Over the last decade, more Seattle households have been ditching gas and oil furnaces to install electric heat pumps — which, despite their name, also provide air conditioning, filter polluted air, and have become more affordable with government cost-saving rebates and tax breaks. Seattle households transitioning off oil heat can save up to $8,000 on a heat pump!
Heat pumps are becoming more popular because they provide year-round comfort and cost-savings and are almost four times more energy efficient than gas or oil furnaces, meaning you get the same amount of heating comfort while paying for less energy. Households that switch from oil heat typically save more than 50% on their heating bills.
Like cities across the globe, Seattle is feeling the effects of climate change with more extreme weather and wildfire smoke events. During summer heat waves, colder winters, and wildfire smoke and air pollution, heat pumps are a cost-effective option for heating, cooling, and air-filtration which supports better indoor air quality and health.
Gas and oil furnaces heat homes by burning fossil fuels which pollute the air. In contrast, electric heat pumps are powered by carbon neutral electricity supplied by Seattle City Light, nearly eliminating climate pollution compared to a furnace fueled by dirty oil or fracked gas, which requires infrastructure such as oil storage tanks and gas piping.
Oil tanks can leak and dangerously pollute your yard, your neighbor’s yard, and impact human health by seeping into ground water (if you believe you have an oil leak, visit Washington State’s website for assistance).
Ready to make the switch and get a heat pump? Check out this list of City of Seattle rebates and incentives to reduce the upfront cost of equipment.
- City of Seattle Clean Heat Program: Seattle households can save up to $8,000 transitioning from an oil furnace to a qualified heat pump including a $2,000 instant rebate, an instant $4,000 bonus rebate for qualifying moderate-income households, and a $2,000 federal tax credit for qualified heat pumps. Bonus rebates are funded by Washington State’s Climate Commitment Act and are limited through May, 2025 unless extended by the WA State Legislature. Learn more and find a list of eligible contractors at www.nomoreoilheat.com.
- City of Seattle Low-Income Weatherization Program: Income-qualified households can get a free heat pump when replacing their electric baseboard or oil furnace. Visit www.seattle.gov/cleanheat to learn more.
- Seattle City Light Rebates: Customers can save $300-$600 on qualified heat pump systems. Ask your contractor about getting the instant savings applied to your invoice.
Heat pumps are becoming the new normal nationally according to the Air-Conditioning, Heating, and Refrigeration Institute, but Seattle is leading the trend.
“At Gensco, we have seen a tremendous increase in the use of heat pumps in almost all heating and cooling applications,” says Mark Stearns, Regional Sales Manager for Gensco, a leading heat pump distributor in Seattle.
In single-family homes in Seattle, heat pump installations have been surpassing gas and oil furnace installations since 2014. In 2024, heat pumps were installed four times as often as oil or gas furnaces, accounting for 81% of home heating systems upgrades to existing homes and new construction. See more on this trend in the chart below.
Government policies and programs have also helped advance heat pump adoption. In Washington, new home construction follows the state residential energy code, which sets energy efficiency requirements for space heating, water heating, insulation and more. Heat pumps meet these requirements cost-effectively and home builders are predominantly installing heat pumps in most new home construction.
“Over the past four decades, Washington State’s residential energy code has saved homeowners millions in utility bills and led the way for the rest of the country,” said Duane Jonlin, a code advisor with the City of Seattle Department of Construction and Inspection. “Modest upfront investments in equipment and insulation yield robust long-term savings.”
While government policies support a more energy efficient and comfortable home in new construction, rebate programs make sure people in existing homes can also access these benefits. Voluntary rebate and incentive programs by the City of Seattle help residents afford the systems in their homes.
Whether it is to lower utility bills, improve home comfort, or support a cleaner environment, it is clear Seattle homeowners consistently prefer electric heat pumps for their own homes and government programs and policies make that a more affordable reality for all.