Colorado Springs, 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
Colorado Springs, CO Heat Pump Load Calculator
Use our calculator below to estimate your home’s heating and cooling needs based on ACCA-standard design conditions for Colorado Springs: 91°F cooling, -5°F heating, and 72°F indoor comfort. For a precise Manual J load calculation and personalized quote, connect with our team today. 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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Cash |
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 |
Cash
Loan
Local Incentives
Colorado Springs, 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 Colorado Springs homeowners.
Colorado HEAR Rebate
Up to $8,000The Home Electrification and Appliance Rebates (HEAR) program provides discounts on high-efficiency electric appliances and other upgrades including heat pumps, heat pump water heaters, electric panels, and electric wiring. HEAR rebates are now available to single-family homes.
Colorado Heat Pump Tax Credit
Up to $1,000In 2026 and after, the credit has been reduced to $1,000 for heat pumps. The total tax credit for the State of Colorado Heat Pump Contractor is $1,000 for 2026 and 66.6% can be retained by the contractor. Remainder should be offered to the customers as a discount upfront.
Colorado Springs Utilities Rebate
Up to $1,500Starting Jan. 1, 2026, Colorado Springs Utilities will provide a $1,500 electric bill credit to customers who are approved for rebates on heat pumps under three tons. This is a local utility program specific to Colorado Springs.
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.
Colorado Springs homeowners have access to multiple heat pump rebate and incentive programs in 2026. The Colorado HEAR program offers up to $8,000 for income-qualified households, the Colorado state heat pump tax credit provides up to $1,000, and Colorado Springs Utilities offers an additional $1,500 credit for heat pumps under three tons. Combined with the federal IRA tax credit of up to $2,000, homeowners can potentially access substantial savings. Palmetto can help you navigate these programs, verify your eligibility, and maximize your total rebates and incentives.
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
Colorado Springs sits in IECC Climate Zone 6, which means cold winters (design temps around -5°F) and warm summers (reaching 91°F). This temperature range matters—your heat pump needs to handle both extremes efficiently. At Palmetto, we understand Colorado Springs's climate and can help you choose a system sized and selected for local conditions. Explore the 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
Colorado Springs Electricity Prices
Understanding electricity costs in Colorado Springs helps you make smarter decisions about your home's heating and cooling systems.
Colorado electricity rates have climbed from 13.1 cents per kWh in 2021 to 15.1 cents in 2024—a 15% increase in just three years. That translates to higher bills for heating and cooling your home.
Heat pumps offer a practical solution to rising energy costs. Because they're 2-3 times more efficient than traditional HVAC systems, they use significantly less electricity to deliver the same comfort—meaning lower bills even as rates increase.
As electricity costs continue to rise, that efficiency gap becomes increasingly valuable. A heat pump's lower energy consumption compounds year after year, protecting your budget while keeping your Colorado Springs home comfortable through every season.
Price of Energy: Colorado vs National Average
Colorado Springs Area Utility Providers
Colorado Springs residents have access to two main electricity providers: Colorado Springs Utilities and CORE Electric. According to 2023 data, both offer rates below the national average of 16.0¢ per kWh.
Colorado Springs Utilities charges 13.8¢ per kWh, while CORE Electric's rate is 14.5¢ per kWh—both competitive with the state average of 14.30¢. Colorado's favorable electricity costs stem from its diverse energy mix and efficient utility operations.
These below-average electricity rates make heat pumps particularly attractive for Colorado Springs homeowners. Heat pumps use significantly less energy than traditional HVAC systems, so even modest electricity costs translate into meaningful savings on your monthly energy bills.
Colorado Springs 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.
- Rewards for smarter energy usage
- Energy insights & Dashboard
- Personalized Savings Tools
- Whole Home Energy Management
- Support Whenever You Need It
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 sense in Colorado Springs. Modern cold-climate heat pumps work efficiently even at the city's design heating temperature of -5°F, and they provide both heating and cooling for summer temperatures reaching 91°F. With electricity rates at 15.1¢ per kWh, heat pumps typically cost less to operate than traditional heating systems while keeping your home comfortable year-round.
