How to save money by installing heat pumps in your home

How to save money by installing heat pumps in your home

If you'd like to upgrade your home heating and cooling system with an energy-efficient heat pump, several government programs exist to help — and more will be coming next year.

Why it matters: Electric heat pumps use far less electricity than conventional electric heating, and don't burn fossil fuels like natural gas-powered furnaces or boilers.

  • That makes them important tools for curbing greenhouse gas emissions that drive climate change, state and federal officials say.

Yes, but: Installing a heat pump isn't cheap, costing somewhere between $7,000 and $15,000 on average, the state Department of Commerce estimates.

  • Updated state building codes will soon encourage heat pumps in new construction in Washington — but with older buildings, it generally will be left up to owners when (and whether) to make the upgrade.

Here's a look at some financial assistance programs that can help.

Local programs

Seattle City Light customers can get rebates of $300 to $500 to help with installing a heat pump. More is possible if you're replacing an oil-burning furnace.

Meanwhile, if you use Puget Sound Energy, you could qualify for up to a $4,000 rebate.

Plus: On the Eastside, residents of Redmond, Bellevue, Issaquah, Mercer Island and Kirkland can qualify for another $1,500 for a heat pump upgrade.

Federal tax credits

Through the federal Inflation Reduction Act, you can get a $2,000 tax credit if you install a heat pump through Jan. 1, 2033.

  • Homeowners can also get another $1,200 for energy efficiency improvements such as upgrading insulation.

Reviewing and optimizing the properties you own is an essential part of being successful in real estate - and energy usage is part of this!


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