In the Pacific Northwest it is safe to assume that 8 months out of the year the largest contributor to your energy bill comes from heating your home. High efficiency air source heat pumps can lower your bill and provide energy-efficient air conditioning throughout the year.
Heat Pump Incentives
Installations must meet all program requirements listed below:
- HSPF2 7.5 or greater rating
- SEER2 14.3 or greater rating
- AHRI Certificate of Product rating
- Contractor invoice showing installed manufacturer and models numbers installed and existing heat source before installation.
Submit your project documentation and program requirement questions to our energy specialist.
Variable-Speed Air Source Heat Pump Upgrade – $600
Must be replacing an existing heat pump (working or non-working), natural gas furnace, oil furnace, zonal electric baseboard heaters, or zonal electric wall heaters with a qualifying variable-speed air source heat pump. Must provide manufacturer documentation that the outdoor compressor includes variable-speed or inverter driven technology.
Air Source Heat Pump Conversion – $1,200
Must be replacing an existing electric forced-air furnace with a qualifying air source heat pump.
Variable-Speed Air Source Heat Pump Conversion – $1,700
Must be replacing an existing electric forced-air furnace with a qualifying variable-speed air source heat pump. Must provide manufacturer documentation that the outdoor compressor includes variable-speed or inverter driven technology.
Income Qualified Air Source Heat Pump Incentive – $9,000
- Pre-approval required for all income qualified air source and variable speed heat pump incentives. Must be approved for a Penlight income-based energy assistance billing program to qualify for the higher incentive. Homeowners receiving the Pierce County Property Tax Exemption will be considered for the higher incentive as funding allows.
Can I Choose My Own HVAC Contractor?
All projects submitted to PenLight must meet the Bonneville Power Administration (BPA) program requirements to be eligible for incentives. Be sure to check with the contractor during the proposal process and before the installation to ensure all PenLight incentive program requirements will be met. To find a qualified HVAC contractor check the list below for the contractors most commonly used by PenLight members. Other licensed and bonded contractors may be qualified. Meet with contractors to consider your heating and cooling options and review multiple estimates.
To find a qualified HVAC contractor for this program check the list for the contractors most commonly used by PenLight members. Other licensed and bonded contractors may be qualified. Meet with contractors to consider your heating and cooling options and review multiple estimates.
Ductless Heat Pump Incentive – $1,000
Income Qualified Ductless Heat Pump Incentive – $6,000
- Pre-approval required for all income qualified ductless heat pump incentives. Must be approved for a Penlight income-based energy assistance billing program to qualify for the higher incentive. Homeowners receiving the Pierce County Property Tax Exemption will be considered for the higher incentive as funding allows.
Installations must meet all program requirements listed below:
- HSPF2 7.5 or greater rating
- SEER2 14.3 or greater rating
- AHRI Certificate of Product rating
- Contractor invoice showing installed make and models numbers installed and existing heat source before installation.
- Existing primary heat must be electric resistance baseboards, wall heaters, plug-in space heaters, or an electric forced-air furnace.
- Must be installed by a licensed HVAC contractor with a refrigerant certificate in an existing single-family site-built home, manufactured home, or a condo (up to 4 units). New construction does not qualify.
- Only one ductless heat pump incentive per residential meter.
A ductless heat pump is an energy efficient primary heating and cooling system. It is safe, quiet, and heats rooms evenly at a fraction of the cost of using baseboard or wall heaters. Also, it does not require duct work, which eliminates maintenance and concerns about duct leakage.
Submit your project documentation and program requirement questions to our energy specialist.

The HVAC contractor list includes qualified licensed and bonded HVAC contractors most commonly used by PenLight members for ductless heat pump installations. Other HVAC contractors may be qualified as well. Meet with contractors to consider your heating and cooling options and review estimates received.
