Heat pump quote evaluation 2026

Heat Pump Quote Evaluation — May 2026

Notes after getting our first heat pump quote for the house. Captured here for our own reference and for anyone else in Fort Collins shopping the same install.

Our situation

1,700 sqft ranch in Fort Collins
Existing forced-air gas furnace with ductwork
Easy crawlspace access below, attic access above
Electric: Fort Collins Utilities (Platte River Power Authority)
Gas: Xcel Energy
First quote received: ~$30,000

Is $30k reasonable?

Probably high. For a 1,700 sqft ranch with existing ductwork and easy access, this is the easiest install profile. Typical Front Range pricing in 2026:

Ducted air-source heat pump replacement: $11k–$24k before rebates
Forced-air with existing ductwork: $10k–$16k installed is common
$30k is what you'd expect for a complex retrofit (no existing ductwork, premium variable-speed equipment, or a high-end cold-climate unit with extras)

Plan: get 2–3 more quotes before committing. Ask each contractor to itemize equipment (brand/model/tonnage), labor, electrical (220V circuit), permits, and what happens to the existing furnace (dual-fuel backup vs. full removal). A 1,700 sqft ranch is likely a 3-ton system.

Rebate stack available in Fort Collins (May 2026)

Important nuance: Xcel heat pump rebate eligibility is tied to having an Xcel gas account, not electric. We pay Xcel for gas → we qualify for the big rebate, even though Fort Collins Utilities provides our electric.

Rebate	Amount (3-ton est.)	Notes
Xcel cold-climate heat pump (ccASHP)	~$6,750	$2,250 × 3 tons; unit must hold 70% capacity at 5°F with COP ≥ 1.75 (details)
Xcel standard (if not cold-climate)	~$2,700	$900 × 3 tons — fallback tier
Xcel Whole Home Efficiency bonus	+25% on standard portion	Requires Xcel-approved energy audit + 3 qualifying projects within 2 years
Colorado state heat pump tax credit	$500–$1,000 to customer	$1,500 total shared with installer; applied at sale by registered contractors
Efficiency Works (Fort Collins Utilities / PRPA)	Varies	$2,000 retrofit-bundle bonus if combined with envelope work
DRCOG Power Ahead Colorado	$1,500	Launching early summer 2026, no income limit — Front Range HEAR replacement
Federal 25C ($2,000 heat pump credit)	$0	Expired Dec 31, 2025; HR1 (signed July 4, 2025) accelerated the sunset
Colorado HEAR (income-qualified, up to $8,000)	$0	Region 1 / Front Range closed April 28, 2026

Realistic stacked rebates if we go ccASHP: $8,000–$11,000+.

Revised math on the $30k quote

If it's a ccASHP unit, out of pocket after Xcel + CO credit alone: ~$22,000. Still high for our home profile.
Comparable quotes from Efficiency Works–registered contractors typically land $15k–$20k before rebates, putting us at $5k–$10k out of pocket after the full stack.

Key questions to ask each contractor

Is the proposed unit on Xcel's ccASHP qualified list? (Mitsubishi Hyperheat, Bosch IDS, Lennox, Trane variable-speed cold-climate, etc.) Falling to the standard tier costs ~$4,000 in lost rebate.
Do they handle Xcel rebate paperwork? (Most do.)
Are they an Efficiency Works–registered contractor?
Dual-fuel (keep gas furnace as backup) or full electric? Dual-fuel is often cheaper to install since the gas line/furnace stays.
Sizing — is this actually a 3-ton system for our load?

Deadlines to track

Xcel rebate installs must be complete by Dec 31, 2026 at current terms; rebate applications accepted through Sept 30, 2027.
DRCOG Power Ahead Colorado: launches early summer 2026 — worth timing the install so this stacks.

Local contractors to call

From the existing Install a Heat Pump note plus broader Front Range options:

Horsetooth Heating and Air (Fort Collins, local scope, good reviews)
Fort Collins Heating and Air
Balance Point Heating
NOCO Energy Solutions
Any contractor listed as Efficiency Works–registered