Whatcom County, Washington
Furnace to Heat Pump Conversion in Marietta-Alderwood, WA
Use the ductwork you already have to get efficient heating plus air conditioning, and keep the furnace only if it is genuinely earning its place.
- 19°F heating design temperature (nearest code station: Bellingham 2 N)
- Electricity: Puget Sound Energy
- Gas: None — propane, oil or all-electric
- Permits: Whatcom County Planning & Development Services
- WA L&I #BELLIHC808NM Active registration — verify it with the state
- $30,000 bonded Surety bond on file with L&I
- $1,000,000 insured General liability coverage
- Local since 2020 Owner-operated in Whatcom County
- We pull the permit City of Bellingham or Whatcom County, and we meet the inspector
What furnace to heat pump conversion means in Marietta-Alderwood
Marietta-Alderwood is older, modest and close to the water: small mid-century houses along Marine Drive and Lummi Shore Road, a good number of manufactured homes, and pockets of 1940s–60s cottages that predate most of Bellingham’s suburbs. Heat is usually electric — baseboard, wall heaters, or a mid-life electric furnace — with wood as the backup, which is a clean fit for the PSE electric-resistance conversion rebate. Ceilings are low and closets are small, so a wall-mounted ductless head normally beats trying to hide a ducted air handler.
The area sits on the Nooksack delta at the edge of Bellingham Bay, so it is mild by the numbers — 19°F from the Bellingham 2 N station — but persistently damp. Marine air and delta fog keep the coil wet through winter, and homes out on Lummi Shore Road see enough salt to justify a corrosion-protected cabinet. Wind off the bay is a placement question here as much as a load question.
The install wrinkle here
These addresses are unincorporated, so the permit is Whatcom County’s even though the mail says Bellingham; that one catches homeowners out constantly. There is no gas main, which removes the furnace-versus-heat-pump debate and turns the job into an electrical-capacity conversation — older 100-amp services near Marine Drive frequently need work, performed by a licensed electrical contractor. Some parcels sit in the delta floodplain, which sets how high the outdoor unit has to be mounted.
Your utilities decide your rebates
Marietta-Alderwood takes its electricity from Puget Sound Energy, which is what makes the PSE heat pump rebates reachable at all — PSE serves every address in Whatcom County. There is no natural gas main to most of Marietta-Alderwood, so homes here run on propane, oil, wood, or electric resistance heat. That is actually good news for rebates: PSE's $1,500 conversion rebate pays specifically to replace electric-resistance heat, and it rises to $2,400 for income-qualified households.
Who issues the permit
Mechanical work in Marietta-Alderwood is permitted through Whatcom County Planning & Development Services via its Whatcom County Permit Center application, online or in person. We pull the permit and meet the inspector. Worth knowing: a great many mailing addresses that read "Bellingham" are physically in unincorporated Whatcom County, which changes the permitting authority. We check the parcel before we file.
Getting there
We work out of Larrabee Avenue in south Bellingham, roughly 13 minutes from Marietta-Alderwood — near Marine Drive and the Nooksack River delta. We also cover Marietta, Alderwood, Marine Drive, Little Squalicum.
Furnace to Heat Pump Conversion pricing for Marietta-Alderwood
installed ducted heat pump on existing serviceable ductwork in Bellingham. No typical figure is quoted because conversions are genuinely bimodal: a dual-fuel coil added above a healthy gas furnace and a full electric-furnace removal with duct repair and panel work sit at opposite ends of this range. Electrical and duct work are quoted separately.
- Simple job
- $4,000
- Complex job
- $8,000
Installed price before rebates, benchmarked across Whatcom County. Homes on electric resistance heat here qualify for the largest rebate in the county. The federal §25C credit contributes $0 in 2026.
Range benchmarked 2026-09-04 against published local pricing. Your quote is fixed before work starts — no hourly surprises.
Rebates a Marietta-Alderwood household can use
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Electric Resistance to Air-Source Heat Pump Conversion
Puget Sound Energy
$1,500
Available now$2,400 with PSE Efficiency Boost for income-qualified households.
