Installing a heat pump can be a significant investment, but Washington homeowners may be able to lower the upfront cost through utility, state, and local rebate programs.
As of October 2026, Puget Sound Energy (PSE) offers several heat-pump rebates, Washington’s Home Electrification and Appliance Rebates program is funding incentives across the state, and some Eastside homeowners may qualify for additional local rebates.
The amount you can receive depends on several factors, including your existing heating system, household income, utility provider, location, type of heat pump, and the contractor completing the installation.
Because these programs can change as funding is used or new incentives become available, homeowners should verify eligibility before purchasing equipment or beginning installation.
What Heat-Pump Rebates Are Available in Washington in 2026?
For homeowners in the Puget Sound region, some of the most important programs currently include:
| Program | Potential Incentive | General Eligibility |
|---|---|---|
| PSE electric resistance to heat pump | $1,500 | Qualifying PSE electric customers |
| PSE Efficiency Boost | $2,400 | Income-qualified customers |
| PSE heat pump replacement | $1,500 | Replacing qualifying existing heat pump |
| PSE hybrid heat pump | $1,500 | PSE natural-gas furnace customers |
| PSE gas-to-electric heat pump | $4,000 | Income-qualified PSE gas customers |
| Energy Smart Eastside | $1,000 | Eligible Eastside homeowners |
| Energy Smart Eastside Bonus | $5,000 | Households below 150% AMI |
| Washington State HEAR | Varies by administrator | Generally households at or below 150% AMI |
Exact rebate amounts and requirements can change, so this guide should be used as a starting point rather than a guarantee of eligibility.
PSE $1,500 Electric Resistance-to-Heat-Pump Rebate
Puget Sound Energy currently offers a $1,500 rebate when an eligible customer replaces electric resistance heating with a qualifying air-source heat pump.
Qualifying existing systems can include:
- Electric forced-air furnaces
- Electric baseboard heaters
- Electric wall heaters
- Radiant ceiling heating
- Radiant floor heating
The customer must have PSE electricity serving the existing primary heating system. The new system can generally be either a qualifying ducted or ductless air-source heat pump.
For ductless systems, PSE requires qualifying equipment to be AHRI certified, use inverter technology, and meet current residential heat-pump efficiency standards. At least one indoor unit must also serve the home’s main living area rather than only a bedroom.
PSE Efficiency Boost: Higher Rebates for Income-Qualified Households
Some homeowners can receive a larger rebate through PSE’s Efficiency Boost program.
For qualifying heat-pump installations, PSE currently lists a $2,400 Efficiency Boost rebate instead of the standard $1,500 incentive for certain eligible projects. Eligibility depends on household income, household size, and county.
PSE estimates that approximately half of its customers may qualify for increased rebates available through Efficiency Boost, although actual eligibility must be confirmed through the program.
This makes it worthwhile to check income eligibility before assuming that only the standard rebate is available.
$4,000 PSE Rebate for Switching From Natural Gas to a Heat Pump
Income-qualified PSE customers using natural gas as their primary heating source may qualify for an even larger incentive.
PSE currently offers a $4,000 rebate for eligible customers replacing a PSE natural-gas heating system with a qualifying all-electric air-source heat pump.
Eligible existing systems can include:
- Natural gas forced-air furnaces
- Natural gas boilers
- Gas wall heaters
Both ducted and ductless heat pumps may qualify.
The existing natural-gas heating equipment must be removed or decommissioned after the new electric heat pump is installed. The new equipment must also be AHRI certified and meet current national residential heat-pump efficiency standards.
Household income requirements apply to this program.
PSE Hybrid Heat-Pump Rebate
Not every homeowner wants to completely eliminate their gas furnace.
A hybrid heat-pump system, sometimes called a dual-fuel system, combines an electric heat pump with a natural-gas furnace. The heat pump handles much of the home’s heating and cooling, while the furnace can operate during colder conditions.
PSE currently provides a $1,500 rebate for eligible customers converting from a natural-gas furnace to a qualifying hybrid heat-pump system. Income-qualified customers may qualify for a $2,400 Efficiency Boost rebate.
