Heat Pump Water Heaters Incentive Increase

Starting in 2026 we are doubling the rebate that we offer for heat pump water heaters, and it’s never been a better time to think about upgrading your water heating systems to one of the most efficient technologies that we have.

PUD authorized contractor installed 40-gallon tank: $1,400
PUD authorized contractor installed 50-gallon or greater tier 3 tank: $1,600
PUD authorized contractor installed 50-gallon or greater tier 4 tank: $1,800
PUD authorized contractor installed split water heater: $2,200

Homeowner mail-in rebate, any tank size $1,200
Homeowner mail-in rebate, split system $2,200

How does a hybrid water heater work?
Most homeowners who have heat pumps use them to heat and cool their homes. But a heat pump also can be used to heat water. Enter the heat pump water heater.

While a heat pump is a good comparison for these water heaters, a better comparison is perhaps your refrigerator that relies on the same process as a heat pump to move heat from the inside of the refrigerator to the outside of the refrigerator in order to keep your food cool and fresh. This is because your refrigerator is a self-contained appliance just like the heat pump water heater, with the primary difference being that the heat pump water heater moves heat into the appliance in order to heat the water, instead of out of it.

Heat pump water heaters use electricity to move heat from one place to another, using refrigerant and a compressor, rather than generating their own heat like a traditional electric resistance water heater. This makes them two to three times more efficient, according to the U.S. Department of Energy (DOE). Think of a heat pump water heater as a refrigerator working in reverse.

• A refrigerator pulls heat from inside a box and dumps it out into whatever room it's in.
• A heat pump water heater pulls heat from the surrounding air and dumps it, at a higher temperature, into a tank to heat water.

Heat pump water heaters are also called “hybrid” water heaters because, during periods of high hot water use, they can switch to standard electric resistance heat automatically. You can use your unit’s control panel to set the Heat pump water heater to various settings, including hybrid mode. If you don’t want it to switch over automatically, simply set it to the heat pump mode.

Many control panels have multiple settings and modes to maximize the water heater to your needs. If you have family coming to visit for the holidays, you can switch it to “High-demand” mode, and use both the heat pump and electric resistance heating simultaneous, and get more hot water faster. That’s of course not very efficient, but there are times when we need more hot water, and a heat pump water heater can deliver that. ‘Heat pump only’ mode is the most energy efficient mode for daily use, and ensures that the heat pump cycles do all of the water heating at the lowest operating cost.

How do I get a heat pump water heater?
It’s recommended you have a professional install your heat pump water heater to maximize its energy efficiency. Here at Clallam County PUD we have a list of participating plumbers that can help you with your water heater installation, as well as the apply the rebate directly to your bill, reducing the upfront cost to get the water heater installed. Those plumbers are listed below.

Angeles Plumbing (360) 452-8525 917 W 8th St,
Port Angeles, WA 98363

Mountain Pumps & Plumbing (360) 775-9649 1013 Olson Rd.
Sequim, WA 98382

SeaGreen Plumbing (360) 775-7590 40 Taylor Cutoff Rd. #12
Sequim, WA 98382

We recommend evaluating several bids before selecting a plumber. If you use a non-participating installer or choose to do the work yourself, you are still eligible for our mail-in rebate. You can find that rebate coupon on our website. In either case, our customers are only eligible for one rebate per home.

If you have any questions regarding this article or if you would like to discuss any other energy saving opportunities, please don’t hesitate to contact us. We work for you and want to You can reach us via the web, www.ClallamPUD.net, email,EnergyConservation@ClallamPUD.net and phone, (360) 565-3249.