PSE heat pump rebates, pay $1,500 ($2,400 for income-qualified households) for adding a heat pump to a gas furnace or for replacing electric resistance heat, and $4,000 for income-qualified gas customers who switch fully to a heat pump. Since April 2, 2026, every one of them requires a PSE Trade Ally installer.
Key takeaways
- Hybrid heat pump rebate: $1,500 or $2,400, and you must buy both gas and electricity from PSE.
- Electric resistance to heat pump: $1,500 or $2,400 for PSE electric customers with baseboard or other resistance heat.
- Income-qualified gas to heat pump: $4,000 for PSE gas customers who remove or cap gas heat.
- Since April 2, 2026, PSE rebates require a PSE Trade Ally installer.
These amounts change, so each one carries its check date. The Seattle Heat Pump Company plans and manages ducted heat pump projects in Seattle and King County, including Eastside homes in PSE territory, with the work carried out by licensed and insured contractors. PSE runs and pays these programs, so confirm the current terms with PSE before you sign anything.
PSE heat pump rebates at a glance
| PSE program | Amount | Service you need | Main conditions |
|---|---|---|---|
| Hybrid heat pump | $1,500; $2,400 with Efficiency Boost | PSE gas and PSE electric | Heat pump added to a gas furnace; Trade Ally installer |
| Electric resistance to air-source heat pump | $1,500; $2,400 with Efficiency Boost | PSE electric | Single-family home with electric resistance primary heat; Trade Ally installer |
| Income-qualified natural gas to heat pump | $4,000 | PSE gas | Income-qualified; gas heat removed or capped after the heat pump goes in; Trade Ally installer; apply within 30 days |
Efficiency Boost is PSE’s income-based tier. The income limits and current application forms are on PSE’s rebate pages, and they are the version that governs.
Are you in PSE territory?
PSE sells two things, and the rebates depend on which ones you buy from it.
Electricity. PSE is the electric utility for most of the Eastside, including Bellevue, Kirkland and Redmond and Mercer Island. It does not sell electricity inside Seattle, where City Light is the utility, or in Shoreline, Lake Forest Park, Burien and the other suburbs City Light serves. Renton is split, with part of the city on City Light.
Gas. PSE sells natural gas across most of King County, including inside Seattle. So a Seattle home can be a City Light electric customer and a PSE gas customer at once.
Check the top of your bills. If both say PSE, all three programs are on the table. If only the gas bill does, only the income-qualified gas program can apply. If you are on City Light electricity, City Light’s own $300 or $600 contractor discount is the electric-side incentive, covered in the Seattle rebate guide.
The hybrid heat pump rebate
A hybrid system, also called dual fuel, puts a heat pump’s indoor coil on a gas furnace. The heat pump heats and cools the house most of the year, and the furnace takes over below a changeover temperature set in the thermostat. PSE pays $1,500, or $2,400 with Efficiency Boost, for that setup.
The requirement that trips people up is service: you need PSE gas and PSE electric. That rules out every house inside Seattle, even if a contractor’s brochure lists the rebate. On the Eastside, where PSE supplies both, the hybrid rebate fits the economics well.
Here is why. At PSE’s current electric rate of about 20.6 cents per kWh and its gas rate of about $1.67 per therm, a heat pump costs less to run than a 95% efficient gas furnace only when its coefficient of performance (COP) is above about 3.4. A modern heat pump beats that in mild weather and falls short on the coldest days. A hybrid system lets the heat pump work when it is cheaper and hands off to gas when it is not. Choosing the changeover temperature is the decision that makes or breaks the savings, and the backup heat settings guide explains how it is set.
Bellevue permit data reflects that logic. Of the 2,584 Bellevue mechanical permits mentioning a heat pump over the latest three years of records, about 45% also list a furnace.
A hybrid system still needs the basics checked: the furnace’s blower must have the capacity to move the heat pump’s airflow, the coil must fit the furnace cabinet, and the ducts must pass a static pressure test. See heat pumps with existing ductwork for what that test measures.
