Many Seattle and King County homeowners may qualify for at least one heat pump rebate, and the right one depends on who supplies your power and gas and what heats your home today. PSE offers $1,500 on qualifying conversions, Seattle City Light offers instant discounts of $300 to $600, and oil-heated Seattle homes can see $2,000 or more through Clean Heat.
One change to know first: according to the IRS, the federal energy efficient home improvement credit does not apply to equipment placed in service after December 31, 2025. Utility and city programs are now where most of the savings come from, and every amount below links to the program’s own page so you can confirm current terms.
Start With Who Supplies Your Electricity and Gas
Your utilities decide which rebates you can use. Inside Seattle city limits, Seattle City Light supplies electricity and Puget Sound Energy (PSE) supplies natural gas. On the Eastside and in much of the rest of the county, PSE usually supplies both. A quick look at your bills tells you which programs to check.
This matters more than most homeowners expect. PSE’s electric heat pump rebates require that your current heat runs on PSE electricity, so a Seattle home with baseboard heaters uses City Light’s program instead. A Seattle home with a PSE gas furnace can still use PSE’s gas-side rebates. Here is how the main programs line up:
| What heats your home now | In Seattle (City Light electric) | Eastside and other PSE electric areas |
|---|---|---|
| Baseboard, wall heaters or an electric furnace | City Light instant discount, $300 to $600 | PSE rebate, $1,500; Energy Smart Eastside, $1,000 in participating cities |
| PSE natural gas furnace | PSE hybrid rebate, $1,500; PSE income-qualified switch, $4,000 | PSE hybrid rebate, $1,500; PSE income-qualified switch, $4,000; Energy Smart Eastside, $1,000 in participating cities |
| Heating oil | Clean Heat instant rebate, $2,000, plus a $4,000 bonus for moderate incomes | Energy Smart Eastside, $1,000 in participating cities |
| An older ducted heat pump | City Light instant discount on qualifying equipment | PSE upgrade rebate, $1,500 |
Some programs limit stacking, so the table shows where to start, not a guaranteed total. Every program also has equipment and income rules covered below. If a heat pump is one part of a bigger plan for your house, our Seattle home services page covers the heating, cooling and electrical work we handle across the city.
What PSE Heat Pump Rebates Can You Get?
PSE currently lists four heat pump rebates for existing single-family homes, and all of them are paid through the contractor doing the installation. According to PSE’s heating rebates page, the options are:
- Electric resistance to heat pump, $1,500. For PSE electric customers whose main heat is baseboard, wall heaters, radiant heat or an electric furnace. Ducted and fully ductless systems both qualify, and a ductless system needs at least one indoor unit in the main living area. See PSE’s requirements.
- Hybrid heat pump, $1,500. For PSE gas customers who keep their gas furnace and add a ducted heat pump. The furnace must be set to stay off above 35°F so the heat pump does most of the work, and ductless systems are not eligible. See the hybrid rules.
- Heat pump upgrade, $1,500. For replacing a ducted all-electric heat pump that is out of its original warranty with a new cold-climate model. See the upgrade rules.
- Income-qualified gas to heat pump, $4,000. For income-qualified PSE gas customers who replace gas heat with a heat pump and remove or decommission the old equipment. Check eligibility with PSE.
On the first three, households that meet PSE’s income guidelines may qualify for a higher Efficiency Boost rebate of $2,400. If you heat with gas and want to remove the furnace entirely, PSE’s current list shows a full-switch rebate only for income-qualified customers. For everyone else, the hybrid rebate is the PSE option.
Two rules catch people off guard. Do-it-yourself installs do not qualify, and the installer must be a PSE Trade Ally or Recommended Energy Professional. You can confirm any contractor’s status by calling a PSE Energy Advisor at 1-800-562-1482. PSE allows one rebate per home and says to allow four to six weeks for processing.
What Does Seattle City Light Offer for Heat Pumps?
Seattle City Light offers an instant discount of $300 to $600 on qualifying air-source heat pumps, taken off your contractor’s bid rather than mailed to you later. According to City Light’s heating and cooling page, the discount depends on the system’s efficiency ratings, for systems under 5.4 tons:
| Efficiency rating (SEER2 and HSPF2) | Instant discount |
|---|---|
| SEER2 15.2 and HSPF2 8.1 or higher | $300 |
| SEER2 15.2 and HSPF2 8.5 or higher | $400 |
| SEER2 16.0 and HSPF2 9.5 or higher | $600 |
SEER2 measures cooling efficiency and HSPF2 measures heating efficiency, and higher numbers mean less electricity for the same comfort. The discount works through participating equipment distributors. Your contractor buys a qualifying unit, receives the discount and passes it to you in the bid. Do-it-yourself installs are not eligible, so ask any contractor you are comparing whether their quote already includes it.