- Paperwork:
- We file it
- Deadline:
- No published end date — tariffed and subject to change
- Verified:
- 2026-09-04 · source
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Efficiency Boost (income-qualified multiplier)
Puget Sound Energy
Raises other PSE rebates
Income-qualifiedHeat pump $1,500 → $2,400 · heat pump water heater $1,000 → $1,100 · smart thermostat $75 → $175.
- Paperwork:
- We file it
- Deadline:
- Ongoing
- Verified:
- 2026-09-04 · source
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Hybrid Heat Pump Rebate
Puget Sound Energy
$1,500
Check first$2,400 with Efficiency Boost — but not reachable from a Bellingham address.
Bellingham note: Unavailable in Bellingham. This rebate requires PSE natural gas service, and Bellingham’s gas utility is Cascade Natural Gas. PSE supplies electricity to all of Whatcom County but no natural gas, so a gas-heated Bellingham home currently has no PSE gas-to-heat-pump conversion rebate at all.
- Paperwork:
- We file it
- Deadline:
- No published end date
- Verified:
- 2026-09-04 · source
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Midstream HVAC Equipment Discount
Puget Sound Energy (with ICF)
$300–$600
Available nowTier 1 $300 (SEER2 ≥15.2 / HSPF2 ≥8.1, retrofit only) · Tier 2 $400 (SEER2 ≥15.2 / HSPF2 ≥8.5) · Tier 3 $600 (SEER2 ≥16 / HSPF2 ≥9.5).
Bellingham note: Whether this discount can be combined with the $1,500 conversion rebate is unconfirmed: PSE’s conversion page says its rebate "cannot be combined with any other rebates except where noted", while PSE’s heating hub tells customers to ask their contractor. We quote it separately and confirm with a PSE Energy Advisor before counting it toward your total.
- Paperwork:
- Comes off the equipment price
- Deadline:
- No published end date
- Verified:
- 2026-09-04 · source
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Washington State HEAR — Home Electrification and Appliance Rebates
WA Dept. of Commerce via local administrators
Varies by administrator
Income-qualifiedCommerce awarded $39.3M across 40 local administrators with no statewide schedule. Whatcom-relevant awards: Sustainable Connections $731,250, Opportunity Council $500,000, Lummi Nation $950,500. Per-household amounts are not published.
- Paperwork:
- The program files it
- Deadline:
- While administrator funds last
- Verified:
- 2026-09-04 · source
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Community Energy Challenge — moderate income
Sustainable Connections + Opportunity Council
Up to $2,000
Income-qualifiedFor a ductless heat pump upgrade. Weatherization incentives average roughly 45% of project cost. Stated by CEC to be in addition to utility rebates.
- Paperwork:
- The program files it
- Deadline:
- Ongoing
- Verified:
- 2026-09-04 · source
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Federal §25C Energy Efficient Home Improvement Credit
Internal Revenue Service
$0 — terminated
EndedHistorically 30% of cost, up to $2,000/year for heat pumps and heat pump water heaters. Gone. The One Big Beautiful Bill (P.L. 119-21, enacted July 4, 2025) accelerated its termination.
- Paperwork:
- You file it
- Deadline:
- Terminated — property placed in service after December 31, 2025 does not qualify
- Verified:
- 2026-09-04 · source
How a Marietta-Alderwood job runs
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Establish what you are actually heating with
The whole plan hinges on the current fuel. Electric resistance, whether a forced-air electric furnace, baseboards or wall heaters, is what PSE’s $1,500 conversion rebate is written for. Natural gas in Bellingham means Cascade Natural Gas, not PSE, and that single fact removes PSE’s gas-side rebates from your project. Propane and oil carry no utility rebate at all, but the largest running-cost saving.
Your part: Have a recent PSE bill and, if you have gas, a Cascade bill ready. They settle the fuel question and the rebate question in one minute.
