Guide
How to claim the PSE heat pump rebate, honestly explained
PSE heat pump rebates are contractor-filed, not homeowner-filed, and the installing contractor must be in PSE’s network. What qualifies, what documents you need, and the caveat other sites leave out.
- 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
PSE’s heat pump rebates are the largest incentive most Whatcom County households can actually claim, and they work differently from the tax credits people expect. They are contractor-gated: PSE requires the installing contractor to be in its network, states that you may not use an out-of-network contractor or complete the work yourself, and applies the credit to your project rather than mailing you a cheque. That has a consequence worth stating up front: ask us to confirm our PSE network status for your specific project before you count the rebate as money in hand.
Which PSE rebate applies to your house
PSE runs several heating rebates and only some are usable in Whatcom County, which is the source of most local confusion. Your current heating fuel determines which one you are in.
If your primary heat is electric resistance — baseboard, wall heaters, an electric forced-air furnace or radiant ceiling cable — you are in the Electric Resistance to Air-Source Heat Pump Conversion rebate: $1,500, or $2,400 with Efficiency Boost. Ducted or ductless both qualify.
If you already have a heat pump serving the main living area, the Heat Pump to Heat Pump Upgrade rebate applies instead: also $1,500, or $2,400 with Efficiency Boost, but ducted systems only — ductless is not eligible — and with cold-climate performance thresholds.
If your primary heat is natural gas, propane, oil or wood, there is no PSE conversion rebate for you. The hybrid heat pump rebate and the moderate-income fuel-switching rebate both require PSE natural gas service, and Bellingham’s gas utility is Cascade Natural Gas, so no Whatcom County address qualifies on that basis.
The eligibility rules that actually disqualify projects
The conversion rebate has a specific rule set and the failures we see are almost always in the same places. Read this before equipment is ordered rather than after.
On the house: you must be a PSE single-family residential electric customer, your existing primary heat must be electric resistance, there must be no existing heat pump already serving the main living area, and the rebate is one per residence.
On ductless equipment specifically: it must be AHRI-certified as a variable-speed mini-split or multi-split heat pump with inverter technology, at least three-quarter ton in heating mode, with at least one indoor head in the main living area — bedroom-only installations do not qualify. It must also be fully ductless, with no ducting of any length or size including short duct runs from concealed indoor units.
On controls: electric resistance backup heat must be locked out via an outdoor ambient sensor or weather-informed control, recommended at or below 35°F, with defrost and emergency operation exempt. Compressor lockout must be disabled, or set at 0°F or below if the controls force one. Dual-fuel systems are not permitted. Written thermostat-programming guidance must be given to the resident.
- Confirm you are a PSE single-family residential electric customer
- Confirm your existing primary heat is electric resistance, not gas, propane, oil or wood
- Confirm no existing heat pump already serves the main living area
- Confirm the residence has not already used this rebate — it is one per residence
- For ductless: confirm the system is AHRI-certified variable-speed inverter, minimum three-quarter ton in heating mode
- For ductless: confirm at least one indoor head is in the main living area
- For ductless: confirm the system is fully ductless with no duct runs of any length
- Confirm resistance backup heat is locked out via outdoor sensor, recommended at or below 35°F
- Confirm compressor lockout is disabled, or set at 0°F or below
- Ask your installing contractor to confirm its PSE network status in writing for your project
- For Efficiency Boost, have household income information ready at the appointment for the on-site attestation
- Keep the AHRI certificate, the itemised invoice and the permit and inspection records
The caveat that decides whether you get paid
PSE states that its heat pump rebates are only available through the contractor working on your project, that you may not use an out-of-network contractor, and that you may not complete the work yourself. The network is PSE’s Trade Ally and Recommended Energy Professional program.
So the rebate depends on a fact about the contractor, not only on facts about your house and your equipment. Bellingham Heating and Cooling’s membership in PSE’s network is not something we will claim without verifying it. Ask us to confirm status for your specific project before you count on the rebate, and we will give you a straight answer rather than a hopeful one.
We would rather lose a job to that conversation than have you discover it after installation. If we cannot file it, we will tell you which parts of the incentive stack are still available to you — the midstream equipment discount, weatherization instant rebates, manufacturer instant rebates, and the income-qualified programs — and price the job accordingly.
