Packaged terminal heat pumps

Install enhanced comfort

Increase functionality, reliability, and comfort for your guests, all while optimizing energy usage and satisfaction for your business when you replace your guest room through-the-wall air conditioners with qualified packaged terminal heat pumps.

Packaged terminal heat pumps, or PTHPs, stand out for their super energy efficiency. PTHPs provide most of their heating and cooling using energy-efficient reverse cycle technology. Hotel owners typically have PTAC (packaged terminal air conditioners) in their guest rooms which use inefficient electric resistance strip heating and 35% more energy than their PTHP cousins.

By upgrading from PTAC to PTHPs, hotel guests will be provided with a comfortable, easy to control, and quiet stay. And you can find satisfaction in the efficiency, easy maintenance, and convenience PTHP units offer your business.

What you get

Receive Pre-Approval for a PSE rebate covering up to $1,000 per unit when replacing your current electric resistance heating with a code-exceeding, AHRI Certified® packaged terminal heat pump (PTHP). This rebate requires pre-approval prior to installation, is capped at $1,000 per unit, cannot exceed the purchase price of the qualified product, and does not include installation, labor, or taxes.

Example 1:

  • PTHP unit cost is $925 without installation, labor, or tax;
    • PSE Rebate is $925 (rebate cannot exceed the cost of the PTHP)

Example 2:

  • PTHP unit cost is $1,200 without installation, labor, or tax;
    • PSE Rebate is $1,000 (rebate is capped at $1,000 per PTHP)

PSE requires Invoicing showing the line itemed costs of the project in order to determine Pre-Approved PSE rebate amount.

Packaged Terminal Heat Pump
ElectricElectric – up to $1,000


Apply now

How you qualify

Customer requirements

  • You must be a current PSE commercial electric customer in the hospitality/lodging industry. This may also include:
    • Boarding/rooming houses, apartment hotels, dormitory, and shelter facilities.
    • Residential care building types which, for the purposes of this rebate includes: nursing homes, retirement home, and assisted living.
  • You must be replacing pre-existing unitary HVAC systems that use electric resistance heating.
    • Packaged Terminal Air Conditioners, also called PTAC, qualify as pre-existing equipment.
    • Packaged Terminal Heat Pumps (PTHP) already pre-existing do not qualify.
    • Replacement of gas-sourced heating does not qualify for this rebate.
    • Unsure of what you currently have? Send us an email with the manufacturer and model number and we’ll look into it with you.
  • New Construction projects are not eligible for this rebate.
  • This rebate is specifically for packaged terminal heat pump equipment. If you are interested in Ductless Heat Pump technology but not specifically PTHP, please visit PSE’s heat pump rebate page for more information.

Equipment requirements

Your PTHP must be new, certified by the Air Conditioning, Heating, And Refrigeration Institute (AHRI), and exceed Washington State Energy Code by a minimum of 10%. To determine eligibility of proposed PTHP, follow these simple steps to use the table below:

  • Visit the AHRI directory and search for your proposed PTHP.
  • Download the certificate for that model.
  • Compare the AHRI Certificate data with the data points in the table below.
    • Tip: Use the proposed PTHP’s Cooling Capacity in BTUs to determine which minimum EER is required to qualify.
    • Tip: Use the proposed PTHP’s Heating Capacity in BTUs to determine which minimum COP is required to qualify.

