Ductless Heat Pumps for Business

Benefits

Up to 100% paid by Chelan PUD

Year-round comfort

Better air quality

Get better equipment for less than you’d pay for standard heating and cooling gear with incentives from Chelan PUD—we’ll pay up to 100% for your new, installed, efficient ductless heat pump.

Heating, ventilation and cooling is likely one of your largest building expenses, but it doesn’t have to be. HVAC equipment and ongoing maintenance costs thousands, and the average business spends about half of its energy bills just to heat and cool.

Ductless heat pumps are two to three times more efficient than standard electric-resistance heaters, so you’ll save on your bills for years.

Incentives

Chelan PUD offers two energy-efficient ductless heat pump incentives: Conversion and Upgrade.

$3,000 per ton

Conversion

You have an electric-resistance zonal or forced-air furnace and want a ductless heat pump (DHP)

$1,000 per ton

Upgrade

You have a DHP and want a more energy efficient model, or are adding a DHP to new construction

These PUD incentives often pay for your full project costs, with nothing out of pocket to you. Just in case, any upgrades beyond PUD incentives qualify for low-rate EnergySmart financing.

Eligibility

Is your building eligible for a Conversion or Upgrade incentive?

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.

1. Your Space and Heating

For a Conversion Incentive:

DHP will be installed in an existing space primarily heated with electric-resistance zonal or forced-air heat
Not replacing a packaged terminal air conditioning (PTAC) unit

For an Upgrade Incentive:

Either of the following apply:

Replacing an existing DHP with a more efficient unit
Installing a DHP in a building addition, new construction or major renovation project

2. New Ductless Heat Pump

Non-ducted units: minimum 11.0 Heating Seasonal Performance Factor (HSPF), 10.4 HSPF2
Ducted units: minimum 10.0 Heating Seasonal Performance Factor (HSPF), 9.4 HSPF2

3. Paperwork

Completed DHP Application Form
Equipment or contractor invoice showing cost, purchase/order date, and that the equipment meets eligibility requirements (manufacturer, model number, type, size, and quantity installed)

Apply

1. Install Your Ductless Heat Pump

Work with your contractor to make sure an eligible ductless heat pump is installed.

2. Send in Paperwork

Gather your paperwork and send them (or as your contractor to submit them) to conservation@chelanpud.org or:

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

What Happens Next?

We'll review your paperwork, and contact you if anything is missing or we need more information.

With your paperwork complete, we might schedule an inspection to make sure your ductless heat pump was installed correctly.

If all checks out, you'll receive your incentive payment in the mail, or we can pay your HVAC contractor directly.

We're Here for You

Questions? Talk with Drew Thompson, Chelan PUD commercial energy advisor. Call (509) 661-8560 or email drew.thompson@chelanpud.org.

Common Questions

The following ductless heat pump equipment types can be covered by the PUD incentive:
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.