Heat Pump Installation: One System. Year-Round Comfort. Exceptional Efficiency.
A heat pump is one of the smartest home comfort investments available right now, especially in Colorado. One system handles both heating and cooling. Energy efficiency dramatically outperforms traditional gas and electric systems. Federal tax credits and utility rebates make the investment more financially attractive than ever. And modern cold-climate technology works reliably through Colorado winters in ways older heat pump systems never could.
Power Electrical, Heating & Cooling Services installs heat pump systems for homeowners across the Denver metro area: properly sized, correctly configured for Colorado's climate, professionally installed, and backed by honest guidance about whether a heat pump is truly the right fit for your home and situation.
What Is a Heat Pump?
Efficient Comfort: Explained Simply.
A heat pump is a heating and cooling system that moves heat rather than generating it.
In summer, it works like a standard air conditioner by extracting heat from inside your home and moving it outside to keep your home cool. In winter, it reverses direction by extracting heat energy from outdoor air and moving it inside to heat your home.
This heat-moving process is dramatically more efficient than generating heat through combustion or electric resistance. A heat pump can deliver three to four units of heating or cooling energy for every one unit of electrical energy it consumes, making it 300% to 400% more efficient than traditional electric heating systems.
The result is a single system that handles both heating and cooling with exceptional efficiency, reducing energy consumption, lowering monthly utility bills, and delivering consistent year-round comfort.
One system. Heating and cooling combined.
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Is a Heat Pump Right for Your Home?
Honest Answer: It Depends. Here's How to Think About It.
Heat pumps are an excellent option for many Denver metro homeowners, but not every home or situation is the right fit.
A heat pump is likely a great choice when:
• You're replacing both your AC and furnace at the same time and want one system to handle both
• Your home is well insulated and your duct system is in good condition
• You're interested in reducing natural gas consumption or dependency
• You want to take advantage of available federal tax credits and utility rebates
• Your electrical panel has available capacity, or you're already planning an upgrade
• A dual-fuel system with heat pump efficiency and gas backup makes sense for your home
A heat pump may not be the best fit when:
• Your home has major insulation or ductwork issues that should be addressed first
• Your electrical panel cannot support the added load and you are not ready for an upgrade
• Your current gas furnace is newer and still in good condition
• Your home's layout or duct configuration is not ideal for heat pump operation
We evaluate your home honestly. If a heat pump isn't the right solution for your situation, we'll tell you and recommend what makes more sense.
Learn more about our furnace installation services here.
Your Service Process
- Rapid emergency response within hours
- Comprehensive system diagnosis and assessment
- Transparent pricing with detailed explanations
- Expert repair using quality replacement parts
- Thorough testing and performance verification
- Professional cleanup and maintenance recommendations
- Follow up service to ensure continued operation
Types of Heat Pump Systems We Install
We install:
The most common heat pump configuration. This system replaces your existing AC and furnace with one system handling both heating and cooling.
Modern air source heat pumps are significantly more capable in cold weather than older generations and work well for most Denver metro homes. The indoor air handler replaces the furnace, while the outdoor unit replaces the AC condenser.
Cold-climate heat pumps are engineered specifically for regions with severe winter temperatures. These systems maintain efficient heating operation at temperatures well below zero degrees Fahrenheit.
For homeowners wanting a fully electric heating and cooling solution without gas backup, a properly sized cold-climate heat pump configured for Colorado weather is the right answer.
We install American Standard cold-climate heat pump systems with proven winter performance.
Our most popular heat pump configuration for Denver metro homeowners.
A dual-fuel system pairs a heat pump with your existing gas furnace or a new furnace installation. The heat pump handles heating during mild and moderate weather when it operates most efficiently. When temperatures fall below the heat pump's ideal operating range, typically around 35 to 40 degrees depending on system design, the gas furnace automatically takes over.
This approach gives homeowners the efficiency benefits of a heat pump during most of Colorado's heating season while maintaining dependable gas backup during extreme cold.
Most Denver metro homeowners see meaningful energy savings compared to gas-only heating systems.
Several factors make 2026 an especially strong time to consider heat pump installation in the Denver metro area.
Colorado's furnace law changes
Colorado's new HB23-1161 regulations and upcoming July 2026 AFUE standards have significantly increased gas furnace replacement costs. As compliant furnace prices rise closer to the cost of a heat pump system that also replaces your separate AC unit, the financial comparison shifts heavily in the heat pump's favor.
Learn more about Colorado's new furnace laws here.
Federal tax credits
The federal Inflation Reduction Act provides tax credits of up to 30% on qualifying heat pump installations, including up to $2,000 for qualifying equipment. This is a direct reduction in tax liability, not simply a deduction.
Additional credits may also be available through the High Efficiency Electric Home Rebate Act depending on household qualifications.
We recommend speaking with your tax professional regarding credits available for your installation.
Xcel Energy rebates
Xcel Energy currently offers rebates on qualifying cold-climate heat pump systems for Denver metro homeowners.