City Light also offers a $750 discount on qualifying heat pump water heaters, which can make sense to plan alongside a heating upgrade. For income-eligible households, the City’s HomeWise program may provide a free heating system and insulation upgrades, and Byrd Barr Place helps Seattle residents with heating costs and furnace repair or replacement.
How Does the Seattle Clean Heat Program Work for Oil-Heated Homes?
Seattle homes that switch from oil heat to a qualifying Mitsubishi Electric heat pump can get a $2,000 instant rebate through the City’s Clean Heat Program, applied on the invoice by a participating contractor. Moderate-income households earning between 81% and 150% of area median income may add a $4,000 bonus rebate, for up to $6,000 combined. The City says bonus rebates are available for installations completed by May 30, 2027.
The City estimates 8,000 to 10,000 Seattle homes still heat with oil, and it plans to help all of them switch by 2030. Here is how the program works:
- Get an estimate from a participating contractor and choose a qualifying Mitsubishi Electric heat pump.
- Fill out the City’s Homeowner Participation Form and give it to your contractor before installation.
- Have the system installed. The contractor applies the instant rebate, and the bonus rebate if you qualify, directly to your invoice.
- Decommission your oil tank under Seattle Fire Department requirements, by filling it in place or removing it, so it cannot leak later.
Households below the bonus rebate’s lower income limit may qualify for a free oil-to-heat-pump conversion, including tank decommissioning, through the Office of Housing’s Oil-to-Electric program.
What If You Live on the Eastside or Qualify by Income?
Homeowners in Bellevue, Issaquah, Kirkland, Mercer Island, Redmond and Sammamish have one more program to check. Energy Smart Eastside offers a $1,000 instant rebate when you replace a furnace or electric resistance heat with a qualifying Mitsubishi, Bryant, Carrier or Day & Night heat pump installed by a contractor in its installer network. Households below 150% of area median income can apply for a $5,000 bonus rebate, which requires a fully electric system with no furnace backup. Energy Smart Eastside says its rebates can be combined with PSE incentives.
Income also opens doors in Seattle. PSE’s Efficiency Boost raises its standard rebates for qualifying households, Clean Heat adds its bonus for moderate incomes, and HomeWise and the Oil-to-Electric program offer no-cost upgrades for lower incomes. If you think you might qualify, check the income tables on each program’s page before you get quotes. Income-based rebates often come with their own application, and some need approval before installation.
How the Rebate Process Works With Integrity Energy Systems
You should know which rebates fit your home before you sign anything, and that is where we start. Integrity Energy Systems has served homes across the region since 2012, and our process builds rebate checks into every heat pump installation:
- Tell us what heats your home. Your current system and your utility bills tell us which programs to check first.
- Home evaluation. We look at your home’s size, insulation, ductwork and electrical panel, then size a system that fits both your home and the program rules.
- Equipment that qualifies. Most programs require specific efficiency ratings, certified equipment or certain brands. We recommend models that meet the rules for the rebates you are going after.
- Rebate requirements, in writing. We list the programs your project may qualify for, what each one requires, and any forms you need to fill out yourself.
- Installation and settings. Our technicians install the system, our licensed electricians handle any new circuit or panel work, and we set temperature lockouts where a program requires them.
- Testing and walkthrough. We test the system, show you how to run it, and let you know what to expect if a rebate is paid after installation.
Rebates rarely cover the full cost of a new system. If you want to spread the rest over time, we offer financing through the GreenSky program.
Heat Pump Rebat FAQ
Not for the main heating rebates. PSE requires a PSE Trade Ally or Recommended Energy Professional, City Light’s heat pump discount excludes do-it-yourself installs, and Clean Heat and Energy Smart Eastside work only through participating contractors. City Light does offer a do-it-yourself rebate on heat pump water heaters.
Often, yes. PSE’s electric resistance rebate covers fully ductless systems of at least 3/4 ton with an indoor unit in the main living area. PSE’s hybrid and upgrade rebates require ducted systems, and Energy Smart Eastside accepts ducted and ductless heat pumps.
City Light, Clean Heat and Energy Smart Eastside rebates are instant, so they come off your invoice. PSE rebates go through your contractor, and PSE says to allow four to six weeks for processing.
Sometimes. PSE allows ductless rebates for accessory dwelling units that are occupied full time, have no shared venting with the main house, and include a full kitchen and full bathroom. Check the program page for your specific rebate.
Find Out Which Rebates Fit Your Home
Rebate rules change often, and the right combination depends on your home and your utilities. We will check current program terms with you during a free estimate and explain which ones your project may qualify for.
Get a free heat pump estimate or call (425) 419-4676 for 24/7 emergency service.
By Taylor Morrison, Owner, Integrity Energy Systems, licensed HVAC and electrical contractor
