Heating and Cooling

Heat pump technology used to be limited to southern regions of the country. Over the past 5-10 years, heat pumps have been improved and designed to operate in cold climates. The result is a new product category, cold climate heat pumps, which can now perform well year-round, even in the coldest counties in Colorado.


See the video above to learn how a heat pump can heat your house during the cold winter months. Heat pumps run on electricity but are 2-3 times more efficient than electric resistance heating.  Heat pumps provide both heating and cooling for your home, all in one unit. Heat pumps consist of an outdoor unit connected to one or more indoor units by refrigerant lines.

Air-source heat pumps (ASHPs)
Ductless heat pumps
Ground source heat pumps
How to use a heat pump


Cost Comparison of Ground Source Heat Pump v. Natural Gas Heating for a 4,300 Square Foot House

Geothermal Heat Pump (GSHP) Natural Gas Furnace, Natural Gas Water Heater & Air Conditioner
4-Ton Geothermal Heat Pump w/10kW aux heater 240V 40A & 60A. Desuperheater for Domestic Hot Water. Ductwork for three conditioned levels. Ecobee w/Alexa & Remote Sensor. Venting of Bath Fan $38,764 96% Natural Gas Furnace. 20-SEER A/C. Natural Gas Water Heater. Ductwork for three conditioned levels. Ecobee w/Alexa & Remote Sensor. Venting of Bath Fan $35,159
Geothermal Ground Loop $14,750 No Ground Loop Needed N/A
240V 40A & 60A Circuits ($350) $700 Internal Gas Piping Furnace & WH ($450) $900
Investment Before Federal & State Income Tax Credits, Grants & Rebates $54,214 $36,059
Federal Tax Credit (26% for 2022) (lowered to 22% in 2023 $-10,221)(GSHP Equipment , Ground Loop, Electric Outlets, Installation Labor, etc. ~$46,460) ($12,080) N/A
*Xcel Energy Rebate ($400/ton, $1,600) N/A? *Xcel Energy Rebate ($300)
Manufacturer Rebate & Distributor Incentives ($2,400) N/A
CO Energy Office Geothermal Grant HB22-1381 $2k/ton-12kBtu/h ($8,000) N/A
SB22-051 10% 2023 CO Income Tax N/A
GSHP Equipment Rebate (~$-600)
Investment After Tax Credit & Rebates $31,734 **Investment $35,759
Initial Investment Savings ($4,025)
Lifetime Savings (incl. 25 yr * $280/yr = $7k) ($11,025)

*To apply for any applicable Xcel Energy rebate, you must use a contractor participating in Xcel’s programs

** Does not include NG Furnace, A/C & WH equipment replacement costs in year 10-15 (~1/2 life of GSHP)

Estimates provided by local geothermal heat pump HVAC & ground loop installation experts in February 2022 and are subject to change based on equipment choice, supply chains, site conditions, building  design, etc. Comparison provided by Walter M. Sharp, Sharper Energy Technologies.