Heat Pumps

Type	Incentive*
Ductless Heat Pump Multifamily	$1,000
Ductless Heat Pump Replacing Forced Air Furnace	$1,250
Ductless Heat Pump Replacing Zonal Heat	$1,250
Heat Pump Conversion	$2,000

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

Choose a Qualified Trade Ally from the Wattsmart® Vendor Network 

• The Wattsmart® Vendor Network (Network) is a collaboration between Pacific Power and local contractors, distributors, manufacturers, engineers, architects and other Vendors to promote sales and incentives for the installation of energy-efficient equipment.  

• Customer must hire a contractor who is a qualified Trade Ally from the Wattsmart® Vendor Network. Projects completed by contractors not on this list are not eligible for this incentive.  

Ensure the Home Qualifies

• Residential electric customers residing in the state of California who purchase their electricity from Pacific Power on rate schedules D, DL-6, DS-8, DM-9 or NEM-35 qualify. Landlords who own rental properties served by the company in the state of California where the tenant is billed on rate schedules D, DL-6, DS-8, DM-9 or NEM-35 also qualify for this program. You can locate your rate schedule on your bill or by calling 1-888-221-7070. Incentive checks are only issued in the name of the Pacific Power account holder.  

• Must be an existing home, new construction is not eligible. 

• Gas, oil, wood heating, pellet stoves and propane system conversions do not qualify. 

• 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 

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. 

Purchase a New Qualifying Product or Service

Requirements for all heat pump installations: 

• Equipment must be installed according to the specifications outlines in the Califonia Technical Specifications Manual. 

• Equipment must be listed on the AHRI (Air Conditioning, Heating and Refrigeration Institute) Certified Directory: AhriDirectory.org 

• Work completed must comply with all building codes and standards. 

• Incentive is not offered to customers replacing an existing ducted heat pump 

Additional requirements for heat pump conversions:

• Incentive available for single and manufactured homes 

• Previous primary heat source must have been a permanently installed electric resistance heating system 

• Minimum 9.0 HSPF (8.1 HSPF2), 15 SEER (14.3 SEER2) 

• Equipment must be a new air-source split or packaged unitary heat pump with an AHRI Standard Rating Cooling Capacity of 65,000 BTU/hr. (5.4 tons) or less. 

• New heat pump must be the current primary heat source and service a least 80% of the home’s conditioned living space. 

Additional requirements for ductless heat pumps:

• Incentive available for single, multifamily and manufactured homes 

• Previous primary heat source must have been a permanently installed electric forced air furnace or zonal electric heating system 

• Must employ an inverter driven outdoor compressor unit and a variable speed fan for indoor blower  

• Must be fully ductless. 

• Minimum 9.0 HSPF (8.1 HSPF2) 

• Must be installed in the primary living space. 

Additional requirements for heat pump upgrades:

• Previous primary heat source must have been a permanently installed heat pump.
• This incentive cannot be combined with the heat pump conversion incentive.
• Equipment must be ENERGY STAR® cold climate certified.

Additional 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.

Required Documents

• Application completed and signed, if mailing, please make copies for your records and note the date mailed on the application.
• Itemized Receipt:

– Date work initiated
– Date work completed
– Retailer and/or Trade Ally business name
– Product and/or installation costs (materials, labor, service)
– Model numbers 

• 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, for any businesses and non-individual customers, including landlords, applying for incentives. 

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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.