If you’re replacing gas or electric resistance equipment in a commercial building, there’s money available. Here’s what’s out there as of October 2026, and the rules that trip people up.
Seattle City Light
- Heat pumps and VRF replacing electric resistance: $0.36 per kWh saved
- Central heat pump water heating (NEEA Advanced Water Heating Spec 8.0, over 120 gallons): $0.36 per kWh saved
- Building automation, DOAS and variable speed drives: $0.36 per kWh; BAS programming $0.06 per kWh
- Advanced rooftop controls: $120–$500 per ton
The big rule: City Light must review and approve the project before you buy or install equipment, and incentives can’t exceed 70% of project cost.
City Light small business stacked rebates
Small businesses with fewer than 50 employees in Seattle, Shoreline, Lake Forest Park or Burien can get up to $10,000 off heat pumps under 5.4 tons and up to $4,000 off heat pump water heaters under 120 gallons, stacked with midstream discounts, until funds run out.
Puget Sound Energy
- $650 per commercial heat pump water heater replacing electric resistance
- Instant midstream discounts on air-source heat pumps 5.4 tons and under
- Ductless heat pump conversions from electric resistance, PTHPs, controls and custom retrofit grants
PSE says it no longer offers direct incentives for replacing large commercial HVAC equipment, so bigger projects lean on custom grants and controls measures.
Washington Clean Buildings incentives
Tier 2 buildings (20,000–50,000 sq ft, and multifamily over 20,000) can get $0.30 per square foot ($0.75 for multifamily with an anti-displacement agreement). Applications are due by July 1, 2027, and over $138 million remained as of September 24, 2026. Tier 1 has its own $75 million early adopter fund.
Federal
Federal homeowner credits for heat pumps (25C/25D) ended after 2025. For businesses, talk to your CPA about what still applies to your situation.
We match projects to programs and handle the paperwork. See the full rebates page.
Sources: PSE commercial HPWH rebate · PSE residential HPWH rebate · PSE business HVAC programs · Seattle City Light commercial retrofit incentives (6/24/2026) · City Light small business stacked rebates · WA Commerce Tier 2 incentive · WA Commerce CBPS incentives
Common questions
Do I need pre-approval for Seattle City Light commercial incentives?
Yes. City Light requires project review and approval before equipment is purchased or installed.
Can rebates be combined?
Often. Midstream discounts, utility rebates and Clean Buildings incentives can sometimes apply to the same project, subject to each program’s rules.
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