If you’ve heard that Puget Sound Energy offers rebates on heat pumps and you’re wondering whether any of them apply to you, you’re in the right place. The short answer is: it depends on what you’re currently heating with, and there are actually several different rebate programs with different rules. This guide breaks them all down so you can figure out where you stand before you ever pick up the phone.
Which PSE Rebate Applies to You?
| Your Current Heating System | Your PSE Service | Base Rebate | Income Boost Available? |
|---|---|---|---|
| Electric resistance (baseboard, electric furnace) | Electric | $1,500 | Yes |
| Ducted air-source heat pump | Electric | $1,500 | Yes |
| Natural gas furnace (adding a heat pump alongside it) | Natural gas or dual-fuel | $1,500 | Yes |
| Natural gas furnace (replacing it entirely, income-qualified) | Natural gas | $4,000 | Built in |
| Any of the above | Electric or natural gas | +$300-$600 midstream | No (contractor discretion) |
| Multifamily (5+ units), new construction, or commercial | Any | Not eligible for most programs | N/A |
PSE offers four distinct rebate programs for residential customers upgrading to a heat pump. They are not interchangeable. Each one targets a specific type of customer and a specific upgrade scenario. Here’s how each one works.
This is the most common rebate for homeowners in older Seattle-area homes that were built with electric baseboard heaters or an electric furnace. If you are a PSE electric customer and your primary heat source is any form of electric resistance, including baseboards, cable heat, wall heaters, or an electric forced-air furnace, you may qualify for a $1,500 rebate when you switch to a qualifying heat pump.
The heat pump must be installed by a PSE Trade Ally or a Retail Electrical Products (REP) contractor. The rebate is applied as an instant discount at the time of installation, so you are not waiting for a check to arrive in the mail. If your household income is below a certain threshold based on your family size, you may qualify for additional money through PSE’s Efficiency Boost program at pse.com/boost.
This one surprises some homeowners. If you already have a centrally ducted air-source heat pump but it is aging or underperforming, you can still receive a $1,500 rebate when you replace it with a new qualifying system. The requirements are the same: you must be a PSE electric customer, the system must be installed by a PSE Trade Ally, and the rebate comes off your invoice at the time of installation. Income-based Efficiency Boost also applies here.
This is a good option for homeowners whose original heat pump is pushing 15 years or older. Newer systems are significantly more efficient, especially in colder weather, which matters in the Pacific Northwest where shoulder-season temperatures can stress older equipment.
A hybrid heat pump pairs a new heat pump with your existing natural gas furnace. The heat pump handles most of your heating load during milder weather when it runs most efficiently, and the gas furnace kicks in as a backup during the coldest stretches. The result is lower energy use without giving up the reliability of gas heat on a cold January night.
To qualify, you must be a PSE natural gas customer (or dual-fuel customer) and your primary heating system must currently be a natural gas furnace. Electric-only customers, customers with natural gas boilers, and customers who already have a hybrid system are not eligible. Like the other programs, installation must be done through a PSE Trade Ally, and the rebate is an instant discount. Income-based Efficiency Boost is available here as well, and the boosted amount can reach $2,400 total for income-qualifying households.
One thing worth knowing: homes or accessory dwelling units (ADUs) that already have a heat pump installed are not eligible for this rebate, even if the main home uses a gas furnace.
This is the largest rebate PSE offers, and it is specifically designed for lower-income natural gas customers who want to switch entirely off of gas heat. To qualify, you must be a PSE natural gas customer whose primary heating system is a natural gas furnace, boiler, or gas wall heater, and your household income must fall within PSE’s income guidelines based on your family size and county.
If you qualify, PSE provides a $4,000 rebate when you replace your gas heating system with a qualifying air-source heat pump. As with the other programs, the heat pump must be installed by a PSE Trade Ally and the discount comes off your invoice at the time of installation.
A few important limits on this one. It is only available to single-family residential customers. Multifamily properties with five or more units, new construction, and commercial accounts are not eligible. If you are a property manager, this one does not apply to your rental units, though your tenants who own their homes could qualify individually.
Separate from the programs above, there is a category called midstream rebates. These work differently because they are not administered directly between PSE and the homeowner. Instead, PSE provides rebates to equipment distributors, who then pass them along to HVAC contractors, who can pass them on to you as a discount on your invoice.
Whether you see this savings depends on the equipment your contractor selects and whether they choose to pass it through. The amount can range from roughly $300 to $600 depending on the specific equipment specs. It is worth asking your contractor directly before they finalize your equipment selection. A good contractor who is active in the PSE Trade Ally network will usually flag this for you automatically.
Understanding the exclusions is just as useful as knowing the rebates themselves. Here are the most common reasons a customer does not qualify.
You are not a PSE customer. PSE rebates only apply to PSE electric or natural gas customers. If your utility is Seattle City Light, Snohomish County PUD, or another provider, you will need to look at that utility’s programs separately. Some overlap exists, but PSE rebates are specific to PSE service territory.
Your heating system does not match the rebate. Each program requires a specific current heating type. If you are heating with oil, a propane furnace, or a wood stove, none of these rebates apply directly.
You are in a multifamily building with five or more units, or in new construction. The income-qualified fuel-switching rebate explicitly excludes these property types. The other rebates may also have limitations for multifamily properties, so it is worth calling PSE directly if you manage an apartment building or multi-unit property.
Your home already has the system the rebate targets. For example, homes with an existing hybrid heat pump system are not eligible for the hybrid rebate. You cannot claim the same rebate twice if equipment is replaced under warranty, either.
Several of the rebate programs mentioned above include a reference to PSE’s Efficiency Boost program. This is an income-based supplement that adds on top of the base rebate amount. The qualifying income thresholds are based on household size and the county where you live.
For the hybrid heat pump program, the Efficiency Boost can bring the total up to $2,400. For other programs, the boosted amounts vary. You can check eligibility and apply at pse.com/boost, or ask your contractor about it when you get a quote. PSE Trade Allies are familiar with this program and can help you navigate it.
If you think you might qualify for a PSE heat pump rebate, the most efficient next step is to confirm your current heating fuel type (check your utility bill), verify you are a PSE customer, and then reach out to a PSE Trade Ally contractor for a quote. The rebate can only be applied at the time of installation through that network, so working with the right contractor matters.
PSE also has an Energy Advisor team available Monday through Friday, 8 a.m. to 5 p.m., at 1-800-562-1482. They can walk through your specific situation and point you toward the right program before you commit to anything. If you are seeing higher heating bills this year and have been curious about what a heat pump upgrade might look like for your home, we are happy to take a look and answer questions.
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Yes. Most PSE heat pump rebates require installation by a PSE Trade Ally or REP contractor. The rebate is applied as an instant discount at the time of installation, so you cannot claim it after the fact with a non-participating contractor.
Yes, in most cases PSE rebates and federal energy efficiency tax credits can be used together. They come from different sources and have separate qualification requirements, so it is worth looking at both when you are budgeting for a heat pump upgrade.
Most PSE heat pump rebates are designed for homeowners, since they require equipment installation and ownership. If you rent, check with your landlord about whether they have looked into upgrade rebates. PSE also has some resources specifically for renters at pse.com.
