Dual Fuel Heat Pumps in the Seattle-Tacoma Area
Keep your gas furnace for the coldest days and let a heat pump handle the rest, plus air conditioning in summer. We set it up for PSE’s hybrid rebate.
Locally-owned since 1977 • Licensed, bonded and insured in Washington (WA Contractor Reg. #HOMECCA785BD) • WA Electrical Contractor Lic. #HOMECCA782DC • NATE-certified technicians • Mitsubishi Electric Diamond Dealer • Lennox Premier Dealer
What is a dual fuel heat pump?
A dual fuel heat pump, also called a hybrid heat pump, pairs an electric heat pump with a gas furnace. The heat pump heats your home in mild and cool weather and cools it in summer; when it gets cold enough outside, the system switches to the furnace. Both share your ducts and one thermostat or control.
Home Comfort Alliance installs dual fuel systems across Seattle-Tacoma, locally owned since 1977, as a Mitsubishi Electric Diamond Dealer, Carrier Factory Authorized Dealer and Lennox Premier Dealer. Every installation starts with a room-by-room load calculation (ACCA Manual J), and when you use PSE's hybrid rebate we work out your home's balance point to PSE's rules, pull the permits and handle the rebate paperwork for you. For heat pumps in general, see our heat pump installation guide.
The three parts of a dual fuel system
- The heat pump: an outdoor unit plus an indoor heat pump coil. It moves heat into the house in winter and out of it in summer, so it also replaces your air conditioner.
- The gas furnace: the burner and the blower. The blower moves air for both systems, and the burner covers the coldest hours.
- The control: a thermostat or control that reads the outdoor temperature and switches from the heat pump to the furnace at a set point.
Is dual fuel right for your home?
Dual fuel usually fits a home that already heats with gas through ducts and wants efficient heat plus air conditioning without giving up the furnace. Here is how it compares with the other choices we see most often.
| Your situation | Usually best | Why |
|---|---|---|
| Working gas furnace, no AC or an old AC | Add a heat pump to the furnace | Keeps a furnace that still has life in it, adds cooling, and can qualify for PSE's $1,500 hybrid rebate if the system is ducted and you're a PSE gas customer |
| Furnace and AC both old | Compare a new furnace plus heat pump with an all-electric heat pump | PSE's hybrid rebate allows an existing or a new furnace. Energy Smart Eastside's $5,000 income-based bonus is for fully electric systems only |
| No ducts | A ductless heat pump | Dual fuel needs ducts and a furnace. Ductless systems aren't eligible for PSE's hybrid rebate |
| You want to stop using gas | Gas to heat pump conversion | Removes the furnace and, if nothing else uses gas, the gas service |
| Worried about cold snaps without gas | A cold-climate heat pump | Built to keep more of its output well below freezing, so it can heat the home alone; ask us about cold-climate models at the estimate |
| Cascade Natural Gas home | Dual fuel works, but check rebates first | Cascade lists no heat pump rebate, and a furnace used as backup for a heat pump doesn't qualify for Cascade's furnace rebates |
Leaving oil instead? See oil to heat pump conversion. Our older blog post on furnace vs heat pump vs hybrid systems covers the basics side by side.
Adding a heat pump to your existing gas furnace
In most homes, yes, you can add a heat pump to the gas furnace you have. The heat pump takes the place of the air conditioner: a new outdoor unit and a heat pump coil on the furnace, using the furnace blower and your ducts. If you have central AC today, its outdoor unit and coil are usually what come out.
What we check first
We don't recommend keeping a furnace until we've looked at it. At the free in-home estimate we check:
- The furnace's age and condition, and whether its blower can move the airflow a heat pump needs
- Duct size and leakage, since heat pumps run longer at lower air temperatures than a furnace
- Whether a heat pump coil fits on the furnace, and the space above or below it
- The outdoor circuit and your electrical panel
- The condensate drain, because the coil drains in both heating and cooling
- Thermostat wiring and where an outdoor temperature reading can come from
Why the coil sits on the furnace
The heat pump coil sits in the furnace's airflow, usually right on top of an upflow furnace. Because the furnace's hot air passes over that coil, the control is set so the compressor and the burner don't heat at the same time. The one exception PSE allows is a short furnace run during defrost, when the heat pump briefly reverses to clear ice from the outdoor coil and the furnace keeps the air from going cold.
