Heat Pump Upgrade and Conversion

Benefits

Up to 100% paid by Chelan PUD

Year-round comfort

Lower heating and cooling costs

Get better HVAC equipment for less than you’d pay for standard resistance heating or AC with incentives from Chelan PUD—we’ll pay up to 100% for your new, installed heat pump.

Incentives

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

$3,000 per ton

Conversion

You have an electric-resistance zonal heating system or forced-air furnace and want a heat pump

$400 per ton

Upgrade

You have an air-source heat pump and want a more energy efficient model, or are adding a heat pump 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:

Heat pump 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 air-source heat pump with a more efficient unit
Installing a heat pump in a building addition, new construction or major renovation project

2. New Heat Pump

Heat pump must have an AHRI certificate of product rating and be an air-to-air heat pump system
Must meet efficiency requirements listed on BPA's Heat Pump Specifications

3. Paperwork

Completed heat pump application for conversion or upgrade
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 Heat Pump

Work with your contractor to make sure an eligible 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 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.