Programs and qualifying equipment are updated regularly, but the combination of utility rebates and federal incentives can significantly offset installation costs.
Electrification momentum
Colorado remains one of the most active states in the country for residential electrification, and heat pumps are at the center of that movement.
Current incentives are among the strongest available. As state energy policies evolve, these programs will continue changing, making today's incentives particularly valuable.
Rising natural gas costs
Natural gas rates through Xcel Energy have increased and are projected to continue rising. As gas prices climb, the efficiency advantage of heat pumps becomes even more financially valuable.
A Complete Professional Installation: Start to Finish.
• Full home assessment and proper load calculations before equipment recommendations
• Honest system recommendations based on your home's needs and budget
• Electrical panel evaluation to confirm system compatibility
• Safe removal and disposal of existing equipment
• Professional installation of the outdoor heat pump unit
• Professional installation of the indoor air handler
• All electrical work, including dedicated circuits, disconnects, control wiring, and panel coordination
• Refrigerant line installation and proper charging for Colorado altitude conditions
• Heat pump-compatible thermostat installation and programming
• Dual-fuel integration with existing or new gas furnaces where applicable
• Full startup and performance testing in both heating and cooling modes
• Complete walkthrough and operational training before we leave
• All required permits pulled and inspection coordination handled
EXCELLENT
Based on 216 reviews
Nikki H.
We were lucky to have found Power Electrical. They have been an incredible asset to our property management company and do a great job in everything they do. Pricing is fair and communication is always clear and consistent. We highly recommend them for any of your needs and look forward to using them for many years to come.
Feb 24, 2026
Ryan S.
I’ve been doing business with Power Electrical Services for years. Owner is a stand up guy. Great service for a fair price. Always great communication. Respectful of your space and time. Don’t waste your time calling other electricians.
Feb 24, 2026
Kelley G.
Power Electrical was very communicative, quick and efficient. Quick and easy removal of Christmas lights.
Feb 24, 2026
Holly
I would highly recommend this electric company for any issue you may be having, the scheduling is fast and efficient and Lance had my faulty outlet back to working order fixing things that have not been working since I moved in a matter of minutes. Very friendly, personable and knowledgeable staff. Thank you Power electrical.
Feb 24, 2026
Audrey R.
Excellent as always! Power Electric is my go to!
Feb 24, 2026
W B.
Joey came out and did a fantastic job looking over and cleaning my system for the winter. I had someone come out earlier in the year, but it felt more like he was trying to get me to buy a new system than help with my existing. Joey looked over the system, gave a few small but very helpful suggestions, and cleaned it. Could not recommend these folks enough.
Feb 24, 2026
Matt O.
Dino, Isaiah, and Joey came to replace my old electrical panel and were awesome! Everything went smoothly, they were super knowledgeable and personable as well as professional. The price was fair, too. They are now going to be my primary electrical company going forward. Overall, I highly recommend Power Electrical Services for all your electrical needs! 5 stars across the board!
Feb 24, 2026
Kadence P.
The power electric team is phenomenal when it comes to customer service. They are friendly, kind, and extremely empathetic! Thank you all for your hardwork!
Feb 24, 2026
Luis M.
Installed electrical outlet - Lance completed the job professionally and took outmost care of the installation. Outstanding Job.
Feb 24, 2026
Joseph W.
I had power electric come out for a troubleshoot on my electrical system. They were professional, knowledgeable and efficient. They came out troubleshot, quoted repairs and performed repairs with a warranty. Couldn’t be happier!
Feb 24, 2026
Tyler S.
Very careful and efficient work from Isiah and Lance in replacing our electrical panel.
Feb 24, 2026
Kenny B.
I had purchased an oven and needed an outlet swap as soon as possible. Lance came out right at the beginning of the service window, was very thorough during the estimate procedure and was extremely knowledgeable and answered a lot of questions I had about my circumstance. Couldn't be happier with the communication and service performed. I will definitely utilize this company again in the future.
Feb 24, 2026
Max S.
Michael was great! High quality work and awesome communication
Feb 24, 2026
Cara W.
As always, amazing craftsmanship, customer service and pricing.
Feb 24, 2026
Heidi H.
Just moved into our new (2000 build) house and Joey came out to do winter maintenance on our furnace. This company was recommended from the former owner. Joey was professional, polite and very helpful - showing me how to change the furnace filter and the humidifier pad. He cleaned out the furnace, inspected the system, (which is newer) and told me everything was in good shape – didn’t try to sell me anything extra. I like them and will use them again.
Feb 24, 2026
Financing Options
We offer financing options to help you get the job done. Please contact us for more information.
Service Plan Memberships
We offer financing options to help you get the job done. Please contact us for more information.
Areas we Serve
The Heat Pump Installation Services Professionals
The efficiency advantage of a heat pump over traditional heating systems is real, measurable, and especially valuable in Colorado's climate.
Traditional electric resistance heating converts one unit of electricity into one unit of heat. A heat pump moves three to four units of heat for every unit of electricity consumed, making it dramatically more efficient.
