Residential Hybrid Water Heater Rebate
$500 rebate for replacing a standard electric water heater with a BPA Tier 3 or Tier 4 electric hybrid (heat pump) water heater, contractor-installed or DIY. Income-qualified households (below 80% of area median income) installing through a Tacoma Power Participating Contractor with pre-approval may instead get a $2,500 rebate plus a deferred loan of up to $2,500. The 5-year 0% loan (up to $5,000) and the deferred loan are financing, not rebate dollars.
Tacoma Power pays $500 for replacing a standard electric water heater with a Tier 3 or 4 hybrid heat pump water heater (contractor or DIY), or $2,500 for income-qualified households through a Participating Contractor.
Guidance
Tacoma Power pays $500 for replacing a standard electric water heater with a Tier 3 or Tier 4 electric hybrid water heater, whether a contractor or the homeowner installs it. Income-qualified households can get $2,500 instead (plus a deferred loan) through a Participating Contractor with pre-approval.
Homeowner Tasks
- Apply for the $500 rebate
Online or by paper application, with a copy of the receipt.
- For the income-qualified rebate, qualify first
Submit the income qualification application and the project application for pre-approval.
Contractor Tasks
- Confirm the model is BPA Tier 3 or Tier 4
Check the BPA Qualified Products List and install to the manufacturer's specifications.
- Bid income-qualified jobs as a Participating Contractor
The income-qualified rebate and the loans require a Tacoma Power Participating Contractor.
Qualification
- Has income-qualified portion
Households below 80% of area median income (Tacoma Power income guidelines) can get a $2,500 rebate and a deferred loan of up to $2,500 instead of the $500 rebate. Requires the income qualification application, pre-approval and a Tacoma Power Participating Contractor; the applicant must own the home and land.
- Permit required
Not required: energy star certified equipment · ahri matched pair · income-qualified · pre-approval required · contractor enrollment required · fuel switching required
Budget & Availability
- April 18, 2026Funds are currently available. Standard, loan, and income-qualified structures are open.
How to Submit
For the standard rebate, DIY is allowed; apply online with a receipt and permit proof. For the loan or income-qualified tiers, pre-approval is required using a Participating Contractor and a submitted bid.