Midstream HVAC and Water Heating Program
Limited Time Small Business Stacked Rebates!
Seattle City Light is giving small business owners (<50 employees) who purchase
qualifying heat pumps and heat pump water heaters a boost!
Heat Pumps (<5.4 tons)
Up to $4,800 when stacked with the standard midstream rebate, $100 Contractor Spiff
Heat Pump Water Heaters (<120 gallons)
Up to $1,750 when stacked with the standard midstream rebate, $200 Stacked Contractor Spiff
Have questions or need training support?
Contact the Seattle City Light Midstream HVAC and Water Heating Program team with questions.
(503) 914-0008 | [email protected]
Submit your 2025 qualifying sales to your distributors today!
Maximize your customer savings and reduce upfront costs!
The Seattle City Light Midstream HVAC and Water Heating Program is designed to:
Stocking high-efficiency equipment and actively upselling high-efficiency models can improve your bottom line, reduce customer utility bills, and benefit the environment
Increase sales of high-efficiency equipment by reducing upfront costs
Increase stocking of high-efficiency equipment so it is readily available to customers in emergency replacement situations
Program Information and Pass-Through Resources
Program Materials
Qualified Product Lists
Utility Links
Frequently Asked Questions
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What is the Small Business Stacked Heat Pump and Heat Pump Water Heater rebate limited time offer?
City Light is offering additional rebates for Small Businesses (<50 employees) who purchase qualifying midstream heat pumps and heat pump water heaters including additional contractor spiffs for your time and effort.
- Stacked Rebates: This rebate provides additional customer pass-through incentives on top of the existing midstream rebates for heat pumps (<5.4 tons) and heat pump water heaters (<120 gallons).
- Small Business Eligibility: Businesses that receive electric service from City Light with fewer than 50 employees qualify when replacing existing equipment.
- Rebate Limits: Combined rebates cannot exceed the total installed cost.
- Eligibility Window: Sales must occur after July 1, 2025 and will be eligible for stacked rebates until funds are exhausted.
- Same Midstream Process with Some Additional Information: Small business claims require additional data inputs.
- Replacement of existing equipment only, not for new construction projects.
See rebate table for additional program details.
These are the incentives available from stacked midstream rebates:
Heat Pumps (<5.4 tons)
- Stacked rebate up to $4,800 (SB + Midstream)
- Contractor spiff $100 (SB only)
Heat Pump Water Heaters (<120 gallons)
- Stacked rebate up to $1750 (SB + Midstream)
- Stacked Contractor spiff $200 (SB + Midstream)
What benefits does the Seattle City Light Midstream HVAC and Water Heating Program offer you as a contractor?
What are the program participation requirements?
All participating contractors must simply let their distributor know they would like to participate at the time of purchase. Participating distributors will provide contractors qualifying sales information and utilities may occasionally reach out to verify installation locations. Please be prepared with address information at time of purchase.
How can I find out what distributors are participating in the program?
My distributor is not currently participating in the program. What can I do?
If your distributor is not currently participating in the program, please encourage them to contact the program implementer, Energy Solutions, at [email protected] or (503) 914-0008 for more information. Program enrollment is a straightforward process and can be beneficial for distributors, contractors, and customers.
How do I know which products qualify for an incentive?
- The Northwest Energy Efficiency Alliance (NEEA) residential qualified product list for hybrid heat pump water heaters can be found online here: https://neea.org/resources/residential-unitary-hpwh-qualified-products-list
Manufacturer-specific qualified products lists, along with a “top seller” list based on your company’s sales data, can be made available by request. For questions on product eligibility or for support building a custom qualified products list, please contact [email protected].
Can I submit a product outside of listed specifications for an incentive?
No. Contractors are not able to submit an incentive application for products that do not meet the program’s minimum efficiency requirements.
Do all my customers qualify for this program?
Customers or contractors purchasing qualifying equipment from participating distributors are eligible for midstream incentives, provided the installation address is a current Seattle City Light customer.
Snohomish County PUD has paused their HVAC and Water Heating program for 2025.
Please use the supplied territory map and/or zip code search tool available on this page, and if in doubt, reach out to your field representative or the Program implementer.
Are there transaction limits or maximum quantities that customers can receive?
