Full Heat Pump Installation in Issaquah, WA 98029: How $10,400 in Real Rebates Cut Craig’s Bill Nearly in Half

Location: 30th Ave NE corridor, Issaquah, WA 98029

Call Date: April 15, 2026

First Visit: April 16, 2026

Work Start: April 23, 2026

Project Completion: April 23, 2026

Lead Technician: Eli, 10+ years of experience, heat pump certified

System Before: 20-year-old gas furnace, no longer functioning, no air conditioning in a 4,934-square-foot, 7-bedroom home

System After: Mitsubishi 5-Ton, 60K heat pump, model SUZAK60NL, paired with a matched 5-Ton air handler, model SVZAP60NL, fully electric heating and cooling

Final Project Cost: $14,473.35 (after $10,400 in stacked rebates)

Craig called Product Air with what sounded like a simple, seasonal request. “Summers are a lot warmer, and would like some cooling ability in the summer,” he said, the kind of complaint that’s become increasingly common across Western Washington as air conditioning shifts from a luxury to an expectation. Then came the second half of the sentence, the one that changed the scope of the entire conversation: the furnace wasn’t functioning anymore either. What started as a request for cooling turned into a decision about how to heat and cool a very large home, all at once, on equipment that had finally run out of road.

A 20-Year-Old Furnace That Had Already Outlived Most of Its Peers

Craig found Product Air through Issaquah’s Google Business Profile: a new customer, with no other contractor involved and a clear, practical goal: a reliable system for his home. Eli, ten years-plus into a career built around heat pump work, came out for the first visit on April 16.

The house itself was substantial: built in 2006, 4,934 square feet, seven bedrooms, two stories with a daylight basement. The furnace inside it had been running since close to the house’s original construction, and at roughly 20 years old, it had already outlived a meaningful share of the furnaces installed around the same era. Eli’s assessment was direct: this was a unit that had lived longer than most furnaces already manage. Craig, for his part, already knew what that meant. He wasn’t looking to repair a system this far into its service life. He was looking to replace it.

How Big of a Heat Pump Do You Need for a 5,000-Square-Foot, 7-Bedroom Home?

Sizing a heat pump for a home this large isn’t a simple square-footage calculation. Layout, insulation, window exposure, the number of stories, and the exposed wall area of a daylight basement all factor into the load a system needs to handle. For Craig’s home, that math pointed toward one of the largest single-outdoor-unit residential configurations available: a 5-ton, 60,000 BTU system, paired with a matched 5-ton air handler sized to move that volume of conditioned air through a home of this scale. It’s a rare reference point for homeowners researching what a large home actually requires, precisely because most residential heat pump installations top out well below this capacity.

Full Heat Pump Installation in Issaquah, WA 98029: How $10,400 in Real Rebates Cut Craig's Bill Nearly in Half

Furnace-Only, Furnace Plus AC, or a Full Heat Pump: Three Real Options at Three Real Prices

Eli built Craig three real, fully priced options rather than steering him toward one system from the start. A furnace-only replacement, a Trane two-stage furnace priced at $8,878.01, restoring heat but leaving the original cooling complaint completely unaddressed. A furnace-plus-AC-prep option, the same Trane furnace paired with a variable-speed coil at $11,577.25, adding the groundwork for cooling at a middle price point. And a full Mitsubishi heat pump system, replacing the furnace entirely with an all-electric heat pump capable of both heating and cooling, at $15,993.05.

Full Heat Pump Installation in Issaquah, WA 98029: How $10,400 in Real Rebates Cut Craig's Bill Nearly in Half

Eli didn’t hide the fact that the third option was the most expensive on paper. “I do apologize for jumping a little ahead in this system,” he told Craig. “It’s the most premium system on the market. But with the local rebates, we almost knock it down by 50%. This system will get you everything you talked about and more.” Craig chose the full Mitsubishi heat pump system.

Are Heat Pump Rebates in Washington State Actually Real?

Yes, and Craig’s own reaction is the most useful evidence of why that question gets asked in the first place. When Eli explained the rebate stack available on the full heat pump option, Craig was surprised. He’d heard of rebates like these before, but he’d never actually believed they were real and accessible, rather than marketing language attached to a price that never quite materializes.

That skepticism is understandable, and also exactly why documenting the real numbers matters. Craig’s project ultimately qualified for $10,400 in combined rebates across three separate programs: a documented, invoiced reduction, not a hypothetical one. For a homeowner who’s heard rebate claims before and assumed they were mostly theoretical, watching $10,400 actually come off a real invoice is a different kind of proof than a brochure.

What Product Air Installed: A Mitsubishi 5-Ton Heat Pump System

The system installed was a Mitsubishi 5-Ton, 60,000 BTU Ultra Quiet, side-discharge, modulating variable-speed heat pump, model SUZAK60NL, paired with a matched Mitsubishi 5-Ton, 60,000 BTU modulating variable-speed electric communicating air handler, model SVZAP60NL, measuring 25 inches wide, 21-5/8 inches deep, and 59-1/2 inches tall.