Replacing both at once
If the furnace is near the end of its life, it often makes sense to replace both together so the new furnace, coil and heat pump are matched and installed once. PSE's hybrid rebate covers a heat pump added to an existing or a new gas furnace. See furnace replacement for the furnace side of that job.
Balance point and switchover: when the furnace takes over
The furnace takes over at the switchover temperature, which is set from your home's balance point. The balance point is the outdoor temperature where the heat pump's output just matches your home's heat loss. Above it, the heat pump can carry the house alone; below it, it needs help.
PSE's hybrid rebate requires:
- A balance point of 30°F or below, calculated with indoor design temperatures of 70°F for heating and 75°F for cooling and the ASHRAE outdoor design temperatures for your area
- A compressor lockout set no higher than that balance point
- A furnace lockout at 35°F or below, so the furnace does not run above 35°F except during defrost or a fault
Northwest research for NEEA found the switchover setting is the biggest lever on how much gas a dual fuel system burns, and recommends sizing to about a 30°F balance point and switching a few degrees above it. That is why the load calculation matters: an undersized heat pump hands the house to the furnace too early.
| Setting | What it does | PSE hybrid rebate rule |
|---|---|---|
| Balance point | The outdoor temperature where the heat pump alone meets your home's heat loss | 30°F or below |
| Compressor lockout | Stops the heat pump below a set outdoor temperature | No higher than the balance point |
| Furnace lockout | Keeps the furnace off above a set outdoor temperature | 35°F or below, except during defrost or a fault |
| Defrost | The heat pump briefly reverses to melt ice on the outdoor coil | The furnace may run during defrost |
PSE rules from pse.com, hybrid heat pump rebate (checked October 2026). NEEA, dual-fuel gas furnace and heat pump system control (March 2026).
Thermostats and controls for dual fuel
A dual fuel system needs a thermostat or control set up for dual fuel, with an outdoor temperature reading so it knows when to switch. That reading comes from an outdoor sensor or from a communicating system where the outdoor unit reports the temperature to the indoor control. The control holds the switchover point, the compressor and furnace lockouts, and how defrost is handled.
We program those settings at installation, matched to PSE's rules when you use the hybrid rebate, and show you the switchover at the walkthrough so you know what the system is doing on a cold morning. If your current thermostat can't run dual fuel, thermostat replacement runs $299 to $1,840 depending on the model. More in our post on smart thermostats for heat pumps.
Gas or heat pump: which is cheaper to run with PSE?
With PSE's 2026 rates, a heat pump and a high-efficiency gas furnace cost about the same per unit of heat in mild weather, and gas costs less as it gets colder. That is why dual fuel suits homes with PSE gas and PSE electricity: the heat pump carries the mild hours and all of the cooling, and the furnace covers cold snaps.
A heat pump's efficiency is measured as COP, the units of heat it delivers for each unit of electricity. COP drops as the outdoor air gets colder, which is what the table shows.
| Equipment | Cost to deliver 1 therm of heat (illustrative) |
|---|---|
| 95% AFUE gas furnace | about $1.51 |
| 80% AFUE gas furnace | about $1.79 |
| Heat pump at COP 4 (mild weather) | about $1.51 |
| Heat pump at COP 3 | about $2.01 |
| Heat pump at COP 2 | about $3.01 |
| Electric resistance backup | about $6.03 |
How we worked this out: PSE Schedule 7 residential energy charge above 600 kWh with riders, $0.2056 per kWh (PSE electric price summary, March 21, 2026); PSE gas at about $1.43 per therm before the basic charge (derived from PSE's rate notice for May 1, 2026, a typical 64-therm bill of $105.78, less the $14 basic charge in PSE's September 2025 notice); 29.3 kWh per therm. Your costs depend on your home, weather, equipment and rates. Seattle City Light and Tacoma Power electricity is priced differently, which changes the math for homes with PSE gas and city power.
PSE has asked regulators for higher gas and electric rates for late 2026 and 2027; the Washington Utilities and Transportation Commission decides. A dual fuel system gives you a choice either way: the switchover point can move if the price gap between gas and electricity changes, within PSE's rebate rules if you used that rebate.
How much does a dual fuel system cost?
Angi's national estimate for adding a heat pump to an existing furnace is $2,500 to $6,000, and $4,500 to $10,000 for a complete hybrid system (July 2026). These are third-party estimates, not Home Comfort Alliance prices.
