Washington State Home Energy Rebates 2025: Get Up to $14,000 for Efficiency and Electrification Upgrades

If you’re a Washington homeowner or renter considering making your home more energy-efficient or switching from gas to electric appliances, substantial financial help is coming. Through the Inflation Reduction Act’s Home Energy Rebate programs, Washington State will offer up to $14,000 per household for eligible efficiency improvements and electrification upgrades - with no repayment required.

This isn’t a tax credit you claim next April. These are point-of-sale rebates that directly reduce what you pay contractors for qualifying work. If you’re replacing a gas furnace with an electric heat pump and the project costs $8,000, and you qualify for a $4,000 rebate, you pay $4,000 at completion. The contractor handles the rebate paperwork and gets reimbursed by the state program.

The two federal rebate programs Washington will implement - Home Efficiency Rebates and Home Electrification and Appliance Rebates - target different types of upgrades but can potentially be stacked. If you do a comprehensive energy efficiency retrofit that also includes electrification, you might qualify for rebates from both programs, though total rebates are capped at $14,000 across both programs.

What makes these programs particularly valuable for Washington residents is that the state’s relatively low electricity costs (especially if powered by hydroelectric) and mild climate make electrification economically attractive even without rebates. With rebates covering 50-100% of eligible project costs for many households, the payback period becomes immediate or very short.

Key Details at a Glance

What the Two Rebate Programs Cover

Washington will run two distinct but complementary federal rebate programs. Understanding which covers what helps you plan your projects strategically.

Home Efficiency Rebates (HOMES Program)

This program rewards measured energy savings, not just installation of specific equipment. You’ll need a home energy assessment before and after your project to document energy reduction. Rebates are based on the percentage of whole-home energy savings you achieve:

• 20-34% energy savings: Rebate covering up to 50% of project costs (max $4,000 for households ≤80% AMI, max $2,000 for households above 80% AMI)
• 35% or greater energy savings: Rebate covering up to 50% of project costs (max $8,000 for households ≤80% AMI, max $4,000 for households above 80% AMI)

Eligible measures include weatherization (air sealing, insulation), HVAC upgrades, windows and doors, heat pump water heaters, and other improvements that measurably reduce total home energy consumption. The key is achieving documented energy savings, not just installing qualifying equipment.

Home Electrification and Appliance Rebates (HEAR Program)

This program provides specific rebate amounts for individual qualifying electrification upgrades, with higher rebates for lower-income households:

For households at or below 80% of Area Median Income:

• Heat pump for space heating/cooling: Up to $8,000
• Heat pump water heater: Up to $1,750
• Electric stove, cooktop, range, or oven: Up to $840
• Electric heat pump clothes dryer: Up to $840
• Electrical wiring/panel upgrades (to support electrification): Up to $4,000
• Insulation, air sealing, ventilation: Up to $1,600
• Energy audit/assessment: Up to $500 (if required)

For households between 80-150% of Area Median Income, rebate amounts are typically 50% of the amounts listed above (e.g., $4,000 for heat pump space heating, $875 for heat pump water heater, etc.).

The critical difference: HEAR rebates are for specific equipment installations and electrification measures, while HOMES rebates reward overall energy savings regardless of how you achieve them.

Who Qualifies

Income Eligibility

For the HEAR program (electrification), income limits are based on Area Median Income for your county and household size. Washington will use HUD’s Area Median Income figures, which vary by county. For example, King County (Seattle area) has higher AMI thresholds than rural counties.

Households at or below 80% AMI qualify for higher rebate amounts. Households between 80-150% AMI qualify for reduced rebates. Households above 150% AMI are generally not eligible for HEAR rebates.

For the HOMES program (efficiency), there are also income-based rebate tiers, though the exact structure is still being finalized by Washington State. Expect similar income verification requirements.

Property Type and Ownership

Both programs cover single-family homes, duplexes, apartments in multi-family buildings, manufactured homes, and townhomes. Both owner-occupied and rental properties can qualify, though the rules differ:

For owner-occupied homes: The owner applies for and receives the rebate (or it’s applied at point-of-sale).