Colorado Springs homeowners have flexible options to get started. Palmetto's Comfort Plan offers $0 upfront with maintenance included, while direct purchase may qualify for up to $2,000 in federal tax credits under the Inflation Reduction Act. Both approaches provide an efficient heating and cooling solution suited to Climate Zone 6's temperature swings.
Heat pumps are highly efficient in Colorado Springs's Climate Zone 6, even when temperatures drop to the design heating low of -5°F. Modern cold-climate heat pumps can deliver 2-3 times more heating energy than the electricity they consume, making them cost-effective at Colorado's current rate of 15.1¢ per kWh. They also cool efficiently during summer peaks around 91°F.
Efficiency translates to real savings on your energy bills while keeping your home comfortable year-round. Whether you choose Palmetto's Comfort Plan with $0 upfront and included maintenance, or direct purchase to access up to $2,000 in federal tax credits, you'll benefit from reliable performance designed for Colorado's temperature swings.
The choice between leasing and buying a heat pump in Colorado Springs depends on your financial priorities and home maintenance preferences. Buying outright means you own the equipment and can claim up to $2,000 in federal tax credits under the Inflation Reduction Act, plus any local rebates. Leasing through a Comfort Plan requires $0 upfront and includes all maintenance, repairs, and warranty coverage with a predictable monthly payment.
In Colorado Springs' Climate Zone 6, where winter temperatures drop to -5°F, heat pump reliability matters year-round. If you prefer avoiding maintenance responsibilities and upfront costs, leasing provides peace of mind with covered repairs. If you want to maximize long-term savings and qualify for tax incentives, purchasing makes sense. Consider your budget, how long you'll stay in your home, and whether you want to handle equipment maintenance yourself.
Heat pump costs in Colorado Springs typically range from $5,000 to $20,000 for a complete installation, depending on your home's size, existing ductwork, and the system's efficiency rating. Climate Zone 6's cold winters (design temp: -5°F) may require a more robust system, which can affect the final price.
Palmetto offers two flexible options to fit your budget: a Comfort Plan with $0 upfront cost and predictable monthly payments that include 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 rebates.
Yes, heat pumps are typically worth it financially in Colorado Springs. Modern heat pumps can reduce heating and cooling costs by 30-50% compared to traditional systems, which adds up significantly with Colorado's electricity rate of 15.1¢ per kWh. You may also qualify for up to $2,000 in federal tax credits under the Inflation Reduction Act, plus local rebates.
Palmetto makes heat pumps accessible with two options: our Comfort Plan requires $0 upfront and includes all maintenance and repairs, or you can purchase directly and own the equipment outright. Both approaches can deliver meaningful savings over time, especially in Colorado Springs' Climate Zone 6 conditions where you need reliable heating and cooling year-round.
Heat pumps in Colorado Springs are installed by licensed HVAC contractors who specialize in heating and cooling systems suited for Climate Zone 6 conditions. These professionals ensure your system can handle the area's -5°F winter design temperatures and 91°F summer highs, while working efficiently with Colorado's 15.1¢ per kWh electricity rates.
Palmetto offers heat pump installation through local certified contractors with two flexible options: a Comfort Plan with $0 upfront and included maintenance, or direct purchase where you own the equipment and may qualify for up to $2,000 in federal tax credits. Both paths provide professionally installed systems designed specifically for Colorado Springs' climate needs.
HVAC is an umbrella term that stands for Heating, Ventilation, and Air Conditioning—it describes any system that controls temperature and air quality in your home. A heat pump is actually a specific type of HVAC system that both heats and cools your home by transferring heat rather than generating it through combustion.
In Colorado Springs' Climate Zone 6 conditions, modern heat pumps work efficiently even when temperatures drop to -5°F, replacing the need for separate furnace and air conditioning units. This dual functionality can help reduce energy costs at Colorado's current 15.1¢ per kWh electricity rate while providing year-round comfort through a single, streamlined system.