Heat pump rebates in Washington (2026):
Seattle City Light, PSE and Tacoma Power
WHAT HEAT PUMP REBATES ARE AVAILABLE IN WASHINGTON?
It depends on your utility and your current heat. Puget Sound Energy (PSE) offers $1,500 for replacing electric resistance heat, plus up to $2,400 more based on income, and $4,000 for income-qualified gas customers. Tacoma Power offers $1,000 to $2,000. In Seattle, City Light gives $300 to $600 instant discounts, and homes switching from oil can get $2,000 plus a $4,000 income-based bonus. The federal tax credit ended for systems installed after 2025.
Heat pump rebates by utility
| Utility | Your current heat | Rebate |
|---|---|---|
| PSE | Electric resistance (baseboard, wall heaters, electric furnace) | $1,500 + up to $2,400 income-based |
| PSE | Older ducted electric heat pump, out of warranty | $1,500 + up to $2,400 income-based |
| PSE | Natural gas, income-qualified | $4,000 |
| PSE | Instant discount on efficient air-source units | $300–$600 |
| Seattle City Light | Instant discount on efficient air-source units | $300–$600 |
| Seattle Clean Heat | Oil | $2,000 + $4,000 income-based bonus |
| Tacoma Power | Electric forced-air furnace, to a variable-speed heat pump | $2,000 |
| Tacoma Power | Electric zonal or forced air, to ductless or air-source | $1,000 |
| Tacoma Power | Non-electric heat or an existing heat pump, to a variable-speed heat pump | $1,000 |
Your electric bill shows your utility. In Seattle it's City Light; Tacoma Power serves Tacoma; PSE serves many other Puget Sound homes. Heat pump prices are in our heat pump installation cost in Seattle guide.
Puget Sound Energy (PSE)
Electric resistance to heat pump: $1,500 + up to $2,400
- For current PSE single-family electric customers whose main heat is electric resistance on PSE electricity: baseboards, wall heaters, radiant or an electric furnace. Homes that already have a heat pump in the main living area don't qualify.
- Efficiency Boost adds up to $2,400 more, based on household income. The installer has you attest to your income on site.
- Ductless systems must be inverter-driven, at least ¾ ton, with an indoor head in the main living area. Ducted systems must be all-electric; dual-fuel isn't allowed.
- One rebate per home. It's only available through a PSE Recommended Energy Professional or Trade Ally; do-it-yourself installs don't qualify.
Old heat pump to new: $1,500 + up to $2,400
For PSE electric customers replacing a centrally ducted, all-electric heat pump that's out of its original warranty. The new system must be ducted, with cold-climate performance: a COP of at least 1.75 at 5°F, and at least 70% of its rated capacity at 5°F.
Gas to heat pump, income-qualified: $4,000
PSE's Moderate-Income Fuel-Switching program offers $4,000 to income-qualified single-family customers whose main heat is PSE natural gas. You check eligibility with PSE's income form, use a PSE Trade Ally or Recommended Energy Professional, and apply within 30 days of installation. Full costs for this switch: gas furnace to heat pump cost in Seattle.
Instant discount: $300–$600
PSE's midstream program takes $300, $400 or $600 off a qualifying air-source heat pump under 5.4 tons at purchase, through participating distributors and contractors, depending on its SEER2 and HSPF2 ratings. PSE energy advisors: 1-800-562-1482.
Seattle: City Light and Clean Heat
- City Light instant discounts: $300, $400 or $600 on qualifying air-source heat pumps under 5.4 tons, depending on efficiency, applied through participating distributors. Do-it-yourself installs don't qualify.
- Clean Heat, oil to heat pump: a $2,000 instant rebate from a participating contractor, plus a $4,000 bonus for households at 81–150% of area median income on installs completed by May 30, 2027. The oil tank must be decommissioned; see oil tank decommissioning cost in Seattle.
- Income-eligible households may qualify for a no-cost oil-to-heat-pump conversion through the Office of Housing's HomeWise program.
Seattle prices, permits and a worked example are in heat pump installation cost in Seattle.