The system must include an AHRI-certified centrally ducted air-source heat pump paired with an existing or new PSE natural-gas furnace. Ductless systems do not qualify for this particular rebate.
Replacing an Older Heat Pump? PSE May Offer $1,500
Rebates are not limited to homeowners replacing furnaces or baseboard heaters.
PSE currently offers a $1,500 rebate for qualifying homeowners replacing an existing centrally ducted electric heat pump with a high-efficiency heat pump. Income-qualified households may qualify for a $2,400 Efficiency Boost rebate.
The existing heat pump must generally be outside its original manufacturer’s warranty period.
The replacement system must be:
- Centrally ducted
- All-electric
- AHRI certified
- Designed for cold-weather performance
- Properly sized for the home
PSE currently requires qualifying replacement systems to meet specific cold-climate performance thresholds at 5°F.
Washington State Home Electrification and Appliance Rebates
Washington also operates the State Home Electrification and Appliance Rebates, or HEAR, Program.
Unlike a single statewide utility rebate, Washington provides funding to local governments, utilities, nonprofit organizations, community organizations, tribes, and other administrators that then offer incentives in their communities.
Washington’s Department of Commerce recently awarded approximately $39.3 million to 40 local administrators for this round of the program.
Heat pumps are specifically eligible equipment.
Qualifying technologies can include:
- Ducted air-source heat pumps
- Ductless mini-splits
- Packaged terminal heat pumps
- Ground-source heat pumps
- Heat pump water heaters
Associated electrical-panel and wiring improvements needed to install qualifying electric equipment may also be covered by some programs.
Who Qualifies for Washington HEAR Rebates?
Washington Commerce currently identifies households earning 150% of Area Median Income or less as potentially eligible.
Both homeowners and renters can participate, although individual administrators may have different requirements, available equipment, rebate amounts, and application procedures.
Qualifying equipment must meet applicable ENERGY STAR or AHRI certification requirements.
Because the program is administered locally, homeowners should determine which organization serves their city or county before scheduling installation.
Bellevue, Kirkland and Redmond Homeowners May Have Additional Rebates
Homeowners on the Eastside should pay particular attention to the Energy Smart Eastside heat-pump program.
As of October 2026, Energy Smart Eastside offers a $1,000 heat-pump rebate for qualifying installations using approved Mitsubishi, Bryant, Carrier, or Day & Night equipment through participating installers.
The program serves homeowners within:
- Bellevue
- Kirkland
- Redmond
- Issaquah
- Sammamish
- Mercer Island
Households earning below 150% of King County Area Median Income may also qualify for an additional $5,000 bonus rebate, potentially bringing the Energy Smart Eastside incentive to $6,000.
For the $5,000 bonus incentive, the heat pump must be a fully electric system without furnace backup. Hybrid systems may qualify for the $1,000 rebate but not the $5,000 bonus.
Energy Smart Eastside also states that its incentives can be stacked with certain PSE incentives, although homeowners should confirm the exact combination available for their project before installation.
Can Washington Homeowners Still Get the $2,000 Federal Heat-Pump Tax Credit?
This is an important change for 2026.
Many older articles still state that homeowners can receive a federal tax credit of up to $2,000 for qualifying heat pumps under the Energy Efficient Home Improvement Credit, also known as Section 25C.
That information is no longer current for 2026 installations.
Federal legislation changed the termination date of Section 25C, and the IRS confirms that the credit does not apply to property placed in service after December 31, 2025.
Therefore, a heat pump installed in 2026 generally cannot claim the former Section 25C heat-pump credit.
Homeowners researching rebates online should pay close attention to publication dates because many websites still reference the expired credit.
What About the Federal HOMES and HARP Rebates?
Washington is also developing its federal Inflation Reduction Act HOMES and Home Appliance Rebates Program (HARP).
These programs are intended to provide rebates for improvements including heat pumps, electrical upgrades, insulation, air sealing, ventilation, and other efficiency measures.
However, as of the latest Washington Department of Commerce update, the statewide programs have not yet fully launched for consumers. Washington is still preparing program operations and awaiting final launch approval.
