Where we install
Strata Heat Pumps installs heat pumps in Boulder County, Larimer County, Weld County, Broomfield County, Adams County, Denver County, Arapahoe County, Jefferson County, Douglas County, El Paso County, Pueblo County and ZIP codes 80504, 80516, 80439, 80832 and 81069. The online estimate prices a dual-fuel heat pump for any Colorado ZIP code in about two minutes and lists the rebates that apply there.
What a dual-fuel heat pump is
A dual-fuel system pairs a cold-climate heat pump with the gas furnace you already own. The heat pump does all of the cooling and the heating on most days. When the outdoor air gets cold enough that the furnace is the better tool, the controls hand the house over to the furnace until the weather turns.
It replaces the central air conditioner, not the furnace. The outdoor unit goes where the AC sat, and a matched coil goes on the furnace where the old AC coil was. The furnace blower moves the air for both sources, so the ducts and vents stay as they are.
Some people call it a hybrid heat pump. It is the same idea: two heat sources, one thermostat, and controls that pick the right one hour by hour.
The heat pump side moves heat instead of burning fuel, so every hour it runs is an hour the furnace is not burning gas. That is where the savings come from, and why the heat pump carries the house on most days.
Which homes fit dual fuel
Dual fuel fits a home with a gas or propane furnace that is fairly new and runs well. Tearing out a good furnace throws away money, and keeping it gives the house a second heat source for the coldest nights.
It also fits owners who want lower bills and summer cooling from a heat pump but are not ready to give up gas heat. And it suits a house where the central AC has failed while the furnace still has years left in it.
Propane homes can keep their propane furnace the same way. The estimate offers dual fuel next to a full heat pump for every home that heats with a gas or propane furnace. A home on a gas boiler has no furnace for the coil to sit on, so the estimate gives it ductless instead.
It is the wrong pick for a house with no ducts, or with a furnace near the end of its life. The first needs ductless. The second is better off with a full ducted heat pump, so you are not paying to keep an old furnace running.
How dual fuel handles Colorado cold and altitude
We size the heat pump to the same design temperature as a full system: 1°F outdoors and 70°F indoors for Boulder County in our estimate tool, and 5°F for Larimer County. Sizing it fully keeps the furnace for the hours it is needed, rather than every chilly evening.
Altitude cuts air-source output by about 3.4% for every 1,000 ft. At 5,300 ft, the height our sizing uses for Boulder County, that is 18%, and we correct for it before we choose a size.
The switch-over point is a setting in the dual-fuel controls, which are part of the price. We set it at the install. On the coldest nights the furnace takes over, and the heat pump never has to strain against the deepest cold.
The equipment in a dual-fuel system
Every dual-fuel price includes the cold-climate outdoor unit, a matched indoor coil, the dual-fuel controls, the line set, a standard 240 V circuit, a thermostat, the permit and removal of the old AC. Your furnace stays.
The matched coil has to fit the furnace cabinet and suit the heat pump, so we size it with the outdoor unit and check the furnace at the walkthrough.
Sizing and prices for a dual-fuel system
The estimate sizes dual fuel the same way as a full heat pump. It works out the heat load from the home's size, stories, build year and current heat, or from a winter gas bill, then corrects for altitude and rounds up to the next size: 2, 2.5, 3, 3.5, 4 or 5 tons. Above 5 tons we quote by hand.
Prices before rebates run $10,200 to $14,400 for 2 tons, $14,000 to $19,800 for 3 tons, $17,900 to $25,200 for 4 tons and $21,700 to $30,600 for 5 tons. That is below a full ducted heat pump of the same size, which runs $17,400 to $24,600 at 3 tons, because the furnace stays and no new air handler goes in.
For a 2,000 sq ft two-story gas home in Boulder County built 1980 to 1999, the estimate gives 2.8 tons, $12,100 to $22,500 before rebates and $5,400 to $15,800 after them. An older house of that size needs 3.4 tons, with an estimate range of $14,000 to $30,600 before rebates.
