What water heater rebates pay in Spokane
We read Avista's heating and water heating page and the State Department of Commerce page on October 6, 2026. The discount goes to the contractor through a supplier, and Avista says do-it-yourself installs are not eligible.
Avista heat pump water heater, retrofit
For a residential unit under 120 gallons with an efficiency rating (UEF) of 2.1 or higher, replacing an existing water heater.
Avista heat pump water heater, new home
The same unit in new construction earns less.
State home electrification rebates
Heat pump water heaters are on the state's list of covered equipment for households at or below 150 percent of area median income, run locally by Spokane County with a $630,000 award. No per-household amount is listed.
Federal tax credit
The IRS says the residential clean energy credit ended for property placed in service after December 31, 2025.
Working it out
If your contractor quotes $3,000 for a qualifying heat pump water heater and passes on the full $500, you pay $2,500. If the contractor keeps the discount, you pay $3,000. The $3,000 is only an example, so get local bids and compare the line for the Avista discount on each.
Spokane homes and hot water
The US Census Bureau's American Community Survey (2020 to 2024) says about 59 percent of Spokane households own their homes, and 64 percent of homes are detached houses. Those are the homes where a household can replace its own water heater. The survey counts heating fuel, not water heating. About 54 percent of homes heat with gas and 42 percent with electricity, and Avista covers both fuels, but its heat pump water heater discount is the one that fits a switch to electric.
What the rating means
Avista requires an efficiency rating of 2.1 or higher on its uniform energy factor scale. Treat the 2.1 minimum as the one hard rule. Ask your contractor for the model's rating on a printed spec sheet, and keep that sheet. A water heater of the right size matters too. A bigger family needs a bigger tank, and a heat pump unit also needs space around it for air to flow, which your installer should check.
Check before you buy
Because the discount comes through a participating supplier, a retail purchase may not carry it. Ask the contractor which supplier will provide the unit and whether that supplier is on Avista's list. Avista names about twenty, including Consolidated Supply, Ferguson, Gensco, Hahn Supply, Johnstone Supply and York NW. If your contractor buys elsewhere, the discount may not apply.
Also ask what happens to the old tank, whether a permit is needed and whether the new unit needs a drain for the water it makes as it cools the air. A contractor who has installed these before will know. Put each answer in the bid so you can compare two quotes line by line.
How to get the Spokane water heater discount
- Check that Avista sends your electric or gas bill.
- Ask contractors for a heat pump water heater with a rating of 2.1 or higher.
- Ask which supplier they buy from and confirm it is on Avista's list.
- Ask for the $500 discount as its own line on the bid.
- Keep the invoice and the spec sheet.
Common questions
How much is the Avista heat pump water heater discount?
$500 for a retrofit unit under 120 gallons with a rating of 2.1 or higher. New construction gets $150.
Can I buy it at a store?
Avista says the discount goes through participating suppliers to contractors. Do-it-yourself installs are not eligible.
Do I need an electric water heater now?
Avista's page lists the incentive for retrofits and does not limit it by the old fuel, but equipment must run on Avista service. Ask Avista if you are switching from gas.
Is there help for lower incomes?
Yes. The state's home electrification program is run locally by Spokane County for households at or below 150 percent of area median income.
Is there a federal credit?
No. It ended for installs after 2025.
What to do next
Next, see the Spokane heat pump page or go back to the Spokane rebate hub.
By Sam Menard. Sources, last read October 6, 2026: Avista heating and water heating discounts, Washington Commerce HEAR program, ENERGY STAR heat pump water heaters. All Spokane rebates → Every Avista Washington rebate →