If you’re a Seattle homeowner looking to cut heating and cooling costs, now is the perfect time to upgrade your HVAC system. Several rebate programs are available to make energy-efficient upgrades affordable, especially if you switch to heat pumps. Here’s what you need to know:
- Seattle City Light Clean Heat Program: Save up to $6,000 instantly when switching from oil heat to electric heat pumps. Lower-income households may qualify for free conversions.
- Washington State HEAR Rebates: Moderate-income households can get up to $4,000 for heat pump upgrades, while low-income households may receive full coverage for equipment and installation.
- Puget Sound Energy (PSE) Rebates: Up to $4,000 for customers converting from natural gas to heat pumps.
- Federal Tax Credit: Claim up to $2,000 for heat pump installations, but act fast – this credit expires after January 2026.
These programs offer varying savings based on income, location, and heating systems. By combining rebates, you can significantly reduce upfront costs and enjoy long-term savings on energy bills. Start by checking your eligibility and working with approved contractors to maximize your benefits.
Seattle HVAC Rebate Programs Comparison: Maximum Savings by Income Level
Mayor Harrell unveils bonus rebates for heat pump upgrades
1. Washington State HEAR Rebates
Washington has taken a unique approach to energy rebates by allocating $73.5 million to 55 localized programs for 2024-2025. These programs are managed by third-party organizations, and the rebate amounts and application processes depend on where you live in the Greater Seattle area.
Maximum Rebate Amount
In Seattle, moderate-income households (81%-150% of the Area Median Income, or AMI) can receive a $4,000 HEAR bonus rebate for upgrading from oil heating to a heat pump. Meanwhile, low-income households (below 80% AMI) in King County may qualify for full coverage of eligible equipment and installation costs through organizations like United Hub. Moderate-income households (below 150% AMI) in the same area can receive 50% coverage. Looking ahead, an additional $30.1 million is expected to be allocated for the 2025-2027 funding cycle.
Eligible Equipment
The program supports a wide range of energy-efficient equipment, including:
- Air-source and ground-source heat pumps (ducted, ductless, and packaged terminal models)
- Heat pump water heaters
- Induction cooking equipment
- Heat pump dryers
- Electric panel or wiring upgrades, if needed
All equipment must meet ENERGY STAR or AHRI/CEE North Region certification standards.
Eligibility Requirements
Most HEAR programs are available to households earning at or below 150% of the AMI. For Seattle, this means a single-person household can earn up to $165,000, while a four-person household can earn up to $235,650. The program is open to single-family homes, multifamily properties, rental units, and small businesses with 50 or fewer employees. Additionally, adult family homes licensed by the Department of Social and Health Services are eligible.
Application Process
Since the HEAR program is not managed directly by the state, you’ll need to contact your local program administrator. For Seattle residents, this is the Seattle Office of Sustainability & Environment. Residents of other areas in King County may work with organizations like United Hub or SNAP. To qualify for rebates, many administrators require you to use contractors approved by the program. If you’re unsure who your local administrator is, you can email HomeRebates@commerce.wa.gov for assistance.
Now that you have the details on HEAR rebates, let’s see how these offerings stack up against other rebate options in Seattle.
2. Seattle City Light Clean Heat Program
The Seattle City Light Clean Heat Program offers homeowners in Seattle the chance to save up to $6,000 instantly when switching from oil heat to electric heat pumps. This initiative aims to assist around 8,000–10,000 households. Let’s break down the program details, including rebate amounts, qualifying equipment, eligibility rules, and how to apply.
Maximum Rebate Amount
Here’s how the rebates work:
- Base rebate: All Seattle residents converting from oil heat receive $2,000.
- Moderate-income households (81%–150% AMI): Eligible for an additional $4,000.
- Lower-income households (below 80% AMI): May qualify for a complete conversion, covering equipment, installation, and oil tank decommissioning.
These rebates are applied directly as discounts to your contractor’s invoice, so there’s no waiting for reimbursement.
| Household Size | Lower Income Limit (81% AMI) | Upper Income Limit (150% AMI) |
|---|---|---|
| 1 | $84,850 | $165,000 |
| 2 | $96,950 | $188,550 |
| 3 | $109,050 | $212,100 |
| 4 | $121,150 | $235,650 |
| 5 | $130,850 | $254,550 |
| 6 | $140,550 | $273,400 |
| 7 | $150,250 | $292,250 |
| 8 | $159,950 | $311,100 |
Households earning less than the lower income limit may qualify for a free conversion.
