Feds Drop $200 Million to Swap Denver’s Gas Heat for Pumps
The Denver region is about to see a massive heat-pump makeover, backed by nearly $200 million in fresh federal cash. Power Ahead Colorado, the Denver Regional Council of Governments' building-decarbonization campaign, is gearing up to replace gas furnaces and water heaters with electric heat pumps through rebates, no-cost upgrades for low-income households, and a major workforce push across the metro area. Officials say the effort is especially focused on historically underserved neighborhoods where building emissions are heavily concentrated.
Per a U.S. Environmental Protection Agency press release, DRCOG was awarded $199.7 million through the Climate Pollution Reduction Grants program, one of just 25 projects picked from hundreds of applicants. The money is earmarked for community-driven measures that cut greenhouse gases and local air pollution by electrifying the built environment.
As laid out in the Denver Regional Council of Governments, the award is split among several major efforts: roughly $43 million for rebates and incentives, about $48 million for free home retrofits in low-income and disadvantaged communities, and additional funding for energy-advising services. The application anticipates issuing more than 40,000 rebates and training more than 4,800 new electricians, plumbers, and HVAC technicians to install and service heat-pump systems.
Tools for contractors and homeowners
To keep the money moving and the installs on track, DRCOG tapped the clean-energy nonprofit VEIC to run a $60 million rebate and advising program, plus a $6 million innovation pilot to test new approaches. On the contractor side, the Building Decarbonization Coalition has rolled out a Colorado Contractor Hub that gives installers customer leads, training reimbursements, and permitting resources.
Amanda Perkins, a climate policy specialist in Adams County, told The Denver Post that the training and workforce development around heat-pump installation will create local, well-paying jobs. Contractor Stephen Hong told The Denver Post that, once rebates are available, swapping a gas furnace for a heat pump should be “a no-brainer.”
How the program will reach households
DRCOG's plan puts free, full-service decarbonization for low-income and disadvantaged communities at the center, with contractors handling weatherization and equipment swaps from start to finish. The workplan also calls for no-cost home upgrades in qualifying neighborhoods and centralized advising so homeowners can figure out whether a heat pump is a good fit for their building and quickly access vetted quotes and rebates.
Why electrifying heat matters
Electrifying heating eliminates the indoor-air risks that come with burning gas and, over time, cuts carbon emissions as Colorado's power grid continues to clean up. Data from the U.S. Energy Information Administration show that natural gas provided roughly 30% of Colorado's in-state electricity generation in 2024, while wind, solar, and other renewables together supplied about 40–45%. In other words, as the grid gets cleaner, electric heat tends to follow.
DRCOG and its partners plan broad outreach and a public awareness campaign in the months ahead, and officials say the program will aim to engage more than a million residents across the metro area. Homeowners and contractors can find program details and sign-up information through VEIC's DRCOG program page and partner resources as Power Ahead Colorado rolls out.
