• Limited time opportunity: PSE’s multifamily electrification program currently covers 100% of eligible costs for qualifying equipment. Program funding is limited, and once funds are exhausted, property owners may need to replace future equipment themselves. Utilizing this program while funding is available can help you avoid significant capital expenditures down the road. 
• Avoid unexpected equipment failure and capital expenses: Older space and water heating systems can become more expensive to operate, harder to maintain, and less reliable over time. Equipment failures often lead to unplanned repair costs, emergency replacements, and business disruptions. Replacing aging systems before they fail can help reduce maintenance headaches, avoid unexpected capital expenses, and improve long-term reliability. 
• Virtually no financial risk or administrative burden: PSE pays the installation contractor directly for eligible project costs, eliminating upfront expenses and reimbursement paperwork. 
• Improve comfort for customers and employees: Outdated and aging systems tend to perform less effectively when it comes to keeping stable temperatures and delivering hot water. Upgrading to a modern heat pump system can help create a more comfortable environment for customers and employees year-round. 
• Dedicated support: Program participants have access to a PSE Project Specialist who serves as a resource throughout their program participation. The Specialist can answer questions, provide guidance, and help keep your project on track.

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• Efficient technology: Heat pumps are highly efficient electric technologies that can provide heating, cooling, and hot water. Unlike traditional gas equipment that generates heat by burning fuel, heat pumps move existing heat from one place to another, allowing them to deliver comfortable indoor temperatures and hot water using significantly less energy. Heat pumps also perform 2 to 4 times more efficiently than gas, oil, or propane systems in Washington’s climate. 
• Reduce your climate impact: In Washington State, ASHPs reduce greenhouse gas emissions by approximately 91% when replacing a traditional gas furnace. HPWHs reduce greenhouse gas emissions by approximately 90% when replacing a gas water heater. 
• Proven technology: Modern heat pumps are widely used throughout the Pacific Northwest and are designed to perform effectively in Washington’s climate. They are well-established technology that can provide reliable heating, cooling, and hot water for multifamily buildings.

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1. Reach out directly to the Program here: PSEDecarb@resource-innovations.com. Our team will respond with an intake form to determine your eligibility for the Program.  
2. Receive an initial on-site project feasibility screening with a member of our team. 
3. Work with your assigned program-approved installer to fully confirm project feasibility and develop a scope that meets your space and water heating needs. 
4. Get pre-approved for the project with PSE. 
5. Once the project is pre-approved, your installer will coordinate the installation of new equipment and capping of your natural gas lines. 
6. PSE will pay the Installer directly for all equipment and labor costs (see covered equipment and cost eligibility below). 
7. Enjoy your low-carbon and efficient heating and cooling!

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The Program covers ASHPs, ASHP Water Heaters, and ASHP central plants. The equipment must meet certain AHRI and/or PSE eligibility conditions:

• Natural Gas to Ductless Heat Pump Conversion:  
  • AHRI Certified® as a variable speed mini-split or multi-split heat pump, use inverter technology, and be a minimum of ¾ ton in heating mode. 
  • CEE Tier 1 Path A: SEER2 ≥ 16.0; EER2 ≥ 9.8; HSPF2 ≥ 8.5; COP at 5° ≥ 65% at 5°F/47°F; AHRI 1380 
  • At least one indoor head must be installed in the main living area of the home; bedroom-only installations do not qualify. 
• Natural Gas to Ducted Heat Pump Conversion:  
  • AHRI Certified® 
  • CEE Tier 1 Path A: SEER2 ≥ 15.2; EER2 ≥ 10.0; HSPF2 ≥ 7.2; COP at 5° ≥ 45% at 5°F/47°F; AHRI 1380 
  • Electric resistance backup heat must be minimized or eliminated through system design, control strategies and other methods where feasible and with written permission from PSE. 
• Natural Gas to Heat Pump Water Heater Conversion:  
  • ENERGY STAR® Tier 3 or greater, must be equipped with a CTA-2045 compliant communications port (EcoPort) to meet Washington State Plumbing Code 501.1.2. 
  • Natural Gas to Heat Pump Central Plants: 
• Central plant measures must be mutually agreed upon during the planning phase prior to going to market and design must be done in conjunction with PSE program partners.

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PSE will pay the installer directly for the full scope of pre-approved and completed work.

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No, the customer will not be requested to pay for any scope of the pre-approved and completed work. If the customer requests additional work to be done by the installer outside of the covered equipment, pre-approved scope, or ancillary costs, then they will be responsible for any costs outside this Program’s scope.

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PSE is using an approved list of installers for the Program based on their expertise with installing heat pumps and their ability to work across the territory. You can find a list of available contractors here.

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Gas lines must be capped and sealed to ensure electrification is complete and cannot be used to install space and water heating gas equipment after receiving the electric equipment. Other equipment such as gas stoves can still be kept operational. If your gas service is not cancelled, you will incur the standard Basic Monthly Charge despite not using any natural gas. This charge covers the costs for meters, meter reading, billing, and other costs that do not vary with energy use.

If your project is completed and you no longer have gas appliances, the property owner or account holder must request gas service cancellation to avoid monthly meter charges. Visit https://www.pse.com/en/start-stop-move/stopservice.

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While electrification can help stabilize your energy costs and reduce exposure to variable natural gas prices, customers should still expect potential bill impacts.

• Depending on the equipment installed, you may see a significant reduction or complete elimination of natural gas charges. 
• ASHPs are highly efficient at cooling. If your building has older or aging AC units, you could see lower electric costs in the summer (provided the equipment being replaced is less efficient than the newly proposed system). 
• If your building did not previously have air conditioning, you may notice higher summer electric bills. 
• During the colder months, your heating costs will now appear on your electric bill instead of your gas bill. These costs may be higher or lower depending on outside temperatures, which are the main driver of heating costs.

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The Program will fund any costs related to the installation and deployment of the electrification measures. The project will go through a pre-approval process where costs will be evaluated prior to implementation.

This may include: Panel upgrades/replacements, electrical work, equipment removal, rerouting ductwork, drywall repairs, abatement, mounting pads, and any necessary materials to complete the work. Equipment or upgrades that are not related to the electrification of the space heating and/or water heating system are not eligible. This includes, but is not limited to, additional security features, cosmetic upgrades, contractor-owned equipment required to perform installation labor such as drills, ladders, or general overhead, upgrades to the building shell, or any other work not directly related to the installation, deployment, and functioning of the equipment.

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