Eligible Equipment
The program supports both ducted (central air) and ductless (mini-split) electric heat pumps. Mitsubishi Electric Heat Pumps are specifically listed as eligible for the rebate. To qualify, the installation must be completed by a contractor from the approved list available at NoMoreOilHeat.com.
Eligibility Requirements
To participate, you must:
- Reside in Seattle and currently use heating oil.
- Switch to an electric heat pump.
- Decommission your oil tank in accordance with Seattle Fire Department standards.
If you’re part of the Utility Discount Program (UDP), you’ll also benefit from a 60% reduction in your electric heating costs after making the switch.
Application Process
Here’s how to get started:
- Visit NoMoreOilHeat.com to find a participating contractor. Seattle City Light suggests getting at least three estimates to compare pricing.
- Once you’ve chosen a contractor, complete the Homeowner Participation Form and provide it to them.
- After installation, the rebate will be applied directly to your final invoice.
- Don’t forget to decommission your oil tank as part of the process.
The additional $4,000 rebates are available through May 2027 or until funds are depleted.
3. Puget Sound Energy (PSE) Heat Pump and Furnace Rebates
Puget Sound Energy (PSE) offers rebates for homeowners outside Seattle’s city limits, providing up to $4,000 for switching from natural gas to electric heat pump systems. These rebates complement Seattle’s incentives, catering specifically to PSE customers in surrounding areas.
Maximum Rebate Amount
Homeowners in standard single-family homes can receive $3,000 for converting to a heat pump, while those in manufactured homes or participating in the Efficiency Boost program are eligible for up to $4,000. About half of PSE customers may qualify for the higher rebate amounts.
| Equipment Type | Single-Family | Manufactured Home/Efficiency Boost |
|---|---|---|
| Ducted Heat Pump | $3,000 | $4,000 |
| Ductless Heat Pump | $3,000 | $4,000 |
Eligible Equipment
To qualify, all equipment must carry AHRI Certified® status. PSE accepts both ducted air-source heat pumps and ductless mini-split systems for rebates. Specific efficiency standards include:
- Ducted systems: HSPF2 ≥ 8.1 and SEER2 ≥ 15.2
- Ductless systems: HSPF2 ≥ 9.5 and SEER2 ≥ 16.0
For ductless installations, at least one indoor unit must be placed in the main living area. Installations limited to bedrooms don’t qualify.
Eligibility Requirements
To be eligible, you must be a current PSE customer using natural gas as your primary heating source. The rebate applies only to existing single-family homes, excluding new construction, accessory dwelling units (ADUs), and multifamily buildings with five or more units. Additionally, any replaced equipment must be fully removed or decommissioned.
If you’re considering the Efficiency Boost program, confirm your eligibility by contacting PSE Energy Advisors at 1-800-562-1482 before making a purchase.
Application Process
Applications must be submitted within 60 days of the equipment purchase date. Be sure to include a detailed invoice or receipt and the AHRI certificate for your installed system. Send your application either by email to rebates@pse.com or by mail to:
Puget Sound Energy/Energy Efficiency Rebates
P.O. Box 97034 BOT-02O
Bellevue, WA 98009-9734
Processing generally takes 4–6 weeks. These rebates make upgrading to energy-efficient HVAC systems more accessible for homeowners in the area.
sbb-itb-8db64ac
4. Federal Energy Efficient Home Improvement Credit
Seattle homeowners can take advantage of the Energy Efficient Home Improvement Credit (Section 25C) to claim a federal tax credit. This credit covers 30% of the cost of qualified energy-efficient upgrades, capped at $3,200 annually.
