Empowering Your Home: A Guide to Electrification and Maximizing Energy Efficiency Rebates
Home electrification is the process of switching to electricity-powered appliances, from traditional combustion-powered appliances. This is important for the environment and the health of the individuals living in your home because combustion-powered appliances burn fuel and release harmful emissions into the air. In 2021, the Colorado General Assembly passed House Bill 21-1286: Energy Performance for Buildings, which requires all owners of large buildings (25,000 square feet or larger) to collect and report energy-use benchmarking data and meet energy-use requirements by 2030, with interim targets in 2025 and 2027. Those who do not meet their targets will be penalized, often amounting to hundreds of thousands of dollars’ worth of fines. The overall goal of the Energy Performance for Buildings legislation is to help the City of Denver meets its ambitious climate goals by the year 2030.
According to the City and County of Denver’s Greenhouse Gas Inventory for 2021, buildings produced 51% of the City’s total emissions, measured in metric tons of carbon dioxide equivalent (mt CO2e). These emissions generally come from energy use, material manufacturing, building construction, refrigerants, and renovations. While this transition may sound difficult, there are several benefits awaiting proactive building owners who choose to embrace these upgrades, including improved occupant health due to fewer released pollutants, savings on your energy bill, increased property values, and the creation of more livable communities. CAP Management wants to make this a seamless transition for you. See more below on how to get started.
Steps to Optimizing the Energy Efficiency of Your Home.
STEP 1 : CONDUCT A HOME ENERGY AUDIT
What is a Home Energy Audit
A home energy audit is an analysis of your home’s energy use, room-by-room, that is conducted by an energy professional.
Benefits?
Helps determine where your home is inefficient and establishes areas of priority that will improve your home efficiency and save you money.
Estimated Average Cost
~$300 to $600
REBATES & ASSISTANCE AVAILABLE
- Federal 25C Tax Credit – Inflation Reduction Act
- Home improvements made after 1/1/23 may qualify for a tax credit
- Tax credit of up to 30% of the cost of qualifying upgrades & services, up to $1,200 annually
- Energy audits – up to $150 credit
- Authorized by House Bill 22-1362: Building Greenhouse Gas Emissions
-
Eligible applicants: (more included that are not mentioned here)
- Apartments and Condominium Complexes
- Homeowners Associations
-
Money received can be used for the following purposes:
- Cost of energy audits or analyses to identify electrification opportunities, estimated proposed project costs, and obtain other technical info necessary to support electrification projects
- Xcel Energy
-
Rebates:
- Standard Home Energy Audit = up to $100 rebate
- Standard Home Energy Audit with Blower Door = up to $160 rebate
- Home Energy Audit with Infrared = up to a $200 rebate
- Single family dwellings eligible – no larger than a four-plex
- Xcel Energy
- Agree to have a free energy assessment conducted by CLEAResult to establish where energy efficiency upgrades can be made
- May not receive incentives from any other energy efficiency programs for the same measures
- Energy Outreach Colorado
- Start by conducting a home energy audit – EOC will help connect to a provide & then work with contractors to install the necessary upgrades
- Your household must be at or below 80% of the area’s median income to qualify.
- Colorado Energy Office
- Save money, increase comfort, and better your home and environment.
- Receive free energy efficiency evaluations & upgrades
- Your household annual income must be at or below $52,400 for a family of 4
STEP 2 : LIGHTING UPGRADES
What does this mean?
-
Switch the lightbulbs in your home to LED bulbs. LED bulbs are more energy efficient and will save you money.
- TIP: Make sure to pay attention to the lifespan of the new bulbs you are purchasing compared to the price and target fixtures with the highest runtime because they will provide the highest savings once retrofitted.
Benefits?
Making this switch has the potential savings of up to 7% annually. When comparing LED light bulbs to incandescent lightbulbs, LED light bulbs use up to 90% less energy and last up to 25x longer.
~$100 to $200
REBATES & ASSISTANCE AVAILABLE
- Xcel Energy
- Agree to have a free energy assessment conducted by CLEAResult to establish where energy efficiency upgrades can be made.
-
Energy-saving products include:
- High-efficiency LED lighting
- LED exit signs
- May not receive incentives from any other energy efficiency programs for the same measures.
