Nathan Healy
Certified by Nathan Healy
Updated: February 2026
Quality home solutions since 2011
Palmetto serves thousands of customers across 25 states with an over 85% approval rating

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

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

Forget the maintenance

With a Comfort Plan subscription, installation and maintenance are fully covered, no surprise bills, no weekend DIY.

Rewards for renewing

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

Pueblo, CO Heat Pump Load Calculator

Use our calculator below to estimate your home’s heating and cooling needs based on Pueblo’s ACCA-standard design conditions: 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

Get Started

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.

Cash

Loan

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
Payment schedule $0 upfront, then monthly subscription
Term length 10 or 12 years
End of term options Flexible with 25% renewal term credits to new system
Maintenance included
Eligible for incentives

Cash

Payment schedule Full price upfront
Term length None
End of term options No credits to new system
Maintenance included
Eligible for incentives

Loan

Payment schedule $0 upfront, then monthly payment
Term length Variable
End of term options No credits to new system
Maintenance included
Eligible for incentives

Local Incentives

Pueblo, 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 Pueblo homeowners.

Colorado HEAR Program

Up to $8,000

HEAR rebates are now available to single-family households through registered contractors. Heat pumps installed through the program can qualify for up to $8,000 for cold-climate heat pumps and up to $3,000 for standard heat pump systems toward the total rebate cap of $14,000 per household.

Eligibility: Households must have incomes at or below 150% of the Area Median Income (AMI) in their county. You must reside in an existing home (new construction is ineligible) in Colorado for at least half of the year. Coloradans must work with a registered program contractor in order to get a rebate.

Learn more →

Colorado Heat Pump Tax Credit

Up to $1,000

In 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.

Eligibility: 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. All heat pumps must be Energy Star certified.

Learn more →

Federal IRA Tax Credit

Up to $2,000

The Inflation Reduction Act provides a federal tax credit of up to $2,000 for qualifying heat pump installations through 2032.

Eligibility: Available to homeowners who purchase and install a qualifying heat pump system. Claimed on your annual federal tax return.

Learn more →

Pueblo homeowners have access to multiple heat pump incentive programs in 2026. The Colorado HEAR program (launched November 2025) offers up to $8,000 in rebates for income-qualified households, the Colorado state heat pump tax credit provides up to $1,000 in upfront discounts through registered contractors, and the federal IRA tax credit offers up to $2,000. Palmetto can help homeowners navigate these programs, verify eligibility, connect with registered contractors, and maximize total savings by combining available rebates and tax credits.

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

Pueblo sits in IECC Climate Zone 6, which means cold winters that dip to -5°F and warm summers reaching 91°F. This temperature range directly impacts which heat pump systems will keep your home comfortable year-round without overworking or underperforming. At Palmetto, we size and select equipment specifically for Pueblo's climate demands. Not sure if you're in Zone 6? Enter your ZIP code below to confirm, or explore how other zones compare.

US Climate Zone Map
Your location

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

05

Pueblo Electricity Prices

Understanding electricity costs in Pueblo 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, impacting every household's monthly energy bills.

Heat pumps offer a practical response to rising rates. Because they're 2-3 times more efficient than traditional HVAC systems, they use significantly less electricity to deliver the same heating and cooling comfort.

As electricity costs continue their upward trend, that efficiency gap becomes increasingly valuable. A heat pump's lower energy consumption means your monthly bills stay manageable, even as rates rise over time.

Price of Energy: Colorado vs National Average

10¢
20¢
30¢
13.7¢
13.1¢
15.0¢
14.2¢
16.0¢
14.3¢
16.5¢
15.1¢
2021
2022
2023
2024
US Average
Colorado

Pueblo Area Utility Providers

Understanding electricity costs helps you make informed decisions about home heating and cooling. In Pueblo, CORE Electric serves the area with rates of 14.5¢ per kWh (2023 data), sitting just above Colorado's state average.

CORE Electric's rates remain competitive, coming in below the 2023 national average of 16.0¢ per kWh while slightly exceeding Colorado's 14.30¢ state average. This reflects the region's balanced energy mix and infrastructure investments serving Pueblo's communities.

Heat pumps shine in Pueblo's electricity landscape. Their exceptional efficiency—often moving three times more heating or cooling energy than the electricity they consume—means lower bills even with electric heating, typically outperforming traditional furnaces and air conditioners in total energy costs.

Pueblo Utilities Electricity Rates

CORE Electric
14.50¢
-9%
CO Average
14.30¢
-11%
US Average
16.0¢
06

Palmetto Reviews

Ready to start saving with a heat pump?

Speak with a Palmetto heating & cooling expert to find out exactly how much you can save.

