Heat pump water heater rebate

For electric customers

Special offer: We’ve reduced the price of qualifying high efficiency heat pump water heaters by $500 with an instant rebate at participating Lowe's and The Home Depot stores. Please review our list of participating stores and typical retail/rebated prices.

If you buy a heat pump water heater at one of those stores, you’ll save $500 right at the register. There’s no need to submit an application, receipt, or proof that the product you bought is eligible.

If you buy a heat pump water heater at a non-participating store or on-line, you may still be eligible for a $500 rebate. Simply complete our mail in or online rebate form. Continue reading below, or review the eligibility requirements on our rebate form.

Are you working with a contractor to install a new heat pump water heater?
  • Instant discounts on high-efficiency heat pump water heater technologies are now available to equipment installers and are applied at the wholesaler or distributor point-of-purchase. Be sure to ask your contractor about these discounts.

  • When faced with an expedited need to replace an existing failed water heater, your contractor will have access to high efficiency technology. Tell them you want the best!

Contractors purchasing Units with a Unified Energy Factor of 3.0 or better and that are NEEA Northern Climate Specification approved are eligible for instant discounts from their Distributor. If the unit you are purchasing meets the below criteria, 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 high efficiency heat pump water heater!

High efficiency Heat Pump Water Heater Size is less than or equal to 200 gallons; UEF/COP 3.0; NEEA Northern Climate Specification approved

By incentivizing contractors to stock and sell high-efficiency heat pump water heaters, Puget Sound Energy hopes to transform the market, making high-efficiency water heaters consistently available to Washington customers.

Do I qualify?

customer requirements
Customer requirements
  • You must be a current PSE residential electric customer.
  • You must have an online PSE account to apply online.
  • Applies to existing single family properties only. Single-family new construction, multifamily (5 or more attached units) and commercial accounts are not eligible.
  • If you live in a manufactured or mobile home, you may qualify for increased incentives under our Manufactured Home rebate program
Equipment requirements
Equipment requirements
  • Qualifying electric equipment must be installed in PSE’s electric service area.
  • Rebates only available on new, qualifying equipment.
  • Your heat pump water heater must run on electricity.
  • Must install to comply with all federal, state and local code requirements.
  • Equipment that is replaced under warranty will not be eligible for second rebate.
  • The heat pump water heater must meet or exceed NEEA Northern Climate Tier 3 specifications.
  • Browse our list of qualified heat pump water heaters to see which models are eligible.
  • This rebate is not available when installed in conjunction with a geothermal heat pump.
  • If applying online, you will need an electronic image of your paid installation invoice or purchase receipt for your installed product(s).
rebates requirements
Rebate requirements
  • Your rebate application must be submitted within 60 days of equipment purchase.
  • This rebate is available for retail or online purchases only.
  • If your HPWH was purchased at a participating retail store, you may have already received the $500 rebate.
  • This rebate is not available if purchased from a contractor participating in PSE’s Midstream Residential Water Heating program.
  • One rebate per qualified single-family residence. Cannot be combined with any other rebates except where noted. Cannot be combined with rebate price-matching discounts offered by retailers.
  • Rebate cannot exceed the pre-tax purchase price of any rebated product.
Why Heat Pump Water Heaters?
  • A heat pump water heater uses electricity differently — moving heat rather than generating it, so you use 2-to-3 times less energy. Less energy means more savings on your bill.
  • You can select a specific water temperature, choose different operating modes depending on demand, even set it to “vacation” when you’re gone.
  • They help dehumidify damp spaces, such as your garage or basement where they are typically installed.
  • Heat pump water heaters typically come with 10-year warranties, and have an average life span of 13 years.
  • You may apply for a Federal tax credit until December 31, 2020 for qualifying, purchased units on top of your PSE discount. For updated details and to learn more click here.
green living
Is a new heat pump water heater right for you?
  • Use this interactive decision tool to find out.
  • Your new heat pump water heater should be located in a space with about 1,000 cubic ft. For example, in a basement with 7-foot ceilings, a water heater would need open floor space of roughly 10 by 14 feet around the unit.
  • For the most efficient operation, the air temperature where the water heater is installed should average 40 degrees Fahrenheit or above. Garages and unfinished (unconditioned) basements are ideal for heat pump water heaters.
  • Because the heat pump exhausts cool air in the area where it is located, the water heater must be installed in a location that would isolate cool air, or is ducted to the outside. Examples are in a garage or unheated/unfinished basement, attic or crawlspace.
  • Heat pump water heaters make about as much noise as an air conditioner. Consider this when making your purchase and placement decisions.