Ductless Heat Pumps for Business

Chelan County PUD offers incentives for ductless heat pump upgrades and retrofits (conversions from another electric heat source).

Ductless heat pumps save energy using variable speed compressors to continuously match the heating and cooling load and avoid the on/off cycling of conventional heating systems. DHPs are two to three times more efficient than electric-resistance heaters.

A retrofit replaces the existing zonal or forced-air electric-resistance heating system with a DHP.
- Space must be conditioned by zonal or forced-air, electric-resistance heat as the primary heating source. No other heating sources are eligible.
- Measure cannot be used to retrofit packaged terminal air conditioning (PTAC) units.

The incentive for retrofits is $2,000 per ton.

A DHP upgrade replaces an existing DHP with a more efficient DHP
- Space must be conditioned by an operational or failed DHP OR
- Space must be part of a building addition, new construction or major renovation project.
- Measure cannot be used to retrofit packaged terminal air conditioning (PTAC) units.

The incentive for upgrades is $300 per ton.

NEW DHP REQUIREMENTS for both retrofits and upgrades
- The installed DHP must be listed on the DHP Qualified Products List (QPL).
- The DHP outdoor condenser must meet BPA’s efficiency requirements per the table below.
- The efficiency requirements apply to both single and multi-head systems.
DHP requirements chart_


  • Completed Ductless Heat Pump Project Application Form.
  • Equipment/contractor invoice showing (a) measure requirements have been met (e.g., manufacturer, model number, type, size and quantity of equipment or product installed/used), (b) the order/purchase date and (c) cost

By email:
By mail:
Chelan PUD
Energy Efficiency Dept.
PO Box 1231
Wenatchee, WA 98807-1231

Phone: (509) 661-4187
For questions, email: scott.stanford@chelanpud.org

Ductless heat pump

For this measure, DHP equipment types are:

Mini-Split: Systems that have a single outdoor compressor and one or more indoor heads. Multi-head (or multi-zone) systems are considered mini-splits as long as they are served by a single outdoor compressor.
Non-ducted: An indoor unit which directly heats or cools air within the conditioned space without attached distribution ductwork. The following types of indoor units are considered non-ducted: Wall-mounted, floor-mounted, ceiling suspended, and ceiling cassette (standard and compact) .
Ducted: An indoor unit which heats or cools air within the conditioned space through the use of distribution ductwork. Though ducted indoor units can be ceiling-suspended, they are typically ceiling-concealed and consist of short duct runs serving multiple zones from the single indoor unit.
Mixed: A combination of ducted and non-ducted indoor units served by a single outdoor section.