Building Electrification Rebates

Save time! Before starting your application, you should have your documents ready to go. This will help our Program Administrator review your application. Gather these documents before you apply:

• IRS W9 for the person or company claiming the rebate funds
• Itemized bid for equipment (if you already know what you want to install)
• Equipment spec sheets (if you already know what you want to install)
• Equity Priority Building documentation (if you believe you qualify)

1. Submit an application.
2. Michaels Energy, the program administrator will review your application to determine eligibility.
3. Once Michaels Energy verifies your eligibility, the program administrator will issue an Equipment Rebate Preapproval. This reserves your rebate.
4. Work with an eligible contractor to install the heat pump equipment. Contractors must be licensed to work in commercial and multifamily buildings with the City and County of Denver to be considered eligible. Contractors with only residential licenses are not eligible for these projects.
5. When the project is complete, you or your contractor will submit documents for the program administrator to review:
   1. The invoice(s)
   2. Final permit inspection document
   3. The manufacturer's start-up checklist
   4. Any specification sheets
6. After review is complete, you will receive an Equipment Rebate Approval Letter.
7. The program administrator will issue the equipment rebate via check to one of the following:
   1. The building owner
   2. The tenant responsible for space conditioning or water heating equipment
   3. The contractor if the rebate has been signed over to them

Rebate amounts are subject to change and subject to available funding. Rebates are currently available for:

• Ducted split air-source heat pumps (ASHPs)
• Non-ducted mini-split air-source heat pumps (mini-splits)
• Heat pump hot water heaters
• Heat pump rooftop units (HP RTUs)
• Variable refrigerant flow (VRF) systems
• Packaged terminal heat pumps (PTHPs)
• Single packaged vertical heat pumps (SVPHPs)
• Water source heat pumps (WSHPs)
• Ground source heat pumps (GSHPs)

Rebates for additional equipment types are forthcoming.

• Preapproval via this application is required before a rebate is reserved for a building owner or tenant. We strongly recommend that you wait to purchase equipment until after you receive your preapproval. This is because the rebates are not reserved until an applicant is preapproved.
• Equipment purchased prior to 03/01/23 is not eligible for a rebate.
• Equipment Installed prior to application pre-approval is not eligible for a rebate.
• Equipment must be AHRI certified.
• Equipment must be new, never-installed, and never-used, with the full manufacturer's warranty.
• Leased equipment is not eligible for a rebate.
• Equipment must meet applicable code requirements.
• New construction is not eligible. New construction projects qualify for our New Construction Rebates.
• Equipment that does not meet the qualifications listed in the Eligible Equipment table is not eligible for a rebate. 
• For standard buildings, Denver reserves the right to cap rebates at $100,000 per building owner/tenant per calendar year.
  • Subject to available funds, Equity Priority Buildings may be eligible for additional funding above and beyond the $100,000 cap for standard buildings. If you own or manage an Equity Priority Building, please apply to obtain your maximum rebate amount.
• Rebate amounts cannot exceed total project costs. If total project costs are less than the rebate, we will adjust the rebate.
• Participants will only participate in one program offered by Denver’s Office of Climate Action, Sustainability and Resiliency (CASR) for each piece of installed equipment. By participating in this rebate program, the participant is not eligible for any other rebates offered by CASR on that specific piece of installed equipment.
• You must inform the program administrator if you are receiving another rebate or tax credit from:
  • The state
  • The federal government
  • Xcel Energy
  • Any other gas or electric utility
  • Any other entity
• Building owners/tenants/contractors must submit IRS W9 forms and an Xcel Energy (or other utility) Data Release form to receive a rebate.
• For the program administrator to issue the rebate, you or your contractor must submit the following for approval:
  • Itemized invoice(s)
  • Equipment spec sheets
  • Final permit inspection document(s)
  • Manufacturer's start-up checklist
  • Other supporting documents
• Building owners or tenants who are responsible for their own space conditioning or water heating equipment can sign the rebate over to their contractor.
• After Michaels Energy preapproves your application, your contractors will have 180 days to install the equipment.  
• After 180 days, you will have to reapply unless you are granted an extension to the timeline in writing via DenverElectrification@MichaelsEnergy.com. Please note that due to limited program funding, you should not count on being granted an extension. Please plan to install your equipment within 180 days of preapproval.