Your price depends on:
- The heat pump's size and type, from single-stage to variable-speed
- Whether the furnace stays or is replaced too
- The coil and any changes to the plenum above the furnace
- Duct repairs or changes
- Electrical work for the outdoor unit, and any panel upgrade
- The thermostat or control
- Permits
Get a price range in about 30 seconds with our free instant quote tool (it's not a commitment), then book a free in-home estimate for an exact, upfront price before any work begins. Our heat pump cost guide has more detail on what drives the price.
Dual fuel rebates (checked October 2026)
PSE pays $1,500 for a hybrid heat pump, plus a $2,400 Efficiency Boost based on income, when a PSE gas customer adds a central ducted heat pump to a gas furnace. Other programs depend on which utilities serve your home.
| Your utilities | Hybrid heat pump rebate | Key rules |
|---|---|---|
| PSE gas, with PSE or city electricity | $1,500, plus a $2,400 Efficiency Boost based on income | Single-family PSE natural gas or dual-fuel customer; primary heat is a PSE gas furnace; central ducted, AHRI-certified heat pump added to an existing or new gas furnace; ductless not eligible; homes that already have a heat pump not eligible; balance point 30°F or below; furnace lockout 35°F or below; installed by a PSE Trade Ally or Recommended Energy Professional. We're a PSE Trade Ally and handle the paperwork. |
| Energy Smart Eastside (Bellevue, Issaquah, Kirkland, Mercer Island, Redmond, Sammamish) | $1,000 instant rebate for a hybrid, applied at the point of sale | Approved Mitsubishi, Bryant/Carrier or Day & Night equipment; network contractor; city limits; the program describes replacing an existing furnace or electric resistance heat. The $5,000 income-based bonus is for fully electric systems only. |
| Cascade Natural Gas | No heat pump rebate | Cascade's furnace rebates require natural gas as your primary heat, not a backup for an electric heat pump. Home Comfort Alliance is on Cascade Natural Gas's contractor list. |
| Tacoma Power electricity with PSE gas | Tacoma Power lists $1,000 for a variable-speed heat pump replacing non-electric heat | Tacoma Power doesn't say whether a hybrid qualifies, so we check with your utility. Its 0% loan is for homes with existing electric heat only. |
| Seattle City Light electricity with PSE gas | PSE's hybrid rebate applies if you meet its rules | City Light lists instant discounts of $300, $400 or $600 by efficiency tier; whether a hybrid qualifies isn't stated, so we check with your utility. |
| Federal 25C tax credit | Ended | Not available for equipment placed in service after December 31, 2025. |
Rebate rules change. We confirm eligibility for your account before you sign. Sources: PSE hybrid heat pump rebate, Energy Smart Eastside rebates, Cascade Natural Gas rebates (all checked October 2026). See every program on our rebates, PSE rebates and Energy Smart Eastside pages.
Financing
Low monthly payment plans starting at $179/month* through Salal Credit Union or Synchrony, with 0% interest options for qualifying customers and instant online approval. See financing.
*Financing through Salal Credit Union or Synchrony, subject to credit approval. Rates, terms and monthly payments depend on the amount financed, the plan and your credit. 0% interest options are available to qualifying customers. See lender for full terms.
Get a free estimateAn in-home visit and a written, upfront price before any work begins.
Permits and electrical work
We pull the required permits for every installation. A dual fuel job usually needs a mechanical permit from your city or county and an electrical permit from the city or Washington L&I for the outdoor unit's circuit. The outdoor circuit and any panel work are done by our electricians (WA Electrical Contractor Lic. #HOMECCA782DC); see electrical panel upgrades and our post on panel upgrades for heat pumps. Timing is covered in our heat pump permit and inspection timeline.
Maintaining a dual fuel system
You have two systems to look after, and both need yearly maintenance. Our furnace tune-up is $230 ($180 for Home Comfort Club members), and our heat pump tune-up is $230 ($180 for Club members) per piece of equipment. The furnace tune-up covers the burners, gas pressures, flue and safety controls, and the heat pump tune-up looks after the outdoor unit and the cooling side you rely on in summer.
Yearly maintenance keeps the 3-year Comfort Shield labor warranty active, and first-year maintenance is included with a new installation. See furnace maintenance, heat pump maintenance and the Home Comfort Club.
