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Thursday, February 13, 2025

Seattle Offers Up To $8,000 In Rebates For Residents To Switch  From Oil Heat to Energy-Efficient Heat Pumps

Freshly red painted home heating oil tank.

By Aaron Allen, The Seattle Medium

Seattle is expanding its Clean Heat Program by offering a new $4,000 bonus rebate for moderate-income households to switch from oil heat to energy-efficient electric heat pumps. Combined with the city’s existing $2,000 rebate and a federal tax credit of up to $2,000, eligible households can receive up to $8,000 in total support for the transition. This initiative is part of the city’s broader goal to eliminate oil heating in homes by 2030.

“Moderate-income is defined as income up to 150% of the area median income,” said Christine Bunch, Climate and Energy Advisor for the Office of Sustainability and Environment (OSE). “For example, a family of four could earn up to $208,000. Additionally, the city offers free oil-to-heat pump conversions for low-income households, with an income threshold of $110,000 for a family of four.”

Seattle has been actively working to phase out oil heating since 2017, having already helped more than 1,600 households make the switch to cleaner, more efficient heat pumps. The city is on track to meet Mayor Bruce Harrell’s goal of eliminating all oil-heated homes by 2030.

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Electric heat pumps offer several advantages, including energy efficiency and the ability to provide both heating and cooling. “Burning oil for heating is not only costly to our planet but also to our residents’ health and monthly expenses,” said Harrell. “By expanding our Clean Heat Program with additional rebates, more Seattleites, regardless of income, can transition off oil heating. We’re taking another step forward in creating a sustainable and affordable future for all Seattle residents.”

The Clean Heat Program’s expansion was made possible by $3.2 million in funding received from Washington State’s Climate Commitment Act (CCA) in March. This funding will not only increase rebates for households but also offer free gas-to-heat pump conversions for 52 low-income households and provide support to 125 small businesses for heat pumps and heat pump water heaters.

The Washington State Department of Commerce estimates that the funding will reduce total greenhouse gas emissions by at least 20,000 metric tons of CO2 equivalent (MTCO2e). This reduction is equivalent to taking approximately 4,760 gasoline-powered cars off the road for a year. Seattle has been awarded over $26 million in total funding from the CCA to support these climate-friendly initiatives.

For households currently using heating oil, the potential cost savings are substantial. A typical household using 500 gallons of oil per year could save more than 50% on heating costs, translating to about $1,100 in annual savings. The switch from oil to heat pumps not only helps residents save money but also reduces their environmental impact.

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“As we head from a record-hot summer into winter, Seattle residents are facing high heating bills,” said Jessyn Farrell, Director of the Office of Sustainability & Environment. “The Climate Commitment Act helps alleviate these costs while also reducing the pollution driving climate change and extreme weather.”

In addition to helping families save money, the transition to clean energy is expected to create new, well-paying jobs in the local economy. Local businesses, such as Gensco, are benefiting from the increased demand for heat pumps. Hayden Lycke, Vice President of Supplies Sales at Gensco, expressed pride in the company’s partnership with the city.

“As a third-generation family-owned and operated regional wholesale distributor and manufacturer of HVAC equipment, Gensco is proud to be the leading heat pump distributor in the region and a partner through Seattle’s Clean Heat Program,” Lycke said. “By year-end, Seattle’s Clean Heat program will have helped approximately 2,000 households convert from oil to energy-efficient heat pumps. We’re also proud to support a clean energy workforce, with more than 50 local qualified contractors participating in the program, backed by over 300 Gensco employees.”

To assist homeowners in navigating the transition, the city has partnered with licensed, bonded, and experienced contractors to provide installation services.

“The program has a list of qualified contractors who are trained in installing heat pumps,” explained Bunch. “Homeowners start the process by contacting contractors on the list for a no-cost estimate. After selecting a contractor, they fill out a simple one-page rebate participation form where they indicate their income level.”

Once a homeowner qualifies, the contractor applies the appropriate rebates directly to the invoice.

“For those eligible for the bonus rebate, the contractor will apply up to $6,000 instantly on the invoice,” Bunch added. This process simplifies the transition for homeowners, as contractors handle the removal of the old oil furnace and installation of the new heat pump, along with any necessary electrical work.

Seattle’s goal of phasing out oil heating by 2030 remains within reach. In 2017, there were approximately 18,000 homes in the city heated with oil. Now, only 9,000 remain. With oil prices exceeding $4.50 per gallon, the switch to heat pumps is expected to save homeowners thousands of dollars annually. Heat pumps are also significantly more efficient than oil furnaces, using three to four times less energy and providing the added benefit of air conditioning for year-round comfort.

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