Boulder, CO Heat Pump Leasing & Installation
In this guide
01
Benefits of Palmetto Heat Pumps
Say goodbye to clunky old systems and surprise repairs. Palmetto Comfort Plan gives you a brand-new heat pump, installation, and full support, all wrapped into one subscription.
Year Round Comfort
A high-efficiency heat pump keeps your home cool in summer, warm in winter, and your energy use in check all year long.
Forget the maintenance
With a Comfort Plan subscription, installation and maintenance are fully covered, no surprise bills, no weekend DIY.
Rewards for renewing
Stick with us and earn credits toward your next system upgrade. It’s our way of saying thanks for building a cleaner, comfier future with us.
02
Boulder, CO Heat Pump Load Calculator
Use our calculator below to estimate your home’s heating and cooling needs based on square footage. It uses ACCA-standard design conditions for Boulder, CO: 91°F for cooling, -5°F for heating, and a 72°F indoor target. For a precise Manual J load calculation and personalized quote, connect with Palmetto’s team. Get in touch with our team for an official quote.
Step 1 of 3
Home location & size
Your home’s location and size directly impact heating needs.
Step 2 of 3
Home attributes
Step 3 of 3
Additional details
Description of what this means for context.
Estimated Heating Needs
Your home’s location falls within the a climate zone with the average extreme winter falling between 10° – 15° F.
Home Details
Recommended equipment capacity
60,000 BTU
5 Tons
Calculated Cooling Mode
102,000 BTU
8.5 Tons
03
Buy it or finance it. Your comfort, your call
There's no wrong way to get cozy. Here's how the options stack up, so you can choose what works best for you.
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Loan |
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| Payment schedule | $0 upfront, then monthly subscription | Full price upfront | $0 upfront, then monthly payment |
| Term length | 10 or 12 years | None | Variable |
| End of term options | Flexible with 25% renewal term credits to new system | No credits to new system | No credits to new system |
| Maintenance included | |||
| Eligible for incentives |
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Loan
Local Incentives
Boulder, CO Heat Pump Rebates & Incentives
Local and federal incentive programs can significantly reduce the cost of a new heat pump system. Here are the programs available to Boulder homeowners.
Colorado HEAR Program
Up to $14,000The Home Electrification and Appliance Rebates (HEAR) program provides rebates for high-efficiency electric appliances and other upgrades, and is now available to single-family households through registered contractors. The rebates provide up to $14,000 in savings per qualified household to make eligible energy upgrades in single-family and manufactured/mobile homes.
Colorado Heat Pump Tax Credit
Up to $1,000In 2026 and after, the credit has been reduced to $1,000 for heat pumps, and the total tax credit for the State of Colorado Heat Pump Contractor is $1,000 for 2026. All Colorado residents, businesses, and other organizations who install an eligible heat pump through a registered contractor may receive a portion of the tax credit (at least 33.33%) as a discount at the time of installation.
Federal IRA Tax Credit
Up to $2,000The Inflation Reduction Act provides a federal tax credit of up to $2,000 for qualifying heat pump installations through 2032.
Boulder homeowners have access to multiple heat pump incentive programs in 2026. The Colorado HEAR program offers up to $14,000 in rebates for income-qualified households (up to 150% of area median income), while the Colorado state heat pump tax credit provides up to $1,000 through registered contractors. Additionally, the federal IRA tax credit offers up to $2,000 for qualifying heat pump installations. Palmetto can help homeowners navigate these programs, verify eligibility, and maximize available rebates by coordinating with registered contractors and ensuring all incentives are properly applied.
Incentive information is based on publicly available data as of 2026 and may change. Contact program administrators to verify current availability and eligibility requirements.
04
Climate Zones
Boulder sits in IECC Climate Zone 6, which means cold winters with design temperatures around -5°F and warm summers reaching 91°F. These temperature extremes matter when sizing your heat pump—you need a system that can handle both frigid January mornings and hot July afternoons efficiently. At Palmetto, we understand Boulder's climate and can help you find the right heat pump for your home. Explore other climate zones below or enter your ZIP code to confirm yours.
Climate Zone 1
Climate zone 1 is not typically seen within the United States outside of Alaska. It represents the coldest climates on the planet.
