Outdoor Heat Pumps

Get up to $1,875 cash back

Save big on a high-efficiency heat pumps

Score serious cash back when you convert to an energy-efficient heat pump. Program-qualified heat pumps are up to 20 percent more efficient than older models. With proper selection, installation and maintenance, you can gain big savings on your heating and cooling costs. Cash incentives are available for heat pump conversions and upgrades.

The Federal Non-Business Energy Property Tax Credits have been retroactively extended from 12/31/2017 through 12/31/2020. Tax credits are available to homeowners who installed energy-efficient products in 2018, 2019, and 2020. Heat pumps are eligible for a $300 tax credit. More information. 

By sharing this information, Pacific Power is not providing any tax advice. Please consult with your tax adviser concerning the tax treatment of incentives and reporting of payments with respect to your taxes.

Qualifications & Incentives

Additional requirements for heat pump to heat pump conversion

Equipment Purchases and Services Customer Incentive
Heat Pump to 9.0 HSPF Heat Pump Upgrade
w/ Best Practice Installation and Sizing
9.0+ HSPF Heat Pump Conversion
w/ Best Practice Installation and Sizing
Federal Standard Heat Pump Conversion
w/ Best Practice Installation and Sizing
Heat Pump Commissioning Controls and Sizing $250


CTA-2045 Compliant Heat Pump Incentives
Customer/Trade Ally Incentive $100
  • Incentive is available for qualifying heat pump upgrades, heat pump conversions, and ductless heat pump.
  • Incentive is available to either the Trade Ally or the customer, but not both.
  • Heat pump must meet ANSI/CTA-2045 requirements for demand response capability in order to qualify for this incentive.
  • Home and product must meet all of the necessary requirements listed below in order to qualify for this incentive.
  • Proof of ANSI/CTA-2045 compliance must be included with application.

Ensure the home qualifies:

  • Must be existing single family home, new construction is not eligible for this incentive.
  • Buildings with four or more units are considered multifamily.
  • Gas, oil, wood heating, pellet stoves, and propane system conversions do not qualify.

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 conversion:

  • Minimum 9.0 HSPF (Heating Seasonal Performance Factor)
  • Previous primary heat source must have been a permanently installed electric resistance heating system (electric baseboard, electric furnace, electric ceiling/wall heat)
  • 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
  • Must include Best Practice Installation and Sizing
  • 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)

Additional requirements for commissioning control and sizing:

  • Installed heat pump must meet the minimum Federal Standard HSPF

Required documents include:

  • Heat Pump Application, completed and signed*
  • Itemized receipt/contractor invoice, must include:
    • Product and/or installation costs (materials, labor, service)
    • Model numbers; indoor and outdoor units
    • Date work initiated
    • Date work completed
    • Trade ally business name
  • Manual J load or equivalent load calculation
  • AHRI Certificate (only for heat pump upgrade and heat pump conversion)
  • Third Party Payment Addendum for applicants who would like to forward payment to a third party not listed on the utility account
  • IRS W9 Form, if applicable**

*If mailing, please make copies for your records and note the date mailed on the
**Applicable only to businesses and non-individual customers, including landlords,
applying for incentives

Incentives are associated with the Home Energy Savings program August 1, 2020 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.

Customer Eligibility

Residential electric customers residing in the state of Washington who purchase
their electricity from Pacific Power on rate schedules 16, 17 or 18 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 or 18 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.

How to Apply

Prior to starting a project, find a contractor on the Washington Qualified
Contractor list. Note that select incentives must be completed
by a Qualified Contractor. Review the incentive application with your contractor
to determine eligibility requirements, incentive qualifications and review the
list of required documents to submit for an incentive.

Incentive Application and required documents must be postmarked within 90 days
of the work completed date. Incentive checks are issued within 45 days of receipt
of the completed and approved incentive application. Checks are only payable to
the account holder. Incentives are not to exceed the purchase price of the equipment
or service. Equipment and service work may be inspected for compliance. Incentives
are subject to California Public Utilities Commission approval and may change with
45 days notice. Additional terms and conditions may apply.

Have you already applied? Track your incentive status. Please allow 48 hours for
your application to load in our system.

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