Guide · Rebates and your utility

HVAC Rebates for Cottage Lake Homes in 2026

Most Cottage Lake homes get electricity from Puget Sound Energy, and many also have PSE natural gas. That makes PSE’s rebates the first place to look when you upgrade heating. This guide covers the PSE programs, the state HEAR rebates for income-qualified households, and the federal tax credit that ended with 2025.

Updated September 2026

Your utility: Puget Sound Energy

PSE supplies electricity across its service area in King County, which includes Cottage Lake and Woodinville. Natural gas is patchier out here: some streets have PSE gas, and homes off the gas main use propane, oil or electric heat. Which rebate fits you depends on what heats your house now and which PSE service you have.

PSE rebates are paid after the work is done. You pay for the installation, then the rebate is applied for, and PSE says processing takes 4 to 6 weeks. For the heat pump rebates below, PSE requires the job to be done by one of its Recommended Energy Professionals or Trade Allies. Self-installs and out-of-network contractors don’t qualify, so ask about that before you sign anything.

Electric heat to heat pump (PSE conversion rebate)

This one is for homes heated by electric resistance: baseboards, wall heaters, an electric furnace or electric radiant heat. Replace that with a qualifying air-source heat pump and PSE pays a rebate, with an extra “Efficiency Boost” amount for income-qualified households. PSE lists the current amounts on its page.

Existing single-family home (new construction doesn’t qualify)
No existing heat pump serving the main living area
Ducted systems: AHRI-certified, all-electric (no dual-fuel for this rebate)
Ductless systems: variable-speed inverter mini-split or multi-split, fully ductless
Installed by a PSE Recommended Energy Professional or Trade Ally

Gas furnace plus heat pump (PSE hybrid rebate)

If you heat with a PSE natural gas furnace, PSE pays a rebate for adding a ducted heat pump to it, either to your existing furnace or a new one. The heat pump carries the house through fall and spring, and the furnace takes over when it gets cold. PSE’s program sets the switchover at 35°F or below.

PSE natural gas or dual-fuel customer; electric-only accounts don’t qualify
Primary heat is a natural gas furnace
Central ducted, AHRI-certified heat pump (ductless doesn’t qualify here)
Installed by a PSE Recommended Energy Professional or Trade Ally

Diagram of a dual-fuel system with a heat pump outside and a gas furnace inside

Washington HEAR rebates (income-qualified)

The state’s Home Electrification and Appliance Rebates program, run by the Department of Commerce, pays toward heat pumps, heat pump water heaters and the panel or wiring upgrades they need. It’s for households at or below 150% of area median income, and it is handed out through local administrators; King County has its own award. Funding is limited and administrators are still being added, so check the Commerce page for who is taking applications in King County right now.

The federal tax credit ended with 2025

The federal energy efficient home improvement credit (often called 25C) covered heat pumps and efficient furnaces through 2025. The IRS says it applies to equipment placed in service before December 31, 2025, so a system installed in 2026 doesn’t qualify. If yours went in during 2025, you can still claim it on your 2025 return.

Permits come with the job

In unincorporated King County, installing or replacing a furnace, heat pump or air conditioner needs a residential mechanical permit, and new circuits need an electrical permit from Washington L&I. Your contractor normally pulls these. Homes inside Woodinville, Redmond or Bothell city limits go through the city instead.

Rebate Questions

Can I combine PSE and HEAR rebates?

Sometimes. Each program has its own rules and paperwork, so check with the HEAR administrator for King County and with PSE before the work starts.

Does a ductless mini-split qualify for a PSE rebate?

For the electric-to-heat-pump conversion rebate, yes, if the system is fully ductless and meets PSE’s equipment rules. For the hybrid rebate, no; that one needs a central ducted heat pump.

I have propane, not PSE gas. What applies to me?

The PSE hybrid rebate needs PSE natural gas service, so it doesn’t fit a propane furnace. If your backup heat is electric, look at the conversion rebate, and check HEAR if your household income qualifies.

Do I apply, or does the contractor?

PSE works through its Recommended Energy Professionals and Trade Allies, and they handle the income check for Efficiency Boost on site. Ask the contractor to confirm the rebate before you sign.

Sources

Related Services in Cottage Lake

Want to know which rebate fits your house?

Tell us what heats your home now and we’ll point you to the right options.

Call (425) 491-6784