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EnergySmart Eastside reports increased heat pump adoption; Redmond leads East Side permit data
Summary
Regional EnergySmart Eastside staff reported a jump in heat pump installations, with Redmond increasing from 58% to 65% of permitted residential HVAC systems in 2024; program used $5.6 million in state and utility grants to support rebates, with targeted support for low- and moderate-income households.
EnergySmart Eastside staff presented a 2024 program update to the committee on April 22, reporting measurable increases in heat pump adoption across participating East Side cities and notable program impacts in Redmond.
Sarah Phillips, part of the shared program staff, said EnergySmart Eastside scaled from a pilot in 2024 and that permit data show an increase in the share of permitted residential HVAC systems that are heat pumps. Phillips said East Side adoption rose about five percentage points in 2024 and that Redmond’s permits reflected a jump from 58% heat pump installs in 2023 to 65% in 2024; Redmond led the East Side in early 2025 permit data. The program reported its 500th incentive-funded heat pump install, and staff said 75% of incentive-funded installs served low- and moderate-income households (including installations in a mobile home park and an 18-unit affordable building).
Staff said incentives and outreach drove local workforce demand: incentives used in 2024 generated roughly $7.5 million in local HVAC business, supporting employers such as All Climate Heating and Cooling of Redmond. EnergySmart Eastside staff reported bringing in about $5.6 million in state and utility grant funding as a match to city contributions in 2024 and said they expected to be eligible for up to $2.5 million in additional grant funding later in the year.
Staff noted headwinds—higher equipment costs driven by refrigerant changes and tariffs, high interest rates that limit financing options for moderate-income households, and homeowner concern about power outages—but said the program’s outreach (including multilingual volunteer advisors and partnerships with community-based organizations) and higher rebates aim to maintain momentum.
Ending: Staff set a program target of raising regionwide heat pump adoption another 5 percentage points in 2025 and will continue to align incentive and outreach strategies to support market transformation.
