Heat pumps have become increasingly popular in recent years as a way to heat and cool homes in an energy-efficient and environmentally friendly way. However, the upfront cost of installing a heat pump can be daunting, especially for homeowners on a tight budget. Fortunately, there are a number of federal, state, and local incentives available to help homeowners offset the cost of installing a heat pump. These incentives can make heat pumps much more affordable, and in some cases, even free.
The Inflation Reduction Act, which was passed in 2022, includes a number of incentives for energy efficiency and electrification projects, including heat pumps. One of the most significant incentives is a 30% federal tax credit, which can save homeowners up to $2,000 on the cost of a heat pump installation.
Washington state is also offering a number of incentives to encourage homeowners to install heat pumps. The state expects to receive $80 million in federal funding to subsidize heat pumps and other home energy-saving improvements. This funding is expected to be available in mid-2024.
In addition to the federal funding, the Washington state legislature has allocated an additional $80 million to home energy improvement incentives over the next two years. These funds are expected to be available sooner than the federal funds, in early 2024.
A number of cities and counties in Washington also offer their own incentives for heat pump installation. For example, Seattle offers a $2,000 rebate to homeowners who switch from oil heat to a heat pump. King County will install heat pumps for free in 150 low-income homes in the North Highline and Skyway-West Hill unincorporated areas.
The specific process for applying for incentives varies depending on the program. However, most programs require homeowners to submit an application and provide proof of purchase and installation of a heat pump.
Homeowners should contact their local utility company or the Washington Department of Commerce for more information on how to apply for incentives.
Heat pumps are a great way to save energy and reduce your carbon footprint. With the availability of federal, state, and local incentives, heat pumps are now more affordable than ever before.
If you are considering installing a heat pump in your home, be sure to research the available incentives to see how much you can save.