Heat Pump Water Heater Rebates

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Considering a Heat Pump Water Heater?

Upgrade to a heat pump water heater (HPWH), also known as a hybrid water heater, to save up to 70% of hot water energy costs compared to standard electric models. Chelan PUD offers a rebate to help you save now—and in the long run—when you make the switch.

HPWHs work like a refrigerator, but in reverse. While a refrigerator pushes heat from inside the unit out to the air around it, a HPWH uses fans and an evaporator to pull warmth from the surrounding air and transfers it to water in the storage tank. Because it uses the warm ambient air temperature to do most of the work, it is a very efficient way to heat water. Learn more

 

Who is Eligible?

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Rebates available for Chelan PUD customers converting to a heat pump water heater from an electric water heater. 

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Applies to owners of any existing home type. No new construction. 

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Either contractor installation (find a local contractor) or do-it-yourself (follow these helpful tips).

 

Hybrid (heat pump) water heater

The Ideal Space

Heat pump hot water heaters work a little differently than electric resistance water heaters. Keep in mind:

  • Heat pump water heaters are slightly bigger than standard electric models.
  • The ideal location for a HPWH is in a garage or unheated basement.
  • While in operation, a heat pump water heater releases cool, dehumidified air.
  • Most units require at least 700 cubic feet of airflow around them, the equivalent of a 7′x10′x10′ room.
  • HPWHs make noise similar to a dishwasher or freezer.

Heat Pump Water Heater Rebate

*Rebate amounts apply to applications received now through March 31, 2026. Rebates paid cannot exceed total project costs.

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$1,000

Cash back rebate on qualifying heat pump water heaters.

Rebate Details

  • Any existing home (no new construction) with any heating type
  • Must have an existing electric water heater
  • Model must be listed on this qualifying product list
  • Contractor installation or do-it-yourself (DIY) by following the manufacturer's installation checklist (comes with your water heater). Find a local contractor.
  • Up to two heat pump water heater rebates per dwelling unit for qualifying products
  • Apply within 6 months of contractor installation or within 1 year of purchase if do-it-yourself (DIY) installation.

 

Application Checklist

Apply within 6 months of contractor installation or within 1 year of purchase if do-it-yourself (DIY) installation.

Here's what you'll need to have handy before you start the application:

  1. Purchase receipt or contractor invoice showing date, eligible model number, size, and total cost.
  2. If doing a DIY installation, you'll need to attach a completed manufacturer's installation checklist (this comes with your water heater).
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Apply Online

Fill out the application and submit it online using the customer application form.

Apply Now

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Print & Mail

Fill out an Hybrid Water Heater Rebate Application and mail it to the PUD for processing. 

Chelan County PUD
PO Box 1231
Wenatchee, WA 98807-1231

 

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Process Overview

1. Installation

Find a contractor or DIY install your new heat pump water heater.

2. Gather Documentation

Gather the receipt or invoice along with any other required documents.

3. Apply

Submit the rebate application and documentation to Chelan PUD.

4. Review

We'll review your application and may inspect the installation.

5. Get Your Rebate

If approved, you'll receive a rebate check by mail in 6-8 weeks.

 

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Federal Home Energy Tax Credits Ending Soon


Homeowners now have until December 31, 2025, to install qualifying equipment and take advantage of federal tax credits for home energy-efficient improvements.

Learn More

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30% Tax Credit

In addition to Chelan PUD rebates, homeowners may qualify for a federal tax credit of 30% of project costs up to a maximum of $2,000. Verify eligibility before installation.

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EnergySmart Financing

Yes! This project qualifies for low-rate EnergySmart financing.

 

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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.

Photo credits: NEEA Hot Water Solutions.