- Xcel Energy
- Installation, labor, and materials are free
- Install LEDs bulbs, a programmable thermostat, weather-strip a drafty door, and energy-efficient showerheads & faucet aerators
- Must be a detached single-family home or part of a building with 4 or fewer units
- Xcel Energy
- Opportunity to purchase qualifying screw-in or pin-based LEDs at a discount
- Energy Outreach Colorado
-
Start by conducting a home energy audit & then work with contractors to install upgrades including:
- LEDs
- Your household must be at or below 80% of the area’s median income to qualify.
- Colorado Energy Office
- Save money, increase comfort, and better your home and environment.
-
Receive free energy efficiency evaluations & upgrades – including:
- Light bulb replacements
- Your household annual income must be at or below $52,400 for a family of 4
STEP 3 : LOW-FLOW WATER SAVINGS MEASURES
What does this mean?
Switching your sink faucets, shower heads, and toilets to a more water efficient version. Save energy that is used to heat water & therefore money on your water bill.
Benefits?
Making this switch will save energy and therefore money because less water is being used and therefore less water needs to be heated up for hand washing or showering.
Estimated Average Cost
- Bathroom Sink = aerator attachment is ~$5 to $10
- Kitchen Sink = ~$150 to $300
- Shower Head = ~$30 to $60
- Toilet = ~$100 to $300
REBATES & ASSISTANCE AVAILABLE
- Xcel Energy
- Agree to have a free energy assessment conducted by CLEAResult to establish where energy efficiency upgrades can be made
-
Energy-saving products include:
- Energy-efficient showerheads
- Kitchen faucet aerators
- Bathroom faucet aerators
-
Necessary measures directly installed at the project site Eligibility:
- At least 80 of units are located in buildings containing 5 or more units
- May not receive incentives from any other energy efficiency programs for the same measures
- Xcel Energy
- Installation, labor, and materials are free
- Install LEDs bulbs, a programmable thermostat, weather-strip a drafty door, and energy-efficient showerheads & faucet aerators
- Must be a detached single-family home or part of a building with 4 or fewer units
- Denver Water
- Up to a $100 rebate
- Customers who live in a condo or HOA are still eligible for a rebate – must contact their community manager for the water account number to apply
- Aurora Water
- Up to $100 for switching to a 0.8 gpf toilet, from 1.6 gpf or more
- If a homeowner whose HOA pays your water bill, you are still eligible. You will receive a check to your home, rather than a credit on your water bill.
- Energy Outreach Colorado
-
Start by conducting a home energy audit & then work with contractors to install upgrades including:
- Shower Heads
- Your household must be at or below 80% of the area’s median income to qualify.
STEP 4 : AIR SEALING, INSULATION, & PIPE INSULATION
What does this mean?
-
You could be wasting up to 20% of the energy used to heat and cool your home through air leakage and poor insulation, which is equal to the same amount of energy wasted from leaving a window wide open all year long. The Department of Energy recommends having a R-49 to R-60 for Denver’s climate zone.
- TIP: Focus on the rooms where temperatures fluctuate the most.
Benefits?
By making these upgrades it will prolong the lifespan of your heating equipment because it will no longer be overworking trying to cool the space. It will also save you money on any equipment upgrades because it will be properly designed for the correct heat load, which is smaller due to having a good envelope seal and insulation. The potential savings of upgrading your pipe insulation is 3% to 4% annually.
Estimated Average Cost
- Insulation = ~$1,400 to $6,500
- Air Sealing = ~$1,000 to $3,000
- Pipe Insulation = ~$100 to $1,000
REBATES & ASSISTANCE AVAILABLE
- Federal 25C Tax Credit – Inflation Reduction Act
- Home improvements made after 1/1/23 may qualify for a tax credit
- Tax credit of up to 30% of the cost of qualifying upgrades & services, up to $1,200 annually
-
Eligible measures:
- Heat pumps – up to $2,000 credit
- Heat pump water heaters – up to $2,000 credit
- Electric panel upgrades
- Energy-efficient HVAC systems
- City and County of Denver
- 40% of the project cost, up to $1500 for ‘High-Efficiency’ Air Source Heat Pumps
- 40% of the project cost, up to $3500 for ‘Cold Climate’ Air Source Heat Pumps
- City and County of Denver
- 80% of the project cost, up to $3500
- City and County of Denver
- 40% of the project cost, up to $1500 for ‘High-Efficiency’ Air Source Heat Pumps
- 40% of the project cost, up to $3500 for ‘Cold Climate’ Air Source Heat Pumps
- City and County of Denver
- 60% of the project cost, up to $1000 for heat pump water heaters
- 60% of the project cost, up to $1750 for smart heat pump water heaters
- Xcel Energy
- Rebate of $600 to $800 for install new electric equipment; must install a mixing valve
- Colorado Energy Office
- Save money, increase comfort, and better your home and environment.
