Centennial · Installation

Heat Pump Installation in Centennial

About seven in ten Centennial homes were built between 1970 and 1999, so most heat pump projects here are retrofits into houses that already have a furnace, ducts and an aging air conditioner. One local wrinkle: depending on your address, your utility may be Xcel Energy or CORE Electric Cooperative, and that decides which rebates you can claim.

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All ZIPs80015, 80016, 80111, 80112, 80121, 80122

First, check your utility

The City of Centennial lists both Xcel Energy and CORE Electric Cooperative as gas and electric providers, depending on address. Look at your bill before comparing quotes. If Xcel is your provider, its heat pump rebates apply. Installers report the cold-climate rebate for Xcel gas customers dropped to about $1,500 per heating ton on October 1, 2026, so confirm the current figure with Xcel. If CORE serves your address, its energy-efficiency page showed no heat pump rebate in November 2026, so call (800) 332-9540 to check.

Every address gets the Colorado heat pump tax credit, $1,000 in 2026 with at least $333 passed to you on the invoice. Centennial is a DRCOG member, so Power Ahead Colorado's $1,500 rebate also applies with contractor pre-approval. The federal 25C credit ended with 2025 installs.

Centennial at a Glance

Elevation
5,722 ft
County
Arapahoe County
Permits
City of Centennial Building Division (like-for-like AC/furnace/water heater replacement is a One-Stop permit)
Gas utility
Xcel Energy or CORE Electric Cooperative depending on address (city lists both as…
Electric utility
Xcel Energy or CORE Electric Cooperative depending on address
Winter design temp
4°F (Arapahoe County, ENERGY STAR/ASHRAE 99%)
Gas furnace output loss
≈23% vs. sea level (about 4% per 1,000 ft)
Power Ahead rebate
Available for existing homes ($1,500, cold-climate heat pumps)
Housing
Population 108,418 (2020 census). About 71% of housing units built 1970-1999, ~15% 1940-1969, ~14% 2000+; ~73% single-family. Incorporated 2001 from unincorporated…

Facts checked November 2026. Sources listed below.

Centennial Climate Note

Newer Centennial homes are well-insulated and tight — proper ventilation and humidity management are key. Heat pump retrofits work especially well.

Neighborhoods We Serve

Willow Creek, Walnut Hills, Heritage Greens, Cherry Knolls, Foxridge, Piney Creek, Hunter's Hill, Knolls West

Dual fuel fits most Centennial houses

In Homestead, Walnut Hills, Willow Creek and Southglenn, we often find a 15- to 25-year-old AC sitting next to a furnace with plenty of life left. Replacing that AC with a heat pump and adding a dual-fuel thermostat gives you efficient heat for most of the season, with the furnace covering the cold nights. The indoor coil has to sit on the furnace's discharge side, and the controls need to keep the compressor off whenever the burner runs.

If the furnace is also near the end, you can choose between a new furnace plus heat pump or an all-electric air handler with backup strips. All-electric works best in tighter homes and usually needs more panel capacity. Our dual-fuel guide compares both.

Ducts and panels in 1970s–90s homes

Heat pumps deliver air at a lower temperature than a gas furnace, so they need good airflow. Two-story and tri-level plans in Piney Creek or Cherry Knolls often have undersized returns or ducts that leak into attics or garage walls. We measure static pressure and, where needed, add a return or seal the worst leaks before installing equipment.

Many homes from this era have 100- or 150-amp panels. A heat pump outdoor unit needs its own 240-volt circuit. Backup strips need another large one. We check panel capacity at the estimate, and HomeGuide's national range for a 100-to-200-amp upgrade is $1,300–$1,600, a market figure rather than our price.

Cold-weather sizing at 5,700 feet

Centennial sits at about 5,720 feet. We size from a Manual J at Arapahoe County's design temperature of about 4°F, adjust for altitude and select equipment by its published 5°F capacity. Running costs deserve an honest note: at current Colorado prices, a 95% gas furnace is generally cheaper per unit of heat. The heat pump's value is replacing the AC, reducing gas use and covering mild days efficiently.

For budgeting, Power Ahead Colorado's regional cost summary puts a whole-home cold-climate system at about $12,000–$16,000 for 2 tons and $18,000–$24,000 for 3 tons before incentives, excluding panel and duct work. Adding a heat pump to a working furnace generally costs less. Fixr's national range for that is $2,500–$8,000. These are market ranges, not our quotes. Your free estimate will be specific to your house.

Permit classification

Centennial's Building Division treats like-for-like furnace and AC replacements as One-Stop permits. A heat pump that replaces an AC, or an air handler that replaces a furnace, may be classified differently, so we confirm with the city before filing. We pull the permit, coordinate any electrical work and schedule the inspection.

Heat Pump Installation in Centennial: Service Area Map

Orange shows the Centennial boundary; dashed lines are county borders (Arapahoe County highlighted in white). Blue areas are other communities MrFixer serves — tap one to open its page.

Map of Centennial, Colorado city limits in Arapahoe County with neighboring communitiesLone TreeHighlands RanchParkerLittletonEnglewoodGreenwood VillageCherry Hills VillageColumbineSheridanDenverGlendaleAuroraLone TreeHighlands RanchParkerLittletonEnglewoodGreenwood VillageCherry Hills VillageDenverAuroraARAPAHOE CO.Centennial2 miMrFixer service area
Boundaries: U.S. Census Bureau TIGER/Line (places, counties). Simplified for display; not a survey or service-territory map.

Heat Pump Installation FAQs — Centennial

How do I know if I'm an Xcel or CORE customer?

Check your bill. The city's Property Search tool also shows providers by address.

Does a heat pump need new ducts in a Centennial home?

Not always. We measure static pressure first. Many homes need only a larger return or some sealing.

Can I keep my furnace?

Yes. In dual fuel, the heat pump handles most heating hours and the furnace runs on the coldest nights.

Is the federal tax credit still available?

No. It ended for equipment placed in service after December 31, 2025. The state credit and Power Ahead still apply.

Signs You Need Heat Pump Installation

01

You want to cut your gas bill significantly

03

Interested in green/electric home upgrades

02

Replacing both AC and furnace at once

04

Have solar or want to maximize solar offset

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