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Assess the duct system for heat pump airflow
A furnace delivers 120°F air in short bursts; a heat pump delivers 95°F to 105°F air for longer. Duct that was adequate for the furnace can leave you with a cool-feeling supply and uneven rooms. We check trunk and return sizing, look for the crushed and disconnected flex that Whatcom crawlspaces are full of, and price duct repair as its own line rather than discovering it on install day.
Your part: Point out the rooms that were always cold with the furnace; those are the ones a heat pump will expose.
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Decide the configuration: full heat pump or dual fuel
If the furnace is electric, the usual answer is to remove it, fit a heat pump with a modest electric strip backup, and take the rebate. If it is a healthy gas furnace, a dual-fuel setup lets the heat pump carry the mild months and the furnace take over below the switchover point, which is a real option in a 19°F design climate. We size the load at 19°F, identify the balance point, and show you where each option lands rather than pushing one.
Your part: Tell us how long you plan to stay in the house. Dual fuel makes more sense on a young furnace than on an old one.
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Electrical load calculation and work by a licensed electrical contractor
Adding a heat pump to a house heated by gas means adding electrical load that was never there. Adding one where an electric furnace lived usually means less load, but the circuit and breaker still change. We do not hold an electrical contractor licence, so a licensed electrical contractor performs the service load calculation, the dedicated circuit, the disconnect and any panel work, permitted separately. In an older home with a full 100-amp panel, this is the step that most often changes the budget.
Your part: Send a photo of the panel and its label early, before you are attached to a number.
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Permit, and gas decommissioning done by the right trade
We pull the mechanical permit through City of Bellingham eTRAKiT or Whatcom County Planning and Development Services and meet the inspector. If a gas furnace is being removed entirely, capping and decommissioning the gas line and the venting is coordinated with the appropriate licensed trade and the utility rather than improvised. The chimney or B-vent that served it has to be addressed rather than abandoned open.
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Install, pressure test, evacuate, and charge
The outdoor unit goes on a raised, level pad with service clearance. Inside, a heat pump coil goes above a retained gas furnace for a dual-fuel setup, or a new air handler replaces the electric furnace outright. The circuit is nitrogen pressure-tested, then evacuated and confirmed on a micron gauge with a decay test before a weighed charge goes in.
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Commission the switchover and set up the rebate file
Dual fuel lives or dies on the switchover logic. We set the outdoor temperature at which the furnace takes over, prove the changeover both directions, and confirm the heat pump is not locked out early by a default thermostat setting. On an all-electric conversion we set backup lockout at or below 35°F with the compressor lockout disabled, as PSE’s rebate requires. We prepare the rebate documentation, but PSE requires the installing contractor to be in its network, so ask us to confirm status for your project before you count on the rebate.
Your part: Learn the one thermostat behaviour that matters on a heat pump, which is leaving the setpoint alone instead of setting back deeply overnight.
Furnace to Heat Pump Conversion questions from Marietta-Alderwood
- Should I keep my furnace as backup heat?
- Keep it if it is a sound gas furnace with years left, and remove it if it is an old electric furnace. A healthy gas furnace makes an excellent backup below the switchover point and costs almost nothing to retain, since the heat pump coil simply sits above it. An electric furnace, by contrast, is the thing you are trying to stop paying for, and removing it in favour of modest strip backup is what qualifies the project for PSE’s conversion rebate.
- Will my electric bill go up if I switch from gas to a heat pump?
- Your electric bill will go up and your gas bill will go down, and whether the total improves depends on rates and how much of the season the heat pump carries. Switching from electric resistance is the clear win: variable-speed heat pumps have been reported to run as much as five times more efficiently than baseboard or electric forced air, and one regional installer reports heating bills dropping 40 to 50 percent for households leaving electric resistance. Those are attributed figures, not our own measurements, and we will not pretend a gas-to-electric switch is guaranteed to be cheaper on your rates.
- Can I get the PSE hybrid heat pump rebate in Bellingham?
- No, and this is the detail nearly every local bid gets wrong. PSE’s hybrid heat pump rebate and its moderate-income fuel-switching rebate both require PSE natural gas service, and Bellingham’s gas utility is Cascade Natural Gas. So a gas-heated home inside Bellingham currently has no PSE gas-to-heat-pump rebate at all. If your current heat is electric resistance, though, the $1,500 conversion rebate is fully available, which is why the fuel you are leaving matters more than the equipment you are buying.
