Oil to Heat Pump Conversion in Seattle-Tacoma
Replace your oil furnace or oil boiler with an electric heat pump that heats and cools. Home Comfort Alliance is a participating contractor in the City of Seattle’s Clean Heat Program and a Mitsubishi Electric Diamond Dealer.
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 an oil to heat pump conversion?
An oil to heat pump conversion replaces an oil furnace or oil boiler with an electric heat pump, so you stop buying heating oil and gain air conditioning. In Seattle, the City's Clean Heat Program takes $2,000 off a qualified Mitsubishi Electric heat pump installed by a participating contractor, and moderate-income households can get $4,000 more on installations completed by May 30, 2027. You also need to decommission the oil tank to Seattle Fire Department rules.
Home Comfort Alliance is a participating contractor in the City of Seattle's Clean Heat Program and a Mitsubishi Electric Diamond Dealer. We install the heat pump; a certified tank decommissioner handles the tank.
| Who does what | In a Seattle Clean Heat conversion |
|---|---|
| We do | The estimate, the room-by-room load calculation, the heat pump installation, the electrical work and the permits |
| You do | Fill out the City's Homeowner Participation Form and give it to us, and hire a certified decommissioner for the oil tank |
| You get | Heating and cooling from one system, and no more oil deliveries |
| It costs | A free estimate and a written price; the $2,000 rebate is instant |
Is a heat pump right for my oil-heated home?
Almost every oil-heated home in western Washington can switch. The question is which kind of heat pump fits.
| You have now | Usual heat pump path | Notes |
|---|---|---|
| Oil furnace with ducts | A ducted heat pump on your existing ducts | We check duct size and condition at the estimate |
| Oil boiler with radiators or hydronic baseboards | Ductless heat pump heads in the main rooms | No ducts needed |
| Oil furnace with ducts in poor shape | Ductless, or ducted with duct repairs | Decided after the load calculation and duct check |
| Oil boiler that also makes your hot water | A heat pump plus a new water heater | Plan the water heater in the same project |
Heat pumps work in our climate. The U.S. Department of Energy notes that cold-climate heat pumps are designed to perform in temperatures as low as 5°F. Heating with gas instead? See gas to heat pump conversion. Electric baseboards? See electric baseboard to heat pump.
What the job involves
Sizing
A room-by-room load calculation (ACCA Manual J) on every installation. Oil furnaces are often oversized for the house; the heat pump is sized to the home, not to the old burner.
Ducts
If your oil furnace has ducts, we check whether they can be reused, need repairs, or whether ductless makes more sense.
Electrical
A heat pump needs its own circuit, and older homes may need a panel upgrade. Our licensed electricians (WA Electrical Contractor Lic. #HOMECCA782DC) check this at the estimate. See panel upgrades for heat pumps.
Hot water
If your oil boiler also heats your water, your home needs a new water heater when the boiler stops running. Our plumbers can replace it in the same project, and Seattle City Light offers $750 on qualifying heat pump water heaters. See water heater replacement.
Permits
We pull the required permits for every installation. The oil tank has its own Seattle Fire Department permit, which the tank decommissioner pulls.
The oil tank: read this before you book
Seattle's Clean Heat rebate requires you to decommission your oil tank to Seattle Fire Department rules. Home Comfort Alliance does not remove or decommission oil tanks: you hire a certified tank decommissioner for that step. Under the Fire Department's rules for decommissioning heating oil tanks:
- A Seattle Fire Department permit is needed before the work starts
- A certified decommissioner must do or supervise the work on site
- The tank is either removed, or cleaned and filled in place with an inert material such as sand, slurry or foam
- A report is filed with the Fire Department after the work, and you get a copy
- A tank that has been out of service for a year or more must be decommissioned
Keep the permit and report: you will need them when you sell the house. If you think the tank is leaking, stop oil deliveries and see the City's guidance. Washington's Pollution Liability Insurance Agency runs a heating oil loan and grant program that may help with cleanup costs. Outside Seattle, your city or fire authority sets the tank rules.
Source: Seattle Fire Department, decommissioning heating oil tanks.
How much does an oil to heat pump conversion cost?
Heat pump installations in Seattle average about $10,218, with most between $6,667 and $13,852 (regional estimate, Angi, updated July 2026). The tank work is separate: HomeAdvisor puts the average oil tank removal at $1,357, with most between $593 and $2,153 (national estimate, June 2026). These are third-party figures, not our prices.