A newer house of the same size needs 2.0 tons, with an estimate range of $10,200 to $17,100 before rebates and $4,700 to $11,600 after. Because the Xcel Energy rebate pays per ton of heating, a bigger system also earns a bigger rebate, which narrows the gap between sizes after rebates.
How a dual-fuel install goes
Start with the online estimate. It takes about two minutes and shows dual fuel next to a full heat pump for a gas or propane home, with rebates taken off both. Then we book a walkthrough to measure the home, check the furnace, the ducts and the electrical panel, and do the load calculation for the final price.
Most installs take one day. The crew removes the old AC, sets the outdoor unit, fits the matched coil on the furnace, runs the line set and the circuit, and wires the dual-fuel controls and the thermostat. The permit is in the price.
A typical project ends there. Extras appear only when the house needs them: an extra 240 V circuit at $500 to $900, a condensate pump at $150 to $450, ductwork changes at $1,000 to $5,000, or a smart load-sharing device at $500 to $1,500 where the panel is full.
Living with a dual-fuel system
Day to day you use one thermostat, as before. The heat pump runs through most of the heating season and the whole cooling season, and the furnace comes on for the coldest stretches. On those nights the air from the vents feels hotter, because the furnace is running.
The furnace keeps its regular service, and its filter is the one the whole system breathes through. The outdoor unit needs clear space around it, free of snow drifts and shrubs, the same as an AC.
When the furnace finally wears out, the heat pump outside stays. Replacing the furnace with an air handler at that point turns the system into a full ducted heat pump.
Rebates for a dual-fuel heat pump
In Boulder County a 3-ton dual-fuel job in a gas home lines up $7,000 in the estimate: the Xcel Energy rebate ($4,500), the State of Colorado Heat Pump Discount ($1,000) and the Power Ahead Colorado rebate ($1,500). Rebate eligibility for dual fuel is confirmed at the walkthrough, so treat that figure as the likely amount until then.
Longmont Power & Communications customers get the Efficiency Works rebate of $2,000, and income-qualified Boulder County households can add $1,700. We file every rebate, and the state discount comes off the invoice.
The federal 25C credit ended for systems installed after 2025, so it no longer adds to any of these totals.
Dual-fuel heat pump prices by size
| System size | Price before rebates |
|---|---|
| 2 tons | $10,200 to $14,400 |
| 2.5 tons | $12,100 to $17,100 |
| 3 tons | $14,000 to $19,800 |
| 3.5 tons | $15,900 to $22,500 |
| 4 tons | $17,900 to $25,200 |
| 5 tons | $21,700 to $30,600 |
| Included |
|---|
| Outdoor unit |
| Matched indoor coil |
| Dual-fuel controls |
| Line set |
| Standard 240V circuit |
| Thermostat |
| Permit |
| Removal of old AC |
| Extra | Price range |
|---|---|
| Electrical panel upgrade to 200A | $2,500 to $7,500 |
| Smart load-sharing device (instead of a panel upgrade) | $500 to $1,500 |
| Extra 240V circuit | $500 to $900 |
| Ductwork changes | $1,000 to $5,000 |
| Condensate pump | $150 to $450 |
Estimate only. Your final price comes after we review your home and do a load calculation. Rebates have budgets and rules that can change. Strata applies for the rebates for you.
