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Ductless Heat Pump (DHP)

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Energy efficient ductless heat pumps are inverter-driven, variable-speed systems that can ramp up or down to meet the heating or cooling needs of the home, even when outdoor temperatures drop below freezing. Since DHPs do not distribute heating or cooling through ducting, a duct system is not required. Installation is relatively easy; with only a three inch hole in an exterior wall to connect the indoor and outdoor components. 


  • Come standard with cooling functionality for year-round comfort
  • Ultra-quiet fans reduce noise common to other HVAC systems 


  • Reduce energy use by 25-50% compared to electric resistance heat
  • Heat AND cool your home
  • Built-in air filter helps improve indoor air quality
  • Provide even, consistent heat which eliminates hot and cold spots common to baseboard and wall heaters (zonal)
  • Supplement existing heat systems
  • Easy to install with minimal disruption to your home
  • Lower electric bills 

DHP Components: 

  • Indoor Unit – mounted on a centrally-located wall in your main living area. Just one system is enough to evenly and efficiently heat and cool the main living area of your home.
  • Outdoor Unit – connects to the indoor unit with copper pipes and electrical wiring. The unit is placed outside your home on the ground level. You don’t need expensive ductwork as copper pipes and wiring only require a three-inch hole in your wall.
  • Remote Control – allows you to adjust your settings as you wish. 

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.   



Tacoma Power offers eligible property owners a $500 rebate towards the purchase and installation of a qualifying ductless heat pump for homes with a forced air electric furnace or zonal electric (baseboards).  

Limitations: One rebate per home/living unit 

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


Additional requirements for DIY projects:

  • Rebate applies only to material costs, not labor
  • Rebate cannot exceed the total cost of materials 

Not Eligible:

  • Rental properties with 5 or more units
  • Homes with an existing Central Heat Pump (CHP)
  • New construction

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 residential properties (up to four units). Eligible customers must have a good payment and credit history with Tacoma Public Utilities. The maximum loan amount is $4,000 and the monthly loan payment is about $48.   
Requirements (must meet all of the requirements for rebates plus): 
  • Must own home and land.
  • Contractor must have an active Trade Ally Agreement with Tacoma Power
  • Eligible properties: owner-occupied homes and rental properties (up to 4 units)
  • If the total cost shown exceeds the loan amount shown, the customer is responsible for any balance remaining. 

Not Eligible:

  • Rental properties with 5 or more units
  • Limited Liability Companies (LLCs) and corporations
  • New construction
  • DIY projects 

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Application Processing Time

It takes approximately four to six weeks to process applications. 

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 fits your needs. Your contractor can help you determine what, if any, out of pocket costs you may incur. 


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


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 Lobby, 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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