High efficiency heat pumps and heat pump water heaters

Instant discounts on high-efficiency electric heat pump technologies are now available to equipment installers and are applied at the wholesaler or distributor point-of-purchase. If the unit you are purchasing meets the criteria below, you may be eligible for a discount from your contractor.

Tell them you are a PSE customer and ask about receiving a discount on your new high-efficiency electric heat pump or electric heat pump water heater!

Heat Pumps

Table 1: SEER/HSPF rated commercial and residential air-cooled heat pumps (<5.4 tons)
Mini or Multi-Split Heat Pump
<65 kBtuh (<5.4 tons)
Retrofit and new construction 1 16.0 9.5
2 16.0 11.0
Traditional Heat Pump Retrofit only
<65 kBtuh (<5.4 tons)
Retrofit only 1 15.0 9.0
Retrofit and new construction 2 15.0 10.0

Table 1 is for equipment that only has SEER/HSPF ratings with an invoice date between January 1, 2023–December 31, 2023 or for equipment that has both SEER/HSPF and SEER2/HSPF2 ratings in the AHRI Directory with an invoice date between January 1, 2023–June 30, 2023.

Table 2: SEER2/HSPF2 rated commercial and residential air-cooled heat pumps (<5.4 tons)
Air source heat pump
<65 kBtuh (<5.4 tons)
Retrofit and new construction 1 15.2 8.1
2 15.2 8.5
3 16.0 9.5

Table 2 is for equipment that only has SEER2/HSPF2 ratings with an invoice date between January 1, 2023–December 31, 2023. Equipment with both ratings should use Table 1 incentives through June 30, 2023.

  • What is SEER(2)? HSPF(2)?

    Seasonal Energy Efficiency Ratio (SEER/SEER2) is most commonly used to measure the efficiency of a central air conditioner. The higher the SEER, the more efficient the system. SEER measures how efficiently a cooling system will operate over an entire season. In technical terms, SEER is a measure of the total cooling of a central air conditioner or heat pump (in Btu) during the normal cooling season as compared to the total electric energy input (in watt-hours) consumed during the same period. This measure of efficiency is specific to the temperate climate in the middle of the U.S. Recently testing procedures have been refined to introduce the SEER2 rating.

    Heat Seasonal Performance Factor (HSPF/HSPF2) is the most commonly used measure of a heat pumps heating efficiency. The higher the HSPF, the more efficient the heat pump. In technical terms, HSPF represents the total heating output of a heat pump (including supplementary electric heat) during the normal heating season (in Btu) as compared to the total electricity consumed (in watt-hours) during the same period. Recently testing procedures have been refined to introduce the HSPF2 rating.

    Source: www.energystar.gov

  • Ductless heat pump facts

    A ductless heat pump is a highly energy-efficient heating and cooling system that runs without the energy losses associated with the ductwork of a central forced-air system. As it doesn't require ducts to carry conditioned air, it is the preferred system for additions to your home, newer homes that only require a small space conditioning system or areas of your home that you wish to condition in zones.

    Other benefits include:

    • Ductless heat pumps use between 25 and 50 percent less energy to heat your home
    • An ultra-quiet fan evenly circulates air, eliminating hot and cold spots
    • Installation in your home is inexpensive, simple and quick, which makes for little or no disruption
    • Ductless systems come standard with air conditioning, so you can get rid of window units
  • Air-source heat pump facts


    An air-source heat pump is a high-efficiency heating and cooling system that can deliver between one-and-a-half and three times more heat energy to a home than the electrical energy it uses.

    A less efficient panel of electric coils kicks in to provide additional indoor heating when outdoor temperatures fall below 40 degrees Fahrenheit, so it's generally not a preferred system for regions with sub-freezing winter temperatures.

Water heaters

Commercial and residential hybrid electric heat pump water heaters*
Hybrid heat pump water heater
<120 gallons**
Commercial Retrofit or new construction Any NEEA Tier
Residential Retrofit only NEEA Tier 3 or 4
New construction only NEEA Tier 4

*The Northwest Energy Efficiency Alliance (NEEA) qualifying product list can be found online.
**May be referred to as electric hybrid water heater in the marketplace.

  • Heat pump water heater facts

    Heat pump water heaters are also commonly referred to as hybrid electric water heaters. Heat pump water heaters (HPWH) can save a household of 4 approximately $470 per year on its electric bills compared to a standard electric water heater. While a HPWH costs more upfront, the savings will pay back in the difference in about three years for a household of 4. See if a HPWH is right for you, replace your aging electric water heater before it fails, and start enjoying the savings right away. Source: www.energystar.gov

  • What is NEEA?

    Northwest Energy Efficiency Alliance (NEEA) is an alliance of northwest utilities and energy efficiency organizations working on behalf of more than 13 million energy consumers to increase the adoption of energy-efficient products, services and practices. NEEA has standardized the use of Advanced Water Heating Specification (AWHS) to advance higher performing electric and gas heat pump water heaters. NEEA has a qualifying product list available online.


TIP: The installation of a heat pump or air conditioner can sometimes cause a fluctuation in the power supply when your equipment starts. This may result in a visible flicker of the lighting in your home or your neighbors' homes.

To ensure that your heat pump installation does not have a negative effect on power quality, it's important to discuss this issue with your contractor. For additional assistance, call a PSE Customer Construction Services specialist at 1-888-321-7779.

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Have questions about PSE's green options, including energy efficiency tips and rebates, contractor referrals, electric cars and renewable energy options? We're here to help.

Call us at 1-800-562-1482, Monday through Friday 8 a.m. to 5 p.m. or contact us below.

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