Maximum Rebate Amount
The $3,200 yearly limit is split into two parts: up to $2,000 for heat pumps and biomass stoves and up to $1,200 for other eligible energy property like air conditioners, furnaces, or building envelope upgrades. Unlike credits with lifetime limits, this one can be claimed each year through December 31, 2025. However, it’s important to note that this is a nonrefundable credit, meaning it can reduce your tax liability to zero, but you won’t receive any excess as a refund.
| Equipment Type | Maximum Annual Credit |
|---|---|
| Heat Pumps (Air Source) | $2,000 |
| Heat Pump Water Heaters | $2,000 |
| Central Air Conditioners | $600 |
| Natural Gas, Propane, or Oil Furnaces | $600 |
| Hot Water Boilers | $600 |
| Electrical Panel Upgrades | $600 |
| Home Energy Audits | $150 |
Eligible Equipment
To qualify, equipment must meet or exceed the highest efficiency tier set by the Consortium for Energy Efficiency (CEE). For installations completed in 2025, you’ll also need to include a Qualified Manufacturer Identification Number (QMID) on your tax return. While labor costs for HVAC system installations are eligible, only the material costs count toward the credit for building envelope improvements like insulation or windows.
Eligibility Requirements
This credit is available only for existing homes in the U.S. – new construction doesn’t qualify. The home must be your primary residence, although second homes used personally can qualify for heat pump or furnace installations. Renters can also claim the credit for improvements they pay for, such as adding a heat pump or conducting an energy audit. When calculating your credit, don’t forget to subtract any utility rebates or manufacturer subsidies from the total cost.
Application Process
To claim this credit, file IRS Form 5695, Residential Energy Credits Part II, with your tax return for the year the equipment was installed. Since the credit resets annually, you can maximize your savings by spreading upgrades over multiple years – for example, installing a heat pump one year and upgrading insulation the next. You can also combine this federal credit with local rebates from utilities like Seattle City Light or Puget Sound Energy to boost your overall savings. Learn how Envirosmart Solution simplifies the rebate process in the next section.
Program Comparison: Benefits and Drawbacks
Each Seattle rebate program is designed to cater to different homeowner needs, with varying eligibility requirements, application processes, and savings. Here’s a closer look to help you decide which program works best for your situation.
The HomeWise Weatherization Program provides free upgrades worth up to $24,000 for low-income households earning less than 80% of the Area Median Income (AMI). However, it involves more steps than other programs, including a 30–40 minute application, income verification, and a home energy audit. While the city handles the entire project, the process can take longer compared to instant rebate options.
For those converting from oil to electric heating, the Seattle Clean Heat Program offers instant rebates: $2,000 for all oil heat users and up to $6,000 for moderate-income households (81%–150% AMI). Rebates are applied directly by contractors, making this a straightforward choice. The program is available until May 2027 or until funds run out.
The Seattle City Light (SCL) Standard Rebates provide $300–$600 for heat pump installations and $750 for water heaters. Discounts are applied instantly through contractors or via digital coupons redeemable at Home Depot and Lowe’s.
Puget Sound Energy (PSE) customers can access rebates with a moderate application process that requires working with a PSE Recommended Energy Professional. Processing takes about 4–6 weeks. Additionally, around 50% of PSE customers may qualify for larger rebates through the Efficiency Boost program.
The table below breaks down the key features of each program:
| Program | Max Savings | Eligibility | Application Difficulty | Time to Benefit |
|---|---|---|---|---|
| HomeWise Weatherization | $24,000 (Free) | Low-income (<80% AMI) | High (Audit required) | Extended |
| Seattle Clean Heat | $6,000 | Oil heat users (bonus for moderate income) | Low (Contractor-led) | Instant |
| SCL Standard Rebates | $750 | All SCL residential customers | Low (Instant coupon) | Instant |
| PSE Efficiency Boost | Varies | Income-qualified PSE customers | Moderate (Form required) | 4–6 weeks |
| Federal Tax Credit | $0 | Expired Jan 2026 | N/A | N/A |
For income-qualified households, checking eligibility for bonus programs should be a top priority, as these options can significantly increase potential savings.
How Envirosmart Solution Helps You Get More Rebates
Navigating Seattle’s rebate programs can feel overwhelming, but Envirosmart Solution simplifies everything. From verifying eligibility to directly applying rebates to your invoice, they make the process hassle-free, ensuring you don’t miss out on savings.
To help you save as much as possible, Envirosmart Solution performs a detailed energy assessment. This includes reviewing your household income against Area Median Income (AMI) limits – like the $4,000 HEAR bonus available for moderate-income households – and confirming that your selected equipment meets strict efficiency requirements.
