Puget Sound Energy Rebates

If PSE serves your single-family home, Puget Sound Energy rebates can usually give you $1,500 toward a heat pump, or $2,400 if your household income qualifies for Efficiency Boost. If your home runs on PSE natural gas and your income qualifies, switching to a heat pump pays $4,000. The programs are running right now, and a contractor from the approved network handles every heating rebate.

Check what your address gets in Washington

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Heat pump outdoor unit on a concrete pad beside a brick ranch house, the kind of install Washington heat pump rebates help pay for

Heat pump rebate (any income): Up to $1,500
If your income qualifies: Up to $4,000
Heat pump water heater: $1,000
Federal 25C tax credit: Ended No credit for heat pumps installed after 31 December 2025

Apply and check the current rules on the official page: PSE heat pump rebates (electric resistance to heat pump, heat pump upgrade, hybrid heat pump)

A Quick Look at PSE Rebates

PSE has a handful of rebates covering both heating and hot water. What you get depends on how your home is heated now and how much your household earns. The bigger income-based amounts come from a program named Efficiency Boost. PSE estimates that roughly half of its customers are eligible.

What you install	Rebate	Who	Conditions
Electric resistance to air-source heat pump conversion (ducted or ductless)	$1,500	Any income	current primary heat is PSE-supplied electric resistance; PSE Trade Ally/REP contractor; existing single-family only
Electric resistance to heat pump, Efficiency Boost	$2,400	Income-qualified	meet Efficiency Boost income guidelines (attested on site with installer)
Zonal electric resistance or electric furnace to ductless heat pump	$1,500	Any income	AHRI variable-speed inverter mini/multi-split, at least 3/4 ton; one head in main living area; fully ductless
Heat pump to heat pump upgrade	$1,500	Any income	existing ducted all-electric heat pump out of warranty; new system COP at 5°F >= 1.75 and 5°F capacity >= 70% of 47°F capacity
Heat pump to heat pump upgrade, Efficiency Boost	$2,400	Income-qualified
Natural gas heating to air-source heat pump (ducted or ductless)	$4,000	Income-qualified	PSE single-family natural gas customer; primary heat PSE natural gas; gas equipment removed or decommissioned; AHRI certified
Tier 3 or Tier 4 heat pump water heater	$1,000	Any income	installed on or after Jan 1, 2026; uses PSE electricity; one per residence
Tier 3 or Tier 4 heat pump water heater, Efficiency Boost	$1,100	Income-qualified

Efficiency Boost reaches ten counties across the region: Whatcom, Skagit, Snohomish, Island, King, Kitsap, Pierce, Thurston, Lewis, and Kittitas. Before any work starts, you can use PSE's online Efficiency Boost checker to see if your income fits.

There is also a free In-Home Energy Assessment from PSE. It shows where your home uses energy so you can pick equipment with that in mind. Manufactured homes get a separate conversion rebate worth $2,400.

Who Qualifies for a Heat Pump Rebate?

You have to be an existing PSE customer living in a single-family home. Buildings with up to four attached units are treated the same way. Brand-new construction, buildings with more than four units, and business accounts are not eligible.

PSE allows one heating rebate per home. It usually cannot be stacked with other rebates, apart from cases where PSE says it can.

Which Rebate Applies, Based on How You Heat Now?

Which rebate you get depends on how your home is heated today. Each option pays $1,500, or $2,400 with Efficiency Boost.

Electric heat to heat pump: PSE electric heat has to be your main source of warmth now, whether that is an electric furnace with forced air, baseboard panels, wall units, or radiant heating. Resistance-style electric heat warms a coil, much like a toaster does. If your main living area already has a heat pump, you cannot get this one.
Ductless heat pump: If your home relies on electric heaters in each room or an electric furnace, you can move to a fully ductless setup. One indoor unit must sit in the main room of your home.
Heat pump upgrade: Your present heat pump needs to be ducted, fully electric, and out of its manufacturer warranty.
Hybrid heat pump: Your home has to use PSE natural gas or a dual-fuel setup, with a gas furnace doing most of the heating. The new central ducted heat pump then works together with that furnace.

$4,000 to Leave Gas Heat Behind

The fuel-switching heat pump rebate for moderate incomes pays $4,000 to households that trade PSE natural gas heating for a heat pump, either ducted or ductless. It only goes to customers who meet the income rules and live in single-family homes heated mainly by PSE natural gas. The old gas gear has to come out or be disconnected.

Homes already running on electric heat or a hybrid setup are shut out of this one. You have to submit the application no later than 30 days after the install.

Equipment Rules

The new system must carry AHRI certification, from the national body that tests heating equipment. It also has to clear the national efficiency standard in effect today, or do better.

Ductless systems need a variable-speed compressor and a size of at least three-quarter ton.
Upgrades have to keep heating well when it is cold outside. When the temperature drops to 5°F, the system's efficiency score must be 1.75 or higher. It also has to retain 70% or more of the heating power it produces at 47°F.
Hybrid systems may hand off to the gas furnace only when readings hit 30°F or lower. That handoff temperature is what installers call the balance point.
If the system has backup electric heat, it has to be locked out during milder weather, and PSE suggests 35°F or colder.

How to Claim the Rebate

You cannot send in an application yourself once the job is finished. Only your contractor can get this rebate for you.

Choose an installer who belongs to PSE's Trade Ally Network; a PSE Energy Advisor can tell you whether yours is in. Installers outside the network cannot take part, and neither can do-it-yourself jobs.
If the higher rebate might apply to you, run your income through the online checker.
Your contractor puts in a qualifying system and files the rebate application. Efficiency Boost customers confirm income with the installer during the visit.
Expect the paperwork to take four to six weeks.

Rebate for a Heat Pump Water Heater

Water heaters rated Tier 3 or Tier 4 earn $1,000, or $1,100 when Efficiency Boost applies. The unit has to run on PSE electricity, go in on January 1, 2026, or later, and each home can claim it only once. Three routes are open to you:

A coupon you can use on the spot at Lowe's or The Home Depot stores that take part
Money off right away from your installer
A rebate you ask for online or by mail, no later than 30 days after installation

Questions People Ask

How do the rebates get paid?

For heating, the money moves through the contractor's application instead of a form you file. With a water heater, there are more options: take it as a coupon at the store, or ask for it once the purchase is done.

Are energy efficiency tax credits still available in 2026?

The federal credit for home energy upgrades wrapped up early when Public Law 119-21 was signed on July 4, 2025. Equipment installed from January 1, 2026, onward no longer counts. Washington's Home Energy Rebates, backed by federal dollars, are still being planned. A separate program funded by the state is already up and running, with local administrators handling it.

Which appliances come with energy rebates?

At PSE, the list includes air-source heat pumps, ducted and ductless alike, plus hybrid heat pumps and water heaters rated Tier 3 or Tier 4. Manufactured homes with heat pumps count too.

Does PSEG send out rebate checks?

PSEG is a different utility from Puget Sound Energy. With PSE, your contractor applies for the heating rebate for you, so there's no form for you to send in. Allow four to six weeks for processing.

Get Local Installer Quotes With Your Rebate Included

Most rebates on this page are paid through the installer or need the installer's paperwork, so the quote is where the money is settled. Tell us the ZIP code and what you want installed, and installers who work with these programs send a written price with the rebates taken off.

Every heat pump rebate in Washington
The other utility and state programs in Washington, side by side.
Heat pump cost after rebates
Typical installed prices with the largest rebate taken off.