How to get money to install a heat pump in Washington state

• That makes them important tools for curbing greenhouse gas emissions that drive climate change, state and federal officials say.

Yes, but: Installing a heat pump isn't cheap, costing somewhere between $10,000 and $30,000 on average, depending on the system's design and the details of your home.

• Updated state building codes may soon encourage heat pumps in new construction in Washington — but with older buildings, it generally will be left up to owners when (and whether) to make the upgrade.

Here's a look at some financial assistance programs that can help.

• Some of these rebates and credits can be used together, further offsetting costs.

Local programs

Seattle City Light customers can get a $500 coupon to help with installing a heat pump. A $1,500 rebate is possible if replacing an oil-burning furnace with a qualified heat pump using a participating contractor.

• If you use Puget Sound Energy, you could qualify for up to $3,000 back when switching from natural gas to a qualifying ducted or ductless heat pump system.

Plus: Eastside residents who are ready to act fast and have the pump installed before the end of the month may qualify for a $3,000 incentive.

Federal tax credits

If you made qualified energy-efficient improvements to your home after Jan. 1, 2023, you may qualify for a tax credit up to $3,200. You can claim the credit for improvements made through 2032.

• The tax credits are awarded after you make the improvements, not before.

Inflation Reduction Act rebates

Washington state has submitted funding applications to the Department of Energy for the Home Electrification and Appliance Rebates (HEAR) and Whole Home Efficiency Rebates (HOMES), according to the state Department of Commerce.

• The two programs together applied for over $165 million to fund rebates for low to moderate-income Washington households to help pay for energy-efficient appliances and energy-saving retrofits for their homes. Washingtonians living in multifamily dwellings are also eligible for rebates.

• State officials said the rebates will not be available until next year and will not be retroactive. You can email [email protected] for more information.

State programs

State lawmakers have allocated $75 million from the state's new carbon-pricing program, the Climate Commitment Act, to help Washington residents afford upgrades like heat pumps, Liz Reichart, senior energy policy specialist at the state Department of Commerce, told Axios last year.

• The state is looking at ways to pair that state money with the federal IRA rebates. That could help eligible low-income families afford the full cost of installing a heat pump, or help them complete related improvements like upgrading wiring, she said.
• Another $35 million in state money will go toward helping low-income people make their homes more energy-efficient, which may include buying heat pumps.
• In May, the Department of Commerce announced nearly $40 million in grants from the Climate Commitment Act — which opponents are seeking to overturn at the ballot this November — for local programs that help homes and businesses move from fossil fuel heat to electric heat pump systems.