High efficiency heat pumps and water heaters
Heat pump incentives
Residential and small commercial <5.4 ton air-cooled heat pumps
The Pacific Northwest Midstream HVAC and Water Heating Program is provided by Puget Sound Energy, Seattle City Light, and Snohomish County Public Utility District (PUD). The table below outlines minimum efficiency requirements for heat pumps under 5.4 tons with details as follows:
- Eligibility is listed by AHRI rated values (SEER/HSPF requirements in Table 1 and SEER2/HSPF2 requirements in Table 2) and will be based on sales date and availability of rated values data in AHRI.
- All heat pump ratings are AHRI rated values.
- Incentives are listed as $/outdoor system.
- Customers purchasing qualifying heat pump systems must have a valid electric service account with Puget Sound Energy, Seattle City Light, or Snohomish County PUD.
Table 1: SEER/HSPF rated commercial and residential air-cooled heat pumps
(<5.4 tons)
| EQUIPMENT TYPE |
PROJECT TYPE |
TIER | SEER (minimum) |
HSPF (minimum) |
Customer pass-through rebate ($/outdoor system) |
|---|---|---|---|---|---|
| Mini or Multi-Split Heat Pump <65 kBtuh (<5.4 tons) |
Retrofit and new construction | 1 | 16.0 | 9.5 | $400 |
| 2 | 16.0 | 11.0 | $600 | ||
| Traditional Heat Pump <65 kBtuh (<5.4 tons) |
Retrofit only | 1 | 16.0 | 9.0 | $300 |
| Retrofit and new construction | 2 | 16.0 | 10.0 | $500 |
Table 2: SEER2/HSPF2 rated commercial and residential air-cooled heat pumps
(<5.4 tons)
| EQUIPMENT TYPE |
PROJECT TYPE |
TIER | SEER 2 | HSPF 2 | Customer pass-through rebate ($/outdoor system) |
|---|---|---|---|---|---|
|
Air source heat pump <65 kBtuh (<5.4 tons) |
Retrofit only | 1 | 15.2 | 8.1 | $300 |
| Retrofit or new construction |
2 | 15.2 | 8.5 | $400 | |
| 3 | 16.0 | 9.5 | $600 |
- SEER/HSPF table is effective for equipment that only has SEER/HSPF rating in the AHRI directory.
- The contractor is highly encouraged to pass the equipment rebate through to the customer.
- To qualify as a mini- or multi-split heat pump, products must be listed in the AHRI database as Variable Speed Mini-Split or Multi-Split heat pumps. These products may be referred to as Ductless Heat Pumps in the marketplace.
- SEER2/HSPF2 table is effective for equipment that has only a SEER2/HSPF2 or dual rating in the AHRI directory.
- Qualification of air source heat pumps for this program does not assure qualification for Inflation Reduction Act (IRA) incentives.
Water heater incentives
Commercial and residential water heaters
| EQUIPMENT TYPE |
Building type |
Project type |
Size Category |
Minimum UEF** |
Customer pass- through rebate* ($/unit) |
Contractor spiff*** ($/unit) |
|---|---|---|---|---|---|---|
|
Condensing or non-condensing storage gas water heaters |
Residential | Retrofit | ≥ 20 gallons and ≤ 55 gallons |
Uniform Energy Factor ≥ 0.67 |
$135 | $50 |
* The contractor is highly encouraged to pass the equipment rebate through to the customer. Restrictions apply.
** Values are AHRI rated efficiencies.
*** Contractor spiff will be passed through by the distributor to the contractor as a line item on the invoice.
Residential space heating boilers
Limit 1 condensing gas boiler per residence. Sales made on or after January 1, 2024, are eligible for the Program. Please reach out to Program Implementer with any questions.
| EQUIPMENT TYPE |
Building type |
Size category |
Project type |
AFUE | Customer pass-through rebate ($/unit) |
|---|---|---|---|---|---|
|
Condensing gas boiler |
Residential | ≤ 300,000 Mbtuh | Retrofit | ≥ 95% | $450 |
Documentation required:
- Installation address, including suite number if applicable
- Customer and/or business name (for commercial installations)
- Building type: Single family, office, retail, etc.
- Project type: New construction or retrofit
- Estimated installation date
How to combine or optimize rebates
If your PSE commercial or residential customer is using electric resistance for primary heating in their home or business, and they install a qualifying heat pump, they may be eligible for TWO PSE rebates.
- Residential customers with existing zonal electric resistance heating, and electric forced air furnaces as their primary current heating system may be eligible for two rebates.
- Commercial customers with electric resistance as their primary heating may be eligible for two rebates.
- Midstream rebates are not dependent on existing heating fuel or heating equipment. They are based on current building codes and claim savings for above code installations.
- Midstream rebates are available to contractors who provide installation data to their distributor at the time of purchase or after installation. Contractors are encouraged to pass the PSE funded distributor rebate through to customers.
Why choose heat pump technology?
- Installing heat pump systems means a better return on investment for your customers, higher profitability for your team, and happier home buyers.
- Demand for air conditioning is growing more than ever, and heat pumps are the most efficient type of air conditioning on the market.
- Heat pumps improve the value of homes, are the most cost-effective home heating and cooling method, and have an average lifespan of 15 years.
What heat pump technology means to homeowners:
- Heat pump technology is reliable and easy to maintain.
- Ductless split-systems are extremely quiet and give homeowners more control over the temperature on a room-by-room basis.
Visit these links to check out programs that may be of interest:
For personalized advice, contact an Energy Advisor.
Or call 1-800-562-1482.
Request a PSE Recommended Energy Professional (REP) to complete your energy efficient improvement upgrade.