City Light allows one incentive per address for both HVAC and Hybrid Heat Pump Water Heaters. Case-by-case exceptions may be allowed based upon square footage, presence of an Accessory Dwelling Unit or other factors. Please contact the Program implementer [email protected] to confirm eligibility for an exception. There are no limits on residential ECM pumps. For additional information on customer eligibility and exceptions to quantity limits for residences, please contact the Program implementer.
What types of projects qualify for this program?
The equipment must meet or exceed the minimum efficiency requirements for retrofit and new construction designations. All equipment types, project types and efficiency designations are outlined in the incentive tables. Please note there are periodic changes to the Program. Typically, these changes occur at the end of the year and at mid-year.
How do I qualify a project for an incentive without an address?
If a new construction project does not have an assigned address, please include the development name and lot numbers, temporary construction meter number, cross-streets, or construction permit number in the application notes. For additional verification assistance, please contact [email protected]. If all required information is not provided, program staff will follow up and this may delay reimbursement timing.
How do I submit data to be reimbursed?
To receive your incentive, the required installation address, product, and sales information must be submitted to your distributor at the time of purchase. Most participating distributor locations define a process for sales teams to submit the required information to their designated incentive processor. Your distributor will ensure that incentive application forms are available at your branch to assist with this process. Your distributor may have a process for units you purchase for warehouse/unknown customers.
When must claims be submitted to the distributor?
Sales for 2025 must be submitted to your distributor by end of February 2026, to guarantee payment. Remember it is good to avoid last-minute issues and ensure everything is processed smoothly by submitting early. Submitting claims early means quicker reimbursement!
Are contractors required to pass-through incentives to the end-use customer?
End-use residential customers are aware of the specific incentive amount and the Program has informed them to expect this incentive from contractors for qualifying equipment. Please refer to the most recent program incentive tables for pass-through values. It is very highly encouraged that you pass-through midstream rebates as an incentive to end-use customers.
However, the spiff is intended for the contractor and does not need to be passed through. All spiff amounts and details can be found on the contractor incentive table available on this site.
How should incentives passed through to the end-use customer be displayed on invoices?
Incentives should be itemized on customer invoices, with separate line items listed for individual incentives. The invoice should clearly state that the incentive was funded by the local utility with the incentive amount and the associated equipment. Please note – Sales of ultra-low temperature freezers have additional invoice requirements.
How long will incentives be available?
Current program incentives are in effect for sales made with invoice dates between January 1, 2025, and December 31, 2025. Changes to incentive levels and equipment eligibility will generally be announced by the Program several months in advance.
Does qualification of heat pumps for this program assure qualification for Inflation Reduction Act (IRA) incentives?
No. Qualification for this program is separate from qualification for Inflation Reduction Act incentives for heat pumps. We recommend your customers work with a tax professional for their specific situation. However, this FAQ from the Internal Revenue Service may help with answers to questions about energy efficient home improvements and residential clean energy property credits.
Does City Light audit installations for accuracy?
Field and/or project verification is a tool used by utilities to ensure incentivized products meet minimum specifications and are installed at the address of intended installation. Field verifications are randomly selected, at a rate of 5-10% of all submissions. The utilities work directly with the contractor or end-user to verify installation and follow up with the distributor if verification fails. Verification may also include asking participating distributors to provide proof of the sale to the customer/contractor and/or the midstream incentive to the contractor in a credit memo or as a line item.
How does the midstream incentive process work for homes with oil, propane, wood, or natural gas heat?
Midstream incentives are available to contractors installing units with existing oil, propane, wood, or natural gas heat if the heat pump chosen for installation meets the minimum midstream qualifying efficiencies and the equipment is installed within the territory of a participating utility. The incentive passed through from the distributor will be based on the efficiency and type of heat pump as noted in the incentive table.
Are there additional incentives available for fuel-switching?
Additional fuel-switching incentives are not available through this program. Check with the customer’s utility for any potential fuel-switching incentives.
Should the Midstream incentive be applied before or after tax?
Midstream incentives should be provided from the distributor to the contractor after tax. Please consult with both your distributor and tax accountant to confirm the appropriate way of handling the Midstream incentives for those who maintain a reseller certificate.
How do you define ADU?
