What heat pump rebates pay in Seattle
We read Seattle City Light's heating and cooling page, the State Department of Commerce page for local rebate partners, and Puget Sound Energy's gas-customer pages on October 6, 2026. Each card below names its source at the bottom of the page. Seattle City Light's offers apply to your electric account, so they work whether you heat with electricity, gas or oil now.
Seattle City Light contractor discount
Your contractor buys a qualifying heat pump through a participating supplier at a discount and can pass it to you. $300 for a rating of 8.1, $400 for 8.5 and $600 for 9.5 or higher on the heating efficiency scale called HSPF2. Do-it-yourself installs are not eligible.
Seattle oil to electric rebate
An instant rebate when an oil-heated Seattle home converts to a qualified heat pump through a participating contractor. Income-eligible homes can get a no-cost conversion from the City's Office of Housing.
State home electrification rebates
The state gave the City of Seattle $1,616,516 for rebates to households at or below 150 percent of area median income. The state page lists no dollar amount per household, so call the City.
If Puget Sound Energy sends your gas bill
A hybrid heat pump added to a gas furnace gets $1,500. Income-qualified households that replace gas heat with a heat pump get $4,000. Both depend on being a Puget Sound Energy gas customer.
Federal tax credit
The 30 percent federal credit does not apply to heat pumps or solar placed in service after December 31, 2025.
Working it out
Take an oil-heated Seattle house that installs a heat pump with the top efficiency rating. The City Light discount is $600 and the oil switch rebate is $2,000, so the two together are $2,600 before you pay a contractor. A Seattle home that heats with electric baseboards would get the $600 discount but not the oil rebate. We have not confirmed that City Light's discount and the oil rebate can be added together on the same project, so ask both offices before you sign.
What Seattle homes look like
The US Census Bureau's American Community Survey (2020 to 2024) counts 393,918 homes in Seattle. About 56 percent of households rent and 44 percent own. Only 37 percent of homes are detached houses. About 53 percent were built before 1980, and 23 percent before 1940, while 33 percent were built in 2000 or later.
The same survey shows how Seattle heats. About 61 percent of homes use electricity as their main heat and about 33 percent use gas from a utility. Close to 3 percent, about 3 homes in 100, use heating oil. That is a small share, but it is the group the City's $2,000 oil rebate and free Clean Heat program were made for. If you rent, the rebate belongs to the person who pays for the equipment, so the landlord has to be on board.
Oil heat is the big opening
The City of Seattle treats oil furnaces as the first to go. A $2,000 instant rebate comes off the contractor's invoice for any Seattle household heating with oil that switches to a qualified heat pump. For households with lower incomes, the Office of Housing's Clean Heat program covers the conversion from oil furnace to heat pump at no cost. The City Light page points to a participating contractor list for the instant rebate. If you have an old oil tank, ask your contractor in writing who removes it and what it costs, because the pages we read do not say whether the tank removal is covered.
Picking a heat pump that earns the discount
City Light's discount depends on the efficiency rating of the model, and it goes to the contractor, not to you. Ask each contractor for two things in writing: the exact model number and rating, and the dollar amount of the City Light discount in the bid. A contractor who quotes a lower-rated unit may be cheaper but may earn you $300 less than a $600 unit. Cold weather matters less in Seattle than in many states, but quiet operation, ducts and the location of the outdoor unit matter more in a close-set neighborhood, so ask where the outdoor unit will sit and how far it is from a bedroom window or a neighbor's fence.
Gas customers and who to call
Seattle City Light does not sell gas. If Puget Sound Energy sends your gas bill, its gas-to-heat-pump and hybrid heat pump rebates may apply, and the $4,000 rebate depends on an income check done on PSE's own form. The rules there are about your fuel and your customer account, not your address. Read our Puget Sound Energy guide for the details, then confirm with an Energy Advisor.
How to claim Seattle heat pump rebates
- Check your bills. Seattle City Light should send the electric bill. Note whether you heat with oil, gas or electricity.
- Ask two or three contractors to quote the same type of system and to show the City Light discount on the bid.
- If you heat with oil, ask for the City's $2,000 rebate and check whether your income qualifies for the free Clean Heat program.
- Call the City of Seattle about state home electrification rebates if your household income is at or below 150 percent of area median income.
- Keep the invoice and the model number for your records.
Common questions
How much is the Seattle City Light heat pump rebate?
It is a contractor discount of $300, $400 or $600, depending on the heating efficiency rating of the heat pump. It is passed on in your bid and is not a check you apply for.
Does Seattle pay anything to switch from oil?
Yes. The City pays a $2,000 instant rebate when an oil-heated home converts to a qualified heat pump through a participating contractor, and income-eligible homes can get a no-cost conversion.
Can I do the install myself?
No. City Light says do-it-yourself installs are not eligible for the heat pump discount.
Can renters get help?
The state's home electrification program is open to renters at or below 150 percent of area median income through local partners such as the City of Seattle. Ask the City for current amounts.
Is there still a federal tax credit?
No. The IRS says the credit does not apply after December 31, 2025.
What to do next
Read our Seattle water heater rebate page for the $750 City Light rebate, or go back to the Seattle rebate hub for everything else. If your gas comes from Puget Sound Energy, see our Washington rebate hub for how its offers compare with those of other utilities.
By Sam Menard. Sources, last read October 6, 2026: Seattle City Light heating and cooling, Seattle Office of Housing oil to electric program, Washington Commerce HEAR program, Puget Sound Energy hybrid heat pump rebate, IRS Residential Clean Energy Credit. All Seattle rebates → Every Seattle City Light rebate →