Climate Zone 1A
Avg. extreme winters: -60° to -55° F
Climate Zone 1B
Avg. extreme winters: -55° to -50° F
Boulder Electricity Prices
Understanding Boulder's electricity costs is essential when evaluating your home heating and cooling options—especially as rates continue to climb.
Colorado electricity rates have risen from 13.1 cents per kWh in 2021 to 15.1 cents in 2024—a 15% increase in just three years. Boulder residents are feeling this impact on their monthly utility bills.
Heat pumps offer a practical response to rising electricity costs. Because they're 2-3 times more efficient than traditional HVAC systems, they use significantly less electricity to deliver the same amount of heating and cooling for your home.
As electricity rates continue their upward trend, efficiency becomes increasingly valuable. A heat pump's lower energy consumption means your monthly costs rise more slowly, protecting your budget over the system's 15-20 year lifespan.
Price of Energy: Colorado vs National Average
Boulder Area Utility Providers
Boulder residents receive electricity primarily from Xcel Energy. Based on 2023 data (the most recent available), Xcel Energy's rates averaged 14.30¢ per kWh—slightly below the national average of 16.0¢ per kWh.
Colorado's electricity costs remain competitive due to the state's diverse energy mix, including natural gas, wind, and solar. Xcel Energy has invested heavily in renewable sources, helping stabilize rates while reducing environmental impact.
Even with reasonable electricity rates, heat pumps offer Boulder homeowners significant savings. Their high efficiency means they use far less energy than traditional heating and cooling systems, reducing total energy spending regardless of local utility costs.
Boulder Utilities Electricity Rates
Let our smart tools do the heavy lifting.
Get personalized tips, usage insights, project tracking, and that daily satisfaction of making your energy work smarter with the Palmetto mobile app.
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Repair versus replace
When a heat pump is in need of repair it is worth considering whether a replacement would be a better investment. While each case is unique, we generally recommend investing in a new unit when repairs exceed $5,000.
A heat pump's lifetime is impacted by a number of factors including environment, use and the quality of the unit. It's important to choose the right unit for your climate zone and home's unique attributes.
When you are in need of repair, we recommend choosing a service provider that is an expert in the heat pump brand you have installed, and checking online reviews to ensure you are investing in the right level of service.
| Potential repair | Cost range | Description |
|---|---|---|
| Capacitor Replacement | $150 - $400 | Common issue when unit struggles to start or makes a humming noise. Capacitors store the electrical energy needed to start the compressor and fan motors. |
| Refrigerant Recharge | $250 - $750 | Needed when the system loses cooling or heating efficiency due to low refrigerant levels. Includes leak detection, repair of minor leaks, and recharging the system to the manufacturer-specified level. |
| Reversing Valve Replacement | $450 - $900 | Required when the unit cannot switch between heating and cooling modes. The reversing valve directs refrigerant flow and is unique to heat pump systems. |
| Compressor Replacement | $1,500 - $3,000 | Major repair needed when the unit fails to heat or cool entirely. The compressor is the heart of the system, circulating refrigerant between the indoor and outdoor coils. |
| Evaporator/Condenser Coil Replacement | $1,200 - $2,800 | Replacement needed when coils develop leaks or corrosion that cannot be economically repaired. Coil damage reduces heat transfer efficiency and can cause refrigerant loss. |
| Control Board Replacement | $500 - $1,200 | Required when the system has electrical failures or erratic behavior. The control board manages all system operations including defrost cycles, fan speeds, and compressor staging. |
| Full System Replacement | $4,500 - $8,000+ | When repairs exceed the value of the unit or multiple major components fail simultaneously. Includes removal of the old system and installation of a new heat pump with updated refrigerant lines and electrical connections. |
Frequently Asked Questions
Yes, heat pumps make excellent sense in Boulder. Modern cold-climate heat pumps perform efficiently even at Boulder's design heating temperature of -5°F (Climate Zone 6), and with Colorado's electricity rate of 15.1¢ per kWh, they typically cost less to operate than traditional heating systems while providing both heating and cooling for year-round comfort.
Boulder homeowners have flexible options to get started. Palmetto's Comfort Plan offers $0 upfront with maintenance included, or you can purchase directly and potentially qualify for up to $2,000 in federal tax credits under the Inflation Reduction Act. Either way, you're investing in efficient, reliable climate control suited to Boulder's mountain climate.
