Guide

Heat pump water heater rebates in Washington (2026)

How heat pump water heaters work and where they fit in a Northwest home, plus the 2026 utility rebates from PSE, Seattle City Light, Snohomish PUD, Tacoma Power and Clark Public Utilities, the state HEAR program, and the end of the federal tax credit.

In short

Most Washington electric utilities pay a rebate for a qualifying heat pump water heater (HPWH). The amounts and rules differ, and they change. Every amount below was read on the utility’s own page on October 24, 2026. Treat them as indicative, and check the page again before you buy.

How a heat pump water heater works

ENERGY STAR says HPWHs “use electricity to move heat from one place to another instead of generating heat directly”, like a refrigerator in reverse. They pull warmth from the surrounding air into the tank. Most also have electric resistance elements for high demand. ENERGY STAR describes the usual modes:

Hot Water Solutions NW, the Northwest Energy Efficiency Alliance’s (NEEA) program, cites savings of up to 70% compared with standard electric models.

Will it fit your home?

ENERGY STAR’s installer guide sets out the main checks:

120 V or 240 V. ENERGY STAR says a 240-volt unit typically uses a 30-amp breaker and 10-gauge wire, like a standard electric tank. Plug-in 120-volt units are designed for replacing gas heaters without new wiring. They typically need to go up two sizes (a 40-gallon gas tank becomes a 65-gallon HPWH), and some need a dedicated outlet while others can share a circuit. NEEA’s 2022 lab test of two early 120-volt models found neither had resistance backup elements. Ask how the installer sized your unit to make up for that.

The Washington code items that apply to any water heater, such as the permit, seismic straps and expansion tank, are in our water heater quotes guide.

Utility rebates (as read October 24, 2026)

UtilityAmountKey conditions
Puget Sound Energy$1,000; $1,100 with income-qualified Efficiency BoostTier 3 or 4 on PSE’s qualified list; installed on or after January 1, 2026; must use PSE electricity; apply within 30 days of installation; one per single-family home; instant coupon at participating Lowe’s or Home Depot, or through your installer
Seattle City Light$750Tier 3 or 4 on the qualified list; instant discount through a contractor, store coupon, or online rebate form within 93 days of purchase; one rebate per customer on the form; a unit bought with the coupon can’t also get the form rebate
Snohomish County PUDUp to $1,000, no more than the purchase priceModel from the PUD’s qualified list; must replace an existing water heater (not new construction); apply within 90 days of the invoice; one per account every five years; can’t be combined with other utility rebates without the PUD’s written approval
Tacoma Power$500; or a 5-year 0% loan up to $5,000; income-qualified: $2,500 rebate plus a deferred loan up to $2,500Must replace a standard electric water heater; Tier 3 or 4 on BPA’s qualified list; permits required; loans need pre-approval and a Tacoma Power participating contractor; income-qualified offer excludes do-it-yourself installs
Clark Public Utilities$1,500Tier 3 or 4; must replace an electric resistance water heater; existing homes only, except split systems; reduced to a top-up if you got a markdown at a participating Oregon Lowe’s or Home Depot (a $1,000 markdown plus $500 rebate for purchases after April 30, 2026); form Rev. 04/26

Other utilities. Avista’s June 2025 Washington single-family rebate form does not list a heat pump water heater rebate. Many PUDs and co-ops run their own programs. Hot Water Solutions NW has a utility lookup, but confirm the amount on your utility’s own site.

What “Tier 3 or 4” means. The utilities above require a model on a qualified products list. Ask the bidder for the exact model number and check it against the list linked from your utility’s page before you sign.

State and federal programs

What it costs (indicative only)

ENERGY STAR (February 2, 2024, national) gives $1,500 to $3,000 for the unit and $1,000 to $3,000 more for labor and materials, before incentives. A switch from gas can add electrical work at the panel. Get at least three bids; Tacoma Power’s page says prices vary widely.

Before you buy

  1. Find your electric utility’s page and read the current terms.
  2. Check that the model is on the utility’s qualified list.
  3. Ask whether your installer applies an instant discount, and whether it is already deducted on the quote.
  4. Pull the permit (or confirm the installer has). Tacoma requires one.
  5. Keep the invoice and apply before the deadline: 30, 90 or 93 days, depending on the utility.

Find installers in our water heater directory or under heat pump water heaters.

Common questions

How much is the PSE heat pump water heater rebate in 2026?

As read on pse.com on October 24, 2026: $1,000 for a qualifying Tier 3 or Tier 4 model, or $1,100 through PSE's income-qualified Efficiency Boost, for units installed on or after January 1, 2026. Apply within 30 days of installation, or use an instant coupon at participating stores or through your installer.

Can I still get the federal tax credit for a heat pump water heater?

Not for a 2026 install. The IRS says the Energy Efficient Home Improvement Credit (25C) applies to property placed in service on or after January 1, 2023 and before December 31, 2025. It was 30% of costs, up to $2,000 a year for heat pump water heaters.

Do I qualify if I have a gas water heater now?

It depends on the utility. Tacoma Power and Clark Public Utilities require that the new unit replace an electric water heater. PSE requires that the unit use PSE electricity. Seattle City Light's page invites customers switching to all-electric to contact a qualified installer. Check your utility's page before you buy.

Will a heat pump water heater work in my garage?

Often, yes. ENERGY STAR says these units perform best in spaces that don't regularly get colder than 38°F, and that a basement or garage can work if it stays above freezing. Most 240-volt models need at least 700 cubic feet of air, some as little as 450.

What is the difference between a 120-volt and a 240-volt heat pump water heater?

ENERGY STAR says a 240-volt unit typically uses a 30-amp breaker, like a standard electric tank. Plug-in 120-volt units are designed to replace gas heaters without new wiring, but typically need to be two sizes larger, for example 65 gallons in place of a 40-gallon gas tank.

Is there a state rebate for heat pump water heaters?

Washington's HEAR program funds local administrators to offer rebates to households at or below 150% of area median income. Commerce lists heat pump water heaters as eligible but no fixed amount, and availability depends on your local administrator. Snohomish PUD says it was not awarded funds in the latest round.

Can I combine two rebates?

Check each program. Snohomish PUD says its rebates can't be combined with other utility rebates unless it approves in writing. Seattle City Light says a unit bought with its store coupon isn't eligible for its mail-in rebate. Clark reduces its rebate if you got a markdown at a participating Oregon store.