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Central Heat Pump (CHP)

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For climates with moderate heating and cooling needs like we have in the Pacific Northwest, heat pumps offer an energy-efficient alternative to furnaces and air conditioners.

Like ductless heat pumps, central heat pumps rely on an outdoor compressor to function. The difference between a central heat pump and a ductless heat pump is that the CHP connects to a single air handler (furnace) that pushes air through a series of ducts, which gets exhausted through vents throughout your home to keep it warm. Temperature is controlled by a single thermostat.

Central heat pumps can reduce your electricity use for heating by approximately 25-50% compared to electric resistance heating such as furnaces and baseboard heaters. High-efficiency heat pumps also dehumidify better than standard central air conditioners, resulting in less energy usage and more cooling comfort in summer months. 

Quality Installation

The Tacoma Power CHP program requires contractors to verify efficient performance beyond the standard practice for heat pump installations. This additional testing and verification by the installation contractor is called PTCS (Performance Tested Comfort Systems) and helps ensure the highly technical heat pump equipment is operating as designed by the manufacturer for our climate. 


  • Come standard with cooling functionality for year-round comfort
  • Design - doesn’t impact interior design of home as air is pushed through vents and air handler is typically hidden from sight


  • Heat AND cool your home
  • Reduce energy use by 25-50% compared to electric resistance heat
  • Built-in air filter helps improve indoor air quality
  • Easy to control - you control the temperature of your home with a single thermostat
  • PTCS verification gives you peace of mind that you are getting the most out of your investment 

Central Heat Pump Components:

  • Air handler (furnace) - circulates conditioned (heated or cooled) air throughout your home 
  • Ducts - serve as air tunnels to deliver the heated/cooled air to various spaces inside your home
  • Heat pump - mounted outside and connects to an air handler (usually hidden from view)
  • Thermostat – allows you to adjust the temperature of your home from one location

Energy savings and project costs will vary. Program requirements and rebate amounts are subject to change without notice. We do not endorse any particular contractor, manufacturer or product. We make no express or implied warranties of these products or installations.   

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Tacoma Power offers eligible property owners a $1,000 rebate towards the purchase and installation of a qualifying high-efficiency central heat pump when replacing an existing electric forced air furnace.  

Limitations:  One rebate per home/unit

Customers are eligible for a loan or rebate, not both.  

  • New central heat pump, AHRI certified minimum 9.0 HSPF and 14 SEER rating
  • Must install new, electric forced air furnace and a high efficiency central heat pump
  • Must be PTCS tested and certified by a PTCS technician

 Additional requirements for DIY projects:

  • CHP must be installed by PTCS certified technician
  • Rebate applies only to material costs, not labor
  • Rebate cannot exceed the total cost of materials

Not Eligible:

  • Rental properties with 5+ units
  • New construction
  • Homes with an existing heat pump -- Ductless Heat Pump (DHP) or CHP
  • Homes that have previously participated in the DHP program through Tacoma Power

Additional rebates may be available from product manufacturers. Talk to your contractor about your options. 

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Tacoma Power offers eligible property owners a seven-year, zero-interest loan for owner-occupied homes and rental properties (up to 4 units).  Eligible customers must have a good payment and credit history with Tacoma Public Utilities. The maximum loan amount is $10,000 and the monthly loan payment is about $120.  
Zero-interest loan recipients are not eligible for a rebate.

Requirements (must meet all of the requirements for rebates, plus): 
  • Owner must own home and land.
  • Eligible properties: owner-occupied homes and rental properties (up to 4 units)
  • Contractor must have an active Trade Ally Agreement with Tacoma Power
  • If the total cost exceeds the loan amount, the customer is responsible for any balance remaining.

Not Eligible:

  • Limited Liability Companies (LLCs) and corporations
  • DIY installations/projects 

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Application Processing Time - It takes approximately four to six weeks to process applications. 

Steps to Follow: 

If you feel your property meets the eligibility requirements, contact a Tacoma Power participating contractor to schedule a free estimate. They can also evaluate your home or property to help determine which of our programs would best meet your needs. 




Determine the funding option that best meets your needs.  Your contractor can help you determine what, if any, out of pocket costs you may incur. 


Once you select a contractor, determine the incentives you are eligible for and how you will pay for the project, complete an energy efficiency application:

*CHP rebates are not available for rental properties with 5 or more units. 


Review the required documents checklist to ensure you have everything you need to submit the application.  



Additional documentation is required for loan applications.

Submitting your application

There are several ways to submit your application (listed below):

  • Contractor - your contractor may offer to submit the application directly to Tacoma Power
  • Email - submit the application along with all required documentation to
  • Fax - (253) 502-8572
  • Mail - Tacoma Power, CEP – Main Floor, 3628 S. 35th St., Tacoma, WA  98409-3192
  • In Person – Tacoma Public Utilities Conservation Lobby, 3628 S. 35th St., Tacoma

For assistance, please call (253) 502-8363

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