Denver’s 2040 Energy Plan is a radical plan to transition the city to 100% renewable electricity by 2040 and reduce greenhouse gas emissions by 80% below 2005 levels by 2040. The plan includes a number of strategies to achieve these goals, including investing in renewable energy generation, improving energy efficiency in buildings and transportation, promoting electric vehicles and other clean transportation options, and expanding access to affordable energy for all residents.
However, the 2040 Energy Plan is expected to cost homeowners and businesses billions of dollars. The transition to renewable energy will require the city to invest in new infrastructure, such as solar and wind farms, transmission lines, and battery storage systems. These costs will be passed on to consumers in the form of higher energy bills and taxes.
In addition, the 2040 Energy Plan could lead to higher property taxes. As the city invests in renewable energy infrastructure, the value of property in areas near these projects is likely to increase. This will lead to higher property taxes for homeowners in these areas.
Overall, I believe the 2040 Energy Plan will make it more expensive to live in Denver. Homeowners and businesses will have to pay higher energy bills and taxes, and property taxes could also increase. Additionally, the cost of replacing HVAC equipment and even repairs and servicing will drastically increase.
Here are some specific examples of how the 2040 Energy Plan could cost you more money:
- Higher energy bills: The transition to renewable energy is expected to increase the cost of electricity. This means that your energy bills are likely to be higher in the future.
- Higher property taxes: As the city invests in renewable energy infrastructure, the value of property in areas near these projects is likely to increase. This could lead to higher property taxes for homeowners in these areas.
- Higher cost of living: The higher cost of energy and property taxes is likely to lead to a higher cost of living overall in Denver.
- Commercial and residential owners will be required to purchase heat pump systems and move away from natural gas furnaces; the cost of replacing equipment and repairs could see sharp increases upwards of 50% or more.
If you are concerned about the impact of the 2040 Energy Plan on your wallet, there are a few things you can do to prepare:
- Budget for higher energy bills and property taxes.
- Consider making energy efficiency improvements to your home as soon as possible. Demand for licensed contractors in Denver will create a bottleneck inevitably driving prices higher.
- Get involved in the public process and speak out against the plan if you believe it is too expensive.
- If you’re existing hvac system is old and you’ve been planning on replacing it, do it as soon as your budget allows. Depending on the circumstances, Denver is already requiring an engineered heat load calculation to be completed when a condo owner is replacing their HVAC system. The heat load calculations alone can add $1000s to a replacement quote. Starting in 2024, these additional expensive requirements will expand to duplexes. The added requirements adopted in March of 2023 are already creating a contractor bottleneck and will drive up replacement costs in the future.
The 2040 Energy Plan is a major undertaking that will have a significant impact on the city of Denver. It is important to be aware of the potential costs and benefits of the plan before it is implemented.