Heat Pumps

*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 Washington who purchase their electricity from Pacific Power on rate schedules 16, 17, and 19 qualify. Landlords who own rental properties served by the company in the state of Washington where the tenant is billed on rate schedules 16, 17, and 19 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 single-family or manufactured home; new construction is not eligible for this incentive.
• Multifamily home incentives can be applied for here, buildings with four or more units are considered multifamily.
• 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).
• Washington Named Community residential customers may qualify for Named Community Incentives.
  • Check customer eligibility here: https://Verify.WattsmartBusiness.com/pacific-power-residential-customer-eligibility/

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 Washington 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.
• May apply for only one of these incentives per heat pump.
• Work must be completed by a Program-Qualified HVAC Contractor on the Program-Eligible HVAC Contractor List.

Additional requirements for heat pump conversions:

• Must comply with federal heat pump efficiency requirements.
• Incentive not offered to customers replacing an existing ducted heat pump.
• 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.

Additional requirements for ductless heat pumps:

• Equipment must be a new AHRI rated ductless (mini-split) system.
• Must employ an inverter driven outdoor compressor unit and a variable speed fan for indoor blower and be fully ductless.
• Minimum 8.1 HSPF2 (9.0 HSPF)
• 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                        

• Application and supporting documents must be submitted within 180 days of purchasing your new energy-efficient product.
• Incentive may not exceed the total cost of the project.
• Please allow six weeks plus mail service time for delivery of your incentive check after we receive your approved application and receipt.

Required Documents

• Incentive application, if mailing, please make copies for your records and note the date mailed on the application.
• Itemized receipt/invoice details must clearly show and describe:

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

• W-9 tax form for any businesses and non-individual customers, including landlords, applying for incentives
• Third Party Payment Addendum for applicants who would like to forward payment to a third party not listed on the utility account
• AHRI certificate
• Manual J load or equivalent load calculation (for Heat Pump upgrades and Conversions)

Incentives are associated with the Wattsmart® Homes program January 1, 2026 tariff filing approved by the Washington Utilities and Transportation Commission. All incentives are subject to change with 45 days notice. Additional terms and conditions may apply.