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Washington's Energize Thurston offers heat pump rebates, with some homes eligible for free installs

"The savings will only grow as this program expands."

A banner promoting energy savings and modern heat pumps in Thurston, Washington.

Photo Credit: Thurston County Washington

Residents in Washington's Thurston County have a new opportunity to cut the cost of cleaner home heating.

A partnership involving the county, Olympia, Lacey, Tumwater, and South Puget Sound Habitat for Humanity has kicked off Energize Thurston's second year, providing heat pump discounts, rebates, and support, with some income-qualified households eligible for low-cost or free installations.

Here's what to know

The initiative helps county residents adopt electric heat pumps for heating, cooling, and in some cases water heating, according to The Chronicle.

Since August 17, Phase 1 has been available to interested residents throughout the county, with certified installers offering free site assessments alongside equipment discounts, upfront rebates, and customer support. The phase also continues subsidized installations for qualifying households already on its waitlist.

In October, Phase 2 is scheduled to open to new applicants with household incomes below 120% of Thurston County's area median income. Eligible households could receive assistance covering 80% to 100% of equipment and installation expenses.

Heat pumps can heat and cool a home and, in some cases, help with water heating.

More background

The program is also set to grow with additional funding. South Puget Sound Habitat for Humanity secured $4.17 million in grants during the 2026–2027 period.

That total includes $3,071,333 from the Washington State Department of Commerce's Home Electrification and Appliance Rebate program, $750,000 from Puget Sound Energy's Residential Decarbonization Program, and $350,000 from Washington State University's Community Energy Efficiency Program. The rebate program and Puget Sound Energy awards are funded through Washington's Climate Commitment Act.

Unlike conventional furnaces, which generate heat, heat pumps move heat and often use less energy.

What's being done?

The campaign is designed to address some of the biggest barriers that prevent residents from making home energy upgrades: steep upfront costs, uncertainty about equipment, and the challenge of finding trusted installers.

On behalf of the Thurston Climate Mitigation Collaborative, the City of Olympia has contracted with Thermal Supply Inc. and Ferguson Enterprises to supply equipment for the program.

The program includes instant discounts, site assessments, and customer support, rather than relying solely on post-purchase rebates.

In Phase 2, some lower-income applicants could receive enough support to cover nearly all or even the full installation cost.

Chair of the Board of County Commissioners Tye Menser said in the announcement, "Last year, local homeowners installed 227 new heat pump systems, saving each household thousands of dollars, and we're anticipating the savings will only grow as this program expands."

Where can I learn more?

Energize Thurston is one part of an ongoing effort to reduce the cost of heat pumps and make them easier to install. The stories below highlight how that support is growing in Washington and across the country, from local rebates to federal incentives and financing help.

• In Lincoln, Nebraska, homeowners can claim up to $5,800 in incentives for new heat pumps.

• Nationwide, the Inflation Reduction Act offers up to $10,000 for qualifying heat pump upgrades.

• A new partnership lets homeowners install high-efficiency heat pumps without a large upfront payment.

• In Washington State, builders will be required to use heat pumps in new homes.

• Researchers say smarter electrification could shave $350 off annual home heating bills.

For Thurston County residents, that means the shift to heat pumps is getting support from several directions. Rebates, policy changes, and lower-cost financing are making cleaner home heating a more realistic option.

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