Heat pumps

*Incentive may be capped so as not to exceed the qualifying project costs inclusive of other market funding sources.

Ensure the Home Qualifies

• Must be installed in an existing home as a normal replacement, new construction is not eligible.
• Gas, oil, wood heating, pellet stoves and propane system conversions do not qualify.
• Incentive not offered to customers replacing an existing ducted heat pump.
• Homes 3,500 square feet or less may qualify for one unit, while homes greater than 3,500 square feet may qualify for two units; homes greater than 3,500 square feet requiring more than two units may apply for additional incentives (additional documentation required, subject to program approval).
• Select customers are eligible for Enhanced Incentives.

Program Requirements:

• The product must have a minimum efficiency of 9 HSPF (8.1 HSPF2).
• The previous primary heat source must have been a permanently installed electric resistance heating system.
• The new heat pump must be the current primary heating source.
• Hire a program-eligible trade ally, must be on the California Trade Ally List, for all services and tests.
  

For Heat Pump Conversions Preapproval is Required

• All heat pump conversion projects will be subject to pre-approval to confirm the customer’s primary heat source that is being replaced with a heat pump. This pre-approval must take place before the contractor removes any equipment from the customer’s home. Please reach out to [email protected] for additional information.
• Trade Allies must submit the following information either through the Trade Ally portal or by emailing [email protected]

– Customer name (name listed on Pacific Power bill associated with the address)
– Job site address and customer phone number
– Photo of job site with home number
– Photos of all heating and cooling equipment being removed
– Model information of all heating and cooling equipment being removed (photo of name plate with model number)

• Program staff will call when necessary to confirm the previous primary heat source with the customer.
• Program staff will contact the Trade Ally and customer when the preapproval process is complete.

Required Documents:

• Itemized receipt or contractor invoice.
• Application must be submitted within 180 days of purchasing your new energy-efficient product.
• Third Party Payment Addendum for applicants who would like to forward payment to a third party not listed on the utility account.
• IRS W-9 Form, if applicable*
  *Applicable only to businesses and non-individual customers, including landlords, applying for incentives

Incentives are associated with the Wattsmart® Homes program February 20, 2026 tariff filing approved by the California Public Utilities Commission. All incentives are subject to change with 45 days notice. Additional terms and conditions may apply.