SAMPLE: Directory preview. Listings checked against each company’s own website on October 17, 2026. Not an endorsement.

Comparison

Heat pump or furnace? What changes

We won't tell you which one heats your house for less. No utility or state source we have compares the two for Washington homes, and we aren't going to guess. What we can lay side by side is the paperwork, the rebates and the rates you would pay.

Who can install it

Both: L&I contractor registration in the HVAC/R specialty, which covers heating and cooling equipment, ducts and controls. (WAC 296-200A-016)
Both: wiring inside the unit and the control wiring fall under the 06A or 06B electrical specialty. (WAC 296-46B-920)
Heat pump only: anyone handling refrigerant needs EPA Section 608 certification. (EPA)
Gas furnace: new or changed gas piping needs its own permit. In Seattle and unincorporated King County, Public Health issues it, at $137 plus $27 per outlet in 2026. (Public Health) (Public Health 2026 fees, read Oct 18, 2026)

Permits

Neither swap is exempt in most of the South Sound. Tacoma and Pierce County exempt only portable units, minor parts and small self-contained systems. (Tacoma) (Pierce County) Olympia permits all mechanical work and charges the same $75.92 line for a furnace or a heat pump. (Olympia) (Olympia 2026 fees, read Oct 18, 2026) Lacey takes both online, and most are issued within 24 to 48 hours. (Lacey)

Where the rebates go

The utility rebates below are for heat pumps.

PSE: $1,500 for replacing electric resistance heat with a qualifying air-source heat pump; up to $4,000 for income-qualified customers leaving natural gas. (PSE, read Oct 18, 2026)
Tacoma Power: $2,000 for a variable-speed heat pump replacing an electric forced-air furnace, $1,000 for an air-source heat pump replacing zonal or electric forced-air heat. (Tacoma Power, read Oct 18, 2026)
HEAR: heat pumps and the panel or wiring they need, for households at or below 150% of area median income. (WA Commerce)

Amounts change; check our rebate page before you sign.

The rates you would pay (October 2026)

PSE electric: $0.189119 per kWh for the first 600 kWh a month and $0.208536 above that, all riders included except city tax. (PSE price summary, read Oct 18, 2026)
PSE gas: $1.58221 per therm, plus a $14.00 monthly basic charge, before city tax. (PSE price summary, read Oct 18, 2026)
Tacoma Power: $0.045351 per kWh for energy plus $0.046295 for delivery, and a $31.30 monthly customer charge. (Tacoma Power rates, read Oct 18, 2026)

What decides a heat pump's bill, per Energy Trust of Oregon: settings, install quality, insulation and air sealing, maintenance, the price of power, and the unit's rating. Energy Trust also says comfort settings may lean on backup electric resistance heat, and that avoiding big temperature swings helps efficiency. (Energy Trust)

Questions that settle it for your house

Will the heat pump need a new circuit or a panel upgrade, and who does that work?
Does my utility's rebate apply to the system you're quoting, and are you on its list?
If I keep gas, does any gas piping change, and who permits it?
Can you price both options on the same bid sheet?

Then see permits, rebates and bids.

Sources

We read each source on October 18, 2026. Rules and prices change, so check the linked page before you rely on a number.

Written by the South Sound HVAC team. We list businesses; we do not employ, bond or insure them. Spot a mistake? Use the claim page to tell us.