Heat Pump Water Heater Incentives

Most heat pump water heaters (HPWHs) are 2-3 times more efficient than standard electric water heaters and have lower operating costs.

Chelan PUD offers commercial incentives to help customers save now — and in the long run — when you improve the energy efficiency of your water heating.

Commercial Online Forms

Use the following online forms to tell us about your commercial project.

Commercial Incentive Application 

Hybrid (Heat Pump) Water Heaters

 

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$2,000

Replace a conventional electric water heater with a qualifying new heat pump water heater (of any tank size).
Valid for applications received January 1-December 31, 2026, based on program availability. 

Requirements

  • Chelan PUD customer with existing commercial building (no new construction or additions) in Chelan County.
  • Must replace an existing standard electric water heater.
  • New equipment must be on the Qualified Product List and meet Tier 3 or higher efficiency requirements.
  • Installation may be done by a contractor (recommended) or do-it-yourself.

 

Before Installation

  1. Take a photo of the old water heater you’re replacing.
  2. Check if you have the ideal space for a HPWH: A HPWH is slightly bigger than standard electric models and typically requires at least 700 cubic feet of airflow around them, or the equivalent of a 7’x10’x10’ room. While in operation, a HPWH releases cool dehumidified air and makes noise similar to a modern dishwasher or freezer.
  3. Choose a qualifying energy efficient product on the NEEA HPWH Qualified Product List (PDF).

 

After Installation

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Who Can Apply

The contractor or PUD customer

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When to Apply

Within 12 months of installation

Here’s what you’ll need for the Commercial Incentive Application:

  1. Photo(s) of the installed heat pump water heater(s)
  2. Invoice showing the manufacturer, model number, and quantity purchased
  3. W-9 for your business if the incentive check is to go to you

Additional required documents that will be sent to the customer to sign:

  1. Chelan PUD Energy Efficiency Program Agreement
  2. Assignment of Rebate Form if payment is to go to the contractor

What happens next? Once all required documentation has been received, verified, and any required inspection is completed, your incentive check will be issued. Processing time begins after all required materials are submitted. Payments are typically processed within 4–6 weeks, but timelines may vary depending on application volume and project review requirements.

 

Commercial Rebate Exclusions

The following properties are not eligible for the commercial rebate program, regardless of meter type:
❌ Short-term rentals (e.g., vacation rentals, Airbnb, VRBO)
❌ Long-term rental properties
❌ Condos and townhomes
❌ Cabins and other residential-style lodging

However, these properties may qualify for rebates through the residential rebate program. Please visit the Residential Rebates page more information.

 

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Questions?

We're here to help! Talk to a Chelan PUD energy advisor with the Customer Energy Solutions team.

Call (509) 661-8008 or send an email.