Your price depends on your home's heating and cooling needs, the add-ons you need, how many rooms the system serves and where it's installed. Get a price range in about 30 seconds with our free instant quote tool, then a technician confirms the exact price on a free site visit. More on pricing: heat pump cost guide.
Rebates for oil-heated homes (checked October 2026)
| Program | Who | Amount | Rules |
|---|---|---|---|
| Seattle Clean Heat (City of Seattle Office of Sustainability and Environment) | Seattle homes heated with oil | $2,000 instant rebate | Qualified Mitsubishi Electric heat pump; participating contractor; Homeowner Participation Form; oil tank decommissioned to Seattle Fire Department rules |
| Clean Heat bonus | Seattle households at 81% to 150% of area median income | $4,000 more, up to $6,000 in total | Installations completed by May 30, 2027 |
| Seattle Office of Housing | Income-qualified Seattle households below the bonus range | Free heat pump, installation and tank decommissioning | Run by the City's HomeWise team, which picks the contractor |
| Seattle City Light | City Light customers | $300, $400 or $600 instant discount | On qualifying heat pumps by efficiency tier, through participating distributors |
| Tacoma Power | Tacoma Power customers replacing non-electric heat | $1,000 | Variable-speed heat pump through a participating contractor; Tacoma Power's loans are for homes with existing electric heat |
| PSE | PSE electric customers | No oil-specific rebate | PSE's gas-to-heat-pump rebates are for PSE gas customers |
| Federal 25C tax credit | Ended | For equipment placed in service after December 31, 2025 |
Sources: City of Seattle Clean Heat Program, Seattle Office of Housing, Seattle City Light, Tacoma Power. Income limits for the bonus are on the City's Clean Heat page.
Paying for your conversion
Low monthly payment plans starting at $179/month*, with 0% options for qualifying customers and instant online approval through Salal Credit Union or Synchrony. 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, a load calculation and a written price before any work begins.
How your oil to heat pump conversion works
- Request a free in-home estimate.
- We confirm your fuel and utilities, and which rebates apply.
- We run a Manual J load calculation and check your ducts and electrical service.
- You get a written price for a ducted or ductless system.
- Seattle homes: you complete the Clean Heat Homeowner Participation Form and give it to us.
- You book a certified tank decommissioner, who pulls the Seattle Fire Department permit.
- We pull the permits and install the heat pump; our licensed electricians do the electrical work.
- Inspection, startup and a walkthrough of heating and cooling modes.
- Where the program allows, the rebate comes off at the sale. For Tacoma Power rebates, we handle the paperwork.
A recent oil to heat pump conversion: West Seattle
In October 2026 we converted an oil-heated home in West Seattle to a ductless heat pump. The homeowner arranged the oil tank decommissioning separately, as described above. Our team installed one 2-ton outdoor unit with three wall-mounted heads, ran the refrigerant lines and condensate drains, and connected the controls, and our electricians wired the system on a separate visit. We then started the system up and tested every zone.
What you get with Home Comfort Alliance
- A participating contractor in the City of Seattle's Clean Heat Program
- Mitsubishi Electric Diamond Dealer, the brand the Clean Heat rebate requires
- Free estimates on installations, and a room-by-room load calculation on every installation
- We pull the required permits for every installation
- 1-year labor warranty on installations. 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
- Financing from $179/month*
Not ready to convert yet?
Keep your oil furnace running safely in the meantime. An oil furnace tune-up is $336, or $288 for Home Comfort Club members (prices as of October 2026). In September 2026 our Sumner team tuned up an oil furnace in Fife; read about it on our Fife page. For a problem, see furnace repair.
Where we convert oil homes
Clean Heat money is for Seattle homes only; everywhere else, the rebate table above shows what applies.
- Seattle and the Eastside (Redmond branch): Seattle, Bellevue, Kirkland, Redmond, Sammamish, Mercer Island and Shoreline
- Snohomish County (Everett branch): Everett, Mill Creek, Lake Stevens, Snohomish and Edmonds
- Pierce and south King County (Sumner branch): Tacoma, Puyallup, Sumner, Fife, Lakewood, Kent and Auburn
- Kitsap County (Bremerton branch): Bremerton, Kingston, Poulsbo and Bainbridge Island
Oil to heat pump conversion FAQ
Who can install a heat pump for the Seattle Clean Heat rebate?
