Does Varsity install heat pump water heaters?

No. We install and repair heat pumps, mini-splits, furnaces, AC and ductwork — water heaters are a plumbing trade, and we would rather tell you that than quote something we do not do. What we will do on an estimate visit is look at your panel, your garage space and your existing equipment and tell you honestly which project should go first and what the HVAC half costs.

Which one saves more money per month?

For most Puget Sound homes the HVAC system is the bigger number. Space heating and cooling is the largest single energy load in a typical home, and converting from electric resistance heat to a heat pump typically cuts heating costs 30 to 50 percent. A heat pump water heater is a real efficiency win too, but it is working on a smaller slice of the bill.

Do I need an electrical panel upgrade to do both?

Often not. A ducted heat pump generally needs a 30 to 40 amp 240V circuit and a mini-split 15 to 30 amps, and most homes with a 100 amp panel or larger have room. The problem shows up when you add several new loads at once, so have the panel evaluated with both projects in mind before you start either one. A 100 amp to 200 amp upgrade typically runs $2,000 to $4,500 with a licensed electrician.

Are there rebates for both a heat pump and a heat pump water heater?

The two programs are separate. The headline local utility offer for space heating goes toward a qualifying heat pump when it replaces an existing electric or fossil-fuel system, with the amount depending on what you are replacing and what you install. Water heater incentives are their own program with their own terms, and both change over time — we confirm your current heat pump eligibility and handle that paperwork, and your plumber or utility should confirm the water heater side.

Is there any reason to do the water heater first?

Yes, two. If the tank is leaking, rusting at the seams, or already past 12 to 15 years old, replace it now — a tank failure is a flooded garage, not a comfort complaint. And if the HVAC system is genuinely healthy with years of life left, spending that money on the water heater first is the better use of the budget.

Heat Pump Water Heaters vs. Your HVAC: What to Do First

Two big-ticket appliances. One budget. Both of them old. This question usually comes up halfway through an estimate that started as something else — a homeowner in Kent or Puyallup points at the water heater standing next to the furnace and asks which one they should be spending money on this year.

Here is the honest framework we use, including the part where sometimes the answer is "not the thing we sell."

The short version

Situation	Do this first
SituationWater heater leaking, rusting, or 12+ years old	Do this firstWater heater. Today.
SituationHVAC red-tagged, no heat, or facing a four-figure repair	Do this firstHVAC
SituationBoth old, both still working	Do this firstHVAC — bigger load, bigger rebate
SituationYou want air conditioning	Do this firstHVAC — that's the whole project
SituationHVAC is under 10 years old and healthy	Do this firstWater heater
SituationPanel is full or a 60-amp fuse box	Do this firstElectrical assessment before either

Everything below is just the reasoning behind that table.

Rule 1: the one that's failing goes first

This is not a philosophical question when something is actually dying. Urgency beats efficiency math every time.

Signs the water heater is on the clock

Rusty or discolored hot water
Moisture, staining, or corrosion at the base of the tank
Popping or rumbling from sediment buildup
Hot water running out faster than it used to
12 years or more on the label

A tank failure is not a comfort complaint. It's water on the floor of a finished garage or a crawl space, and a plumber on an emergency schedule. If your tank is showing these signs, replace it and revisit the HVAC next season.

Signs the HVAC is on the clock

Two or more paid repairs in the last two seasons
15+ years on a furnace, 15 to 20 on a heat pump
Rooms that never get comfortable no matter what the thermostat says
R-22 refrigerant on the outdoor unit's data plate
A repair quote in the four figures on equipment past 12 years

Typical heat pump and furnace repairs run $150 to $1,500. When a repair on old equipment gets close to half the cost of replacement, it's buying time, not value — there's no warranty attached to money spent on a 17-year-old system.

Rule 2: if both are simply old, do the HVAC first

When neither is an emergency, three things push us toward the heating and cooling system.

It's the bigger load. Space heating and cooling is the largest single energy use in a typical Puget Sound home. Water heating matters, but it's a smaller slice. If you're chasing a lower bill, you go after the big number first — converting electric resistance heat to a ducted heat pump typically cuts heating costs 30 to 50 percent.

It's the bigger comfort change. A new water heater gives you the same showers you had before, reliably. A heat pump gives you air conditioning you didn't have, plus even heat all winter. One of those changes how the house feels in August.

