TPU, PSE & Federal Incentives Explained

If you’re researching heat pump rebates in Tacoma, you’re likely trying to answer two questions:

 

How much can I save? and Do I qualify?

In 2026, incentive programs are shifting. Federal tax credits are evolving, but local rebates through Tacoma Public Utilities and Puget Sound Energy remain available. The key is understanding eligibility before installation so you don’t miss out.

 

Here’s what Tacoma homeowners should know.

 

What Heat Pumps Rebates Are Available?

Most rebate programs fall into three categories:

  • Local utility incentives
  • Federal tax credits, when applicable
  • Income-qualified programs or financing options

The amount you qualify for depends on your utility provider, the system you are replacing,
the efficiency rating of the new heat pump, and contractor participation requirements.
Because program rules can change, confirming requirements before installation is essential.

 

Tacoma Public Utilities Heat Pump Incentives

Homeowners served by Tacoma Public Utilities may qualify for rebates on eligible systems.

  • $1,000 for qualifying ductless heat pump installations
  • $1,000 to $2,000 for qualifying variable-speed central heat pumps, depending on the existing heating system

Eligibility typically requires installation by a participating contractor, specific efficiency ratings,
and proper documentation.

Official TPU program details:

Tacoma Public Utilities Heat Pump Incentives

TPU also offers 0% interest loan options for qualifying projects.

 

Puget Sound Energy Heat Pump Incentives

If your home is served by Puget Sound Energy, you may qualify for rebates when installing or upgrading a qualifying heat pump system.

PSE currently offers incentives for:

  • Electric resistance to air-source heat pump conversions

  • Hybrid heat pump systems (pairing a heat pump with a gas furnace)

  • Upgrading an existing heat pump to a high-efficiency model

Current rebate programs may include:

  • Conversion rebates for replacing electric resistance heating

  • $1,500 rebate for installing a qualifying hybrid heat pump system

  • $1,500 rebate for upgrading an existing heat pump to a high-efficiency model

  • Up to $2,400 Efficiency Boost rebate based on income eligibility

Upgrading to a high-efficiency heat pump can reduce energy use by an estimated 20 to 40 percent compared to older heat pump models, while improving comfort through variable-speed operation, quieter performance, and better humidity control.

 

Important 2026 update: Beginning April 2, 2026, systems must be installed by a PSE Trade Ally or Recommended Energy Professional (REP) to qualify for certain rebate programs. Pacific Heating & Cooling is a participating PSE Trade Ally, meaning our installations meet this eligibility requirement.

 
Review current PSE program details: Puget Sound Energy Heat Pump Rebate Details
 

Federal Tax Credit Update

Federal incentives for qualifying high-efficiency heat pumps have changed in recent years.
If you plan to factor federal savings into your decision, confirm installation timing requirements,
efficiency standards, and required documentation before proceeding.Even as federal programs evolve, local utility rebates may still provide meaningful upfront savings. 

Why Contractor Choice Matters

Rebates are not automatic. Eligibility often depends on proper system sizing,
equipment meeting efficiency thresholds, installation by an approved contractor,
and accurate documentation submission.Choosing the wrong contractor is one of the most common reasons homeowners miss rebate qualification.

At Pacific Heating & Cooling, we:

  • Verify eligibility before installation
  • Recommend qualifying equipment
  • Complete proper load calculations
  • Handle local rebate paperwork
  • Provide clear, upfront pricing

Are Heat Pump Incentives Still Worth It?

For many Tacoma homes currently using electric baseboard heat or older electric furnaces, yes.
Heat pumps can reduce electricity use compared to resistance heating while adding efficient air conditioning.
When combined with available rebates, they remain one of the most practical long-term comfort upgrades.The best next step is a home-specific evaluation to confirm what you qualify for.Read more about our heat pump installation and replacement services

Frequently Asked Questions About Heat Pump Rebates in Tacoma

Heat pump rebates in Tacoma are primarily offered through Tacoma Public Utilities and Puget Sound Energy. Available incentives depend on your utility provider, the system you are replacing, and the efficiency rating of the new heat pump. Some homeowners may also qualify for federal tax incentives when applicable. Because rebate programs can change, it is important to confirm current eligibility before installation.

You may qualify for TPU incentives if your home is served by Tacoma Power and you install an eligible ductless or variable-speed central heat pump that meets program requirements. Rebates typically require installation by a participating contractor and proper documentation. Eligibility can also depend on the type of heating system being replaced.

PSE rebate eligibility depends on program guidelines, the existing heating system in your home, and the efficiency of the new equipment. Beginning April 2, 2026, certain PSE rebates require installation by a PSE Trade Ally or Recommended Energy Professional (REP). Pacific Heating & Cooling is a participating PSE Trade Ally, which helps ensure installations meet contractor eligibility requirements.

In many cases, homeowners may be able to combine local utility incentives with a federal tax credit when programs overlap. However, eligibility rules, timing requirements, and efficiency standards vary. It is important to confirm current federal guidelines before planning around estimated tax savings.

Often, yes. Both TPU and PSE programs may require installation by an approved or participating contractor. Choosing a qualified contractor and confirming eligibility before installation helps prevent missed rebates due to technical or documentation errors.

Most rebate programs require an itemized invoice, equipment model numbers, and proof that the system meets specified efficiency standards. Some programs may also require certification documentation or load calculations. Requirements vary by utility and may change over time.

Homes currently heated with electric baseboard heaters or older electric furnaces often see the greatest efficiency improvements after upgrading to a modern heat pump. Savings depend on insulation levels, duct condition, thermostat settings, and proper system sizing.

For many homeowners, yes. While federal programs may evolve, local utility incentives remain available. Combined with improved energy efficiency and the added benefit of air conditioning, heat pumps continue to be a practical long-term upgrade for many Tacoma homes.

No Surprises. Just Solutions.

If you are comparing options and want to understand what incentives apply to your home, we can help.

We evaluate your current system, confirm available utility programs, recommend qualifying equipment, and provide clear, upfront pricing so you can make confident decisions.

Schedule an in-home consultation to review your heat pump options and confirm what you qualify for in Tacoma.

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