Heat Pump Rebates in Snohomish County: Snohomish PUD, Puget Sound Energy and State Programs

Your utility decides which rebates you can use

Start with your bills, not with a contractor's brochure. Across most of Snohomish County, including Lynnwood, Edmonds, Mountlake Terrace, Mill Creek, Mukilteo and the northern part of Bothell, electricity comes from Snohomish County PUD. Natural gas across the same area comes from Puget Sound Energy. That means a typical Lynnwood house with a gas furnace is a PUD electric customer and a PSE gas customer at the same time.

Bothell is the exception worth knowing. The city straddles the county line, and homes in the southern, King County part of Bothell get their electricity from Puget Sound Energy, not the PUD. Two neighbors a few miles apart can qualify for completely different rebates, so check the name on your electric bill before you plan anything.

Snohomish County PUD heat pump rebates

The PUD's heat pump rebates are aimed at homes where electricity is the primary heat source: electric furnaces, baseboard heaters, wall heaters and older heat pumps. The program has offered categories for ducted heat pumps and for ductless systems, with efficiency tiers that the equipment has to meet. Eligible home types on the PUD's page have included single-family homes, manufactured homes, townhouses and condos in smaller buildings.

The key requirement is the installer. The PUD generally requires the work to be done by a PUD-registered contractor, who often shows the rebate on the invoice and submits the paperwork after the job, and the PUD may inspect before it pays. The contractor we refer may or may not be on that list, so ask when you call and confirm on Snohomish PUD's heating rebate page. For baseboard-heated condos and apartments, our page on ductless mini-split installation explains how those systems fit.

Puget Sound Energy rebates

PSE runs its own rebate programs, and which ones apply depends on whether you buy gas, electricity or both from PSE. Gas customers across south Snohomish County have seen rebates on high-efficiency heating equipment, and PSE electric customers, such as homeowners in King County Bothell, may find heat pump rebates there instead of through the PUD.

PSE adjusts its offers from year to year, and some programs ask for a participating contractor or specific efficiency ratings. Look up the current list on Puget Sound Energy's rebates page before you commit, and save a copy of the terms that apply on the day you sign.

Washington State programs

The Washington State Department of Commerce administers home energy rebate programs, including electrification rebates that can apply to heat pumps. These programs have generally been income-qualified, funding can open and close in rounds, and some discounts are applied at the point of sale through approved contractors rather than mailed to you afterward.

Because availability and rules change, the safest advice is simple: check Washington Department of Commerce for current home energy rebate programs, confirm whether your household qualifies, and ask whether the program can be combined with a PUD or PSE rebate. Some programs restrict stacking, and the order you apply in can matter.

Federal tax credits changed in 2025

For several years, many heat pump buyers claimed the federal energy-efficient home improvement credit, known as 25C. Federal legislation passed in 2025 ended that credit for equipment placed in service after December 31, 2025. If your system was installed and running by the end of 2025, you may still be able to claim it on that year's return.

Tax rules change and individual situations differ, so confirm current status with a tax professional before you count any federal credit in your budget.

Expert insight: the rebate assumptions that most often go wrong

Most rebate disappointments in south Snohomish County come from a reasonable assumption that turns out to be wrong, not from bad luck. Before you count on a rebate, compare your situation with the program table below, and watch for these traps:

Checklist before you sign a heat pump contract

Rebates are lost far more often to paperwork than to eligibility. Before you sign:

1. Confirm your electric and gas utility, and how your home is heated today.
2. Read the current program page and save a copy or screenshot of the terms.
3. Ask whether pre-approval is required, and get it before installation if so.
4. Ask whether the contractor participates in the PUD or PSE program you plan to use.
5. Check that the exact outdoor and indoor model combination is on the qualified list, and ask for its AHRI certificate showing the HSPF2 and SEER2 ratings.
6. Confirm who pulls the mechanical permit and whether the program wants proof of a final inspection.
7. Keep the signed contract, the itemized invoice, model and serial numbers and installation photos.
8. Note the submission deadline and who files the application: you or the contractor.

Treat any rebate shown on a quote as expected, not guaranteed, until the program approves it. If you are deciding between a ducted heat pump, a dual-fuel system or a new furnace, our HVAC installation and replacement service can set up quotes that spell out equipment and ratings.

Talk through your options before you buy

Alderwood Heat & Cool Pros answers 24/7 and connects you with independent contractors for heat pump and ductless installs across Lynnwood, Bothell and nearby cities. Every HVAC contractor we send is registered with Washington L&I, licensed where Washington requires it, and insured. Ask about program participation when you call, and you get the price before work starts. Call (321) 478-0693.