Oregon Department of Energy officially launches new heat pump program

By Monica Samayoa (OPB)
June 24, 2025 1 p.m.

Oregonians looking to install a heat pump can now apply to receive up to $2,000 in rebates through a new state incentive program.

That means people who qualify may be able to cut the price of a home heat pump installation by $4,000 if they combine the state incentive with a federal one.

THANKS TO OUR SPONSOR:
Alpine Heating & Air Conditioning General Manager Cody Calavan is inspecting a heat pump unit he installed at an affordable housing property owned by St. Vincent de Paul. The company secured funding through the Oregon Rental Heat Pump Program to install more than 520 heat pump units in the Eugene area. Pictured on March 27, 2025.

FILE - Alpine Heating & Air Conditioning General Manager Cody Calavan is inspects a heat pump unit he installed in the Eugene area, March 27, 2025. Oregon is now offering an incentive that could reduce the price of heat pump installation by $2,000 for qualifying homeowners.

Monica Samayoa / OPB

The Oregon Department of Energy’s Heat Pump Purchase program is available for owner-occupied homes, rental homes and homes under construction. The program is funded through the federal government’s Climate Pollution Reduction Grant, which awarded Oregon $197 million last year.

The agency officially opened its program to residents on June 17 and has so far received about 1,000 rebate applications.

To receive the rebate, interested residents should contact an approved program contractor. According to the agency, there is at least one contractor available to help residents in each county and will continue to add contractors to the list.

THANKS TO OUR SPONSOR:

The contractor’s role is to install the heat pump, apply for the incentive through the agency and pass the full savings on to the resident or property owner.

Heat pumps are more efficient at cooling than traditional air conditioning systems, and produce lower carbon emissions than typical natural gas or electric furnaces.

Depending on the size of the home and what kind of unit each home would need, heat pumps can range from $6,500 to $20,000.

“Oregon Department of Energy programs have helped hundreds of Oregonians access potentially life-saving heating and cooling at home,” ODOE Director Janine Benner said in a statement. “We’re grateful we can offer this new program to support even more heat pump installations in homes across the state.”

Related: Oregon awarded nearly $200M in federal funding to boost climate action programs

The Heat Pump Purchase Program is one of a handful of rebate heat pump programs the state offers. But the new program is the only one with available funding.

Energy Trust of Oregon, a nonprofit that helps residents lower energy bills and transition to renewable appliances, also offers a range of rebates between $250 and $4,000 for heat pump installations.

The agency expects to install a total of 12,000 units through two rounds of funding. Each round will provide a limited number of rebates for each category — owner-occupied homes, rental homes and new housing construction.

The IRS is also offering up to $2,000 in energy efficiency credits on heat pumps and other energy projects completed this year, but a Trump-backed federal funding bill might end that program after 2025.

THANKS TO OUR SPONSOR:

THANKS TO OUR SPONSOR:

Related Stories