Electric resistance to heat pump
Electric resistance heat turns one unit of electricity into one unit of heat. A heat pump moves heat instead of making it, so on PSE’s electric rate the savings from switching can be substantial, though the amount depends on the house, the equipment and how it is controlled.
PSE pays $1,500, or $2,400 with Efficiency Boost, to PSE electric customers in single-family homes whose primary heat is electric resistance. Electric baseboard and wall heaters are resistance heat. So is a ducted electric furnace, which is the easiest version of this conversion for a ducted heat pump, because the ducts and the air handler location already exist. Confirm with PSE that your specific heating system qualifies.
Baseboard homes are a different case. Without ducts, a ducted heat pump means building a duct system, and ductless equipment is often the more practical answer. The Seattle Heat Pump Company focuses on ducted systems, and the ducted vs ductless guide explains honestly when ductless fits a house better.
Income-qualified gas to heat pump
PSE’s largest heat pump rebate, $4,000 goes to income-qualified PSE gas customers who replace gas heat with a heat pump. The gas heating equipment must be removed or decommissioned after the heat pump is installed; cutting and capping the gas line is allowed. The installer must be a PSE Trade Ally, and the application is due within 30 days.
This program’s page does not require PSE electric service. That makes it the one PSE rebate that may reach income-qualified Seattle households who heat with PSE gas. Because PSE did not spell that out directly, confirm eligibility with PSE before you plan around it. For the full-electric path, furnace to heat pump conversion covers what changes when the furnace leaves, and the gas furnace comparison weighs it against keeping gas.
See which PSE rebates fit your houseTell us what heats the house now and which utilities you have, and the estimate will show what applies.
Get an EstimateThe Trade Ally requirement since April 2, 2026
Starting April 2, 2026, PSE requires heat pump installations to be done by a PSE Trade Ally to qualify for its rebates. Work by a non-participating installer does not qualify, however good the equipment.
Before signing, ask the installer to confirm in writing that they are a current PSE Trade Ally for the program you are applying to, and that they will handle or support the rebate paperwork. Then confirm that status with PSE. A quote that counts a PSE rebate in its net price without confirming Trade Ally status is counting money you may not receive. The quote comparison guide lists the other questions worth asking.
Energy Smart Eastside
Searches for an Eastside heat pump rebate often turn up Energy Smart Eastside. What can be confirmed is narrow: Washington’s Department of Commerce named Energy Smart Eastside as one of the local administrators of state home electrification rebate funds, with an award of $500,000. We could not verify its current program amounts, eligibility rules or how it combines with PSE rebates, so go to Energy Smart Eastside directly for those details.
Bellevue heat pump rebates
For a Bellevue house, the incentives to check are PSE’s three programs and whatever Energy Smart Eastside currently offers. City Light’s discount and Seattle Clean Heat do not apply in Bellevue, and the federal 25C tax credit ended for equipment placed in service after December 31, 2025.
The rest of a Bellevue project differs from Seattle in ways that affect the plan more than the price. Bellevue requires a mechanical permit to install or replace a heat pump and an electrical permit for wiring or service work. Its noise code uses the same limits as Seattle, 55 dBA by day and 45 dBA at night at a residential property line, and new homes and additions over 1,000 square feet must place equipment in the rear yard at least 5 feet from the property line. The noise ordinance guide covers siting in more detail.
What could change
PSE has filed a multi-year rate plan that requests increases of about 17.75% for typical residential electric bills and 12.93% for gas. Those are requests, not approved rates. If electric rates rise faster than gas, the break-even COP on PSE climbs, which strengthens the case for hybrid systems over all-electric ones on the Eastside. Rebate programs can also change mid-year. The operating cost guide shows the running-cost math with current rates.
Next step
A rebate is worth chasing only if the system fits the house. That means a load calculation, a duct test, a check of the furnace or air handler, and an outdoor location that meets Bellevue’s or Seattle’s rules. The installation cost guide shows the price ranges PSE’s rebates come off, and the cost estimator gives a range for your house. To get a number built around the actual house, call or send a few details about your utilities and current heating system.