Rebate Program Expands from Residential Homes to include Commercial and Multifamily Buildings
DENVER — On May 23, Denver’s Office of Climate Action, Sustainability and Resiliency launched a building electrification incentive program to help existing commercial and multifamily buildings, including individual condominium owners, replace their air conditioners, furnaces and water heaters with energy efficient, electric heat pump technology.
Heat pumps are a cleaner, more energy efficient way to heat and cool buildings. Instead of creating heat like gas-fired equipment does, electric heat pumps move heat either into or out of a building to heat or cool it.
“Buildings and homes are responsible for 64% of greenhouse gas emissions in Denver. Denver’s rebate programs will make it easier for building or condo owners to install electric appliances powered by clean energy,” said Grace Rink, Chief Climate Officer with the City and County of Denver. “Installing electric heat pumps in the places where we live, work and spend most of our time keeps people safe and comfortable in the short term, and helps Denver be sustainable for future generations.”
The Commercial and Multifamily Equipment Rebates parallel Denver’s equipment rebates made available in 2022 for small residential homes. So far, more than 800 households have taken advantage of small residential homes rebates to install heat pumps in their homes. The newly launched rebates for commercial and multifamily buildings with five or more units offer higher rebate amounts than the program for small residential homes because there are limited utility rebates and federal tax credits available for commercial and multifamily buildings at this time. The newly launched rebates are for heat pump rooftop units, split air-source heat pumps, mini-split air-source heat pumps, and heat pump water heaters.
Building owners or tenants responsible for their HVAC (heating, ventilation, and air conditioning) and hot water heating equipment can take advantage of up to $60,000 in incentives per building. Equity Priority Buildings, which include human services non-profits, naturally occurring affordable housing, deed-restricted affordable housing and condo owners who meet certain income requirements, qualify for an additional $60,000, for a total of up to $120,000 in incentives per building.
The Energize Denver Ordinance, passed by Denver City Council in 2021, strengthens building code electrification requirements in existing commercial and multifamily buildings in 2025.
“We encourage building owners to start planning for equipment replacement now if their equipment is near the end of its useful life. The time is now to take advantage of our incentives to replace air conditioners and space and water heating with electric heat pump equipment,” added Rink.
For more information about signing up for the Commercial and Multifamily building electrification rebate program, visit www.denvergov.org/buildingelectrificationrebates.
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