You might be wondering why Xcel and the City of Denver offer such large incentives for installing ductless mini-splits and air handlers. Colorado’s temperatures have risen due to climate change, making heat pumps essential. They not only provide heating during harsh winters but also combat soaring summer temperatures. Surprisingly, over 30% of Denver homes lack A/C, with higher numbers in low-income areas.
Heat Pumps Reduce Climate Impact
Moreover, heat pumps deliver High Climate Impact benefits by reducing the environmental impact of methane, a major component of natural gas. Heating homes with natural gas contributes to 24% of Denver’s greenhouse gas emissions, with methane being 80 times more impactful than carbon dioxide emissions.
Some worry about the grid’s capacity to handle Denver’s electrification. Yet, the city’s electrical grid can shift to renewable electricity without major infrastructure upgrades.
Xcel aims to electrify more homes by phasing out natural gas and coal furnaces, striving for 81% carbon-free energy by 2030 (up from the current 42%). This involves incentivizing heat pumps and boosting wind and solar energy production.
With the stackable rebates from the City of Denver, Xcel, Federal tax credits, and manufacturers, residents can install single-zone mini-splits at significantly reduced rates, almost free of cost.
Denver Net-Zero Energy Goals
Denver targets net-zero energy starting in 2024, mandating all-new homes and buildings to be all-electric and net-zero by 2027. This not only cuts conditioning costs but also ensures safety by avoiding carbon dioxide poisoning, natural gas leaks, and explosions.
Efficiency is a key reason for incentivizing Heat Pumps. Compared to electric resistance (1 COP), Heat Pumps (3 COP) are notably more efficient. For every unit of energy used, Heat Pumps produce three units of heat, making them three times as efficient. This efficiency is due to their ability to trap and move heat by changing refrigerant phases, a concept explained through physics. Essentially, Heat Pumps achieve 200-300% efficiency by moving heat rather than creating it. Although natural gas might be cheaper currently, Heat Pumps use far less energy, making them a more efficient choice in the long run.