Participant Eligibility 

To be eligible for the Equipment Rebate, you must confirm:

• Your building is located within the City and County of Denver.
• Your building is not owned by the City and County of Denver.
• Owners or tenants applying are responsible for the space heating, cooling, or water heating equipment being installed. 
• The building is an existing commercial building, multifamily apartment, or multifamily condominium.
  
  • New construction can qualify for our New Construction Electrification Rebates.
  • Single family dwellings, two-family dwellings (duplexes), and townhomes qualify for our Climate Action Rebates.
  • Not sure whether what type of building yours qualifies as? Check out our handy guide(PDF, 63KB) to help you figure it out.
  • If you still have questions about what kind of building your dwelling unit is classified as, please contact Denver Community Planning and Development at archstruc.review@denvergov.org.
• Equipment installed must meet applicable code requirements. 

You must also commit to: 

• Only participating in one program offered by Denver’s Office of Climate Action, Sustainability and Resiliency (CASR) for each piece of installed equipment.
  • Understanding that you will not be eligible for any other rebates offered by CASR on that specific piece of installed equipment.
• The program processes.
• The program rules.
• The rebate terms and conditions, including working with an eligible contractor.

Program participants will receive facilitation services, including, but not limited to:

• Technical support in selecting contractors to perform an Electrification Feasibility Report
• Translation and interpretation support
• Assistance with program processes and documents
• Program navigation support
• Vetting bids
• Advising on the best equipment options
• Assistance identifying additional incentives and rebates

Facilitation and service support will be capped at:

• 30 hours for Equity Priority Buildings
• 15 hours for Standard Buildings

Contractor Eligibility

We require contractors to be licensed to pull a permit for commercial and multifamily buildings with the City and County of Denver. Contractors with only a residential license are not eligible for this rebate. Rebate participants are responsible for ensuring that the contractors they hire:

• Are licensed with the City and County of Denver
• Have the appropriate license to work on commercial and multifamily buildings
• Properly pull a permit for the work and for the permit to be "finaled"

Any equipment installed without a permit or by a contractor not licensed with the City and County of Denver is not eligible for the Equipment Rebate. 

The equipment you install must meet the following requirements:

If efficiency metrics differ than those listed in the table (i.e., EER vs. EER2 and SEER vs. SEER2 and HSPF vs. HSPF2) conversions will be done internally based on standards set by CEE.

*EcoPort is the brand name for CTA-2045 certified products. Find out more about EcoPort, CTA-2045, and Open ADR.

^αQuality installation documentation will be required. This includes installation by a manufacturer-trained and certified technician, factory-provided startup, and a factory-provided first-year labor warranty. Pre-start and factory startup reports must be submitted along with the factory labor warranty documentation.

^§Nonstandard size units must be factory labeled as follows: "MANUFACTURED FOR NONSTANDARD SIZE APPLICATIONS ONLY; NOT TO BE INSTALLED IN NEW STANDARD PROJECTS." Nonstandard size efficiencies apply only to units being installed in existing sleeves having an external wall opening of less than 16 inches (406 mm) high or less than 42 inches (1067 mm) wide and having a cross-sectional area less than 670 square inches (0.43 m2).

^¤Equipment rebates that are per cooling ton are calculated using the AHRI rated cooling BTU/h divided by 12,000.

Learn More About Heat Pumps

1. Fill out an application indicating one piece of equipment to look at with an Electrification Feasibility Report.
2. Michaels Energy, the program administrator, will review and preapprove your application within 10 business days.
3. Select a contractor who has completed an Electrification Feasibility Report training.
4. Work with your contractor to complete and submit the Electrification Feasibility Report.
5. The program administrator will review and approve the completed Electrification Feasibility Report within 10 business days.
6. The contractor will invoice for the cost of the Electrification Feasibility Report.
7. The program will pay up to $2,500 to cover the cost of the Electrification Feasibility Report.

