Fort Collins, 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
Fort Collins, 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 Fort Collins, CO: 91°F for cooling, -5°F for heating, and a 72°F indoor setpoint. For a precise Manual J load calculation and personalized quote, connect with our 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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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
Fort Collins, 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 Fort Collins homeowners.
Colorado HEAR Rebate
Up to $8,000Home Electrification and Appliance Rebates (HEAR) support high-efficiency electric appliances and other upgrades and are now available to single-family households through registered contractors. HEAR rebates include electric upgrades such as heat pumps, heat pump water heaters, electric panels, and electric wiring.
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. The remainder should be offered to customers as a discount upfront.
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.
Fort Collins homeowners have access to multiple heat pump incentive programs in 2026. The Colorado HEAR program offers up to $8,000 in rebates for income-qualified households (up to 150% AMI), while the Colorado Heat Pump Tax Credit provides up to $1,000 in upfront discounts through registered contractors. Combined with the federal IRA tax credit of up to $2,000, homeowners can potentially save thousands on heat pump installations. Palmetto can help you navigate these programs, verify eligibility, and connect you with registered contractors to maximize your available 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
Fort Collins sits in IECC Climate Zone 6, which means cold winters with design temperatures 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 Fort Collins's climate and can help you find a system sized and selected for exactly what you'll face here. 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
Fort Collins Electricity Prices
Understanding Fort Collins electricity costs helps you make smarter decisions about home heating and cooling—especially as rates continue to climb.
Colorado electricity rates have risen 15% since 2021, climbing from 13.1 to 15.1 cents per kWh. For Fort Collins homeowners, this means higher bills for the same comfort—unless you're using more efficient equipment.
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 heating and cooling for your home.
As electricity rates continue rising, efficiency becomes increasingly valuable. A heat pump's lower energy consumption means your monthly savings grow over time, protecting your budget against future rate increases while keeping your home comfortable.
Price of Energy: Colorado vs National Average
Fort Collins Area Utility Providers
Fort Collins residents are served by two main utility providers: CORE Electric at 14.5¢ per kWh and Xcel Energy at 14.3¢ per kWh (2023 data). Both rates sit below the national average of 16.0¢ per kWh.
These competitive rates reflect Colorado's diverse energy mix and regulatory structure. The state average of 14.3¢ per kWh benefits from renewable energy investments and natural gas availability, keeping costs reasonable compared to national figures.
Lower electricity rates make heat pumps even more economical in Fort Collins. Since heat pumps use electricity three times more efficiently than traditional heating systems, your energy dollars stretch further—reducing total heating and cooling costs year-round.
Fort Collins 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 Fort Collins. Modern cold-climate heat pumps are designed to operate efficiently in Climate Zone 6, where winter temperatures can drop to -5°F. With electricity costs at 15.1¢ per kWh in Colorado, heat pumps typically provide heating and cooling at lower operating costs compared to traditional systems.
Fort Collins 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 deliver year-round comfort while reducing energy expenses in Fort Collins' variable climate.
Heat pumps perform very efficiently in Fort Collins's Climate Zone 6, even during cold winters. Modern cold-climate heat pumps maintain strong performance down to Fort Collins's design heating temperature of -5°F, delivering 2-3 times more heating energy than they consume in electricity. At Colorado's current rate of 15.1¢ per kWh, this efficiency translates to meaningful savings compared to traditional heating systems.
Fort Collins's moderate cooling needs (design temp: 91°F) also make heat pumps ideal for year-round comfort. Their efficiency means lower energy bills in both winter and summer. Palmetto makes installation accessible through our Comfort Plan with $0 upfront cost and included maintenance, or through direct purchase where you 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 Fort Collins depends on your financial priorities and homeownership plans. Buying outright means you own the equipment immediately and can claim federal tax credits up to $2,000 under the Inflation Reduction Act, plus any local rebates. Leasing through a Comfort Plan requires no upfront investment and includes all maintenance and repairs for the life of the plan.
Fort Collins' Climate Zone 6 conditions—with winter temperatures dropping to -5°F—mean your heat pump will work year-round, making long-term reliability important. If you prefer predictable monthly costs and worry-free maintenance, leasing offers peace of mind. If you plan to stay in your home long-term and want to maximize incentives while building equity in your equipment, purchasing may deliver better value.
Heat pump installation costs in Fort Collins typically range from $8,000 to $20,000 for a complete system, depending on your home's size, existing infrastructure, and the equipment selected. Fort Collins' Climate Zone 6 conditions—with winter lows around -5°F—often require cold-climate heat pump models, which can influence the total investment.
Palmetto offers two payment approaches to fit different budgets: a Comfort Plan with $0 upfront and predictable monthly payments including all maintenance and repairs, or direct purchase where you own the system outright and may qualify for up to $2,000 in federal tax credits under the Inflation Reduction Act plus local Colorado rebates.
Yes, heat pumps are typically worth it financially in Fort Collins. 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, most homeowners see meaningful savings on their monthly energy bills, especially during Fort Collins' cold winters in Climate Zone 6.
The financial case becomes even stronger when you factor in available incentives and flexible payment options. Direct purchase qualifies for up to $2,000 in federal tax credits under the Inflation Reduction Act, plus local rebates. Alternatively, Palmetto's Comfort Plan offers $0 upfront with predictable monthly payments and included maintenance, making heat pumps accessible regardless of your budget or preference for ownership.
In Fort Collins, licensed HVAC contractors install heat pumps, including specialized companies like Palmetto that focus on home energy solutions. These professionals assess your home's heating and cooling needs in Climate Zone 6, where winter temperatures can drop to -5°F, and recommend appropriately sized equipment for Fort Collins' climate conditions.
Palmetto offers Fort Collins homeowners two installation options: a Comfort Plan with $0 upfront cost and all maintenance included, or direct purchase where you own the equipment and may qualify for up to $2,000 in federal tax credits. Both options include professional installation by certified technicians who understand the specific requirements of heating and cooling homes in northern Colorado's variable climate.
HVAC stands for Heating, Ventilation, and Air Conditioning—it's an umbrella term for all systems that heat and cool your home. A heat pump is actually a type of HVAC system that does both heating and cooling in one unit, transferring heat rather than generating it through combustion like traditional furnaces do.
In Fort Collins' Climate Zone 6, where winter temperatures can drop to -5°F, modern heat pumps are designed to handle both extreme cold and summer highs of 91°F efficiently. With Colorado's electricity rates at 15.1¢ per kWh, heat pumps can provide year-round comfort while potentially lowering your energy costs compared to separate heating and cooling systems.