Cutting Summer Electric Bills in a Colorado Home

The fastest way to cut a Front Range summer electric bill is to shift when you use power, not just how much: Xcel Energy's time-of-use rate charges more in the late afternoon and early evening on summer weekdays and less overnight, so a smart thermostat that pre-cools the house before the expensive hours and eases off during them saves more than the same thermostat set to a flat schedule. After that, the biggest lever is which cooling system you have in the first place, because Denver's dry climate makes evaporative cooling a real option here in a way it is not in most of the country.

Is an evaporative cooler better than central AC in Denver?

It depends on humidity, not preference. An evaporative ("swamp") cooler pulls outside air through water-saturated pads, and the evaporation drops the air temperature 15 to 25 degrees before it enters the house. That works because Denver's summer humidity stays low enough for the evaporation to happen efficiently. Central air conditioning removes humidity as part of how it cools, so it works in any climate but costs more to run per hour and more to install. Many older Front Range homes still run a swamp cooler on the roof; many newer builds and remodels install central AC instead. A home with a swamp cooler is not a defect — it is a legitimate, lower-cost Colorado cooling choice that buyers relocating from more humid states sometimes need explained.

Does altitude make air conditioning less effective in Colorado?

Thinner air at altitude carries less heat per volume, which lets an air-cooled AC condenser run slightly more efficiently at Denver's elevation than at sea level, all else equal. The bigger factor is Colorado's intense high-altitude sun: UV exposure at 5,280 feet is stronger than at sea level, which drives up cooling load through west-facing windows in the late afternoon — the same hours Xcel's time-of-use rate charges the most.

What is Xcel Energy's time-of-use rate, and how do I use it to save?

Xcel Energy, the electric utility for most of the Denver metro, offers a time-of-use rate plan that prices electricity higher during a defined summer weekday window in the afternoon and evening and lower overnight and on weekends. On this plan, the same amount of cooling costs less if you run it before the expensive window starts and let the house coast through it, rather than turning the AC on once it is already hot inside at 5 p.m. Check your own Xcel account for the exact hours and pricing tiers on your plan, since Xcel offers more than one rate option.

Do smart thermostats save money in Colorado?

Yes, in two specific ways beyond a basic programmable thermostat: they learn your actual schedule instead of running a fixed program, and several models integrate directly with Xcel Energy's demand-response programs, which pay a bill credit for allowing brief, automatic AC cycling during peak summer demand events. Combined with a time-of-use rate, a smart thermostat set to pre-cool before the expensive window is one of the highest-payback upgrades for the cost on a Front Range home.

What rebates does Xcel Energy offer for cooling upgrades?

Xcel Energy runs rebate programs for smart thermostats, central AC and heat pump installations, and attic insulation, and the specific dollar amounts change year to year. Check the current rebate list on Xcel's site before you buy equipment, since the rebate is claimed at purchase or through a mail-in form rather than applied automatically. Insulation and air sealing pay back fast in a Front Range climate with 300-plus days of sun and a large daily temperature swing, rebate or not.

How much does central AC cost to install in Denver?

A new central AC system, installed, runs $6,000 to $12,000 in the Denver metro depending on home size and whether ductwork already exists. A home with a swamp cooler and no ducts costs more to convert, since ductwork has to be added throughout the house. Converting an evaporative-cooled home to central air is a common pre-listing upgrade at higher price points, but it is not required — plenty of Front Range buyers specifically want the lower operating cost of a swamp cooler.

Should I switch from a swamp cooler to central AC before I sell?

Not automatically. A working swamp cooler in good repair rarely costs a sale in the Denver metro; buyers here are used to seeing it, and it is a genuine cost-saver on the utility bill. Where it matters more is at higher price points and in neighborhoods where central AC is now the norm, since an appraiser and a buyer's agent both weigh what is standard for the area. Our guide to preparing and adding value before selling covers which cooling upgrades pay back and which do not for your specific neighborhood and price point.

How do I read my Xcel Energy bill to find savings?

Your Xcel bill breaks usage into kilowatt-hours by time period if you are on a time-of-use plan, and shows a flat rate tier if you are not. Compare your July or August bill to April or October to isolate exactly how much cooling costs you each month; that number is what a smart thermostat, added insulation, or a rate plan change is working against.

Where to go next

• Preparing and adding value before selling
• How to test a Colorado furnace or boiler for leaks
• Denver utility providers and costs guide
• Why an efficient HVAC system helps a Colorado home sell
• Explore homes for sale in Denver
• Search every home for sale in Colorado

Talk to the Kenna Real Estate Group

Wondering whether a swamp cooler or central AC fits your next Colorado home, or how a cooling system affects a sale? Call or text 303-955-4220. A live person answers. Not a robot, not a phone tree. Ready to look at options? Search every home for sale in Colorado.