Dual-fuel heat pump rebate programs and utilities
| Program | Amount | Who qualifies |
|---|---|---|
| Xcel Energy rebate | $1,500 per ton of heating | Xcel Energy customers and homes that now heat with a gas furnace, a gas boiler or propane, on any of the three systems. |
| Xcel Energy rebate | $750 per ton of heating | Xcel Energy customers and homes that now heat with electric heat, on any of the three systems. |
| State of Colorado Heat Pump Discount | $1,000 | every Colorado home, on any of the three systems. |
| Power Ahead Colorado rebate | $1,500 | homes in Adams County, Arapahoe County, Boulder County, Broomfield County, Clear Creek County, Denver County, Douglas County, Gilpin County, Jefferson County and Weld County, on any of the three systems. |
| Efficiency Works rebate | $2,000 | customers of Longmont Power & Communications, on a ducted heat pump or a dual-fuel system. |
| Boulder County income-qualified rebate | 50% of the price (up to $2,000) | homes in Boulder County and households under the program income limit, on any of the three systems. |
Of the electric utilities our data maps in the install area, Longmont Power & Communications and Xcel Energy have rebate programs. Black Hills Energy, Colorado Springs Utilities, Fort Collins Utilities and Loveland Water and Power have no rebate program in our data yet, so for those homes the estimate counts only the programs that do not depend on the electric utility and adds: "Your utility may offer a rebate. We will check." Some install-area ZIP codes have no utility in our data; there the estimate lets the homeowner pick theirs.
Dual-fuel heat pump pages by county
- Dual-fuel heat pumps in Adams CountyPrices by home age and $7,000 in rebates on a 3-ton job in a gas-heated home.
- Dual-fuel heat pumps in Arapahoe CountyPrices by home age and $7,000 in rebates on a 3-ton job in a gas-heated home.
- Dual-fuel heat pumps in Boulder CountyPrices by home age and $7,000 in rebates on a 3-ton job in a gas-heated home.
- Dual-fuel heat pumps in BroomfieldPrices by home age and $7,000 in rebates on a 3-ton job in a gas-heated home.
- Dual-fuel heat pumps in DenverPrices by home age and $7,000 in rebates on a 3-ton job in a gas-heated home.
- Dual-fuel heat pumps in Douglas CountyPrices by home age and $7,000 in rebates on a 3-ton job in a gas-heated home.
- Dual-fuel heat pumps in El Paso CountyPrices by home age and $1,000 in rebates on a 3-ton job in a gas-heated home.
- Dual-fuel heat pumps in Jefferson CountyPrices by home age and $7,000 in rebates on a 3-ton job in a gas-heated home.
- Dual-fuel heat pumps in Larimer CountyPrices by home age and $5,500 in rebates on a 3-ton job in a gas-heated home.
- Dual-fuel heat pumps in Pueblo CountyPrices by home age and $1,000 in rebates on a 3-ton job in a gas-heated home.
- Dual-fuel heat pumps in Weld CountyPrices by home age and $7,000 in rebates on a 3-ton job in a gas-heated home.
Other systems we install
Questions we hear
Do I need a new furnace for a dual-fuel system?
No. Dual fuel keeps the gas or propane furnace you have and adds a heat pump outside plus a matched coil on the furnace. That is why it costs less than a full ducted heat pump. If your furnace is near the end of its life, we will point you to a full heat pump instead, so you are not paying to keep it.
When does the furnace come on in a dual-fuel system?
Only when it is cold enough that the furnace is the better choice. The switch-over point is a setting in the dual-fuel controls, and we set it at the install. The heat pump handles the rest of the heating season and all of the cooling, and one thermostat runs both.
Does dual fuel get the same rebates as a full heat pump?
In Boulder County our estimate tool shows $7,000 on a 3-ton dual-fuel job in a gas home, the same as a full heat pump there. Rebate eligibility for dual fuel is confirmed at the walkthrough, and we file whatever applies.
What does a dual-fuel heat pump cost?
Before rebates our estimate tool prices it at $10,200 to $14,400 for 2 tons and $14,000 to $19,800 for 3 tons. For a 2,000 sq ft two-story gas home in Boulder County built 1980 to 1999 it gives $12,100 to $22,500 before rebates and $5,400 to $15,800 after them. The online estimate prices your own home in about two minutes.
Should I choose dual fuel or a full heat pump?
Choose dual fuel when the furnace is fairly new and works well, or when you want gas as a backup on the coldest nights. Choose a full ducted heat pump when the furnace is old, since it replaces both the furnace and the AC. The estimate shows both prices side by side for a gas or propane home.