- Does a heat pump alone work here, without the furnace running?
- Yes, when it is sized against Bellingham’s 19°F design temperature and given a small amount of backup for the coldest hours. Winter lows here rarely drop below 10°F, and cold-climate equipment holds useful capacity through that. The design question is where the balance point sits, and we tell you that number so you know how many hours a year backup heat contributes.
- Can I keep my existing ducts and registers?
- Usually yes, with checks and often some repair. Because heat pump supply air is cooler than furnace air, undersized returns and leaky crawlspace flex show up as rooms that feel drafty or never quite arrive. We measure static pressure and return capacity before quoting, and if the duct system is genuinely inadequate we will tell you whether repairing it or going ductless in the problem rooms is the better spend.
- Will I need an electrical panel upgrade?
- Sometimes, and it is the biggest variable in the budget when you are coming off gas. A heat pump needs a dedicated circuit and a disconnect, and adding that load to a full 100-amp panel may require a service load calculation and panel work. A licensed electrical contractor does that assessment and all of the electrical work; we do not hold an electrical licence and will never quote you electrical labour as if we did.
- What happens to my gas water heater if I remove the gas furnace?
- It can stay on gas, and often should for now, but the shared venting has to be looked at. A furnace and a water heater sharing a chimney or B-vent are sized as a pair, and pulling the furnace out can leave the water heater orphaned on a flue that no longer drafts properly. That work is coordinated with the appropriate licensed trade and the utility. If you would rather electrify the water side too, a heat pump water heater has its own PSE rebate of $1,000, or $1,100 with Efficiency Boost.
- Are there state rebates for converting away from a furnace?
- Washington’s HEAR program is administered locally through Sustainable Connections, Opportunity Council and Lummi Nation, and each administrator sets its own amounts, which are not published as a single statewide figure. So the honest answer is that it may help and we cannot quote you a number in advance. The Community Energy Challenge also offers up to $2,000 toward ductless for moderate-income households in homes built before 1990, plus weatherization support that has averaged around 45 percent of project cost.
- How long does a furnace to heat pump conversion take?
- One to two days if we are adding a heat pump coil above a furnace you are keeping. Two to three days for a full electric furnace removal, air handler replacement and any duct correction, and gas decommissioning pushes it further. The electrical work and the inspection are scheduled separately, so allow a couple of weeks end to end.
- Do I need a permit for the conversion?
- Yes, and it may be more than one. We pull the mechanical permit and meet the inspector, through City of Bellingham eTRAKiT inside city limits or Whatcom County Planning and Development Services outside them. Electrical is permitted by the licensed electrical contractor, and removing a gas appliance brings the gas and venting work under the relevant licensed trade rather than ours.
- What does the conversion cost?
- Published Bellingham ranges for a ducted heat pump on existing ductwork run $4,000 to $8,000 installed, and conversions land at both ends of that rather than in the middle. A dual-fuel coil on a good gas furnace is the cheap end; removing an electric furnace, repairing duct, and adding a circuit to a full panel is the expensive end. We quote mechanical, duct and electrical as separate lines so you can see which decision is costing what.
- Is there still a federal tax credit for switching to a heat pump?
- No. Federal §25C and §25D ended for property placed in service after December 31, 2025 under P.L. 119-21, confirmed by IRS FS-2025-05, and the placed-in-service date is what controls. There is also no Washington sales-tax exemption on heat pumps, despite how widely that is repeated. For a 2026 conversion the real money is the PSE electric-resistance rebate, Efficiency Boost if you income-qualify, and the local HEAR and Community Energy Challenge programs.
Get a Marietta-Alderwood estimate
Tell us your address or ZIP — 98226 are all in our regular route.
Ready for a straight answer on your house?
Tell us what you have now and what you want it to do. We will tell you what fits, what it costs, and which rebates you actually qualify for — before anyone comes out.
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