Ducted Air-Source Heat Pump – Existing Homes

A ducted air source heat pump is an efficient electric home heating and cooling system.

How Does it Work?

A ducted air source heat pump uses traditional air ducts and vents throughout a home to distribute warm or cool air. To heat a home, it absorbs heat from the outdoor air, then moves the heat to the air handler to circulate warm air throughout the home. During the summer it absorbs heat from the home then moves the heat to the outdoor unit to dissipate it.


Existing System New System Incentive
Electric Forced Air Furnace Air Source Heat Pump* $800
Electric Baseboards, Ceiling Cable, Wall Units Air Source Heat Pump* $800
Propane Forced Air Furnace Air Source Heat Pump** $800
Oil Forced Air Furnace Air Source Heat Pump** $800
  • The $250 incentive upgrading an existing air source heat pump with a new air source heat pump is discontinued November 1, 2023.  Idaho Power will temporarily process qualified incentive applications after this date if this incentive, prior to November 1, 2023, was part of the homeowner’s decision process to replace their air source heat pump.
  • Qualified incentive applications for replacing a Propane Furnace or Oil Furnace with an Air Source Heat Pump received on or after November 1, 2023 receives $800.
  • And to save even more, you may also qualify for a federal tax credit. Visit the ENERGY STAR Tax Credits For Homeowners page to learn more. Please note Idaho Power is not affiliated with these federal tax credits.

*Supplemental heat for heat pumps must be electric.
**Home must be in an area where natural gas is not readily available.

How do I Qualify?

  • You must be an Idaho Power residential customer, and either a homeowner or property owner.
  • Your home must be single-family site-built, manufactured, duplex, triplex or fourplex.
  • Your home can be a primary residence, vacation home or rental.
  • New system minimum efficiency must be 8.5 HSPF or 7.2 HSPF2.
  • A maximum of two incentives per home.

How do I Apply?

  1. Review the Terms and Conditions.
  2. Contact a Participating Contractor, and let them know you wish to apply for the incentive.
  3. Your Participating Contractor reviews the requirements with you and installs the heat pump.
  4. Your Participating Contractor completes and submits all the necessary forms with your assistance.
  5. Receive a check upon application review and approval.

Participating Contractor Info

Documents for the Participating Contractor to Submit

Useful Links

For assistance with a PDF on this page or to request a PDF in an alternate format, please contact Customer Service at 208-388-2323 or 1-800-488-6151