Midstream HVAC and Water Heating Program
The Puget Sound Energy (PSE) Midstream HVAC and Water Heating program is designed to promote the benefits of energy-efficient HVAC and water heating systems. Distributors can pass through a discount if the unit being purchased meets the criteria below.
Rebates are available for:
End-use customers* can expect the equipment rebate from their contractor. Ask your contractor or distributor about receiving a discount on your new high-efficiency electric heat pump, gas storage water heater, or space heat boiler. Find a contractor here.
Reference Tables 1-3, below, for qualifying products. Equipment incentives are passed down to end-use customers* through participating distributors.
*End-use customers are PSE electric customers who purchase qualifying equipment from a participating distributor or contractor.
Heat Pumps
Table 1: SEER2/HSPF2 rated commercial and residential air-cooled heat pumps (<5.4 tons)
Limit 1 unit per residential retrofit project. Limit 2 per residential new construction project.
EQUIPMENT / PROJECT TYPE | TIER | SEER2 | HSPF2 | Rebate |
---|---|---|---|---|
Air-source heat pumps Mini-/multi-split, split, or packaged Retrofit or new construction |
3 | 16 | 9.5 | $650 Total rebate ($ per unit) $260 Distributor/ Contractor $390 End-Use Customer |
Air-source heat pumps Mini-/multi-split, split, or packaged Retrofit or new construction |
2 | 15.2 | 8.5 | $450 Total rebate ($ per unit) $180 Distributor/ Contractor $270 End-Use Customer |
Air-source heat pumps Mini-/multi-split, split, or packaged Retrofit only |
1 | 15.2 | 8.1 | $350 Total rebate ($ per unit) $140 Distributor/ Contractor $210 End-Use Customer |
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What is SEER(2)? HSPF(2)?
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Ductless heat pump facts
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Air-source heat pump facts
Water heaters
Commercial and Residential Water Heaters
Table 2: Residential DHW Water Heaters
EQUIPMENT / PROJECT TYPE | SIZE CATEGORY | Minimum UEF | Rebate |
---|---|---|---|
Condensing or
non-condensing storage gas water heaters Residential Retrofit |
≥ 20 gallons and ≤ 55 gallons |
Uniform Energy Factor ≥ 0.67 | $135 Total rebate ($ per unit) $54 Distributor/ Contractor $81 End-Use Customer |
Residential Space Heating Boilers
Table 3: Residential HHW Boilers
EQUIPMENT / PROJECT TYPE | SIZE CATEGORY | Afue | Rebate |
---|---|---|---|
Condensing
gas boiler* Residential Retrofit |
≤ 300,000 Mbtuh | ≥ 95% | $450 Total rebate ($ per unit) $180 Distributor/ Contractor $270 End-Use Customer |
*Limit 1 condensing gas boiler per residence. Please reach out to the Program Implementer with any questions.

TIP: The installation of a heat pump or air conditioner can sometimes cause a fluctuation in the power supply when your equipment starts. This may result in a visible flicker of the lighting in your home or your neighbors' homes.
To ensure that your heat pump installation does not have a negative effect on power quality, it's important to discuss this issue with your contractor. For additional assistance, call a PSE Customer Construction Services specialist at 1-888-321-7779.

Are you a distributor or contractor? Learn more about PSE’s Midstream program. Contact Us at psemidstreamteam@icf.com

Request a PSE Recommended Energy Professional (REP) to complete your energy efficient improvement upgrade.