Warranty on a new dual fuel system
3-year Comfort Shield labor warranty on new installations, kept active with yearly maintenance. First-year maintenance is included. Home Comfort Club members with a new system installed by Home Comfort Alliance get extended labor coverage for up to 5 years from installation. We support the manufacturer's warranty on covered parts.
Something not working on an existing system? See furnace repair or heat pump repair.
How our dual fuel installation works
- Try the instant quote tool or call us.
- Free in-home estimate: load calculation, furnace check, ducts, electrical panel and which utilities serve your home.
- A written, upfront price and a rebate check for your accounts.
- We pull the permits.
- We install the outdoor unit, the heat pump coil on the furnace (or a new furnace and coil), the circuit and the control.
- Commissioning: we test both heat sources and cooling, and set the switchover and lockouts, to PSE's rules when you use the hybrid rebate.
- A walkthrough of the system and the thermostat.
- We file the rebate paperwork for you.
A recent dual fuel installation in Woodinville
In October 2026 our install crew replaced two heating and cooling systems in a Woodinville home with Carrier hybrid heat (dual fuel) packages. Each system pairs a new 2.5-ton variable-capacity heat pump with a new 80% AFUE gas furnace, installed horizontally in the existing locations.
Because the home's ductwork, venting, electrical circuits, refrigerant lines, outdoor pad, thermostats and filtration were in good shape, the crew reused them, so the work stayed focused on the new equipment.
What you get with Home Comfort Alliance
- NATE-certified technicians and a room-by-room load calculation (ACCA Manual J) on every installation
- Licensed, bonded and insured in Washington (WA Contractor Reg. #HOMECCA785BD; WA Electrical Contractor Lic. #HOMECCA782DC)
- We pull the required permits for every installation
- Mitsubishi Electric Diamond Dealer, Carrier Factory Authorized Dealer and Lennox Premier Dealer; we service all major brands
- Lennox Centurion Award 2024 and 2025; Gensco Ducted, Ductless and Multi-Zone Excellence 2024 to 2025
- PSE Trade Ally; approved contractor with Tacoma Power, Seattle City Light, Snohomish PUD and Energy Smart Eastside; on Cascade Natural Gas's contractor list; we handle the rebate paperwork for you
- 3-year Comfort Shield labor warranty on new installations, kept active with yearly maintenance, with first-year maintenance included
- Upfront, transparent pricing before any work begins
- Our phones are answered and bookings are accepted 24/7. Heating and cooling technicians work during business hours and are available after hours for qualifying emergencies ($330 after-hours fee).
- Locally owned since 1977; BBB Accredited Business since 2002; Best Pick 2025 and 2026; 4.8 stars from 5,000+ reviews
Where we install dual fuel systems
Our install crews work across King, Pierce, Snohomish and Kitsap counties from walk-in offices in Sumner (headquarters), Everett and Bremerton, and from our Redmond service location. Most of the King and Pierce County homes we serve have PSE gas, which is where the hybrid rebate applies. Parts of Kitsap and Snohomish counties are served by Cascade Natural Gas, and some Pierce County homes near our Sumner office get electricity from Tacoma Power, so the rebate picture there is different; we check it for your address at the estimate.
- Redmond team: Bellevue, Kirkland, Redmond, Sammamish, Issaquah, Woodinville, Seattle and south King County. See heat pumps in Bellevue, Kirkland, Redmond, Woodinville and Seattle.
- Sumner team: Tacoma, Puyallup, Sumner, Federal Way, Gig Harbor and Olympia. See heat pumps in Federal Way and Gig Harbor.
- Everett team: Everett, Lynnwood, Monroe and the Skagit Valley. See heat pumps in Monroe and Mount Vernon.
- Bremerton team: Bremerton, Silverdale, Port Orchard and Poulsbo. See heat pumps in Silverdale and Port Orchard.
Dual fuel heat pump FAQ
What is a dual fuel heat pump?
A dual fuel, or hybrid, system pairs an electric heat pump with a gas furnace on the same ductwork. The heat pump heats your home in mild and cool weather and cools it in summer, and the system switches to the furnace when it gets cold enough outside.
Can I add a heat pump to my existing gas furnace?
Usually, yes. The heat pump takes the place of your air conditioner: a new outdoor unit plus a heat pump coil on the furnace, using the furnace blower and your ducts. We check the furnace's age and condition, the blower, the ducts and your electrical panel at a free in-home estimate before recommending it.