-
Receive free energy efficiency evaluations & upgrades – including:
- HVAC upgrades
- Appliance replacements
- Your household annual income must be at or below $52,400 for a family of 4
OTHER OPTIONS & RESOURCES AVAILABLE
- Xcel Energy
- Receive a $25 bill credit each year + $100 enrollment bill credit + qualify for up to $125 in additional rebates for enrolling & cutting back on your AC
- Not eligible if you live in an apartment, condo, or mobile home.
- Xcel Energy
- Receive a $40 bill credit each year in Oct for enrolling & switch cycling your air conditioner on and off at 15 to 20 minute intervals
- Apts or condos are eligible if you have owner approval and you have an A/C dedicated to their apartment located on the ground level near the building.
- Xcel Energy
- Instant rebate (in-store), online rebate form, or mail-in rebate form
- Standard coolers = $300 rebate, Premium coolers = $675 rebate, & Multi-ducted premium coolers = $1,200
- Xcel Energy
- Installation of shades with a cool climate rating of at least 5 and a warm climate rating of at least 35.
- Must be an existing single-family home with 4 or fewer units.
- Xcel Energy
- $50 rebate for recycling your old, working refrigerator or freezer
- Must be the owner of the refrigerator or freezer & be an Xcel customer
- Colorado Clean Energy Fund
- Makes home energy upgrades easy and affordable
- Loan: up to $75,000. Term: up to 20 years, no money down. Rate: low, fixed interest rate. Repayment: monthly principal and interest payments. No prepayment penalties.
- Property owners of existing, single-family homes including primary, secondary or income properties, as well as townhomes, and condos that do not have shared heating or cooling systems
- Colorado Department of Human Services
- Provide assistance with heating costs, equipment repair and/or replacement of inoperable heating tools
- Your household income must be at or below 60% of the state median income level
COMING SOON TO COLORADO
- Low-income households – covers 100% of electrification project costs (up to $14,000)
- Mod-income households – covers 50% of electrification project costs (up to $14,000)
-
Qualified projects include – covers both purchase and installation costs:
- Heat Pump HVAC Systems
- Heat Pump Water Heaters
- Electric Stoves and Cooktops
- Heat Pump Clothes Dryers
- Upgrading Circuit Panels, Insulation, Air Sealing, Ventilation, and Wiring
Other Resources:
Relevant Legislation & History:
- HB 21-1286: Energy Performance for Buildings
- HB 22-1362: Building Greenhouse Gas Emissions
- A History of Renewable Energy and Energy Efficiency in Colorado
City and County of Denver
Benefits & Health Impacts
- Health Impacts of Combustion in Homes
- Eight Benefits to Building Electrification for Households, Communities, and Climate
Electrification
- Meet the People Preparing to Amp Up Building Electrification
- Equitable Building Electrification: A Framework for Powering Resilient Communities
Heat Pumps
- It’s Time to Incentivize Residential Heat Pumps
- Heat Pumps Can Lower Home Emissions But Not Everywhere
- New Analysis: Heat Pumps Slow Climate Change in Every Corner of the Country
Academic Articles
Other Cities Doing Similar Work:
Helpful Books
- Electrify: An Optimist’s Playbook for Our Climate Energy Future By Saul Griffith
- The Energy Switch: How Companies and Customers Are Transforming the Electrical Grid and the Future of the Power by Peter Kelly-Detwiler
Other Helpful Resources
- Net-Zero Energy Isn’t the Real Goal: 8 Reasons Why
- Decarbonizing the Grid with Demand Response
- The Carbon Footprint of Household Energy Use in the United States
- PJM to Offer Time-Matched Renewable Energy Certificates as Demand for 24/7 Coverage Grows
- Accounting For Impact: Refocusing GHG Scope 2 Methodology on ‘Impact Accounting’