For rental properties: Either the property owner or the tenant can benefit, but the property owner typically applies since they’re authorizing the work. Some provisions aim to ensure tenants benefit from energy savings and aren’t displaced due to upgrades, but implementation details are still being developed.

Residency

You must live in or own property in Washington State. The property must be your primary residence (for owner-occupied) or a rental property you own or occupy (with landlord permission for renters doing work).

Contractor Requirements

Work must be performed by contractors participating in the rebate program. Washington State will establish a list of qualified contractors who are trained on program requirements, proper installation standards, and rebate application procedures. DIY work generally won’t qualify for these rebates due to quality assurance and verification requirements.

Energy Assessment

For HOMES rebates, you’ll need a home energy assessment before and after your project by a qualified assessor to document energy savings. The assessment itself may be rebatable up to $500 under HEAR if required for planning your electrification project.

How Much You Could Actually Receive

Let’s walk through realistic scenarios for Washington households.

Scenario 1: Comprehensive Electrification for Low-Income Household

A Seattle family earning 70% of area median income wants to electrify their 1950s home currently heated with natural gas:

• Install air-source heat pump for heating/cooling: $12,000 project cost → $8,000 rebate
• Replace gas water heater with heat pump water heater: $3,000 project cost → $1,750 rebate
• Electrical panel upgrade from 100A to 200A: $3,500 project cost → $4,000 rebate (capped at actual cost, so $3,500)
• Add insulation and air sealing: $4,000 project cost → $1,600 rebate
• Total project cost: $22,500
• Total HEAR rebates: $14,000 (capped at program maximum)
• Out-of-pocket: $8,500

This household pays about 38% of total costs, with the state covering the rest.

Scenario 2: Efficiency-Focused Retrofit for Moderate-Income Household

A Spokane homeowner earning 120% of AMI focuses on efficiency measures through the HOMES program:

• Comprehensive weatherization (attic, wall, and floor insulation plus air sealing): $8,000
• High-efficiency windows: $6,000
• Ductwork sealing and HVAC optimization: $3,000
• Total project cost: $17,000
• Energy assessment shows 38% reduction in annual energy use
• HOMES rebate: 50% of project cost, max $4,000 = $4,000 rebate
• Out-of-pocket: $13,000
• Annual energy savings: Approximately $1,200/year, so payback in about 11 years even after rebate

Scenario 3: Combined HOMES and HEAR for Maximum Benefit

A Tacoma household at 75% AMI does a comprehensive project qualifying for both programs:

• Heat pump installation + weatherization + water heater → Claims $14,000 in HEAR rebates for specific equipment
• Because the project also achieves 40% whole-home energy savings, they’re eligible for HOMES rebates too, but combined rebates are capped at $14,000 total

In this case, HEAR provides more generous rebates, so the household would claim HEAR. Strategic planning with contractors helps determine which program or combination provides the best outcome.

Scenario 4: Rental Property Upgrade

A landlord in Vancouver, WA owns a duplex and wants to upgrade both units:

• Each unit qualifies for rebates independently (treated as separate dwelling units)
• Installing heat pumps in both units: 2 × $8,000 equipment cost = $16,000 total
• If landlord’s household income qualifies (or if claiming based on tenant income with appropriate documentation), could receive up to 2 × $8,000 = $16,000 in rebates
• Net cost: $0 to $16,000 depending on income qualification and final program rules for rental properties

Application Process (Expected)

While Washington State finalizes program details pending federal DOE approval, here’s what the application process will likely entail based on federal guidelines and how other states are structuring their programs.

Step 1: Income Documentation

Gather documents proving household income for all household members. Acceptable documentation typically includes recent tax returns, W-2s, pay stubs covering recent months, Social Security benefits statements, or other income verification. If you’re below 80% AMI, you’ll need to clearly document this to qualify for higher rebate levels.