Get a Free Quote
Palmetto mobile app
07

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
Download the App
08

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.

$5,000
Recommended repair threshold

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.

Ready to start saving with a heat pump?

Speak with a Palmetto heating & cooling expert to find out exactly how much you can save.

Get a Free Quote
09

Frequently Asked Questions

Yes, heat pumps make excellent sense in Pueblo. Modern heat pumps work efficiently in Climate Zone 6 conditions, handling both Pueblo's cold winter nights (down to -5°F) and hot summer days (up to 91°F). With Colorado's electricity rate at 15.1¢ per kWh, heat pumps typically cost less to operate than traditional heating systems while providing both heating and cooling year-round.

Palmetto makes heat pump installation accessible through two options: a Comfort Plan with $0 upfront and all maintenance included, or direct purchase that may qualify for up to $2,000 in federal tax credits under the Inflation Reduction Act. Both approaches help Pueblo homeowners reduce energy costs while staying comfortable through all four seasons.

Heat pumps perform very efficiently in Pueblo's climate, even during cold winters. Modern cold-climate heat pumps are designed to operate effectively in Climate Zone 6, where temperatures can drop to -5°F. They typically deliver 2-3 times more heating energy than the electricity they consume, making them significantly more efficient than traditional electric resistance heating, even in Pueblo's coldest months.

With Colorado's electricity rate at 15.1¢ per kWh, heat pumps offer substantial savings compared to propane or electric baseboard heating. During Pueblo's mild shoulder seasons and summer months (with design cooling temperatures around 91°F), heat pumps operate at peak efficiency for both heating and cooling. Palmetto makes accessing this efficiency easy through our Comfort Plan with $0 upfront cost, or through direct purchase with potential federal tax credits up to $2,000.

The choice between leasing and buying a heat pump in Pueblo depends on your financial priorities and homeownership plans. Buying offers immediate ownership and access to federal tax credits up to $2,000 under the Inflation Reduction Act, plus potential local rebates. Leasing through a Comfort Plan requires $0 upfront and includes all maintenance and repairs, eliminating unexpected costs.

In Pueblo's Climate Zone 6, where winter temperatures drop to -5°F, heat pumps work year-round but require proper maintenance. With electricity at 15.1¢ per kWh in Colorado, both options provide energy-efficient heating and cooling. Consider buying if you want ownership and can leverage tax incentives, or leasing if you prefer predictable monthly payments with worry-free maintenance coverage.

Heat pump costs in Pueblo typically range from $5,000 to $20,000 for a complete installation, depending on your home's size, existing ductwork, and the system capacity needed to handle Pueblo's climate extremes (from -5°F winter lows to 91°F summer highs). The final price varies based on equipment efficiency ratings, installation complexity, and whether modifications to your electrical system are required.

Palmetto offers two payment approaches 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. With Colorado's electricity rates at 15.1¢ per kWh, an efficient heat pump can deliver meaningful energy savings compared to traditional heating systems.

Yes, heat pumps are typically worth it financially in Pueblo. 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 energy bills within the first few years of operation.

Palmetto makes the investment even more accessible with two options: a Comfort Plan with $0 upfront and maintenance included, or direct purchase with potential federal tax credits up to $2,000. The savings add up over time, and in Pueblo's Climate Zone 6 conditions, heat pumps efficiently handle both the cold winters and warm summers year-round.

In Pueblo, heat pumps are installed by licensed HVAC contractors who are trained to work with these systems in Colorado's Climate Zone 6 conditions. Palmetto partners with certified local installers who understand Pueblo's unique climate requirements, including design temperatures ranging from -5°F in winter to 91°F in summer, ensuring your system is properly sized and installed for year-round comfort.

Palmetto offers two installation options to fit your needs: a Comfort Plan with $0 upfront cost that includes all maintenance and repairs, or direct purchase where you own the equipment and may qualify for up to $2,000 in federal tax credits under the Inflation Reduction Act. Both options include professional installation by experienced technicians who ensure your heat pump operates efficiently with Pueblo's 15.1¢ per kWh electricity rates.

A heat pump is actually a type of HVAC system. HVAC stands for Heating, Ventilation, and Air Conditioning—it's an umbrella term for any equipment that controls your home's temperature and air quality. Heat pumps are unique because they both heat and cool your home using electricity, transferring heat rather than generating it through combustion.

In Pueblo's Climate Zone 6, where winter temperatures can drop to -5°F and summers reach 91°F, modern heat pumps efficiently handle both extremes. Unlike traditional HVAC systems that use separate furnaces and air conditioners, a single heat pump does both jobs. With Colorado's electricity rate at 15.1¢ per kWh, heat pumps typically cost less to operate than gas furnaces or standard AC units.