Fix First HomeWhat home-upgrade rebates actually pay — and who you apply to.

Fix First Home › Washington › Tacoma Power heat pump rebates and 0% loans

Tacoma Power heat pump rebates and 0% loans open

Administered by Tacoma Power (Tacoma Public Utilities), through participating contractors.

Tacoma Power pays $1,000 to $2,000 toward a heat pump, the most for a variable-speed unit replacing an electric furnace, and $1,000 even when it replaces non-electric heat. Instead of a rebate, electrically heated homes can borrow up to $20,000 at 0% for seven years, and income-qualified owners can get a deferred loan.

source · verified 2 October 2026 · amounts in US dollars

What it pays

Rebates if you pay for the heat pump yourself
UpgradeConditionUp to
Ductless heat pumpReplacing zonal or electric forced-air heat; homes up to four units$1,000
Ductless heat pumpBuildings of five units or more$650
Air-source heat pumpReplacing zonal or electric forced-air heat$1,000
Variable-speed heat pumpReplacing an electric forced-air furnace$2,000
Variable-speed heat pumpReplacing non-electric heat$1,000
Variable-speed heat pumpReplacing an existing heat pump$1,000
0% loans, seven years
Heat pumpUp to
Ductless$20,000
Air-source$20,000
Variable-speed$20,000

Loans need an existing electric zonal or forced-air system, pre-approval, ownership of the home and land, and a good Tacoma Public Utilities payment and credit history; homes with a reverse mortgage are excluded. The deferred loan is repaid when you sell.

Who is eligible

who
Homes served by Tacoma Power, installed by a Tacoma Power Participating Contractor.
equipment
AHRI certified, at least HSPF2 7.5 (or HSPF 9.0); central systems need load and balance point calculations.

What disqualifies you

The rules people find out about after the work is done.

  • New construction.
  • Do-it-yourself installation.
  • A home that already received a Tacoma Power heat pump incentive.
  • Replacing an existing ductless heat pump (no rebate).

Where the application goes

Work with a participating contractor; loans must be pre-approved by Tacoma Power before work starts.

Where the application goes
If this is youApply here
Heat pump rebates and loansmytpu.org

The thing most pages get wrong

Many Washington utility heat pump rebates require electric heat: Snohomish County PUD's and Clark Public Utilities' do. Tacoma Power pays $1,000 for a variable-speed heat pump that replaces non-electric heat, though its 0% loan still requires an electric system.

Rebate or loan, not both

Tacoma's page offers the rebate 'if you're paying out-of-pocket'; the 0% loan is the alternative for the same equipment.

Sources