Step 2: Find Participating Contractors

Washington will maintain a directory of contractors who have completed program training and are authorized to submit rebate applications. Work with these participating contractors from the planning stage - they’ll understand program requirements and can help structure your project to maximize rebates.

Step 3: Project Planning and Assessment

For HOMES rebates, you’ll need a pre-retrofit energy assessment by a qualified energy auditor. This establishes your baseline energy use and helps identify which improvements will yield the greatest savings. For HEAR rebates focused on specific equipment, you may not need a full assessment, though one can help with planning.

Step 4: Get Project Estimates

Participating contractors will provide estimates that clearly identify qualifying measures, estimated rebate amounts, and your expected out-of-pocket cost. Review multiple contractor bids to ensure you’re getting fair pricing.

Step 5: Submit Rebate Application (Pre-Approval)

Some states require pre-approval before work begins to reserve rebate funding. Washington’s approach isn’t fully finalized, but expect that either the homeowner or contractor will submit an application before work starts, including project scope, estimated costs, and income documentation.

Step 6: Complete the Work

The contractor performs the work according to program standards. For HOMES projects, this must result in the projected energy savings. For HEAR projects, equipment must meet program specifications (efficiency ratings, proper installation, etc.).

Step 7: Post-Work Verification and Assessment

For HOMES projects, a post-retrofit energy assessment verifies the achieved energy savings. For HEAR projects, an inspection may verify proper installation and equipment specifications.

Step 8: Receive Rebate

The rebate is either applied at the point of sale (you pay reduced amount to contractor, contractor gets reimbursed by program), or you pay the full amount and receive a rebate check afterward. Washington is expected to prioritize point-of-sale rebates to reduce upfront cost burden on households.

Timing: When Will This Launch?

As of December 2025, Washington State has submitted its program plans to the federal Department of Energy and is awaiting approval. The state expects program launch in 2025, though exact timing depends on federal approval timelines and final program setup.

What to Do Now While You Wait:

Don’t delay planning even though the program hasn’t launched. Here’s what you can do:

• Get a home energy audit now to identify priorities. Some utilities offer subsidized audits. Understanding your home’s energy performance helps you plan strategically for when rebates become available.
• Research heat pump options and other electrification upgrades. Prices, available models, and contractor availability matter. Being informed before the program launches helps you act quickly.
• Check your electrical panel capacity. If you have an older home with a 100-amp panel, you might need panel upgrades to support electrification, which is rebatable under HEAR.
• Track household income carefully if you’re near income threshold levels. Since qualification is based on previous year’s income, understanding where you fall helps with planning.
• Stay informed through Washington State Department of Commerce Energy Division website for program launch announcements.

Anticipated Timeline:

• Early to mid-2025: Federal DOE approval expected
• Mid to late 2025: Contractor training and program infrastructure finalized
• Late 2025 or early 2026: Applications accepted and rebates begin

Programs will run until funds are exhausted. Given high expected demand, applying early after launch is wise.

Stacking with Other Incentives

These rebates can potentially stack with other federal, state, and utility incentives, significantly reducing your total costs.

Federal Tax Credits (Inflation Reduction Act)

Separate from these rebates, the IRA also provides tax credits for heat pumps, weatherization, and other efficiency improvements. These tax credits (up to $2,000 annually for heat pumps, up to $1,200 for weatherization) can be claimed in addition to Washington rebates. You could theoretically get a point-of-sale rebate reducing your upfront cost, then claim a federal tax credit when you file taxes, further reducing your net cost.

Utility Rebates and Incentives

Many Washington utilities offer additional rebates for efficiency and electrification:

• Puget Sound Energy offers heat pump rebates
• Seattle City Light provides weatherization and electrification incentives
• Snohomish PUD has efficiency programs
• Many public utility districts offer conservation incentives

These utility rebates can often stack with federal rebates, though you need to check each utility’s rules.

Local Government Programs

Some Washington cities and counties offer additional energy upgrade incentives or low-interest financing for efficiency improvements.