ComponentDetail
Outdoor UnitMitsubishi 5 Ton, 60K, Ultra Quiet, Side Discharge, Modulating/Variable Speed Heat Pump
Outdoor Model NumberSUZAK60NL
Air HandlerMitsubishi 5 Ton, 60K, Modulating/Variable Speed Electric Communicating Air Handler
Air Handler Dimensions25″ W x 21-5/8″ D x 59-1/2″ H
Air Handler Model NumberSVZAP60NL
Manufacturer Warranty12 years
Product Air Labor Warranty5 years
Full Heat Pump Installation in Issaquah, WA 98029: How $10,400 in Real Rebates Cut Craig's Bill Nearly in Half

The upgrade over the old furnace-only setup came down to five things: an all-electric system, heating and cooling from the same equipment, meaningful utility savings, modulating operation for a more balanced indoor climate instead of the on-off swings of single-stage equipment, and genuinely current adapting technology in place of a 20-year-old furnace that had simply reached the end of what it could offer.

What Is a Fuel Switch From Gas Furnace to Heat Pump?

A fuel switch describes exactly what happened at Craig’s house: replacing a gas-fueled furnace entirely with an all-electric heat pump system, removing combustion equipment from the home’s heating altogether rather than simply upgrading to a more efficient gas furnace or adding a heat pump alongside an existing one. That distinction matters beyond the mechanics of the system itself, because it’s specifically what unlocks certain rebate programs. Utilities structure fuel-switch incentives, like the PSE Fuel Switch rebate, to reward homeowners moving completely off fossil fuel combustion for heating, not just improving efficiency within the same fuel type. Craig’s project qualified for exactly this kind of program because the Mitsubishi system replaced the gas furnace outright rather than supplementing it.

Full Heat Pump Installation in Issaquah, WA 98029: How $10,400 in Real Rebates Cut Craig's Bill Nearly in Half

The Real Numbers: $24,873.35 Down to $14,473.35

ProgramAmount
Eastside Energy Smart Rebate$6,000.00
PSE Fuel Switch Rebate$4,000.00
Puget Sound Energy Midstream Mitsubishi Rebate (Above HSPF2 8.5)$400.00
Total Rebates$10,400.00

Base price: $24,873.35

Final cost after rebates: $14,473.35

The Eastside Energy Smart program in particular carries a detail worth knowing: it’s structured with no income requirement, meaning eligibility isn’t limited to a specific income bracket the way some utility assistance programs are. Combined with the PSE Fuel Switch rebate for moving off gas entirely and the Mitsubishi manufacturer incentive tied to the system’s efficiency rating, the three programs together brought Craig’s project down by roughly 42 percent from its base price, close enough to the “almost 50%” Eli quoted him at the kitchen table that the number held up exactly as promised. Craig paid the final balance out of pocket, with no financing needed.

One Day, Four Technicians: How the Installation Came Together

The consultation itself ran about two hours, tailoring the system to the home’s actual layout and Craig’s stated goals rather than defaulting to a standard package. The installation happened in a single day, April 23: two HVAC-certified technicians working eight hours on the equipment and refrigerant work, alongside two residential-certified electricians working an additional four hours on the electrical circuit the new system required.

Full Heat Pump Installation in Issaquah, WA 98029: How $10,400 in Real Rebates Cut Craig's Bill Nearly in Half

What an All-Electric System Means for Craig’s Home Going Forward

Craig’s home now runs on a single, unified system instead of an aging furnace with no cooling capability at all: heating and cooling from one 5-ton Mitsubishi heat pump, backed by a 12-year manufacturer warranty and a 5-year Product Air labor warranty. For a home this large, that’s a meaningful simplification: one system, modulating to match the actual load across nearly 5,000 square feet and seven bedrooms, rather than a furnace working alone and a cooling gap that had never been addressed.

What stayed with Craig most, by his own account, wasn’t the equipment itself. It was realizing that the rebates he’d heard about elsewhere and assumed were mostly out of reach turned out to be exactly as real and accessible as advertised, once someone actually walked him through the paperwork and the math.

Frequently Asked Questions: Full Heat Pump Installation in Issaquah, WA

Are heat pump rebates in Washington state actually real?

Yes. Washington state and regional utility programs offer genuine, documented rebates for qualifying heat pump installations, though many homeowners remain skeptical until they see the actual numbers applied to their own invoice. In an Issaquah case, a homeowner was surprised to learn the rebate programs he’d heard about were real and accessible, after his project qualified for $10,400 in combined rebates across three separate programs, reducing his final cost from $24,873.35 to $14,473.35.

How much can I save by switching from a gas furnace to a heat pump with rebates?

