Heat Pump Incentives

Heating and cooling represent some of the highest energy use in commercial buildings. High-efficiency equipment helps your business use less electricity, which lowers operating costs while improving comfort. Efficient systems also help reduce maintenance needs and support healthier indoor air.

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

Commercial Online Forms

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

Commercial Incentive Application

Heat Pump Pre-Authorization

Heat pumps: efficient heating and cooling

Incentives

The following incentives are for ducted, ductless, and VRF heat pump systems.

$2,400 per ton

Conversion

Existing heating system must be electric-resistance (forced-air furnace or zonal systems such as baseboards or wall heaters) serving as the primary heating source, and no air-source heat pump currently serves the space.

$400 per ton

Upgrade

The space must be conditioned by an existing air-source heat pump serving as the primary heating source, or be part of a building addition, new construction, or major renovation project.

Valid for applications received January 1 - December 31, 2026, based on program availability.

Planning a Large of Multi-System HVAC Project?

We offer custom incentives for qualifying projects, including large-scale or complex HVAC systems. Contact us early so we can review your project scope, confirm eligibility, and discuss potential incentives.

Requirements

Chelan PUD commercial customer in Chelan County.
Existing heating requirements vary by program as noted above.
New construction is only eligible for upgrade incentives.
Pre-authorization is required for all heat pump commercial incentives.
New equipment must meet all outlined energy efficiency requirements.
Installation must be done by a licensed contractor.

Commercial Heat Pump Efficiency Requirements

Before Installation

Heat Pump Project Pre-Authorization

Commercial heat pump incentives require a Heat Pump Pre-Authorization Request Form be submitted by the contractor to help us confirm project eligibility. Processing time typically takes about 7 days and begins after all required materials are submitted.

What you’ll need for the HVAC Pre-Authorization Request Form:

Photos of the existing heating system, including all indoor and outdoor units (wide shot and close-up of nameplate), unless new construction
Customer meter number at the installation address
Customer key contact information
Size (in tons) of the planned new system(s)
AHRI certificates of planned new equipment if the total project size is 16 tons or larger

After Installation

Who Can Apply

The contractor

When to Apply

Within 12 months of installation

Where to Apply

Commercial Incentive Application

What you’ll need to complete the Commercial Incentive Application:

Post-installation photos (wide shot and close-up of nameplate) of all new indoor and outdoor equipment
Itemized invoice showing all labor and material costs before incentive
Size (in tons) of each new system
New equipment specifications (manufacturer, model numbers, and HSPF2 or COP ratings)
AHRI certificate(s) for new equipment
W-9 if your business is to receive the incentive check

Additional required documents:

Signed Chelan PUD Energy Efficiency Program Agreement (this is emailed to the Customer to complete)
Signed Assignment of Rebate Form if payment is to go to the contractor (this is emailed to the Customer to complete)

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.

Heat Pump Pre-Authorization FAQs

In short, pre‑authorization helps us catch any potential eligibility issues earlier in the incentive process. The contractor shares information about the space’s existing heating system along with initial plans for the new system, and the online pre-authorization form provides an estimate of the incentive the project may qualify for if pre-authorization is granted and all requirements are followed during installation.
- Commercial Programs: Pre-authorization is required for all Chelan PUD commercial heat pump project types, including ducted, ductless, and VRF.
- Residential Programs: Heat pump project pre-authorization is required for ducted systems, but not ductless heat pump systems. If you have questions on a ductless heat pump project, call (509) 661-8008 or send an email to [email protected].
Heat pumps must be installed by a licensed contractor to be eligible for a PUD rebate. The HVAC contractor needs to be the one to request heat pump pre-authorization due to the complexity of heat pump projects.
A pre‑authorization is valid for six months after the pre-authorization request was submitted. If the project details change during that time, please contact us. An updated or new pre‑authorization may be required in some circumstances.
- Commercial Incentives: Pre-authorization is a new process for our commercial programs as of March 23, 2026, and we understand there will be some instances where installation was completed prior to that date. Please reach out to us. We will work with you to review the situation and determine next steps.
- Residential Rebates: The heat pump pre-authorization process requirement was already in place for Chelan PUD’s residential program. Please reach out to us at (509) 661-8008 if you have any questions.
If all required information and photos are submitted, pre‑authorization timelines depend on the complexity and scope of the project and whether an inspection is required.
- Commercial projects typically take 7 business days to pre-authorize once all required information has been received.
- Residential projects typically take 3-5 business days to pre-authorize once all required information has been received.
Yes, a heat pump pre‑authorization may be used with a different contractor because it is based on the existing heating system and planned sizing of the new system. If the planned size or type of the new system changes, then the contractor would need to submit a new pre-authorization request.
Yes. We are working on moving the pre-authorization process for residential heat pump projects to an online form similar to the commercial pre-authorization process.

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.

Efficiency Size (BTU/h)	Mode	Sub-Category or Rating Condition	Efficiency Requirement
< 65,000	Heating	Split-System	8.1 HSPF2
< 65,000	Heating	Single Package	7.0 HSPF2
≥ 65,000 and < 135,000	Heating	47°F db/43°F wb Outdoor Air	3.5 COP
≥ 135,000 and < 240,000	Heating	47°F db/43°F wb Outdoor Air	3.4 COP
≥ 240,000	Heating	47°F db/43°F wb Outdoor Air	3.4 COP

Indoor Unit Type	Efficiency Requirement
Non-Ducted	10.4 HSPF2
Ducted	9.4 HSPF2

Equipment Size (BTU/h)	Mode	Sub-Category or Rating Condition	Efficiency Requirement
< 65,000	Heating	VRF Multi-split System	11.0 HSPF
≥ 65,000 and < 135,000	Heating	VRF Multi-split System 47ºF db/43ºF wb Outdoor Air	3.7 COP
≥ 135,000 and < 240,000	Heating	VRF Multi-split System 47ºF db/43ºF wb Outdoor Air	3.5 COP
≥ 240,000	Heating	VRF Multi-split System 47ºF db/43ºF wb Outdoor Air	3.5 COP