PSE Rebates Explained (Without the Headache)

Puget Sound Energy offers some genuinely good rebates on HVAC equipment. The problem is that figuring out which ones you qualify for feels like doing your taxes. We'll make it simple.

The two types of rebates

PSE rebates fall into two buckets: midstream rebates (automatic discounts applied at purchase) and conversion rebates (larger incentives for switching from one fuel type to another). Some systems qualify for both.

Midstream rebates (the easy ones)

These are instant discounts that come off the price when you buy qualifying equipment through a participating contractor (that's us). You don't fill out forms. You don't wait for a check. The rebate is applied before you pay, after sales tax is calculated.

The amount depends on the system's efficiency ratings:

• $300: Heat pump with at least 15.2 SEER2 and 8.1 HSPF2
• $400: Heat pump with at least 15.2 SEER2 and 8.5 HSPF2
• $600: Heat pump with 16+ SEER2 and 9.5+ HSPF2

The higher the efficiency, the bigger the rebate. Most of the systems we install qualify for the $400 or $600 tier.

Ductless mini-splits have their own version of the same tiers at the same dollar amounts.

Conversion rebates (the bigger ones)

These are for homeowners making a larger change to their heating system:

• $1,500: Converting from electric resistance heat (baseboard, wall heaters, ceiling cable, or electric forced-air furnace) to a heat pump. Your home must be site-built (not manufactured), you can't already have a heat pump, and the equipment must be AHRI certified and meet the current national energy efficiency standard for residential heat pumps. For ductless systems, the unit must also use inverter (variable speed) technology and be rated at least ¾ ton in heating mode.

• $1,500: Upgrading from an existing centrally ducted heat pump to a new one, with refrigerant recovery and recycling. Your home must be all-electric (no gas). The new system must be AHRI certified with a minimum COP of 1.75 at 5°F and at least 70% of its rated heating capacity maintained at 5°F, meaning it needs to be a genuine cold-climate performer. Heat pumps with ENERGY STAR® Cold Climate certification automatically meet this threshold.

• $1,500: Installing a hybrid/dual fuel system (ducted heat pump paired with a natural gas furnace). Must be a PSE natural gas customer, your current primary heat must be a gas furnace (not electric resistance or an existing heat pump), and the heat pump must be AHRI certified. The system must be programmed so the heat pump runs as the primary source down to at least 30°F before the gas furnace takes over. ADUs (accessory dwelling units) don't qualify, and ductless heat pumps are not eligible for this rebate.

Energy Boost: income-based, and the most generous

If your household income falls below certain thresholds (based on county and household size), you may qualify for the Energy Boost program:

• $2,400 for most qualifying heat pump installations
• $4,000 for moderate-income households converting from gas to all-electric heat pump

King County income limits range from about $7,955/month for a household of 1 to $16,814/month for a household of 10. Pierce County limits are slightly lower. Your installing contractor (again, that's us) can help you check eligibility (it takes about two minutes).

Which rebates can you stack?

This is where it gets interesting. On many installations, you can combine a midstream rebate with a conversion rebate:

Example: You're a PSE electric customer with baseboard heat, upgrading to a Carrier Infinity heat pump with 19 SEER2 and 10.2 HSPF2.

• Midstream rebate: $600 (qualifies for the highest tier)
• Conversion rebate: $1,500 (electric resistance to heat pump)
• Total PSE savings: $2,100, applied instantly at purchase

If you're income-qualified for Energy Boost, that conversion piece jumps to $2,400, making your total $3,000 off before you've even looked at financing.

What about furnaces?

Gas furnaces don't currently qualify for PSE rebates. If you're replacing a gas furnace with another gas furnace, PSE doesn't offer an incentive for that. However, if you're switching from a gas furnace to a heat pump or dual fuel system, the conversion rebates above may apply.

The fine print (summarized)

• All rebates expire December 31, 2026 (current program cycle)
• Conversion rebates require AHRI certification; each rebate has specific minimum efficiency or performance standards the equipment must meet, not just any AHRI-certified unit
• Installation must be done by a participating contractor
• Midstream rebates are deducted after sales tax is calculated
• ADUs generally don't qualify for conversion rebates
• Manufactured homes have their own rebate tiers (up to $2,400)
• You can't receive both a conversion rebate AND Energy Boost; it's one or the other (Energy Boost is higher)

How we handle it

When we put together a quote for your home, we include every PSE rebate you qualify for, broken out line by line so you can see exactly what's being applied. We handle the paperwork on the midstream rebates (there isn't any; it's automatic). For conversion and Energy Boost rebates, we'll walk you through the qualification checklist during your in-home estimate.

One thing we won't do: tell you that you qualify for something you don't. We've seen competitors advertise the maximum possible rebate in big bold numbers, then explain the fine print later. We'd rather be straightforward from the start.

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Rebate information last reviewed April 2026. PSE programs, amounts, and eligibility requirements can change. Always confirm current details directly with PSE before making decisions. View PSE's current rebate programs at pse.com/rebates.