is finalized, project teams can provide documentation and invoice the city per the terms agreed upon in the contract.
      1. Funding amount will be dependent on finalized design and construction.
5. Once the building project is complete, CASR will confirm project completion and closeout the project with the project team.

Program Rules

• You must get preapproved for the rebate before we can reserve it for you.
• Preapproval is subject to available funds.
• You must apply for the rebate before the start of construction.
• The project must meet all applicable code requirements.
• Once your rebate is preapproved, you will have three years to complete the project and receive your rebate. If this timeline is problematic for your project, especially considering current supply chain issues, please reach out to us before the three years is up:
  • DenverElectrification@michaelsenergy.com
  • 720.782.7661
• You will need to submit specific documentation to receive the rebate. Please review the list of required documents in detail before you apply.
• Heat Pump Rebates for New Construction can be stacked with other rebates and tax credits. 
• You must inform the program administrator if you are receiving another rebate or tax credit from:
  • The state
  • The Federal government
  • Xcel Energy
  • Another gas or electric utility
  • Another Denver agency
  • Any other entity
• Incentive preapprovals are based on building information (e.g., square footage, number of units, number of stories, common spaces) submitted at the time of application. Actual incentives paid will be based on the building as built.
  • Any differences will result in adjustments in the incentive award.
• Equipment installed prior to application pre-approval is not eligible for a rebate.
• For projects that are having difficulties achieving certification based on post-construction testing, teams must work with PHI or Phius to pursue all reasonable options to meet compliance requirements.
  • It will be up to the discretion of Denver to determine if funding will be awarded for projects that cannot meet certification.
• You may be asked to allow city representatives to visit the building as needed to verify project completion, collect pre- and post-project data, and provide facilitation services. 
• You may be asked to participate in interviews, surveys, focus groups and other engagements to provide feedback to the city and its representatives on the rebate program design, challenges faced, and suggestions for improvement. 
• You may be asked to provide city staff with data and information to create case studies based on the building project.
  • Any information that you do not want shared with the public shall be discussed with Denver staff prior to case study publication.
  • All applicable project information and documentation will be made publicly available on the city’s website and/or shared on the city’s social media channels, unless mutually agreed upon between you and city staff.
• This is a pilot rebate program. the rebate pilot structure may change in the future. applicants that are awarded under the current pilot program will receive rebate amounts at the current rebate levels.