Updated: August 10, 2023
When the Inflation Reduction Act (IRA) was signed into law on August 16, 2022, it included the most ambitious climate action policies in American history.
The IRA aims to cut domestic greenhouse gas emissions in half by 2030 compared to 2005 levels, but significant changes to the way we live will become necessary.
Americans can help the country reach its goals by switching to electric energy whenever possible. Fossil fuels are responsible for about 73% of greenhouse gas emissions in the country, so limiting their use will be critical.
Using a heat pump to heat and cool your home is one way to do your part. These HVAC units use electricity and refrigerant to remove heat from the air and pump it inside or outside, depending on the season, limiting your need for a natural gas furnace.
The time to invest in a heat pump is now better than ever to reduce your carbon footprint, while at the same time lowering your energy costs. As this article points out, there are some significant discounts and rebates that are available making these energy-saving units more affordable than ever.
Here’s a look at some of these subsidies and incentives available to Washington state residents.
The Inflation Reduction Act
Reading through the Inflation Reduction Act, you’ll see that $369 billion is reserved for climate and energy programs. These programs aim to incentivize consumers to purchase electric vehicles, solar panels, energy-efficient windows and doors, high-efficiency air conditioners, and other appliances that don’t use fossil fuels.
With Washington state becoming more prone to extreme heat, installing a heat pump to keep your home cool in the summer is becoming ever more important for the comfort and health of you and your family. You can also use your heat pump for heating in the fall, spring, and winter. So it makes sense to take a look at what the IRA offers home owners to purchase and install a heat pump for both heating and cooling of your home.
First, the IRA offers rebates of up to $8,000 for Washington state families making 80% or less of the state’s median income that purchase a heat pump. Households making 80-150% of the median state income are eligible for a $4,000 rebate. These rebates reduce the upfront cost of purchasing a heat pump and are issued at the state level using IRA funds.
The Inflation Reduction Act also offers a nonbusiness energy property credit, a tax credit for 30% of a new heat pump’s value up to a cap of $2,000. As a result, you can receive up to $2,000 in tax credits just for installing a heat pump in your home.
These incentives cover any heat pump installation you complete after January 1, 2023, and you’ll have until the end of 2033 to complete the job.
With these rebates and tax credits, installing a heat pump makes more sense than ever especially since you’ll save on your monthly energy bills.
Working with Hunt’s Services to purchase and install your heat pump is a no brainer because we specialize in HVAC so we can offer you years of experience and certified technicians to complete your job. In fact to serve you better, we offer a free consult with one of Comfort Specialists to discuss and analyze what options are best for you before you decide.
Energy Smart Eastside
The federal rebate and tax incentives aren’t the only ways you can save on a Washington heat pump installation, as a local program offers residents of select King County cities an additional discount.
The Energy Smart Eastside program allows homeowners in Bellevue, Issaquah, Kirkland, Mercer Island, and Redmond to purchase a new heat pump at a discounted price through their group buy program.
To be eligible for this discount, you’ll have to attend a free educational workshop explaining heat pump technology, the money it can save you long-term, and the incentives you can receive. This workshop is only an hour long and virtual, so you don’t have to leave your home.
From there, you’ll sign up for a free site assessment from a certified HVAC installer like Hunt’s Services, select the heat pump option that’s best for your home, and sign a contract. Hunt’s Services can then install your heat pump, and you’ll get $500 off its purchase price.
Puget Sound Energy Rebates
Finally, Puget Sound Energy has a program where customers using a less efficient electric heating source can receive an $800 rebate if they switch to a ductless heat pump system. So, if you use an electric furnace, wall, or baseboard heaters and live in a single-family home, an incentive is available to you.
This incentive is part of PSE’s Efficiency Boost program, which aims to reduce consumption in the Puget Sound area. Other incentives are available when switching to a tankless water heater, upgrading to an Energy Star furnace, or installing a smart thermostat in your home.
Heat Pump Rebates in Washington
The cost of installing an energy efficient heat pump as your heating and cooling system has never been so affordable than now. These rebates and discounts aim to reduce the financial burden on families, making upgrades possible for more households.
Hunt’s Services offers heat pump installations for all of Pierce, King and Thurston Counties. Booking an appointment with our licensed, certified team puts you on the track to energy savings. Call Hunt’s Services at 253-533-7500 to learn more about these rebates and discounts and your eligibility.