Tacoma Power
- From electric zonal or forced-air heat: $1,000 for a ductless heat pump (up to 4 units; $650 for 5 or more), $1,000 for an air-source heat pump, or $2,000 for a variable-speed heat pump replacing an electric forced-air furnace.
- From non-electric heat or an existing heat pump: $1,000 for a variable-speed heat pump. Homes with an existing ductless heat pump aren't eligible.
- You need a Tacoma Power participating contractor, and you apply before the installation. Tacoma Power asks for at least three bids. New construction and do-it-yourself installs don't qualify.
- Tacoma Power also lists 0% interest loans. Energy advisor: 253-502-8363.
State program and federal tax credit
- Washington HEAR program: the Department of Commerce funds local administrators to offer rebates for electric equipment, including heat pumps, for households at or below 150% of area median income, renters included. Amounts and availability depend on your local administrator; Commerce lists them as contracts are finalized.
- Federal tax credit: the IRS says the energy efficient home improvement credit, which covered heat pumps up to $2,000 a year, applied to property placed in service before December 31, 2025. Some cost guides still list it.
Examples: what a rebate takes off
| Home | Rebate | On a $10,218 heat pump |
|---|---|---|
| PSE customer, baseboard heat | $1,500 | $8,718 |
| Same, with full Efficiency Boost | $3,900 | $6,318 |
| PSE gas customer, income-qualified | $4,000 | $6,218 |
| Seattle, oil heat, with income bonus | $6,000 | $4,218 |
| Tacoma, electric furnace to variable-speed | $2,000 | $8,218 |
Before you sign
- Confirm the contractor is in your utility's network. Most rebates above aren't paid for other contractors or do-it-yourself installs.
- Ask for the unit's SEER2 and HSPF2 ratings and AHRI certificate; discounts depend on them.
- Ask how the rebate and sales tax appear on the invoice. Washington sales tax applies to the whole contract; see sales tax on home repairs.
- Look the contractor up on L&I's Verify a Contractor tool. For jobs of $1,000 or more on a home, the contractor must give you a written disclosure statement before work starts (RCW 18.27.114).
Frequently asked questions
What heat pump rebates are available in Washington?
It depends on your utility. PSE offers $1,500 for replacing electric resistance heat plus up to $2,400 based on income, and $4,000 for income-qualified gas customers. Tacoma Power offers $1,000 to $2,000. Seattle City Light gives $300 to $600 instant discounts, and Seattle homes switching from oil can get $2,000 plus a $4,000 income-based bonus.
Is there still a federal tax credit for heat pumps?
Not for new installs. The IRS says the energy efficient home improvement credit applied to property placed in service before December 31, 2025.
How do I get the PSE heat pump rebate?
Use a PSE Recommended Energy Professional or Trade Ally; the rebate isn't available for other contractors or do-it-yourself installs. PSE's energy advisors at 1-800-562-1482 can confirm a contractor and your eligibility.
Can I combine heat pump rebates?
PSE says its rebates can't be combined with other rebates unless noted. Seattle's Clean Heat program combines its $2,000 rebate with a $4,000 income-based bonus. Ask your utility before you sign.
Does Tacoma Power give heat pump rebates?
Yes. Tacoma Power lists $1,000 for ductless or air-source heat pumps replacing electric heat, and $2,000 for a variable-speed heat pump replacing an electric forced-air furnace, through participating contractors.
Sources
- PSE — Electric resistance to air-source heat pump conversion rebate
- PSE — Heat pump to heat pump upgrade rebate
- PSE — Moderate-Income Fuel-Switching Heat Pump Program and Midstream HVAC discount
- Seattle City Light — Home energy solutions
- Seattle Office of Sustainability & Environment — Clean Heat program
- Tacoma Public Utilities — Heat pumps
- Washington Department of Commerce — HEAR program; IRS — Energy efficient home improvement credit
- Angi — Heat pump cost in Seattle (Jul 2026); RCW 18.27.114; L&I — Hiring a contractor
Sources accessed October 8–16, 2026. Rebate programs change often; check the program pages before you sign.
This guide summarizes utility and government program pages. It is not tax advice, and eligibility, amounts and funding change. Confirm with your utility and contractor before you buy. See our disclosure and disclaimer.