ODOE Accepting Applications for New Heat Pump Incentive Program
The Oregon Department of Energy is now accepting incentive applications through the agency’s new Heat Pump Purchase Program, which will provide $2,000 incentives for the installation of heat pumps in owner-occupied homes, rental homes, and homes under construction. Incentives are issued to approved program contractors, who then pass the savings on to the customer.
The heat pump program is part of the state’s Climate Equity and Resilience Through Action program. In 2024, Oregon was awarded $197 million in Climate Pollution Reduction Grant funds through the federal Inflation Reduction Act to support several programs at various Oregon state agencies — including this new heat pump program at ODOE — that will help Oregon reduce harmful greenhouse gas emissions.
Heat pumps have become popular in Oregon homes thanks to their efficient heating and cooling, lower energy use and associated greenhouse gas emissions, and potential incentive savings (including a federal tax credit).
ODOE will disburse program funding in two rounds, with about $12 million available now. Each round will support up to 6,000 incentives – 1,000 for owner-occupied homes, 3,000 for rental homes, and 2,000 for new housing construction.
Oregonians interested in installing energy efficient heat pumps in their homes should contact an approved program contractor, who will be able to access incentives on behalf of their customers. After completing installation, the contractor will apply to receive an incentive from the agency and the full $2,000 savings must be passed on to the customer.
“Oregon Department of Energy programs have helped hundreds of Oregonians access potentially life-saving heating and cooling at home,” said ODOE Director Janine Benner. “We’re grateful we can offer this new program to support even more heat pump installations in homes across the state.”
More information and a list of approved contractors is available on ODOE’s website. The agency also continues to recruit contractors statewide to participate in the program. Interested contractors can register online.