Seattle's Clean Heat Program

Why Change From Heating Oil?

Heating oil is the least efficient, most expensive, and most polluting form of home heating in Seattle. With heating oil prices at an all-time high and generous incentives to finance the project, there’s never been a better time to switch to an energy-efficient heat pump that can save you more than 50% on your annual heating costs. Heat pumps also provide air-conditioning, making them a great solution for year-round comfort.

In addition, underground oil tanks can rust and develop leaks that contaminate your soil and groundwater. Switching to electric heat and decommissioning your oil tank can reduce the risk of contamination. There are an estimated 8,000-10,000 homes heating with oil in Seattle (down from approximately 18,000 in 2018), and the City is committed to helping transition all remaining households by 2030 through instant rebates and no-cost conversions for income-qualified households.   

Clean Heat Rebates

In order to reduce climate pollution, reduce heating costs, and support the adoption of efficient home cooling, the City is offering a $2,000 instant rebate when you switch from heating your home with oil to heating with an energy-efficient Mitsubishi Electric Heat Pump. This rebate can be combined with a $2,000 federal tax credit!

Starting September 1st, 2024 and for a limited time, the City is also offering a $4,000 bonus rebate on top of the $2,000. This bonus rebate applies to moderate-income households earning between 81% - 150% of the Area’s Median Income. Combining these incentives means you could save up to $8,000 on the project! See below for income limits.

How to Participate:

Step 1: Contact participating contractors for no-cost estimates and select a contractor to install a qualified Mitsubishi electric heat pump. 

Step 2: Fill out the Homeowner Participation Form, provide it to your contractor, and install your equipment. 

Step 3: Decommission your oil tank per the Seattle Fire Department requirements to prevent future leaks on your property. The WA State Pollution Liability Insurance Agency has published a fact sheet on heating oil tank leaks and resources available.

Start enjoying year-round comfort and lower heating and cooling costs!

Bonus rebates are provided by the Washington State Home Electrification and Appliance Rebates (HEAR) program. The Home Electrification and Appliance Rebates Program is supported with funding from Washington’s Climate Commitment Act. The CCA supports Washington’s climate action efforts by putting cap-and-invest dollars to work reducing climate pollution, creating jobs, and improving public health. Information about the CCA is available at www.climate.wa.gov/.

Resources to help Seattle residents with oil heat

To qualify for the bonus rebate, your annual household income must be between the limits associated with your household size. Income limits are listed below and on the Homeowner Participation Form. If you make less than the lower limit, you may be eligible for a no-cost conversion through the Office of Housing

Household Size Lower Income Limit Upper Income Limit
1 $77,700 $145,688
2 $88,800 $166,500
3 $99,900 $187,313
4 $110,950 $208,031
5 $119,850 $224,719
6 $128,750 $241,406
7 $137,600 $258,000
8 $146,500 $274,688

  • Free Heat Pumps
    Income-qualified households may receive a free heat pump, including installation and tank decommissioning services through the Office of Housing.  Additional weatherization services may also be provided at no cost.  

  • Heat Pumps for Renters
    If a renter meets the income qualification, the City will work with the landlord for permission to complete the upgrade, and in return, the landlord will agree to a rental covenant to prevent rent increases for 3 years.

  • Utility Discount Program (UDP)
    The UDP program is available to any income-qualified household - no matter how you heat your home. If you are enrolled in UDP and you switch from oil to electric heat, your electric heating costs will be discounted by 60%. Participants also receive a 50% discount on water and sewer costs.  

  • Rebates
    All households have access to a $2,000 rebate when converting from oil to a qualified heat pump system. Seattle households must use a participating contractor and install eligible equipment. The rebates are instantly applied to the invoice by the contractor.
  • Financing options
    Many lending institutions, including Puget Sound Cooperative Credit Union, provide financing for energy-efficient upgrades, including electric heat pumps, weatherization, and more. Participating contractors may also have financing options as well. Check with your contractor for what options are available to you. 
  • Oil Tank Leak Insurance and Loans/Grants
    The State of Washington Pollution Liability Insurance Agency (PLIA) offers a free oil tank leak insurance program that covers up to $60,000 in clean-up costs for those already registered for the program. For homeowners not already registered, a new loan and grant program is available to pay for leak clean-up costs.
  • Even More Heat Pump and Building Electrification Sources available through our partner Switch Is On – including details on incentives and tax-credits. 

Sustainability and Environment

Jessyn Farrell, Director
Address: 700 5th Avenue, #1868, Seattle, WA, 98104
Mailing Address: PO Box 94729, Seattle, WA, 98124-4729
Phone: (206) 256-5158
OSE@seattle.gov

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