If you’re considering a heat pump for your home, there’s a good chance you’ve heard something about rebates but aren’t quite sure what applies to you, how much you can actually get, or which utility you fall under. Between Puget Sound Energy (PSE) and Snohomish County PUD, there’s real money on the table for homeowners in our service area, but the rules and rebate amounts differ depending on where you live and what you’re replacing. Here’s a conversational breakdown of everything you need to know.
What heat pump rebates are available through PSE?
PSE offers a standard $1,500 rebate for installing a high-efficiency heat pump, whether you’re upgrading an existing heat pump or converting from electric resistance heating like baseboards or an electric furnace. If you qualify for PSE’s income-based Efficiency Boost program, that rebate increases to up to $2,400. Homeowners converting from a gas furnace to a heat pump who qualify as income-eligible can see even larger incentives. Rebate amounts can shift over time, so it’s worth confirming the current figures directly with PSE or your contractor before committing to a project.
What rebates does Snohomish County PUD offer for heat pumps?
Snohomish PUD’s rebates are tied to the efficiency and type of heat pump installed. A ducted conversion heat pump meeting minimum efficiency ratings currently qualifies for an $1,800 rebate, while a ducted inverter-driven heat pump, which is more efficient, qualifies for $2,500. To be eligible, your home needs to be electrically heated with that heat pump serving as the primary heating source, and the installation has to be done by a PUD registered contractor.
Do I need a special contractor to qualify for these rebates?
Yes, and this is one of the most important details homeowners miss. Both utilities require the installation to be completed by a contractor registered in their respective networks. For PSE, that means using a PSE Trade Ally or Registered Energy Professional; for Snohomish PUD, it means a PUD registered contractor. If you use a contractor outside these networks, you risk losing the rebate entirely, even if the equipment itself qualifies. Lynnwood Heating LLC is a registered PSE Trade Ally, so if you’re in PSE territory, working with us keeps your rebate eligibility intact from the start.
How much can I actually save by combining rebates?
The exact savings depend on your specific project, income eligibility, and which utility serves your home, but between the base rebate, any income-qualified bonus, and possible state-level programs layered on top, total savings can add up to a meaningful chunk of your installation cost. It’s genuinely worth getting a personalized breakdown rather than assuming a flat number, since eligibility and stacking rules vary by household.
Are heat pump water heaters eligible for rebates too?
Yes, both utilities offer separate rebates specifically for heat pump water heaters, which are different from space-heating heat pumps. Snohomish PUD offers up to $1,000 for a qualifying heat pump water heater replacing an existing tank, and PSE has its own water heater rebate program as well. If you’re already planning a heat pump installation for heating and cooling, it’s worth asking your contractor whether a water heater upgrade makes sense to bundle into the same project.
Do I need to meet income requirements to qualify?
Not for the base rebates. The standard PSE and PUD heat pump rebates are available to eligible homeowners regardless of income. Where income comes into play is with the enhanced tiers, like PSE’s Efficiency Boost program, which increases your rebate amount if your household meets certain income guidelines. So everyone who qualifies on the equipment and contractor side can get something, and income-qualified households can often get more.
Is the federal tax credit for heat pumps still available in 2026?
No, the federal 25C tax credit for heat pumps expired at the end of 2025 and is not available for equipment installed in 2026. If your system was installed and placed in service before December 31, 2025, you may still be able to claim it on that year’s return, but new 2026 installations won’t qualify for that particular credit. This makes the utility-level rebates from PSE and Snohomish PUD even more important, since they represent the primary savings available to homeowners installing heat pumps this year.
How do I actually apply for these rebates?
The process depends on the utility and program. With PSE, rebates for heat pump upgrades are typically only available through the contractor working on your project, meaning your installer handles the rebate submission as part of the job rather than you filing paperwork separately. Snohomish PUD works similarly for many of its heating rebates, with registered contractors submitting the application and documentation on your behalf after the work is completed and approved. Either way, using a properly registered contractor isn’t just about eligibility, it’s usually what makes the rebate process simple instead of something you have to chase down yourself.
How do I know if I’m in PSE or PUD territory?
This comes down to which utility provides electric service to your home, not just what city you live in. Some areas served by Snohomish PUD sit right next to neighborhoods served by PSE, so it’s not always obvious just by address. If you’re unsure, your electric bill will tell you who your utility is, or you can simply ask us when we come out for your consultation. We work within both networks, so we’ll help you figure out exactly which rebates apply to your specific home before any work begins.
Ready to Take Advantage of These Rebates?
Rebates like these can meaningfully offset the cost of a new heat pump, but only if the project is set up correctly from the start with an eligible contractor and the right equipment. As a registered PSE Trade Ally serving Seattle, Everett, Bellevue, Redmond, Kirkland, Lynnwood, Mill Creek, Bothell, Mukilteo, and the surrounding areas, we can walk you through exactly what you qualify for based on your utility, home, and income eligibility.
Visit our Heat Pump Installation service page to learn more or book a consultation, or call us directly at 206-741-6980.
Note: Rebate amounts, program requirements, and eligibility criteria are subject to change. The figures in this article reflect current PSE and Snohomish County PUD program details at the time of publishing