Custom Retrofit Grants


Earn incentives for energy-efficient retrofits

Our Custom Retrofit Grants program offers incentives for energy-efficient upgrades that are not covered by our suite of commercial energy-efficiency programs. If you’re planning an upgrade outside the scope of those programs that demonstrates quantifiable energy savings, we may be able to help you pay for it with a custom retrofit grant.

Commercial customers who have benefited from these custom retrofit grants include schools, military bases, office buildings, grocery stores, manufacturing sites, museums and much more.

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Case studies

Check out the carousel at the bottom of this page to see more case study videos. You can also read even more in our case study library about the successes our Custom Retrofit Grants customers have had.

Joint Base Lewis-McChord case study

Joint Base Lewis-McChord partnered with PSE to complete a large-scale heating upgrade that saved the base almost $185,000 in annual energy costs and earned a nearly $1.6 million custom retrofit grant from PSE.

What you get

The Custom Retrofit Grants program pays electric and gas incentives, which can cover up to 70% of the total cost of equipment and installation. Incentives are for qualifying upgrades only, and current maximum rates are listed below.

Custom retrofit incentives
Electric$0.45 per annual kWh
Natural gas$7 per annual therm
SavingsUp to 70% of eligible project costs

PSE engineers and project managers are here to help. Get in touch with us early in the upgrade process so that we can let you know if your project qualifies and then help you maximize your custom grant.


How you qualify

To be eligible for the Custom Retrofit Grants program:

  • You must currently be a PSE business electric or gas customer.
  • You must be pre-approved by PSE prior to the installation of all energy-efficiency improvement measures.

Common custom measures covered by the Custom Retrofit Grants program include space and process load boiler upgrades, the installation of variable frequency drives (VFDs) on fans or pumps, installation of heat-recovery equipment, building envelope improvements, high-efficiency chillers, and air compressor upgrades.

PSE no longer offers direct customer incentives for the replacement of large commercial HVAC and commercial natural gas domestic water-heating equipment. We’ve moved our efforts to education and market transformation within the supply chain. We work directly with distributors to make sure high-efficiency equipment is available locally when you need it. Equipment not eligible for a custom retrofit grant includes: air-cooled air conditioners; water-cooled and evaporative-cooled air conditions; air-cooled heat pumps (greater than 5.4 tons); water-cooled heat pumps; condensing storage and tankless domestic water heaters; and condensing domestic hot water boilers. Learn more here.

How you apply

To get pre-approved for a custom retrofit grant:

  1. Complete the retrofit grant application
  2. Please include any additional information that would help evaluate the project. This may include a project cost proposal, drawings, trend data and proposed equipment cut sheets.
  3. Email your completed application and supporting documents to grantapplications@pse.com

Additional information

Midstream incentive program for small heat pumps and heat pump water heaters

Our Midstream program offers instant discounts to contractors on air-source heat pumps (less than or equal to 5.4 tons) and electric heat pump water heaters (less than 120 gallons). We encourage you to discuss high-efficiency options with your installing contractor. Learn more about PSE’s Midstream program.

More energy-efficiency program options

Many common energy-efficiency upgrades are incentivized through other programs in our suite of commercial energy-efficiency offerings, several of which are listed below. For a complete list of programs, visit pse.com/mybusiness.


Questions? Get in touch with an Energy Advisor.


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For personalized advice, contact an Energy Advisor.

Or call 1-800-562-1482.

Case studies

Joint Base Lewis-McChord: Find out how this military base earned almost $1.6 million in PSE incentives for a large-scale heating upgrade.


Tacoma Museum of Glass: Beautiful art created with an efficient partnership.