Heat pumps perform well in Boulder's Climate Zone 6, efficiently heating homes even when temperatures drop to the design low of -5°F. Modern cold-climate heat pumps maintain efficiency ratings of 200-300% (delivering 2-3 units of heat per unit of electricity), making them significantly more efficient than traditional resistance heating, especially with Colorado's 15.1¢ per kWh electricity rate.
During Boulder's milder shoulder seasons and summer months (design cooling temp: 91°F), heat pumps excel at both heating and cooling with minimal energy use. Palmetto offers heat pump installation through our Comfort Plan with $0 upfront and maintenance included, or direct purchase options that may qualify for up to $2,000 in federal tax credits under the Inflation Reduction Act.
The choice between leasing and buying a heat pump in Boulder depends on your financial priorities and preferences. Buying means paying upfront but owning the equipment outright, plus you may qualify for federal tax credits up to $2,000 under the Inflation Reduction Act. Leasing through a Comfort Plan requires $0 upfront and includes all maintenance and repairs for predictable monthly costs.
In Boulder's Climate Zone 6, where winter temperatures drop to -5°F, heat pumps work year-round and proper maintenance matters. If you prefer avoiding large upfront costs and want maintenance handled for you, leasing offers peace of mind. If you want to maximize tax incentives and own your equipment, purchasing may save more long-term, especially with Colorado's 15.1¢ per kWh electricity rates.
Heat pump installation costs in Boulder typically range from $15,000 to $30,000 for a complete system, depending on your home's size, existing infrastructure, and the equipment needed to handle Boulder's Climate Zone 6 conditions (with winter temperatures reaching -5°F). The final price varies based on factors like ductwork modifications, electrical upgrades, and the specific heat pump model selected for your home.
Palmetto offers two ways to get a heat pump in Boulder: a Comfort Plan with $0 upfront cost and a predictable monthly payment that includes all maintenance and repairs, or direct purchase where you own the equipment outright and may qualify for up to $2,000 in federal tax credits under the Inflation Reduction Act plus local Colorado rebates. Both options help Boulder homeowners transition to efficient heating and cooling while managing costs in a way that fits their budget.
Yes, heat pumps are worth it financially for most Boulder homeowners. Modern heat pumps can reduce heating and cooling costs by 30-50% compared to traditional systems, and with Colorado's electricity rate at 15.1¢ per kWh, the savings add up quickly. Direct purchases may qualify for up to $2,000 in federal tax credits plus local rebates, significantly reducing your investment.
Palmetto makes heat pumps accessible through two options: purchase outright to maximize tax incentives and own your equipment, or choose our Comfort Plan with $0 upfront cost and a predictable monthly payment that includes all maintenance and repairs. Both paths deliver long-term savings while keeping your Boulder home comfortable year-round in Climate Zone 6 conditions.
Heat pumps in Boulder are installed by licensed HVAC contractors who specialize in cold-climate heating and cooling systems. These professionals must understand Boulder's Climate Zone 6 conditions, where systems need to handle temperatures from -5°F in winter to 91°F in summer, ensuring proper equipment sizing and installation for year-round comfort.
Palmetto works with certified local installers to provide heat pump installation in Boulder through two options: a Comfort Plan with $0 upfront cost and included maintenance, or direct purchase where you own the system outright and may qualify for up to $2,000 in federal tax credits. Both approaches ensure professional installation tailored to your home's specific heating and cooling needs.
HVAC is an umbrella term that stands for Heating, Ventilation, and Air Conditioning—it describes any system that controls your home's temperature and air quality. A heat pump is actually a type of HVAC system that both heats and cools your home by transferring heat rather than generating it, making it highly efficient in Boulder's Climate Zone 6 conditions.
Traditional HVAC systems often use separate equipment for heating (like a furnace) and cooling (like an AC unit), while a heat pump handles both functions in one system. This efficiency matters in Boulder, where electricity costs 15.1¢ per kWh—heat pumps typically use less energy than conventional systems. Palmetto offers heat pumps through a Comfort Plan with zero upfront costs and included maintenance, or direct purchase with potential federal tax credits up to $2,000.