Commerce specifically warns that these rebates will not be retroactive. Homeowners must apply and receive approval before purchasing equipment or beginning qualifying work once the program launches.
For homeowners considering an installation soon, the already-active Washington HEAR, PSE, and local utility programs may therefore be more immediately relevant.
Why Your Existing Heating System Matters
One of the most important parts of determining rebate eligibility is identifying what currently heats your home.
For example, incentives may differ significantly depending on whether you are replacing:
Electric baseboard heat:
You may qualify for an electric-resistance-to-heat-pump rebate.
Electric furnace:
A ducted or ductless heat pump conversion may qualify.
Natural gas furnace:
You may qualify for hybrid heat-pump incentives or, depending on income, incentives for completely switching to electric heat.
Existing heat pump:
A high-efficiency replacement may qualify under a heat-pump upgrade program.
Homeowners should determine their existing primary heating fuel before requesting rebate estimates.
Does the Heat Pump Have to Be Professionally Installed?
For many programs, yes.
PSE currently requires qualifying heat-pump rebate installations to be completed through a PSE Recommended Energy Professional or PSE Trade Ally. Homeowners cannot use an out-of-network contractor or perform qualifying PSE installations themselves.
Programs may also require:
- AHRI-certified equipment
- Minimum efficiency ratings
- Proper system sizing
- Approved equipment combinations
- Whole-home heating capability
- Electrical permits
- Mechanical permits
- Compliance with state and local building codes
- Specific thermostat or auxiliary-heat settings
- Documentation of the existing heating system
Selecting equipment before confirming these requirements could result in losing access to a rebate.
Should You Apply for Rebates Before Installing a Heat Pump?
Whenever possible, check rebate eligibility before signing the final installation agreement.
A qualified HVAC contractor should be able to identify the equipment model, AHRI reference information, existing heating system, and basic project configuration needed to determine which incentives may apply.
Some rebates are applied directly through contractors, while others require homeowner applications or prior income verification.
State and local programs may also run out of funding.
Homeowners should never assume that an advertised incentive is guaranteed until eligibility has been confirmed.
Can You Combine Multiple Heat-Pump Rebates?
Sometimes.
A qualifying Washington homeowner could potentially have access to:
- A utility rebate
- An income-qualified rebate
- A local city or regional incentive
- Washington HEAR funding
- Manufacturer or distributor incentives
However, stacking rules vary considerably between programs.
One program may allow another incentive to be combined with it while another may prohibit duplicate rebates for the same equipment.
For example, Energy Smart Eastside currently states that its heat-pump incentives can be combined with certain PSE programs. PSE’s own individual rebate rules, however, specify when additional incentives may or may not be combined.
That is why rebate eligibility should be reviewed on a project-by-project basis.
How to Find the Best Heat-Pump Rebate for Your Home
Before replacing your heating system, gather a few basic details:
- Your electric and/or natural-gas utility provider
- Your existing primary heating system
- Whether the home has ductwork
- Your city and county
- Household size and approximate income, if pursuing income-qualified incentives
- Whether you want a fully electric or hybrid heat-pump system
An HVAC contractor familiar with Washington heat-pump installations can then help determine which equipment configurations may meet current rebate requirements.
Heat-Pump Installation and Rebates in the Seattle Area
Heat pumps continue to be an attractive heating and cooling option for Western Washington homes because one system can provide efficient heating during colder months and air conditioning during summer.
For some homeowners, today’s rebate programs can significantly reduce the upfront cost of making the switch.
HVAC Prime Systems provides professional heat-pump installation and replacement services throughout Bellevue, Seattle, Kirkland, Redmond, Bothell, Mill Creek, and surrounding communities.
If you are considering replacing an electric furnace, baseboard heating, gas furnace, or older heat pump, contact HVAC Prime Systems before choosing equipment. Our team can evaluate your existing HVAC system, discuss appropriate heat-pump options, and help identify current rebate opportunities that may apply to your installation.
Rebate information in this article was reviewed October 16, 2026. Programs, funding, equipment requirements, income thresholds, and rebate amounts can change. Always confirm current eligibility before purchasing equipment or beginning installation.