Fix First Home › Washington › Puget Sound Energy heat pump and water heater rebates
Puget Sound Energy heat pump and water heater rebates open
Administered by Puget Sound Energy (PSE).
Puget Sound Energy pays $1,500 for a heat pump that replaces electric resistance heat, upgrades an old heat pump, or pairs with an existing gas furnace as a hybrid, and $2,400 to income-qualified customers. Income-qualified gas customers get $4,000 to replace gas heat with a heat pump; a heat pump water heater is $1,000, or $1,100.
source · verified 2 October 2026 · amounts in US dollars
What it pays
| Upgrade | Condition | Amount |
|---|---|---|
| Air-source heat pump replacing electric resistance heat | Ducted or ductless; PSE electric customer | $1,500 |
| Air-source heat pump replacing electric resistance heat | Efficiency Boost (income-qualified) | $2,400 |
| Hybrid heat pump added to a gas furnace | PSE gas or dual-fuel customer; ductless not eligible | $1,500 |
| Hybrid heat pump added to a gas furnace | Efficiency Boost | $2,400 |
| Heat pump replacing an existing heat pump | Capacity at 5°F at least 70% of capacity at 47°F; ductless not eligible | $1,500 |
| Heat pump replacing an existing heat pump | Efficiency Boost | $2,400 |
| Air-source heat pump replacing gas heat | Income-qualified PSE gas customers only | $4,000 |
| Heat pump water heater | Tier 3 or 4, installed on or after 1 January 2026 | $1,000 |
| Heat pump water heater | Efficiency Boost | $1,100 |
| Smart thermostat | One per household; Efficiency Boost $175 | $75–$175 |
| Heat pump clothes dryer | Efficiency Boost $400 | $350–$400 |
Heat pump rebates need a PSE Recommended Energy Professional or Trade Ally to install; no out-of-network contractor and no do-it-yourself. One heat pump rebate per home. Allow four to six weeks.
Who is eligible
- who
- Current PSE single-family residential customers (four units or less); new construction, five-plus-unit buildings and commercial accounts excluded.
- fuel
- Each rebate names the heating it replaces: electric resistance, a working heat pump, or a gas furnace. Gas, propane, oil or wall heaters do not qualify for the electric resistance rebate.
- Efficiency Boost
- Income-qualified customers, by gross monthly income, household size and county; PSE says about half its customers qualify. For four people in King or Snohomish County the line is $11,358 a month.
What disqualifies you
The rules people find out about after the work is done.
- Homes that already have a heat pump serving the main living area (for the conversion rebates).
- Installation by an out-of-network contractor or by yourself.
- Equipment replaced under warranty.
Where the application goes
Your PSE contractor takes you through the rebate; heat pump water heaters can be bought at a retailer with an instant discount or claimed afterward on PSE's form.
The thing most pages get wrong
Search results show PSE's heat pump water heater rebate as $500, from the page's own description tag. The page itself, and PSE's March 2026 flyer, say $1,000 for a Tier 3 or 4 unit and $1,100 with Efficiency Boost.
No more gas equipment rebates
PSE's current rebate list and flyer have no rebate for a gas furnace, boiler or water heater, only for moving from gas to a heat pump. Other Washington gas utilities still pay for gas equipment: Cascade Natural Gas up to $2,400 for a furnace, Avista $650 through the contractor.
Expired offers still quoted
Contractor sites quote a $2,000 heat pump rebate and $2,900 with Boost. That was a promotion for 1 September to 17 October 2025; the live pages say $1,500 and $2,400.
Sources
- https://www.pse.com/en/rebates/heating/electric-resistance-to-air-source-heat-pump-conversion-rebate — primary source, read 2 October 2026
- https://www.pse.com/en/rebates/heating/hybrid-heat-pump
- https://www.pse.com/en/rebates/heating/heat-pump-to-heat-pump-upgrade-rebate
- https://www.pse.com/en/rebates/heating/mi-heatpump
- https://www.pse.com/en/rebates/water-heating/heat-pump-water-heater-rebate
- https://www.pse.com/-/media/PDFs/REBATES/3905_wb_RebatesFlyer.pdf
- https://www.pse.com/en/rebates/efficiency-boost
- https://www.pse.com/-/media/PDFs/REBATES/8255_Income-Qualification-Table.pdf
- https://www.pse.com/en/rebates/heating