A participating contractor in the City of Seattle's Clean Heat Program, installing a qualified Mitsubishi Electric heat pump. Home Comfort Alliance is a participating contractor in the City of Seattle's Clean Heat Program and a Mitsubishi Electric Diamond Dealer.
How much is the Seattle oil to heat pump rebate?
The City of Seattle gives a $2,000 instant rebate when a Seattle home switches from oil heat to a qualified Mitsubishi Electric heat pump. Households earning 81% to 150% of area median income can get a $4,000 bonus on top, up to $6,000 in total, for installations completed by May 30, 2027. The City's Clean Heat page lists the current income limits.
Can I get a free oil to heat pump conversion in Seattle?
Income-qualified Seattle households below the bonus income range may get a free heat pump, installation and oil tank decommissioning through the Seattle Office of Housing. The City's HomeWise team runs the work and picks the contractor.
Do I have to remove my oil tank to get the rebate?
You have to decommission it. The Clean Heat Program requires the oil tank to be decommissioned to Seattle Fire Department requirements: removed, or cleaned and filled in place, by a certified decommissioner under a Fire Department permit. Home Comfort Alliance installs the heat pump; the tank work is done by a separate contractor.
Is it better to remove an oil tank or fill it in place?
Both are allowed in Seattle. Your certified decommissioner can explain which suits your yard and whether a leak is suspected. Keep the permit and the report either way, because you will need them when you sell.
Is Seattle banning oil heat or taxing heating oil?
No. Seattle's heating oil tax was repealed in late 2022. The City has a goal to move oil-heated homes to cleaner heat by 2030, backed by rebates, but it is not a ban on existing oil furnaces.
My home has an oil boiler and radiators. Can I still get a heat pump?
Yes. Homes without ducts usually get ductless heat pump heads in the main rooms. If your boiler also heats your water, plan a new water heater in the same project. We look at your rooms, wiring and hot water during the free estimate.
How much does it cost to convert from oil to a heat pump?
It depends on the system, the number of rooms and any electrical work, so we price each home. As a guide, heat pump installations in Seattle average about $10,218 (regional estimate, Angi, July 2026). Tank work is separate. Get a price range from our free instant quote tool, then a free in-home estimate.
Will a heat pump keep my home as warm as oil heat?
A heat pump sized with a room-by-room load calculation heats a western Washington home through winter. The U.S. Department of Energy notes cold-climate heat pumps are designed to perform as low as 5°F. We run an ACCA Manual J calculation on every installation.
How much will I save by switching from oil?
The City of Seattle says switching from oil to a heat pump typically cuts heating costs by more than half, about $1,100 a year. Your savings depend on oil prices, your electric rate and your home. You also get air conditioning in summer.
What rebates are there for oil homes outside Seattle?
The Clean Heat rebate is for Seattle homes only. Tacoma Power offers $1,000 toward a variable-speed heat pump that replaces non-electric heat such as oil. PSE has no oil-specific rebate. Ask us which programs apply to your address.
Should I switch from oil to gas instead?
You can, but Seattle's Clean Heat rebate only pays toward a heat pump, and a heat pump also cools your home. If you are weighing gas, see our gas to heat pump conversion guide for how the two compare.
Sources
- City of Seattle, Clean Heat Program
- Seattle Fire Department, decommissioning heating oil tanks (CAM 5962)
- Seattle Office of Housing, oil to electric program
- City of Seattle, heating oil tax
- Seattle City Light, heating and cooling your home
- Tacoma Power, heat pumps
- Washington Pollution Liability Insurance Agency, heating oil
- U.S. Department of Energy, heat pump systems
- Angi, heat pump cost in Seattle (updated July 2026)
- HomeAdvisor, cost to remove a fuel storage tank (updated June 2026)
Rebates and rules checked October 2026.
Why Choose Home Comfort Alliance for Your Oil to Heat Pump Conversion?
Your Comfort is Our Promise
We promise...
Reliable heating, air conditioning, plumbing and electrical service, all from one trusted company.
To educate and guide you through your options so you’ll find the right solution at the right price.
Knowledgeable and respectful workers who ensure both your own comfort during the installation process, and lasting comfort from your home systems.
Outstanding service, communication, and follow-up, so your home is comfortable now and for years to come.
Get a free oil to heat pump estimate
Tell us about your oil furnace or boiler. A comfort advisor will check your home, your rebates and your options, and give you a written price before any work begins.
Request a free estimate
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