How the money actually reaches you
It does not arrive as a cheque. PSE applies the rebate to your project through the contractor, so what you see is a lower invoice rather than a reimbursement. That has two practical consequences.
First, it means the rebate is settled at the time of the work, not months later, which is genuinely better than a tax credit you wait for. Second, it means the amount should appear explicitly as a line on your quote and your invoice, and you should be able to see the arithmetic.
For the Efficiency Boost amount — $2,400 rather than $1,500 — the installer collects an on-site income attestation at the time of the visit. So bring household income information to the appointment rather than promising to send it later. PSE says roughly half its customers qualify for Efficiency Boost, so it is worth asking about rather than assuming you do not.
Documents to have and keep
Gather these before installation, not after. The AHRI certificate for the specific equipment combination, because AHRI certification is an eligibility requirement rather than a formality. The itemised invoice showing equipment models and the rebate applied.
The permit and inspection records for the mechanical work, and the separate electrical permit for the electrical scope performed by the licensed electrical contractor. Those matter for warranty and for resale as much as for the rebate.
The written thermostat-programming guidance that PSE requires be given to the resident, which is also the document that tells you what your lockout settings are. And your PSE account number, which is how the project is matched to your service.
Deadlines and stacking, without wishful thinking
The conversion rebate has no published end date; it is tariffed and subject to change, which means it can change without a deadline being announced. Treat it as available now rather than guaranteed later.
Other deadlines in the stack are firm. PSE’s heat pump water heater rebate requires the application within 30 days of installation and applies to units installed on or after January 1, 2026. PSE’s smart thermostat rebate requires application within 60 days of purchase. Daikin ductless instant rebates of $450 to $750 require purchase by September 30, 2026 and installation by October 31, 2026.
On stacking, one honest statement: whether the midstream equipment discount stacks with the $1,500 conversion rebate is unconfirmed, and we will not promise that it does. What is documented as stacking with the conversion rebate is Efficiency Boost, the Community Energy Challenge moderate-income ductless program, and Daikin instant rebates. And to state the obvious once more: there is no federal tax credit for a 2026 installation, because §25C and §25D terminated for property placed in service after December 31, 2025.
Questions Bellingham homeowners actually ask
- Do I apply for the PSE rebate or does the contractor?
- The contractor. PSE states the rebate is only available through the contractor working on your project, that you may not use an out-of-network contractor, and that you may not do the work yourself. The credit is applied to your project rather than mailed to you, so it should appear as a line on your invoice.
- Are you a PSE Trade Ally?
- Ask us to confirm status for your specific project before you count on the rebate, and we will answer straight. PSE requires the installing contractor to be in its network, and that is too consequential to your budget for us to be vague about.
- Can I claim the rebate on a DIY mini split kit?
- No. PSE excludes work completed by the homeowner and work by out-of-network contractors. Our DIY kit commissioning service is a good fit when the rebate was never available to you anyway — a gas-heated house, a detached shop, an outbuilding — and a poor trade when the rebate is worth more than the labour you would save.
- How do I get the $2,400 instead of $1,500?
- Through PSE’s Efficiency Boost, which is income-qualified and confirmed by an on-site attestation the installer collects at the time of the visit. Bring household income information to the appointment. PSE says roughly half its customers qualify, so it is worth raising rather than assuming you are outside it.
- Why does my gas-heated house not qualify for anything?
- Because PSE’s conversion rebate requires existing electric-resistance heat, and its hybrid and fuel-switching rebates require PSE natural gas service. Bellingham’s gas utility is Cascade Natural Gas, so no Whatcom County address is a PSE gas customer. Cascade runs its own residential rebates, but we could not verify current amounts from a primary source and will not print a figure we cannot stand behind.
- Can I stack the midstream discount with the $1,500?
- Unconfirmed, and we will not tell you otherwise. The midstream equipment discount of $300 to $600 is passed through the distributor and the conversion rebate is filed by the contractor, and PSE has not published a clear statement that the two combine. What is documented to stack with the conversion rebate is Efficiency Boost, the Community Energy Challenge moderate-income ductless program, and Daikin instant rebates.
Have us apply this to your house
Reading it is one thing. Send us the address, the panel size and what you heat with now, and we will tell you what it means for your project.
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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