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  • Home > Ways to Save > At Home > Heating Systems > Ductless Heat Pumps

    Ductless Heat Pumps

    Download this information as an Adobe PDF file

    Download the Homeowner's Guide to Ductless Heating and Cooling.

    John Hesch of Shelton, WA, loves his new ductless system

    John Hesch of Shelton, WA, recently installed a ductless system. He says the installation process was straightforward and that using the system is "as easy as falling off a log."

    Quiet, easy to use, and energy efficient, ductless heat pumps provide home heating and cooling at a fraction of the cost of electric baseboard and wall heaters.  

    Ductless systems distribute warm or cool air quietly and evenly, making your living areas more comfortable. Installing a ductless system is low-cost and easy, which makes them an excellent option for replacing or supplementing existing electric systems.

    Each ductless system consists of an outside unit and one or more inside "heads" that serves zones in your home. Find out where to shop for a ductless heat pump, or stop by our office to see a display model. 

    Photo of a Ductless Heating & Cooling System's indoor unit, installed high on a wall.


    This program is available to residential PUD customers who meet the following requirements:

    • Single family homes with electric heat such as wall heaters, baseboards, or a forced air furnace. If your home has a heat pump, please contact us for eligibility.
    • Homes with other heating types may qualify on a case-by-case basis. Contact our Energy Experts to see if your home qualifies.
    • You agree to allow us to share your electricity usage information with the NW Ductless Heat Pump Project.


    PUD Rebates - Homes with Electric Forced-Air Furnaces

    $1,000-$1,200 rebate for approved installations in single-family site-built, manufactured or floating homes. 

    PUD Rebates - Homes with Zonal Electric Heat (Baseboards, Wall Heaters, etc.)

    $800-$1,000 rebate for approved installations in single-family site-built, manufactured or floating homes. 

    PUD Rebates - New Construction

    $400 rebate for approved installation in new site-built homes.

    Tax Credits

    Tax credits may also be available for qualified systems. Consult your tax advisor or visit the Oregon Department of Energy webpage for rules regarding tax credits.

    System Requirements

    Ductless heat pumps must have a Heating Season Performance Factor (HSPF) of at least 9.0 for a system with a single indoor unit, or at least 8.0 for a system with multiple indoor units.

    Ductless Heat Pumps Have 3 Main Parts

    • An indoor unit is mounted on a wall.
    • An outdoor unit sits on a concrete pad on the ground.
    • A remote control is used to adjust the temperature.

    The indoor and outdoor units are connected by a small bundle of cables, including a refrigerant line, that requires a 3-inch hole in the wall for installation.

    Step-By-Step: Ductless Heat Pump Rebate Program

    1. Request Proposals - Contact a qualifying contractor to arrange for a home consultation. To find a local contractor, search our list of PTCS contractors. A complete list of contractors can be found at
    2. Complete the Installation - Once your installation is complete, your contractor will notify the PUD and we will schedule an inspection of your new system.
    3. Receive Your Rebate - We will process your rebate within three weeks of completing the inspection and receiving all the required paperwork.

    Find a Contractor

    To find a local contractor, search our list of PTCS contractors. For a list of all participating contractors in the region, visit

    Contractor Forms & Information

    Expert Help Available

    We can help you determine if an energy-efficient ductless heat pump is right for you. If you have any questions, call (503) 366-5470 or email

    Use this chart to compare the cost of common heating systems producing the same amount of heat. It can help you decide which heating system is right for you.