EIA data · CO
Colorado: what each way of heating costs
The short answer
In Colorado, electricity averaged 16.60¢/kWh (1.4¢ below the US average). That puts mini-split heat at about $17 per million BTU at rated efficiency, versus $11 for natural gas. A heat pump loses on fuel cost at rated efficiency, and loses at 5°F.
Fuel prices are EIA SEDS 2024 residential averages per million BTU of fuel, divided by 90% furnace/boiler efficiency. Electricity is the EIA trailing-twelve-month residential average. Heat pump efficiency: ENERGY STAR median cold-climate system, HSPF2 10 (COP 2.93) rated, COP 2 at 5°F.
Cities in Colorado
| City | 99% design temp | Heat pump $/yr | Gas $/yr | Oil $/yr | Propane $/yr |
|---|---|---|---|---|---|
| Denver | 6°F | $1,116 | $656 | $1,473 | $1,570 |
| Colorado Springs | 9°F | $1,147 | $680 | $1,527 | $1,628 |
| Grand Junction | 15°F | $1,196 | $715 | $1,606 | $1,712 |
Keep going
- Cost-to-heat calculator: put in a ZIP for your own number instead of a state average.
- All city estimates, sizing by design temperature and incentives.
- States with a similar electricity price: Minnesota, Ohio, Wisconsin, Illinois.
Questions people ask
What is the electricity price in Colorado?
EIA reports a residential average of 16.60¢/kWh for Colorado over August 2025 to August 2026; the latest month, August 2026, was 17.17¢/kWh. The US average over the same twelve months was 18.04¢/kWh.
Is a heat pump cheaper than natural gas in Colorado?
Per million BTU of delivered heat, a heat pump at its rated HSPF2 costs about $17 versus $11 for natural gas at 90% efficiency. At 5°F, when efficiency is lowest, the heat pump costs about $24 per million BTU.