Building owners are not required to follow the recommendations that come from an Electrification Feasibility Report. However, there will be changes coming in 2025 and 2027 that will require the electrification of systems when it’s cost-effective for replacements. It may be beneficial to electrify where it makes sense now.

• Electrification Feasibility Reports submitted before a rebate application is submitted and preapproved by the program administrator will not be eligible for a rebate.
• Your application must be preapproved before you can receive the rebate.
• An Electrification Feasibility Report looks at one type of equipment at a time. You will need to complete a separate Electrification Feasibility Report for each type of equipment.
• The Energize Denver Electrification requirements apply to all existing commercial and multifamily buildings regulated by the Denver Energy Code’s commercial provisions. This includes commercial buildings, multifamily apartment buildings, and multifamily condominium buildings.
• Single-family dwellings, two-family dwellings, and townhomes are not subject to the Energize Denver Electrification requirements. If you have questions about whether your building is regulated by the Denver Commercial Building Code, please contact Community Planning and Development's Architectural/Structural Plan Review team.
• Each building may submit up to three applications for Electrification Feasibility Report rebates per calendar year. These will cover three different types of equipment. If you would like to submit more than three applications, contact us.
  • DenverElectrification@michaelsenergy.com
  • 720.782.7661
• Only one contractor will be paid for an Electrification Feasibility Report for any single piece of equipment. Two or more different contractors cannot receive a rebate for the same piece of equipment.
• Contractors must invoice Michaels Energy for the cost of the Electrification Feasibility Report. They may not invoice the building owner.
• Your contractor has 120 days to complete the Electrification Feasibility Report and submit an invoice after your application has been processed and preapproved. After 120 days, you will have to reapply.
• Contractors must have an IRS W9 on file or submit an IRS W9 to receive the rebate.

Participant Eligibility

The Energize Denver Electrification requirements apply to all existing commercial and multifamily buildings regulated by the Denver Energy Code’s Commercial Provisions. This includes commercial buildings, multifamily apartment buildings, and multifamily condominium buildings. Single family dwellings, two-family dwellings, and townhomes are not subject to the Energize Denver Electrification requirements.

To be eligible for the Electrification Feasibility Report rebate, your must meet the following requirements:

• Building must be located within the City and County of Denver
• Building must not be owned by the City and County of Denver
• Owners or tenants applying must be responsible for their own space heating, cooling, or water heating equipment
• Existing commercial buildings, multifamily apartment buildings, and multifamily condominium buildings are eligible.
  • New construction is not eligible.
  • Existing single family dwellings, two-family dwellings (duplexes), and townhomes do not have any requirements to submit an electrification feasibility report at this time.
  • If you have questions about whether your individual dwelling unit is considered a condominium or a townhome, please contact Denver Community Planning and Development at archstruc.review@denvergov.org.
• Building must be regulated by Denver's Commercial Building Code
• The building must have at least one of the following:
  • Gas-fired HVAC (space heating or cooling)
  • Gas-fired water heating
  • Electric cooling-only equipment

You must confirm that equipment will be installed in an existing building or space that is not undergoing a major rehab. You must also agree to follow the program rules, processes and terms, including working with an eligible contractor.

Contractor Eligibility

For contractors to be eligible to receive this rebate, they must be on our list of eligible contractors. To get on this list, you must have attended an Electrification Feasibility Report training and passed the comprehension quiz. If you missed the in-person trainings, you can now take the training online. Make sure that you also complete the comprehension quiz. This is the only way we can confirm that you have completed the training. After you pass the comprehension quiz, we will add you to the list of eligible contractors. Quiz results will be monitored weekly. Please allow up to two weeks to be added to the list.