The incentive money is aimed at it. More on that below.

Installed costs in our service area, so you can size the decision: a ducted heat pump runs $12,000 to $18,000 in standard markets and $13,800 to $24,300 in affluent and luxury markets. Ductless mini-splits run $8,000 to $14,000 standard. A straight heat pump replacement is $10,000 to $16,000. A gas furnace swap is $4,000 to $8,000. Full breakdown lives in our Washington heat pump cost guide.

The rebate money is not symmetrical

This is the part that changes the order for a lot of households.

The headline local utility offer goes toward a qualifying heat pump when it replaces an existing electric or fossil-fuel system. What it pays depends on the system you're replacing and the equipment you install. Heat pump water heaters have their own separate incentives with their own rules — we don't quote those numbers because we don't install them, and they change.

Two things to keep straight on the HVAC side:

The federal 25C tax credit ended December 31, 2025. No 2026 installation qualifies. Anyone still quoting it is working from old notes.
Utility rebate programs pay only through their own contractor networks, and those rules change. We confirm the current requirements before we quote and file the paperwork. If a competing bid promises rebate money, ask whether the company has checked those requirements — otherwise that money quietly disappears at the end of the job.

Programs change. We confirm your current eligibility before you sign anything. The details are in our local utility rebate breakdown.

One caution: that headline figure is scoped to one utility's own customers. Rebates follow the meter, not the county. Tacoma, Fircrest, University Place and Fife are Tacoma Power. Gig Harbor and Fox Island are Peninsula Light. Parkland and Spanaway are member-owned mutuals. Seattle is City Light. Burien, Normandy Park, Renton, SeaTac and Tukwila are split address by address. We check the name on your power bill, not your zip code.

Where the two projects actually overlap

Electrical

This is the real reason to plan both at once even if you only do one this year.

A ducted heat pump generally needs a dedicated 30 to 40 amp 240V circuit. A mini-split needs 15 to 30 amps. Most hybrid heat pump water heaters want a 30 amp 240V circuit, though 120V plug-in models exist. Individually, a 100 amp panel usually handles any one of these. Stack them and the picture can change.

If the panel is going to need attention, you want to know before the first project, not after. A 100 amp to 200 amp upgrade typically runs $2,000 to $4,500 with a licensed electrician. Varsity is an HVAC contractor — we coordinate electrical scope and tell you plainly what's needed, rather than performing panel work ourselves.

Garage air — the detail nobody mentions

A heat pump water heater pulls heat out of the air around it. That means it cools and dehumidifies the space it's standing in. In an unheated Puget Sound garage that's usually harmless and sometimes helpful. In a conditioned utility closet it's stealing heat from the furnace or heat pump that just paid to make it.

Manufacturers typically want roughly 700 to 1,000 cubic feet of air around the unit, or ducted intake and exhaust. If your water heater shares a tight closet with your air handler, that's a layout conversation to have before anything gets ordered — and it's one more argument for sorting the HVAC plan first, since the equipment footprint is the bigger of the two.

Ready to price the HVAC half?

Get a written proposal with Good, Better and Best options, a real Manual J load calculation at no extra cost, and a straight answer about rebates. Request a free in-home estimate — most installs are done in one day, with a 10-year parts and labor warranty.

A sensible 12-month sequence

Get both assessed. An HVAC estimate from us, a water heater look from a plumber. Two visits, no obligation.
Have the panel evaluated once, with both loads on the table. Cheaper than doing it twice.
Do the failing one now. If neither is failing, do the HVAC.
File the rebate on the heat pump properly. We handle that paperwork as part of the install.
Schedule the second project in a shoulder season. Spring or early fall means better scheduling and no emergency decisions.

What we won't do

We won't tell you the heat pump is urgent when the water heater is the thing about to flood your garage. Varsity is owner-operated out of Federal Way — Vlad and Jake are on these estimates — and the fastest way to lose a neighbor's trust is to sell them the wrong project in the wrong order.

Want the HVAC number before anyone comes out? Our instant estimate tool gives you Good, Better and Best starting prices in about 60 seconds from seven questions about your home. Or call (253) 785-4622, Monday through Friday, 8 to 6. Real people, same week scheduling, and an honest answer about which one goes first.