Savings depend on which programs a specific project qualifies for, but combining multiple rebate sources can produce substantial reductions. In an Issaquah case, a full fuel-switch heat pump installation qualified for $6,000 from the Eastside Energy Smart program, $4,000 from the PSE Fuel Switch rebate, and $400 from a Puget Sound Energy Mitsubishi efficiency rebate, a combined $10,400 in savings that brought the project’s cost down by roughly 42 percent, from $24,873.35 to $14,473.35.

How big of a heat pump do I need for a 5,000 sq ft, 7-bedroom home?

Sizing depends on the home’s layout, insulation, window exposure, and number of stories, not just total square footage, so a professional load calculation is the only reliable way to determine exact capacity. As a real reference point, a 4,934-square-foot, 7-bedroom home with a daylight basement in Issaquah was sized for a 5-ton, 60,000 BTU Mitsubishi heat pump paired with a matched 5-ton air handler, among the largest single-outdoor-unit residential configurations available.

What’s the difference between furnace-only, furnace+AC, and full heat pump options?

A furnace-only replacement restores heating but leaves cooling completely unaddressed. A furnace-plus-AC-prep option adds the groundwork for cooling, such as a variable-speed coil, at a moderate price increase. A full heat pump system replaces the furnace entirely with all-electric equipment capable of both heating and cooling from a single unit. In an Issaquah case, these three options were priced at $8,878.01, $11,577.25, and $15,993.05 respectively, with the homeowner ultimately choosing the full heat pump system after rebates brought its net cost below the middle option.

What is a fuel switch from gas furnace to heat pump?

A fuel switch means replacing a gas-fueled furnace entirely with an all-electric heat pump system, removing combustion equipment from a home’s heating rather than upgrading within the same fuel type. This distinction matters for rebate eligibility, since certain incentive programs are specifically designed to reward homeowners moving completely off fossil fuel combustion. In an Issaquah case, replacing a 20-year-old gas furnace with an all-electric Mitsubishi heat pump qualified the project for a $4,000 PSE Fuel Switch rebate specifically because it eliminated gas heating entirely.

What is the PSE Fuel Switch rebate?

The PSE Fuel Switch rebate is a Puget Sound Energy incentive program that rewards homeowners for replacing gas heating equipment with an all-electric heat pump system, rather than simply upgrading to more efficient gas equipment. In an Issaquah case, a homeowner’s project qualified for a $4,000 PSE Fuel Switch rebate after his 20-year-old gas furnace was replaced entirely with a Mitsubishi all-electric heat pump system, as part of a larger $10,400 combined rebate package.

Is a heat pump worth it for a large home?

For large homes, a properly sized heat pump can deliver both heating and cooling from a single system, often with better efficiency and more consistent comfort than separate furnace and AC equipment, especially with modulating technology that adjusts output to match the actual load. In an Issaquah case, a 4,934-square-foot, 7-bedroom home was successfully served by a single 5-ton Mitsubishi heat pump system, replacing an aging furnace with no cooling capability at all with one unified, all-electric solution.

Should I replace my furnace with a heat pump when it fails?

It’s worth strong consideration, particularly when the furnace has already reached or exceeded its typical service life and the household also wants cooling capability the furnace never provided. Replacing rather than repairing an aging furnace with a heat pump can address both heating and cooling needs simultaneously, often with rebate programs available specifically for this kind of fuel switch. In an Issaquah case, a homeowner whose 20-year-old furnace stopped functioning chose a full heat pump replacement over a furnace-only repair, resolving both his heating failure and his long-standing lack of air conditioning in one project.

Key Takeaways

  • A 20-year-old furnace has often already outlived a meaningful share of its peers, and a homeowner who already suspects it’s near the end doesn’t necessarily need to wait for total failure before considering replacement.
  • Sizing a heat pump for a large home depends on layout, insulation, and exposure, not just square footage: a 4,934-square-foot, 7-bedroom home in this case required a 5-ton, 60,000 BTU system.
  • Comparing furnace-only, furnace-plus-AC, and full heat pump options side by side can reveal that the more capable system isn’t necessarily the most expensive option once rebates are applied.
  • A fuel switch, replacing gas heating entirely with an all-electric heat pump, can unlock specific rebate programs, like the PSE Fuel Switch rebate, that aren’t available for simple efficiency upgrades within the same fuel type.
  • Stacking multiple rebate programs can produce genuine, documented savings, in this case, $10,400 across three programs, reducing a project’s cost by roughly 42 percent.
  • Homeowners skeptical of advertised HVAC rebates are often surprised to find the actual programs are real and accessible once a contractor walks them through the specific paperwork and numbers.

Craig didn’t set out to replace his entire heating and cooling system. He set out to fix one furnace and add some cooling for the summer, and ended up somewhere better than either of the options he originally imagined, not because he was talked into more than he needed, but because the honest math on rebates and long-term value pointed him there on its own.

— Serge Nikolin, Co-Founder, Product Air Heating, Cooling and Electric

Marysville · Issaquah · Seattle · Western Washington

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