Example of Stacking:

A moderate-income Seattle household installing an $8,000 heat pump could potentially receive:

• $4,000 federal HEAR rebate (if income-qualified)
• $1,000 Seattle City Light rebate
• $2,000 federal tax credit (claimed on taxes)
• Total incentives: $7,000
• Net cost: $1,000 for an $8,000 heat pump

This kind of stacking can make electrification upgrades incredibly affordable or even free for qualifying households.

Strategic Tips for Maximizing Rebates

Bundle Projects for Maximum Impact

If you’re planning multiple upgrades anyway, doing them together as a comprehensive project can maximize rebates. For example, installing a heat pump, upgrading your electrical panel, and improving insulation simultaneously might qualify for rebates from both HEAR (equipment-specific) and HOMES (overall energy savings), though you can only claim up to the $14,000 cap total.

Consider Manufactured Energy Savings for HOMES

The HOMES program rewards energy savings percentage. Combining weatherization with efficient equipment gives you the best shot at hitting 35%+ energy savings threshold for higher rebates. Work with your energy auditor to model which improvements will get you to the next rebate tier.

Prioritize if Budget Constrained

If you can’t afford comprehensive upgrades even with rebates:

1. Start with weatherization (insulation, air sealing) - usually best bang-for-buck for energy savings
2. Then replace largest energy users (typically heating system in Washington)
3. Then water heating, then appliances

Time Projects Around Income

If your income fluctuates year to year, timing your project when you qualify for higher income-based rebates can save thousands. If you expect a one-time income spike that would push you above 80% AMI threshold, consider doing upgrades before or after that year.

Involve Renters (For Landlords)

Landlords can potentially qualify based on tenant income in some program structures. If you own rental property and tenants have low to moderate income, you might qualify for higher rebate tiers, making it more economical to upgrade rental properties.

What Equipment and Upgrades Qualify

Heat Pumps (Space Heating/Cooling)

Both air-source and ground-source (geothermal) heat pumps qualify. In Washington’s climate, cold-climate air-source heat pumps perform well and are more affordable than ground-source. Systems must meet minimum efficiency standards (expect HSPF2 and SEER2 ratings to be specified). Ductless mini-split heat pumps and ducted systems both qualify.

Heat Pump Water Heaters

Electric heat pump water heaters that meet ENERGY STAR or similar efficiency standards qualify. These use electricity to move heat rather than generate it, using 50-60% less energy than standard electric resistance water heaters.

Weatherization

Air sealing, insulation (attic, walls, floors, rim joists), duct sealing, and ventilation improvements qualify when they result in measurable energy savings. For HEAR, these measures have specific dollar caps. For HOMES, they contribute to overall energy savings percentage.

Electrical Upgrades

Panel upgrades, wiring improvements, and circuit additions necessary to support electrification qualify for up to $4,000 under HEAR. This is specifically for electrical work required to enable electrification, not general electrical work unrelated to electric appliances and equipment.

Electric Appliances

Induction or resistance electric cooking appliances (ranges, cooktops, ovens), heat pump clothes dryers, and similar high-efficiency electric appliances qualify for modest rebates ($840 each under HEAR for low-income households).

What Doesn’t Qualify

• Solar panels (separate federal tax credit available)
• Batteries and energy storage
• EV chargers (separate federal and state incentives)
• Most smart home devices unless directly tied to efficiency gains
• Repairs or maintenance without efficiency improvement
• DIY projects (work must be performed by qualified contractors)

Washington-Specific Considerations

Climate and Electrification

Washington’s mild climate makes heat pumps particularly effective. Even older air-source heat pumps work well in Western Washington’s temperate zones. Eastern Washington’s colder winters might benefit from cold-climate heat pump models or hybrid systems.

Electricity Costs

Washington has among the lowest residential electricity rates in the US (averaging around $0.11/kWh) thanks to abundant hydroelectric power. This makes electrification economically attractive even before rebates - operating costs for electric heat pumps are often competitive with natural gas heating.

