Black Hills Energy Rebates for Gas Heat Pumps

Colorado residential natural gas customers served by Black Hills Energy may qualify for rebates of up to $3,490 when installing an eligible high-efficiency gas heat pump system.

The 2026 Residential Rebates Program includes incentives for Gas Fired Absorption Heat Pumps, with rebate amounts up to $2,390. Integrated gas heat pump systems with gas furnace backup may qualify for a rebate of up to $3,490.

How much is the Black Hills Energy rebate?

The rebate amount depends on the type of system installed:

These incentives can help reduce the initial investment required to install advanced, high-efficiency heating technology in a qualifying Colorado residence.

Who can qualify for the rebate?

Applicants must meet the requirements established by Black Hills Energy. The main eligibility conditions include:

• Applicants must be current Black Hills Energy residential natural gas customers in Colorado.
• Eligible equipment must be purchased and installed between January 1 and December 31, 2026.
• Applications for work completed in 2026 must be received by January 31, 2027.
• Black Hills Energy must provide the fuel used as the property's main heating source.
• All equipment must be new. Used or reconditioned equipment is not eligible.
• The rebate cannot exceed the total cost paid by the customer.

Applications are processed on a first-come, first-served basis. The program may end when the available budget has been depleted, so customers considering an eligible project should apply promptly.

What documents are required?

The application must be completed in full and submitted together with the required supporting documentation.

Applicants must attach a final itemized invoice or receipt covering the equipment, materials, labor and taxes associated with the installation. Quotes, estimates, proposals, canceled checks and credit card statements are not accepted as proof of purchase.

The contractor invoice should include:

• the installation or service address;
• a detailed description of the work completed;
• the equipment manufacturer, model and serial number;
• the installation date;
• itemized equipment, labor and tax costs.

The application also includes a dedicated section for Gas Fired Absorption Heat Pumps that must be completed with the relevant system and installation information.

Why consider a gas absorption heat pump?

A gas absorption heat pump uses gas as its primary energy source while recovering renewable thermal energy from the outdoor air. Compared with conventional gas heating equipment, this technology can deliver greater efficiency and reduce both fuel consumption and associated emissions.

Gas absorption heat pumps can offer several advantages:

• high heating efficiency;
• reduced gas consumption compared with conventional heating systems;
• reliable operation in cold outdoor conditions;
• lower electrical demand;
• reduced pressure on the electric grid;
• suitability for hydronic and forced-air heating applications.

Thanks to the Black Hills Energy rebate, qualifying Colorado customers can now make this technology more accessible while reducing the upfront cost of their project.

Download the rebate application

The complete Black Hills Energy document includes all eligibility requirements, rebate amounts, qualifying equipment, application forms and submission instructions.

Download the 2026 Black Hills Energy Rebate Application

Rebate availability, eligibility requirements and program conditions are established by Black Hills Energy and may be modified or discontinued without notice. Applicants should review the complete program documentation before purchasing or installing equipment.