Seattle Heat Pump & Mini Split Rebates (2026 Guide)
Figures verified September 2026 against Seattle City Light, Puget Sound Energy, and Washington State Department of Commerce program pages. Rebate programs change with funding — the installers we connect you with confirm current eligibility before any work begins.
Heat pump rebates in the Seattle area depend on one question first: which electric utility serves your home? Seattle proper is Seattle City Light. Bellevue, Renton, Kent, Tukwila, and most of the surrounding region are Puget Sound Energy (PSE). The two utilities run separate programs, and you qualify for one or the other — not both. Washington State's HEAR program can stack on top of either for income-qualified households.
Quick Answer: What Can I Get?
- Seattle homeowner converting from oil heat: $2,000 at any income, up to $6,000 if your household earns 81–150% of area median income — plus state HEAR if eligible
- Seattle homeowner with electric or gas heat: a smaller City Light instant rebate on qualifying heat pumps, plus state HEAR if eligible
- PSE homeowner retiring electric baseboard, wall heaters, or an electric furnace: $1,500 base, up to $2,400 with PSE's Efficiency Boost tier
- PSE homeowner converting from natural gas (income-qualified): up to $4,000
- Everyone: the federal $2,000 heat pump tax credit expired December 31, 2025 and does not apply to 2026 installations
Seattle City Light: Clean Heat Program
Seattle's Clean Heat Program is one of the most generous oil-conversion incentives in the country. The City estimates 8,000–10,000 Seattle homes still heat with oil and is aiming to transition all of them by 2030.
- $2,000 instant rebate for replacing an oil heating system with a qualifying electric heat pump — available to all Seattle residents regardless of income
- $4,000 bonus rebate for moderate-income households earning 81–150% of area median income, for a total of up to $6,000
- No-cost conversions for income-qualified households (80% AMI or below) through the Office of Housing's HomeWise program
- Rebates are applied instantly on the contractor's invoice through participating contractors — no paperwork for you to file
- The oil system must be fully removed; the bonus rebate is available for installations completed by May 30, 2027, while funding lasts
City Light also offers a smaller instant discount (a few hundred dollars) on qualifying air-source heat pumps for homes not converting from oil, applied through participating distributors. Official details: Seattle's Clean Heat Program.
Puget Sound Energy: Heat Pump Rebates
PSE serves Bellevue, Renton, Kent, Tukwila, Kirkland, Redmond, Federal Way, and most of King County outside Seattle city limits.
- Electric resistance to ductless heat pump: $1,500 base rebate, up to $2,400 with the Efficiency Boost tier for higher-efficiency equipment. Applies to homes currently heated by baseboards, wall heaters, or an electric furnace — the most expensive way to heat a Puget Sound home, and the one PSE most wants to retire.
- Natural gas to heat pump (Moderate Income program): up to $4,000 for income-qualified PSE gas customers. The gas heating equipment must be removed or decommissioned.
- Manufactured homes: $2,400 for converting electric resistance heat to a ducted or ductless heat pump
- ADUs can qualify separately if they are a fully independent living unit with a kitchen and full bathroom
Important rule since April 2, 2026: PSE rebates require installation by a PSE Trade Ally or Recommended Energy Professional. A non-network contractor disqualifies the rebate entirely. PSE rebates are also post-installation — you pay in full, then apply within 30 days of install. Only fully ductless systems qualify for the ductless rebate (no short duct runs). Official pages: PSE electric-to-heat-pump rebate and PSE moderate-income heat pump rebate.
Washington State HEAR Rebates
Washington's state-funded Home Electrification and Appliance Rebates (HEAR) program, run by the Department of Commerce, provides point-of-sale rebates for households earning under 150% of area median income. It's administered through local community organizations, and amounts vary by administrator and remaining funding. For a King County family of four, the 150% AMI threshold is roughly $227,000 — far more households qualify than assume they do.
What's not available yet: a separate, federally funded HEAR/HARP rebate (up to $8,000 for a heat pump) has been widely advertised but had not launched in Washington as of September 2026. Be cautious of any contractor or website claiming the $8,000 federal rebate is live today. Official information: Washington State Department of Commerce.
The Federal Tax Credit Has Expired
The Section 25C Energy Efficient Home Improvement Credit — the $2,000 federal tax credit for heat pumps that many articles still cite — expired December 31, 2025. Heat pumps installed in 2026 do not qualify. (If your system was installed before that date, it can still be claimed on your 2025 return.) The 30% federal credit for geothermal heat pumps remains in effect, but that's a different technology from ductless mini splits.
How Rebates Stack: Two Examples
Seattle Craftsman with an oil furnace
A household earning 81–150% of AMI installs a three-zone ductless system for $9,500. City Light applies $2,000 + $4,000 instantly on the invoice. If the household also qualifies for state HEAR, that stacks on top. Net cost: $3,500 or less before HEAR.
Renton rambler with electric baseboards
A homeowner replaces baseboard heat with a two-zone ductless system for $7,000 through a PSE Trade Ally. PSE pays $1,500–$2,400 after installation. If income-qualified, HEAR may stack. Net cost: $4,600–$5,500 before HEAR — and monthly heating bills typically drop 30–50%.
See our Seattle mini split cost guide for full pricing by system size.
Frequently Asked Questions
Can I get both Seattle City Light and PSE rebates?
No. Your home is served by one electric utility. Seattle city limits are City Light; Bellevue, Renton, Kent, Tukwila, and surrounding cities are PSE. Check your electric bill if you're unsure.
Do I have to apply for the rebate myself?
For Seattle City Light's Clean Heat rebate, no — participating contractors apply it directly on your invoice. For PSE, the rebate is post-installation: you or your contractor submit the application within 30 days of install, and PSE sends payment afterward.
Does replacing an old mini split qualify for rebates?
Usually only if you're also retiring a qualifying heating source (oil, electric resistance, or gas). Replacing one heat pump with another typically doesn't qualify for the conversion rebates, though state HEAR may apply for income-qualified households. See our replacement page.
What if my contractor isn't a PSE Trade Ally?
Then you won't receive the PSE rebate — the requirement has been in effect since April 2, 2026. Every installer we connect PSE-area homeowners with can confirm their Trade Ally status before you sign anything.
Is the $8,000 federal heat pump rebate real?
The program exists on paper but had not launched in Washington as of September 2026. The rebates actually paying out today are Seattle City Light, PSE, and the state-funded HEAR stream. If a website promises you $8,000 federal money at the point of sale right now, be skeptical.
Find Out Exactly What You Qualify For
Rebate eligibility depends on your utility, your current heating system, your income, and your installer's network status — and the programs change with funding. We'll connect you with a licensed local installer who works these programs daily and can tell you your real net cost before you commit to anything.
Ready to Get Started?
Get a free, no-obligation quote from a licensed Seattle mini split installer. Get matched within one business day.