As a trusted contractor in Seattle’s instant rebate programs, they take it a step further by directly applying discounts to your final invoice. This means you can benefit from stacked incentives, including City of Seattle rebates, HEAR bonuses, and utility discounts, for immediate savings.
For oil-to-electric conversions, Envirosmart Solution handles oil tank decommissioning in compliance with Seattle Fire Department regulations. Plus, they clearly list all rebate savings on your invoice, so you know exactly what you’re saving.
Beyond that, they offer services like insulation upgrades, air duct cleaning, and crawl space improvements. By bundling these energy efficiency upgrades, they provide a seamless way to maximize your incentives while improving your home’s overall energy performance.
Conclusion
Seattle homeowners have a range of rebate options to help cut the costs of HVAC upgrades, especially when factoring in income levels and heating systems. For instance, households with oil heating and incomes between 81% and 150% of the Area Median Income (AMI) can claim up to $6,000 in instant savings through the Clean Heat Program and HEAR bonus rebates. Meanwhile, those earning below 80% AMI may qualify for free heat pump installations worth up to $18,000.
These programs highlight the value of aligning your upgrade plans with available incentives. Start by checking your income against AMI thresholds and confirming that your contractor is approved for these programs to ensure you can access instant invoice rebates.
Timing matters, too. The $4,000 HEAR bonus rebates are available until May 2027 or until funds run out. Similarly, the $2,000 federal tax credit will no longer be available after January 2026, making local rebates an even more important savings option.
For homes using oil heating, proper decommissioning of your oil tank – following Seattle Fire Department guidelines – is a must. Doing so not only qualifies you for Clean Heat rebates but also helps reduce environmental risks and can lower annual heating expenses by about $1,100.
Partnering with a knowledgeable contractor ensures you’ll tap into all eligible incentives and choose the right equipment. By taking advantage of these programs, you can improve your home’s energy efficiency and even boost its market appeal.
FAQs
How can I find out if I qualify for HVAC rebates in Seattle?
To find out if you qualify for HVAC rebate programs in Seattle, start by checking the specific eligibility criteria for each program. For example, programs like the HomeWise Weatherization Program and the Clean Heat Program typically require participants to be homeowners or renters living within Seattle city limits. Some of these programs also have income-based qualifications, with limits that depend on your household size and the type of heating system you use.
Certain programs, such as the Clean Heat Program, might not require income verification but could have other conditions. For instance, you may need to replace an oil furnace with an electric heat pump to qualify. To confirm your eligibility, review the program details offered by the city or get in touch with authorized contractors. They can walk you through the requirements and help you take full advantage of the rebates available, tailoring the options to your home’s specific needs and your financial situation.
How can I combine multiple rebates to save the most on HVAC upgrades in Seattle?
If you’re planning an HVAC upgrade in Seattle, there are plenty of ways to cut costs by taking advantage of rebates and incentives. Start by looking into programs available at the local, state, and federal levels. For example, Seattle offers bonus rebates for electric heat pumps, and utility companies often provide their own rebates. On top of that, federal tax credits can be added to the mix, letting you stack these savings for a bigger payoff.
It’s a good idea to partner with a qualified HVAC contractor who knows the ins and outs of these rebate programs. They can guide you through the eligibility requirements, help you gather the necessary paperwork, and even handle the application process. Their expertise can make a big difference in ensuring you don’t miss out on any potential savings.
Before you dive in, double-check that the rebates you’re applying for can be combined. Make sure to submit all required documents on time to avoid delays or missed opportunities. With some careful planning and professional help, you can significantly lower the cost of your HVAC upgrade.
Do I need to hire specific contractors to qualify for HVAC rebates in Seattle?
To take advantage of HVAC rebates and incentives in Seattle, you’ll need to work with approved or certified contractors. Programs like Seattle City Light’s Clean Heat Program require installations to meet specific standards, and this often means hiring contractors listed on their approved platform. For rebates ranging from $2,000 to $6,000 for upgrading to electric heat pumps, licensed professionals are typically a must.
Similarly, Puget Sound Energy (PSE) and other providers stress the importance of certified contractors to qualify for rebates. Be sure to check the specific requirements of the program you’re applying to. Working with experienced professionals not only ensures eligibility but also guarantees a high standard of work for your HVAC improvements.