Carbon Impact

Washington’s electricity grid is among the cleanest in the US (about 70% hydroelectric and renewable). Electrifying heating and appliances in Washington yields greater carbon reduction than in states with coal-heavy grids. This reinforces the climate benefits of electrification here.

Building Codes and Requirements

Washington has updated energy codes that affect new construction and major renovations. While these rebates apply to existing buildings, understanding code requirements helps if you’re doing work that triggers permitting. Work with contractors familiar with Washington energy codes.

Utility Rate Structures

Some Washington utilities have time-of-use rates or inclining block rates where electricity costs more as you use more. Understanding your utility’s rate structure helps calculate operating cost savings from efficiency improvements.

Frequently Asked Questions

Can I do some of the work myself to save money? Generally no. Programs require work by qualified contractors for quality assurance and verification. DIY work won’t qualify for rebates.

What if I’m a renter? Renters can potentially benefit if the landlord authorizes upgrades, though program details for renter protections are still being finalized. Some provisions aim to prevent displacement and ensure renters benefit from energy savings.

Can I get rebates for a second home or vacation property? Unlikely. Programs typically restrict rebates to primary residences.

What if my income is right at the threshold? Income qualification is based on previous year’s tax returns or recent income documentation. If you’re close to a threshold, work with your contractor and program administrators to understand exactly how income is calculated for your household size and county.

What happens if I sell my home after getting rebates? There are typically no clawback provisions requiring repayment if you sell. The upgrades stay with the property and benefit the next owner.

Can I apply for rebates multiple times? Programs typically allow one application per household, though specifics may allow separate applications for HEAR and HOMES. Check final program rules when launched.

What if rebate funds run out before I apply? Federal funding is substantial but finite. If demand exceeds funding, programs will likely operate on first-come, first-served basis or use a waitlist. Applying early after launch increases your chances.

How long do I have to use rebates after approval? Expect work completion deadlines (e.g., 6-12 months from approval) to prevent approved funds from being tied up indefinitely.

How to Get Ready Now

Even though the program hasn’t launched yet, you can prepare to act quickly once it does.

Get a Home Energy Assessment

Many Washington utilities subsidize home energy assessments. An assessment identifies your biggest energy waste areas and helps prioritize improvements. When rebates launch, you’ll know exactly what to do.

Research Contractors

Identify contractors in your area who work on heat pumps, weatherization, and electrification. Once the program launches, participating contractors will likely be in high demand. Having relationships with good contractors now helps you move quickly later.

Understand Your Baseline

Track your current energy use (gas and electric bills). Knowing your baseline helps calculate potential savings from improvements and determine which rebate program offers better value.

Check Your Home’s Electrical Capacity

If you have an older electrical panel (100 amps or less), you might need upgrades to support electrification. Getting a licensed electrician to assess your panel now helps you budget for the total project.

Calculate Your Income Qualification

Determine where your household falls relative to Area Median Income thresholds for your county. HUD publishes AMI data annually by county and household size. Knowing whether you’re below 80% AMI, between 80-150%, or above 150% helps you understand which rebate levels you’ll qualify for.

Join Waitlists or Notification Lists

Sign up for updates from Washington State Department of Commerce Energy Division, your utility’s conservation program notifications, and local climate action or energy efficiency organizations. They’ll alert you when programs launch.

Start Saving for Your Share

Even with generous rebates, you’ll have out-of-pocket costs. If you expect to do a $15,000 project with $8,000 in rebates, you’ll still need $7,000. Start saving now so you’re ready when programs launch.

Visit the Washington State Department of Commerce Energy Division for the latest updates on program status and expected launch timing: https://www.commerce.wa.gov/energy/

Watch for announcements about participating contractor lists, income qualification guidelines, and application procedures. The state will provide detailed guidance before accepting applications.

If you have specific questions about whether your planned project would qualify, consider contacting the Commerce Department Energy Division or attending informational webinars they’ll likely host before launch.