Compared to gas furnaces, efficiency comparisons depend on local utility rates. As natural gas costs rise, heat pump savings become increasingly valuable.
During the moderate fall and spring temperatures that make up much of Colorado's heating season, heat pumps operate at peak efficiency and provide significant savings over gas heating.
During extreme cold, dual-fuel systems automatically transition to gas backup, delivering the advantages of both technologies at the right time.
Federal tax credits and Xcel Energy rebates also help reduce upfront installation costs, improving long-term total cost of ownership for many homeowners.
• We assess insulation, ductwork, electrical capacity, and heating load before recommending equipment
• We present honest system options at different performance and price levels
• We evaluate your electrical panel and identify required upgrades before installation begins
• We pull all required permits
• We professionally install every electrical, refrigerant, and control connection correctly
• We test both heating and cooling modes before considering the installation complete
• We walk you through your new system before leaving
• We coordinate permit inspections
One system. Installed right. Tested in both modes.
• Electrical + HVAC Under One Roof: Heat pump installations require significant electrical work, including dedicated circuits, disconnects, panel evaluations, and complex control wiring. We handle everything in one coordinated installation.
• Family-Owned & Operated: A local owner-operated business that stands behind every installation.
• Licensed & Insured: Licensed HVAC technicians and licensed electricians on every installation with permits pulled every time.
• American Standard Heat Pumps: Premium heat pump systems with proven cold-climate performance.
• Proper Load Calculations: Systems correctly sized for your home and Colorado's climate, not simply matched to existing equipment.
• All Three Configurations Available: Standard, cold-climate, and dual-fuel systems honestly recommended based on your home.
• No Upselling: We'll tell you honestly if a heat pump is not the right fit for your situation.
• 5.0-Star Rating With 202 Reviews: Our customers speak for themselves.
One system. Heating and cooling combined.
1. How does a heat pump work in cold weather?
A heat pump extracts heat energy from outdoor air and moves it inside your home, even during freezing weather.
Modern cold-climate systems maintain efficient heating performance at temperatures well below zero degrees Fahrenheit. Many are rated for meaningful heating capacity down to minus 13 degrees.
Colorado's winter climate falls well within the operating range of properly selected cold-climate equipment.
For extreme cold events, dual-fuel systems provide gas backup to ensure dependable heat regardless of outdoor temperature.
2. What is a cold-climate heat pump and do I need one in Colorado?
Cold-climate heat pumps are engineered specifically for low outdoor temperatures and maintain efficiency much better than standard systems during severe winter weather.
For homeowners wanting fully electric heating without gas backup, cold-climate systems are usually the best fit for Colorado.
For dual-fuel systems paired with gas backup, standard heat pumps may still work extremely well because the furnace handles the coldest conditions.
We evaluate your specific home and recommend the right configuration.
3. How much does heat pump installation cost in Denver?
Installation cost depends on system type, system size, efficiency level, electrical requirements, and installation complexity.
Cold-climate systems generally cost more than standard equipment, while homes requiring electrical upgrades or duct modifications will have additional costs.
Federal tax credits and Xcel Energy rebates can significantly reduce total investment.
We provide transparent, detailed estimates after evaluating your home.
4. What rebates and tax credits are available for heat pumps in Colorado?
The federal Inflation Reduction Act currently provides tax credits up to 30% of qualifying installation cost, including up to $2,000 for qualifying equipment.
Additional rebates may also be available through the High Efficiency Electric Home Rebate Act and Xcel Energy rebate programs.
Programs evolve regularly, so we recommend consulting your tax professional and checking directly with Xcel Energy for the latest details.
5. Should I replace my furnace with a heat pump or keep gas?
It depends on the age of your existing equipment, your home's electrical capacity, your long-term goals, and whether you're replacing both heating and cooling systems at once.
If both your AC and furnace are aging, a heat pump or dual-fuel system often becomes financially attractive.
If your furnace is newer and operating well, keeping gas backup may make more practical sense.
We provide honest numbers for both approaches.
6. How long does heat pump installation take?
Most standard heat pump installations take one to two days depending on installation complexity.
Projects involving electrical upgrades, duct modifications, or significant equipment relocation may require additional time.
Permit inspections are coordinated after installation completion.
7. Do I need to upgrade my electrical panel for a heat pump?
Possibly.
Heat pumps require dedicated 240V circuits sized specifically for the system. Whether your existing panel can support that load depends on panel capacity and current electrical demand.
Many modern 200-amp panels already have sufficient capacity. Older 100-amp panels or panels already near capacity may require upgrades.
The advantage of working with us is simple: we handle both HVAC installation and any required electrical upgrades in one coordinated process.
Learn more about our panel upgrade services here.
Related Services
Ready to Upgrade to a Heat Pump? Let's Find the Right System for Your Home.
Don't make this decision based on a sales pitch. Get an honest assessment from a team that installs all three configurations and recommends what actually makes sense for your home.