Eligible Participants will Receive:

• Up to $2,500 for an Electrification Feasibility Report completed by an eligible contractor.
• Facilitation services, which include but are not limited to:
  • Technical support in selecting contractors for Electrification Feasibility Report services
  • Translation and interpretation support
  • Assistance with program processes and documents
  • Program navigation support
  • Assistance identifying other incentives and rebates

• Facilitation service support will be capped as follows:
  • Equity Priority Buildings: up to 30 hours
  • Standard Buildings: up to 15 hours

These are defined as multifamily buildings where at least 2/3 of the units are classified as deed-restricted affordable housing. 

In order to verify that your building falls into this category, your application must include:

• A copy of the regulatory agreement OR affordable housing covenant that specifies the number of units in the building that are deed-restricted affordable housing.

See an Example Affordable Housing Covenant(PDF, 175KB)

These are apartment buildings where at least 2/3 of residential units have rents at or below 80% of the HOST rent limits.

In order to verify that your building falls into this category, your application must include:

• A rent roll (in Excel spreadsheet format) that lists the following for all rental units:
  • Unit number
  • Monthly rent
  • Number of bedrooms
  • End-date of current lease

See an Example Rent Roll(PDF, 23KB)

These include individual condo unit owners who meet certain income requirements and are installing equipment in their individual condo unit OR whole residential condominium buildings where at least 2/3 of unit owners meet one of the following criteria:

• A household income at or below 80% of Denver's area median income
• Enrollment in a public assistance program

In order to confirm that the building falls into this category, one of the following is required for each unit owner that meets the above criteria:

• Cover page of the previous year's Form 1040, line 9
• Your Form SSA-1099 
• Proof of enrollment in Xcel Energy income-qualified demand side management program
• Proof of enrollment in Xcel Energy’s income-qualified Community Solar Gardens program
• Proof of enrollment in the Denver Property Tax Relief Program
• Proof of Social Security Disability Insurance (SSDI)
• Proof of Supplemental Security Income (SSI)
• Proof of Old Age Pension (OAP)
• Proof of Support from any of the following:
  • Aid to the Blind (AB)
  • Aid to the Needy Disabled (AND)
  • Supplemental Nutrition Assistance Program (SNAP)
  • Section 8 Housing
  • Women, Infants, and Children (WIC)
  • Temporary Aid to Needy Families (TANF)
  • LEAP (Utility Bill Assistance)

See an Example of Form 1040(PDF, 279KB)

Nonprofits must meet both of the following criteria:

• Have a 501c(3) Letter of Determination from the Internal Revenue Service OR IRS Form W-9 including an Employer Identification Number (EIN) that can be verified as tax-exempt using the IRS tax-exempt organization search tool
• Offer critical services in the City and County of Denver, such as, but not limited to:
  • Advocacy organizations (such as Community Advocacy, Social Service Advocacy, or similar)
  • Affordable housing or housing service providers
  • After-school providers, childcare centers, or family support organizations
  • Community financial institutions (like credit unions, non-profit lenders, etc)
  • Disability service providers
  • Domestic violence centers, women's centers, or children's centers
  • Emergency service organizations
  • Food pantries
  • Homeless shelters, transitional housing, or supportive housing
  • Hospitals, healthcare facilities, mental or behavioral health facilities, clinics
  • Immigration service providers
  • Job training and workforce development services
  • Law/legal centers (non-profit and pro-bono services to income-qualified communities)
  • Libraries (not owned by the City and County of Denver) or community centers
  • Places of worship
  • Rehabilitation providers
  • Senior centers (not owned by the City and County of Denver)

In order to verify that your building falls into this category, your application must include:

• Your 501c(3) Letter of Determination from the Internal Revenue Service OR IRS Form W-9 including EIN
• A written description of what your nonprofit organization does. Narratives should include:
  • Number of people served annually
  • Types of critical services offered
  • Neighborhoods you serve

See an Example Letter of Determination(PDF, 54KB)

We will consider commercial buildings with operating revenues less than $800,000 in the previous tax year.

In order to verify that your building meets this criteria, your application must include a copy of the previous year’s tax return that details the building owner’s total operating revenues, typically a Form 1040 Schedule C. Personal info such as social security number should be redacted.

See sample Form 1040 Schedule C(PDF, 157KB)