Outdoor Heat Pumps

Get up to $1,000 cash back

Save big on a high-efficiency heat pump conversion

Score serious cash back when you convert to an energy-efficient heat pump. Program-qualified heat pumps are up to 20 percent more efficient than older models. With proper selection, installation and maintenance, you can gain big savings on your heating and cooling costs. Cash incentives are available for heat pump conversions and upgrades.

 The Federal Non-Business Energy Property Tax Credits have been retroactively extended from 12/31/2017 through 12/31/2020. Tax credits are available to homeowners who installed energy-efficient products in 2018, 2019, and 2020. Heat pumps are eligible for a $300 tax credit. More information. 

By sharing this information, Pacific Power is not providing any tax advice. Please consult with your tax adviser concerning the tax treatment of incentives and reporting of payments with respect to your taxes.

Qualifications & Incentives
Equipment Purchases and Services Customer Incentive
Heat pump to heat pump upgrade $100
Electric heat system to heat pump conversion $1,000
  • Must be existing single family home, new construction is not eligible for this incentive
  • Buildings with four or more units are considered multifamily
  • All HVAC equipment incentives require Air Conditions, Heating and Refrigeration Institute (AHRI) certificate to qualify. The AHRI Directory can be found at ahridirectory.org
  • Incentive amount cannot exceed the total cost of the project
  • All required documentation must be postmarked within 90 days of the work completed date
  • Additional incentive-specific qualifications and required documentations are listed below

General requirements

  • Work must be completed by a Participating or Qualified HVAC Contractor
  • Minimum 9.0 HSPF, 16 SEER for heat pump upgrades
  • Minimum 8.5 HSPF for heat pump conversions
  • Equipment must be a new, air-source split or packaged unitary heat pump with and AHRI Standard Rating Cooling Capacity of 65,000 BTU/hr (5.4 tons) or less
  • Homes 3,500 square feet or less may qualify for one unit, while homes greater than 3,500 square feet may qualify for two units. Homes greater than 3,500 square feet requiring more than two units may apply for additional incentives (additional documentation required; contact program for more information)
  • Gas, oil, wood heating, pellet stoves, and propane system conversions do not qualify

Heat pump upgrade:

  • Previous primary heat source must have been an electric ducted heat pump that serves at least 80% of the home’s conditioned living space
  • New heat pump must be the current primary heat source and must service at least 80% of the home’s conditioned living space

Heat pump conversion:

  • Previous primary heat source must have been a permanently installed electric resistance heating system (e.g. electric baseboard, electric furnace, electric ceiling/wall heat) serving at least 80% of the home’s conditioned area
  • New heat pump must be the current primary heat source and must service at least 80% of the home’s conditioned living space
  • Incentive is not offered to customers replacing an existing ducted heat pump

Required documents include:

  • Completed and signed Incentive Application
  • Itemized receipt/contractor invoice (see incentive application for invoice requirements)
  • AHIR certificate
  • Third Party Payment Addendum for applicants who would like to forward payment to a third party not listed on the utility account
  • IRS W9 Form (for business and non-individual customers receiving incentives)
Customer Eligibility

Residential electric customers residing in the state of California who purchase their
electricity from Pacific Power on rate schedules D, DL-6, DS-8, DM-9 or NEM-35
qualify. Landlords who own rental properties served by the company in the state
of California where the tenant is billed on rate schedules D, DL-6, DS-8, DM-9
or NEM-35 also qualify for this program. You can locate your rate schedule on your
bill or by calling 1-888-221-7070. Incentive checks are only issued in the name of
the Pacific Power account holder.

How to Apply

Prior to starting a project, find a contractor on the California Participating or
Qualified HVAC Contractor list. Note that select incentives must be completed
by a Qualified Contractor. Review the incentive application with your contractor
to determine eligibility requirements, incentive qualifications and review the
list of required documents to submit for an incentive.

Incentive Application and required documents must be postmarked within 90 days
of the work completed date. Incentive checks are issued within 45 days of receipt
of the completed and approved incentive application. Checks are only payable to
the account holder. Incentives are not to exceed the purchase price of the equipment
or service. Equipment and service work may be inspected for compliance. Incentives
are subject to California Public Utilities Commission approval and may change with
45 days notice. Additional terms and conditions may apply.