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Central Heat Pump (CHP) Rebate Programs

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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.

 Central Heat Pump Benefits:
  • Reduce energy use by 25%-50% compared to electric resistance heat
  • 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
  • Built-in air filter can improve indoor air quality
  • Easy to control - you control the temperature of your home with a single thermostat
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
  • Register - a grille with moving parts, capable of being opened and closed to direct air flow
Advantages of CHPs:
  • Heat AND cool your home
  • Reduces energy use by 25 - 50% compared to electric resistance heat
  • Built-in air filters help improve indoor air quality
  • Provide even, consistent heat throughout your home (no more hot/cold spots common to baseboard heaters)
  • Save 25 -50% on your heating costs
  • Pleasing design - no impact to interior design (hidden elements)
  • PTCS verification gives you peace of mind that you are getting the most out of your investment

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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Effective October 1, 2017, Tacoma Power offers:

New Central Heat Pump Replacing an Electric Forced Air Furnace system

Tacoma Power offers a $500 rebate towards the purchase and installation of a qualifying high-efficiency central heat pump when replacing an existing electric forced air furnace.   Also requires the purchase and installation of a new forced air furnace. 

  • Single Family Limitations:  One rebate per home
  • Multifamily & Condo Limitations: One rebate per living unit

Click here for more details.

New Central Heat Pump Installation with any heating system

Tacoma Power offers a $250 rebate towards the purchase and installation of a new, qualifying CHP and furnace to upgrade from any of the following heating systems – old heat pump, oil furnace, gas furnace and zonal electric. 

  • Single Family Limitations:  One rebate per home
  • Multifamily & Condo Limitations:  One rebate per living unit

 Click here for more details.



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Additional Funding Opportunities - Loans:

In addition to the Tacoma Power rebate, you may qualify for a zero interest loan.  Grants are not available for Central Heat Pumps.

  • Zero-interest loans – Tacoma Power offers a seven-year, zero-interest loan to qualifying owners of single family homes and multifamily buildings (two to four units) who want to upgrade to a central heat pump heating system., To qualify, homes must be heated with forced air electric furnace. Eligible customers must have a good payment and credit history with Tacoma Public Utilities. The maximum loan amount is $6,500 and the monthly loan payment is about $80.
  • Manufacturer rebates - Manufacturers rebates may also be available in addition to the $500 rebate offered by Tacoma Power.  Talk to your contractor about your options.
 Zero Interest Loan Requirements

Single Family Homes

Multifamily & Condo Properties

Owner must own home and land.  You may borrow up to $6,500.  Loan amount shown does not include the rebate.  Sales tax and permit fees may be included in loan. If the total cost exceeds the loan amount shown, the customer is responsible for any balance remaining. 

Loans are available up to $6,500 per living unit.  Loan amount shown does not include the rebate.  Sales tax and permit fees may be included in loan.  If the total cost exceeds the loan amount shown, the customer is responsible for any balance remaining. 



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Application Process


Steps to Follow:

  1. If you feel your property meets the eligibility requirements, start by contacting 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.
  3. Determine your funding options.  There are several ways we can help provide financial assistance.  In addition, your contractor will help you determine what, if any, out of pocket costs you may incur.
  5. Once you select a contractor and determined what incentives you are eligible for and how you will pay for the project, complete an Energy Efficiency Rebates, Loans & Grants application: 
  6. Review the appropriate “Required Documents” checklist to ensure you have everything you need to submit the application.  
  7. If applying for a zero-interest loan, additional documentation is required.  For more information, please visit the following:  

Application Processing Time

It takes approximately four to six weeks to process applications.

Application Submission

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, Conservation Resources Main, P.O. Box 11007, Tacoma, WA  98411-9900
  • In Person - TPU Energy Conservation Desk, 3628 S. 35th St., Tacoma, WA  98409
 For assistance, please call 253 502-8363

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