Energy efficiency supports a healthier environment and saves money, so it’s no surprise that communities and homeowners are looking for creative ways to achieve both goals. That’s why the City of Lacey partnered with Puget Sound Energy (PSE) to offer an income-qualified rebate program to encourage PSE natural gas customers to switch to electric heating and cooling by installing an energy efficient heat pump in their homes.
“This is a partnership with Puget Sound Energy, in this case, a $4,000 rebate where the City will provide a one-time match for Lacey residents who participate in PSE’s Fuel Switching Heat Pump Program,” says Lacey Climate and Sustainability Coordinator Linsey Fields.
The City will match the PSE program’s one-time rebate of $4,000 for a total $8,000 rebate for qualified Lacey customers. Fields says this energy efficiency rebate program has limited funds and is available on a first-come, first-served basis, so interested customers should not wait until the deadlines to install eligible equipment and submit their rebate application to PSE. Fields encourages customers to complete those steps as soon as possible.
Fields says the City is offering this rebate to residents to help them make energy efficient home upgrades and reduce greenhouse gas (GHG) emissions. “This program is a co-benefit for residents and the City,” Fields says. “Residential energy use is our largest source of GHG emissions for Thurston County and Lacey, and it can cost a lot to upgrade your home. The City wants to ease that burden while moving toward our climate goals.”
Key Dates and How To Qualify for Lacey/PSE Heat Pump Matching Rebate Program
The City recently announced the matching rebate program and the deadline to apply through PSE is December 19, 2025. However, qualified residents must install eligible equipment by December 12, 2025 to apply for the rebate. “The program is limited by funding and again, we cannot guarantee a rebate at the time of application submittal,” Fields explains. “It’s important to get the work completed and your application turned in earlier rather than later.” Residents concerned about fund availability can email Fields.
Additional program requirements:
- You must live within Lacey city limits. Customers living in the Lacey Urban Growth Area do not qualify.
- You meet the income requirements. Check the PSE rebate webpage under “See if you are eligible!”
- You must be a current, PSE single-family residential natural gas customer. Single-family new construction, multifamily (five or more detached units) and commercial accounts are not eligible.
- Your current primary heating system must be fueled by natural gas. This includes natural gas forced-air furnaces, boilers, and gas wall heaters.
- Customers with existing electric resistance or hybrid heat pump heating/cooling systems are not eligible.
Lacey homeowners can apply through the PSE rebate program webpage, which also outlines what equipment qualifies. No additional application for the Lacey match is needed — it will automatically be applied to customers who meet the requirements.
Lacey’s Energy Efficient Heat Pump Rebate Program With PSE Benefits the Environment and Homeowners
Lacey’s energy rebate program for switching to heat pumps benefits the environment and homeowners. Fields says the City worked with PSE to create the matching rebate program as part of Lacey’s larger efforts to meet their goals in the Thurston Climate Mitigation Plan, while relieving some of the cost burden for homeowners paying for energy efficient upgrades. The City’s matching rebates come from the Climate Implementation Fund set aside in the general fund. These funds are used to finance climate action and programs, and reduce greenhouse gas emissions. This year Lacey also joined Thurston County, Tumwater and Olympia to launch “Energize Thurston,” which is a heat pump subsidization and group purchase effort.
“This program helps us meet our GHG emissions reduction goals, and our climate resilience goals,” Fields says of the Lacey matching rebate program. “Many homes in our region do not have cooling capacity. Our biggest climate risk is heat extreme events; now Lacey residents will be prepared and can cool their home to mitigate those human health risks.
PSE notes that heat pumps provide multiple benefits for homeowners, such as significant energy savings; the comfort of air-conditioning; improved indoor air quality; and consistent, even heating. Heat pumps can often be installed using existing ductwork and ductless options are also available. Fields adds that homeowners can also reduce their carbon footprint by reducing their dependence on natural gas, while taking advantage of today’s rebates, which may not be available in the future.
Questions Answered About Lacey/PSE Heat Pump Rebate Partnership Program
For questions about Lacey’s heat pump rebate program with partner PSE, talk with an PSE Energy Advisor at 1.800.562.1482, visit PSE | Ask An Energy Advisor, or email Fields at Linsey.Fields@CityofLacey.org.
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