The PTHP data values found on the AHRI certificate must meet or be higher than the values listed in this table in order to qualify for PSE’s PTHP rebate:

PTHP Efficiency Requirements – 10% above WA State Energy Code
Capacity in BTU <8,000 8,000 – 10,999 11,000+
Cooling - Minimum EER 10.2 9.8 9.1
Heating - Minimum COP 3.0 2.9 2.8

Project Pre-Approval requirements

To be eligible for PSE’s Packaged Terminal Heat Pump rebate you must first receive Pre-Approval prior to installation. To do so the following will need to be satisfied:

  • This rebate is only available for new, qualifying PTHPs.
  • New Construction projects are not eligible for this rebate.
  • PSE requires proof of qualifying pre-existing conditions (see ‘Customer Requirements’ above) prior to pre-approval or installation of your new equipment.
    • Photos of the existing equipment nameplates - showing make, model, and serial number - for each installed room satisfy this requirement.
    • Use this template to document that information and submit this along with photos in your pre-approval packet.
    • Issues fulfilling this requirement may disqualify the rebate project.
    • Unsure of what you currently have? Send us an email with the manufacturer and model number and we’ll look into it with you.
  • You will need to provide a copy of your quote***, invoice, or purchase receipt for your product(s), showing:
    • Manufacturer and model number (this will be used to pre-approve the proposed PTHP qualifies for the rebate).
    • Itemized unit costs (this will be used to determine and pre-approve the rebate amount)*.
  • You must submit a completed W-9 Taxpayer Identification Form for your business.
  • All projects must be invoiced, installed, and submitted to PSE within the current calendar year.
  • Once Pre-Approval has been given, PSE will hold project submissions “in-progress” until installation has been completed prior to approving payment of any rebates.

The timing of the steps in this process is important. Submit project Pre-Approval documentation to PSE early (see below)! To ensure that you and the equipment qualify for rebate, and to help prevent any potential missteps in the process, submit the required project documentation at the beginning of your project timeline so that key details can be qualified and confirmed by PSE and Pre-Approval can be given for project installation. This will preempt any non-qualifying project details and subsequent rebate rejection.

If installation activity has already begun, please contact us immediately to discuss your project.

For help verifying your qualifications, send an email to

How you apply

To apply for Pre-Approval for the program, please use this handy checklist for submitting project paperwork. Once all project paperwork listed below is received by PSE and meets PSE’s program qualifications, a rebate Pre-Approval notification will be sent to you to proceed with equipment installation. If any of the required documentation is incomplete or does not qualify, you will receive a notification with an explanation and/or instructions for next steps.

Send all project paperwork to

When installation of all equipment has been completed, please notify PSE by responding to your Pre-Approval email thread. Once this occurs and any PSE verification needs are satisfied**, you should expect to receive your rebate* within 6 to 8 weeks.

* Any PSE’s pre-approved rebate amount is subject to change in the event that equipment pricing on final invoicing differs from previously submitted quote or invoice. PSE rebate will be based on final invoice equipment pricing.
** All PSE rebate projects may be subject to a randomly selected on-site verification to confirm installation and equipment eligibility. If your project is randomly selected PSE will contact you, based on the contact information provided on the pre-approval form, in order to schedule this verification prior to rebate payment.
*** A Quote is acceptable in the Pre-Approval stage of your project if the equipment has not yet been purchased, however a final Invoice will be needed before confirmation of rebate amount* prior to payment.

Additional information

Small- to Mid-size Lodging Efficiency Program

If your facility has 150 rooms or less you may also qualify for a no-cost energy assessment with one of our small business energy experts. Read more about how this program can benefit your business.

Occupancy-based thermostat control rebates

PSE wants to help you manage and control your new packaged terminal heat pumps (or even your old PTACs) with the types of thermostats that work best for the hospitality industry, saving you even more energy and money. Check out the Occupancy-based Thermostat page to learn more about this opportunity.

Commercial foodservice rebates

PSE has an extensive rebate program to help you upgrade to energy efficient foodservice equipment. This can be anything from the ice machines found on each floor to the heavy equipment found in your hotel restaurant. Visit the Commercial Foodservice Equipment Rebate Program page to learn more.

Business Energy Resources

Looking for deeper energy savings?

Check out our Business Energy Advisor tool with tips for your business type.

Ask an Energy Advisor

For personalized advice, contact an Energy Advisor.

Or call 1-800-562-1482.