At what temperature does the furnace take over?
It depends on your home's balance point, the outdoor temperature where the heat pump can no longer keep up on its own. PSE's hybrid rebate requires a balance point of 30°F or below and a furnace lockout at 35°F or below, and we set the switchover to match when you're using that rebate.
Is gas or a heat pump cheaper to run with PSE?
At PSE's 2026 rates, a heat pump and a high-efficiency gas furnace cost about the same per unit of heat in mild weather, and gas costs less as temperatures fall. A dual fuel system uses the heat pump when it's efficient and the furnace when it's cold, and it gives you air conditioning. Your costs depend on your home, equipment and rates.
What if gas prices go up?
A dual fuel system lets the heat pump carry more of the heating. PSE has asked regulators for gas and electric rate increases for late 2026 and 2027, and the Washington Utilities and Transportation Commission decides the final rates. If you use PSE's hybrid rebate, the furnace must stay locked out above 35°F.
How much does a dual fuel system cost?
Angi's national estimate is $2,500 to $6,000 to add a heat pump to an existing furnace and $4,500 to $10,000 for a complete hybrid system (July 2026). These aren't our prices. Use our instant quote tool for a ballpark, then book a free in-home estimate for an exact, upfront price.
What is PSE's hybrid heat pump rebate?
PSE pays $1,500, plus a $2,400 Efficiency Boost based on income, when a single-family PSE natural gas customer heating with a PSE gas furnace adds a central ducted heat pump to a new or existing gas furnace. Ductless heat pumps and homes that already have a heat pump don't qualify, and a PSE Trade Ally or Recommended Energy Professional must install it. We're a PSE Trade Ally and handle the paperwork.
Does Energy Smart Eastside give a rebate for a hybrid heat pump?
Yes. Energy Smart Eastside offers a $1,000 instant rebate on a qualifying hybrid heat pump in Bellevue, Issaquah, Kirkland, Mercer Island, Redmond and Sammamish. Approved contractors apply it at the point of sale, so it comes off your price up front. Its $5,000 income-based bonus is only for fully electric systems with no furnace backup.
I'm on Cascade Natural Gas. Are there rebates for dual fuel?
Cascade Natural Gas lists no heat pump rebate, and its furnace rebates require natural gas to be your primary heat, not a backup for an electric heat pump. PSE's hybrid rebate is only for PSE gas customers. Your electric utility may still have a heat pump offer, which we check at the estimate.
What thermostat do I need for dual fuel?
You need a thermostat or control set up for dual fuel, with an outdoor temperature reading so it can switch between the heat pump and the furnace and hold the lockout settings. We set it up at installation and show you how it works. Thermostat replacement runs $299 to $1,840 depending on the model.
Does a dual fuel system need more maintenance?
It has two parts to look after, the heat pump and the furnace, and both need yearly maintenance. Our furnace tune-up is $230 ($180 for Home Comfort Club members) and our heat pump tune-up is $230 ($180 for members) per piece of equipment, so a dual fuel system is priced as two tune-ups, one for each part. New installations come with first-year maintenance included.
What warranty comes with a new dual fuel system?
New installations come with a 3-year Comfort Shield labor warranty, kept active with yearly maintenance, and first-year maintenance is included. Home Comfort Club members with a new system installed by Home Comfort Alliance get extended labor coverage for up to 5 years from installation, and we support the manufacturer's warranty on covered parts.
Sources
- Puget Sound Energy, hybrid heat pump rebate and residential heating rebates (checked October 2026)
- Puget Sound Energy, summary of electric prices (March 21, 2026); PSE rate notices (September 2025 and March 2026)
- Energy Smart Eastside, rebates (checked October 2026)
- Cascade Natural Gas, residential rebate offerings (page modified October 8, 2026) and 2026 to 2027 incentives sheet
- Tacoma Power, heat pumps (page updated October 1, 2026)
- Seattle City Light, heating and cooling your home (October 2026)
- NEEA, dual-fuel gas furnace and heat pump system control (March 2026)
- U.S. Department of Energy, Energy Saver, heat pump systems (checked October 2026)
- Angi, dual fuel heat systems and using a heat pump with a furnace (July 2026)
- IRS, 25C energy efficient home improvement credit (ended for property placed in service after December 31, 2025)
Why Choose Home Comfort Alliance for Dual Fuel Heating?
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