SLVREC rebates for heat pumps: what members get in 2026

SLVREC rebates for heat pumps come through Tri-State's Electrify and Save program: $500 for air source systems of 1.5 tons or less and $1,500 for systems above 1.5 tons, per the January 2025 program guide, never exceeding 50% of the equipment cost. Propane-heated homes can add a $500 ducted backup bonus, and Colorado's state programs stack on top. San Luis Valley Rural Electric Cooperative serves some of the coldest, most propane-dependent territory in Colorado, which is exactly where a properly sized heat pump changes the math. Program amounts change, so verify current figures with SLVREC at 719-852-3538 before you buy.

Key takeaways

• SLVREC's rebate is Tri-State's Electrify and Save rebate: $500 (1.5 tons or less) or $1,500 (above 1.5 tons) for qualifying air source heat pumps, per the January 2025 guide.

• Propane homes get a bonus: ducted systems paired with propane backup qualify for an extra $500.

• Colorado's 2026 tax credit is an upfront discount: a registered contractor must pass at least $333 of the $1,000 air source credit to you at install. No paperwork on your end.

• The federal 25C credit ended December 31, 2025. Don't count the $2,000 federal credit in your 2026 math.

• Income-qualified households can still get up to $8,000. Colorado's HEAR program is open in Region 2, which includes the San Luis Valley, until August 1, 2026 or until funding runs out.

What heat pump rebates does SLVREC offer in 2026?

SLVREC administers Tri-State's Electrify and Save rebates for its members across the San Luis Valley. The most recent published program guide (January 2025 version) lists these residential amounts:

• Air source heat pump, ducted or ductless: $500 for systems of 1.5 tons or less, $1,500 for systems above 1.5 tons. Units must be ENERGY STAR certified with a minimum 7.8 HSPF2 (a heating efficiency rating) and an AHRI certificate number (proof the indoor and outdoor units are a certified matched pair).

• Propane backup bonus: an additional $500 for ducted systems paired with propane backup that can cover at least half the home down to 17°F.

• Air-to-water radiant systems: $500 per ton.

• Ground source heat pump: $500 per ton new, $250 per ton replacement.

• Heat pump water heater: $350 per unit.

The rebate is the lower of the stated amount or 50% of equipment cost, limited to one per account per year. Applications go through SLVREC's rebate program with an itemized paid invoice.

You'll still find pages quoting SLVREC rebates of $300 to $450 per ton based on SEER ratings (a cooling-efficiency score). That's the old structure; the program moved to the flat amounts above, which is why it's worth confirming with the co-op before you order equipment.

What can you stack on top of the SLVREC rebate?

The co-op rebate is the floor, not the ceiling. Three programs stack with it in 2026:

• Colorado heat pump tax credit (everyone qualifies): in 2026 the state credits a registered contractor $1,000 for an air source heat pump ($2,000 ground source), and at least $333 ($667) must reach you as a line-item discount at install. You don't file anything; the Colorado Energy Office lists registered contractors.

• Colorado HEAR rebates (income-qualified): households at or below 150% of area median income can get up to $8,000 toward a heat pump as a point-of-sale discount through the state's Home Energy Rebate program. The San Luis Valley sits in Region 2, where applications are open until August 1, 2026, unless funding is reserved sooner.

• On-bill repayment (financing, not a rebate): SLVREC participates in Electrify and Save on-bill repayment through the Colorado Clean Energy Fund, which lets you repay the project on your electric bill. See our guide to installing a heat pump with $0 down through on-bill repayment.

Two programs you may have read about that don't help here: the federal 25C tax credit expired for installations after December 31, 2025, and Power Ahead Colorado, the $1,500 rebate that launched in June 2026, only covers the Denver metro region, not the Valley.

Why heat pumps fit the San Luis Valley

Much of SLVREC's territory has no natural gas service, so homes heat with propane, and propane prices swing hard winter to winter. A cold climate heat pump (a model rated to keep heating well below zero) running on co-op electricity gives you a fixed, predictable cost per unit of heat, plus cooling in summer, from one system.

The catch: the Valley is genuinely cold, and Alamosa regularly posts the coldest overnight temperatures in Colorado. A cold climate model sized from a real heat-load calculation (Manual J, the room-by-room math on what your house loses in heat) is the difference between a system that carries the house and one that leans on backup all winter.

This is territory we work in. Zero Homes partners with Tri-State, SLVREC's wholesale power supplier, to expand rural electrification across its member co-ops; you can read about our partnership with Tri-State.

What these rebates won't do

• They won't cover most of the install. A whole-home cold climate heat pump is a five-figure project for most houses; the rebate and state discount offset a slice, not the majority, unless you qualify for HEAR.

• They won't file themselves. The co-op rebate needs an itemized paid invoice with model numbers and AHRI certification after the work is done. Miss the documentation and you miss the money.

• They won't guarantee the right equipment. Rebate eligibility is an efficiency floor, not a design. An eligible unit that's undersized for a Valley winter is still the wrong unit.

• They won't wait. HEAR Region 2 has a published end date and can close early when funding runs out. Co-op program amounts also reset year to year.

SLVREC heat pump rebate FAQ

How much is the SLVREC heat pump rebate?

As of the January 2025 Electrify and Save guide, SLVREC members can get $500 for a qualifying air source heat pump of 1.5 tons or less, or $1,500 for a larger system, capped at 50% of equipment cost. Ducted systems with propane backup add a $500 bonus. Confirm current amounts with SLVREC.

Can I combine the SLVREC rebate with Colorado's heat pump tax credit?

Yes. The co-op rebate, the state tax credit discount (at least $333 on an air source system in 2026, passed through by a registered contractor), and income-qualified HEAR rebates all stack. Utility, state, and income-qualified incentives are stackable by design.

Is the federal heat pump tax credit still available in 2026?

No. The federal 25C Energy Efficient Home Improvement Credit, worth up to $2,000 for heat pumps, ended for installations after December 31, 2025. If your heat pump was placed in service by that date, you can still claim it on your 2025 return, but 2026 installs don't qualify.

Rebate amounts verified July 15, 2026 against Tri-State's published Electrify and Save guide and the Colorado Energy Office. Programs change; confirm current terms with SLVREC before purchasing.

Want the real number before anyone visits? Zero Homes designs your heat pump from a scan of your exact house, then finds and files every rebate you qualify for, so the quote you see is your actual net cost. See how it works.