Residential Decarbonization Grants Program
The PSE Residential Decarbonization Grants Program leverages funds from Washington State’s Climate Commitment Act to help local organizations replace natural gas equipment with energy-efficient electric alternatives. This program specifically supports organizations that serve vulnerable populations by covering the costs of sustainable energy upgrades to make them more accessible to our community.
PSE will be awarding a minimum of $6.5M for eligible 2026 projects.
Please review the information below. If you have questions, email the PSE Decarbonization Team.
Who Can Apply
Grants are available to the following types of organizations within PSE’s natural gas service territory:
- Community Action Agencies and other low income weatherization providers
- Government entities (county and city agencies, Energy Smart Eastside partners, etc.)
- Non-profit housing providers serving transitional and/or low-income housing programs
Project Requirements
Eligible projects must be focused on decarbonization for single- and multi-family residences via:
- Installation of heat pump systems for space heating and cooling;
- Heat pump water heater installations; or
- Related electrification work
Important: All new electric equipment must replace existing PSE natural gas equipment, which must be removed or decommissioned (cut and capped) after installation of replacement equipment/systems.
Apply now
Applications for PSE Residential Decarbonization Grants are open and available for single- and multi-family residences within PSE's natural gas service territory. Apply now before applications close on January 16, 2026.
Important Dates
- December 3, 2025 – Grant application posted
- December 10, 2025 (9:00am PT) – Informational Webinar
- January 9, 2026 – Final day to submit application questions to decarbgrants@pse.com
- January 16, 2026 – Application submission deadline
- January 26, 2026 – Awardees are notified
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Application Evaluation Criteria
The criteria below outlines how PSE will evaluate and prioritize grant applications. We understand that not every project will address all criteria – rather, these guidelines help PSE identify and support initiatives that best match the program objectives.
1. Customers Served (75%)
- Serves low-income customers and residents located within a PSE Named Community (priority will be given to project serving low-income customers)
- Benefits renters and rental properties
- Includes protections for renters, such as rent stability agreements
- Address needs of underserved communities, including:
- Seniors
- Disabled individuals
- Transitional housing residents
- Tribal communities
2. Project Implementation (25%)
- Evidence of pursuing or securing additional funding sources
- Clear demonstration of funding gaps that our grant would help address
- Implementation of additional conservation measures, demand response enrollment, enrollment in bill assistance programs, or other customer programs (offered by PSE or other utilities, local/state entities, etc.)
- Planned partnership with minority, women, and/or veteran owned businesses and/or contractors
*Named Communities is being used as PSE’s umbrella term that includes Highly Impacted Communities and Vulnerable Populations. Highly Impacted Communities means a community designated by the Washington State Department of Health based on cumulative impact analysis or a community located in census tracts that are fully or partially on tribal land. Vulnerable Populations means communities that experience a disproportionate cumulative risk from environmental burdens due to adverse socioeconomic factors, such as unemployment, access to food and health care, etc., and sensitivity factors such as low birth rate, and higher rates of hospitalization. View PSE’s map of Named Communities here.
Grants Program
Have a single or multi-family residency within PSE's natural gas service territory. Apply for a decarbonization grant today. Applications close January 16, 2026.
If you have any questions, please email decarbgrants@pse.com.
