Colorado home energy costs & incentives
Residential electricity in Colorado averages 15.85 cents per kilowatt-hour — 8% below the national average, and that helps anything that runs on electricity.
Prices pulled August 16, 2026
What energy costs here
15.85¢
per kWh, residential electricity
8% below the national average of 17.3¢. 22nd most expensive of 51.
Up 21% since 2021 (4.9% a year), against 27% nationally.
$1.08
per therm, residential natural gas
$11.17 per thousand cubic feet, 2025 annual. National average $1.48/therm.
Up 23% since 2021 (5.2% a year).
Heat pump vs. gas furnace — Close call
Colorado's electricity-to-gas price ratio works out at 4.3-to-1. At these prices the two land near each other on running cost, which puts the decision on installation cost, whether your AC also needs replacing, and how cold your winters get.
Below roughly 3.5-to-1 a heat pump usually wins on running cost; above roughly 5-to-1 a furnace may be cheaper through winter. How that comparison works · run it with these rates
State averages from the U.S. Energy Information Administration (electricity, gas), pulled 2026-08-16. Real bills vary substantially by utility within a state, and by rate plan within a utility — check a recent bill for your own numbers before relying on any of this. The heat pump verdict above follows from these averages, so it moves if your rates differ.
What's different in Colorado
The Colorado Energy Office runs a Weatherization Assistance Program offering no-cost weatherization to qualifying residents, and publishes an Energy Savings Navigator tool for finding what applies to you. Start there rather than with an installer's summary.
Colorado sits in the close-call band on running cost, so incentives and whether your air conditioning also needs replacing are what decide a heat pump here, not the energy prices alone.
Check with the administrator before you sign anything. Program budgets run out, terms change without notice, and most require approval before work starts — a rebate you apply for afterwards is usually a rebate you don't get. Treat this page as a starting point for your own call, not as confirmation that you qualify. We last checked these programs on August 16, 2026.
Finding incentives in Colorado
We haven't published a verified program list for Colorado yet — we only write one once we've checked it against the administrator's own site, and we'd rather say nothing than guess. Here is how to find what applies to you, in the order that actually works:
- Your own utility, first. Search for your electricity or gas provider's name plus “rebates”. Now the federal credits have ended, utility programs are the largest remaining incentive for most households — and they are rarely listed anywhere central, so this is the step people skip and shouldn't.
- DSIRE, searched by ZIP. The most complete database of state, local and utility programs. If Colorado runs a statewide program, it will appear here too.
- Your state energy office. The authority on whether the federally funded Home Energy Rebates are open in Colorado, and on any state-run program.
- ENERGY STAR's Rebate Finder for offers tied to specific equipment.
Whatever you find, get it in writing and check the timing. Most programs require approval before work begins, and a contractor saying “there are rebates available” is not confirmation that you qualify for one. Ask which specific program, administered by whom, and what has to happen before you sign.
The federal position — the same everywhere
- Residential Clean Energy Credit (Section 25D)Ended
Ended. No credit for expenditures made after 31 December 2025.
- Energy Efficient Home Improvement Credit (Section 25C)Ended
Ended. No credit for property placed in service after 31 December 2025.
Full detail, sources and changelog on the national incentive tracker.
Where to check for your address
- Colorado Energy Office
- DSIRE — search state, local and utility programs by ZIP
- ENERGY STAR Rebate Finder
- U.S. DOE — Home Energy Rebates, by state
Your own utility is worth checking separately — utility rebates are often the largest remaining incentive and rarely appear in any central listing.
Not tax advice
Everything here is general information gathered from public sources. It is not tax, financial or engineering advice, and it cannot account for your utility, your income, your equipment or your return. Energy prices are state averages that move; program terms and budgets change without notice. Confirm anything you plan to budget around directly with the program administrator, your utility and a licensed professional before you commit money.
If you find something on this page that is out of date, tell us at minchangyi@me.com and we will correct it.
Run the numbers for your house
These open with Colorado's average rates already filled in. Correct them from a recent bill before you rely on the result — state averages hide a lot of variation between utilities.
Guides behind these numbers
- Heat Pump vs. Gas Furnace: The Real 2026 Cost ComparisonUpfront cost, operating cost, and total cost of ownership for heat pumps vs. gas furnaces in 2026 — with the trade-offs most guides skip.HVAC · 6 min read
- The Gas-to-Heat-Pump Rebate Is Gone. The Electric-to-Heat-Pump One Isn't.DOE Program Notice 26-2 removed fuel switching from the HEAR rebates. Here's exactly what changed, who is still eligible, and what to do if your project is already underway.HVAC · 6 min read
- How to Tell If Your HVAC System Is Properly Sized (Manual J Explained)An oversized or undersized HVAC system wastes money and comfort. Here's what proper sizing means and how to know if yours is right.HVAC · 4 min read
- Insulation vs. HVAC Upgrades: Which Should You Prioritize First?Before spending on a new HVAC system, it's often smarter to fix your home's envelope first. Here's how to decide the right order.HVAC · 3 min read
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