Residential Heat Pump Rebate
Rebate by existing heat (Tacoma Power, read 2026-10-05). Existing electric zonal or electric forced-air heat: ductless heat pump $1,000 (up to 4 units) or $650 (5+ units); air-source heat pump $1,000; variable-speed heat pump $2,000 when replacing an electric forced-air furnace. Existing non-electric heat: variable-speed heat pump $1,000 only. Existing heat pump: variable-speed heat pump $1,000. Existing ductless heat pump: not available. The 7-year 0% loan (up to $20,000) and the income-qualified deferred loan are financing, not rebate dollars.
Tacoma Power pays $1,000 for a ductless or air-source heat pump replacing electric heat ($650 ductless in 5+ unit buildings) and up to $2,000 for a variable-speed heat pump replacing an electric furnace, installed by a Tacoma Power Participating Contractor with pre-approval.
Guidance
Tacoma Power pays $650 to $2,000 toward a heat pump installed by a Tacoma Power Participating Contractor: $1,000 for a ductless or air-source heat pump replacing electric heat ($650 ductless in buildings of five or more units), $2,000 for a variable-speed heat pump replacing an electric forced-air furnace, and $1,000 for a variable-speed heat pump replacing non-electric heat or an existing heat pump. The project must be approved before work starts.
Homeowner Tasks
- Get bids from Tacoma Power Participating Contractors
Tacoma Power recommends at least three bids.
- Submit the project application for approval
Send the application and the contractor's bid to Rebates@tacoma.gov (or by mail or in person) and wait for approval before work starts.
Contractor Tasks
- Prepare the bid and application
Use the up-to-4-units or 5-plus-units application that matches the building.
- Run load and sizing calculations
Heat load calculations for central and whole-home ductless systems; sizing and balance point calculations for central heat pumps.
- Submit closeout documents
An invoice that meets Tacoma Power's requirements and the AHRI certificate.
Qualification
- AHRI matched pair
- Has income-qualified portion
Income-qualified homeowners with electric zonal or electric furnace heat may also qualify for a deferred loan and a rebate through Tacoma Power's income-qualified program. The heat pump page does not print that rebate amount; confirm it with Tacoma Power (253-502-8363) before quoting.
- Pre-approval required
Not required: energy star certified equipment · income-qualified · permit required · contractor enrollment required · fuel switching required
Budget & Availability
- April 18, 2026Funds are available and applications are actively being accepted for the heat pump rebates and zero-interest loans.
How to Submit
Customers must work with a Tacoma Power Participating Contractor. The contractor must submit the project application and bid for pre-approval before work begins. After installation is complete, submit the final invoice, AHRI certificate, heat load calculations, and any sizing calculations.