Available Incentives
Federal rebates expire soon – Rewiring America has dates and details!
Explore Oregon's new Energy Incentives Hub for all available state rebates.
Federal
Energy Efficient Home Improvement Credit
**As of 7/4/2025 federal rebates have been eliminated for the Energy Efficient Home Improvement Credit by the Trump administration. Installations completed by December 31, 2025 still qualify.*
Eligibility: Any income level.
Amount: Any eligible heat pump purchased in Oregon through December 31, 2032 is qualified for a tax credit of up to $2,000 -- or 30% of the price of equipment and installation.
How it Works: To claim the credit, simply file Form 5695, Residential Energy Credits Part II as part of your taxes. The credit applies to the year of installation, not the year of equipment purchased. The credit is nonrefundable (meaning you can only use as much as the amount of federal taxes you owe), and can’t be carried over to another year.
◘ More Info: Energy Efficient Home Improvement Credit.
State
Note: You can “stack” federal and local rebates to cut down the cost up to 100% (see example below).
The Home Efficiency Rebate Program (HOMES)
Eligibility: Oregon single and multi-family homes, including owner-occupied and rental properties. HOMES is open to all income levels, however at least 40% of the rebate funding is reserved for low-income households and an additional 10% for low-income multifamily households. Retrofits must at least provide 20% of estimated energy savings to receive rebates, and rebates are not eligible for new construction.
Amount: 50% to 100% of the retrofit cost, scaled by income and energy savings; up to $10,000.
|
Modeled Savings
|
Income Level
|
Single-Family Homes
|
Multi-Family Buildings
|
|
20-34%
|
Low-income
|
Lesser of $8,000 or 100% of project cost
|
Lesser of $8,000 per unit or 100% of project cost
|
| 20-34% |
Moderate- and Higher-income
|
Lesser of $2,000 or 50% of project cost |
$2,000 per unit, up to $200,000 per building
|
|
35% or greater
|
Low-income |
Lesser of $10,000 or 100% of project cost
|
Lesser of $10,000 per unit or 100% of project cost
|
|
35% or greater
|
Moderate- and Higher-income |
Lesser of $4,000 or 50% of project cost
|
$4,000 per unit, up to $400,000 per building
|
Chart above shows modeled energy savings from Oregon Department of Energy.
How it Works: A home assessment by an approved ODOE contractor or energy auditor will identify qualifying retrofits, or upgrades. HOMES does not specify the types of upgrades that qualify besides that they must demonstrate a minimum of 20% energy savings (upgrades could include heat pumps, weatherization measures, or energy management devices such as smart thermostats). Your contractor will apply for the rebate on your behalf. The state directly reimburses the contractor based on your rebate, lowering your invoice.
◘ More Info: Oregon Home Energy Rebate Programs
◘ More Info: FAQ - Federal Home Energy Rebate Programs
The Home Electrification and Appliance Rebate Program (HEAR)
Eligibility: Low-and moderate-income Oregon households (i.e. households with incomes below 150% AMI). To qualify for HEAR, upgrades must be applied to new construction projects, or as a first-time purchase, or to replace non-electrical equipment.
Amount: Low-income households (less than 80% AMI) may qualify for up to 100% project costs, and moderate-income households (between 80% to 150% AMI) may qualify for up to 50% project costs; up to $14,000.
| Upgrade Type |
Qualified Product / Measure
|
Limit
|
|
Appliances
|
Heat Pump Water Heater
|
$1,750 |
| Appliances |
Heat Pump (for Heating and Cooling)
|
$8,000 |
|
Appliances
|
Electric Heat Pump Clothes Dryer |
$840
|
|
Appliances
|
Electric Stove, Cooktop, Range or Oven |
$840 |
|
Building Materials
|
Electric Load Service Center |
$4,000 |
|
Building Materials
|
Insulation, Air Sealing and Ventilation |
$1,600 |
|
Building Materials
|
Electric Wiring |
$2,500 |
|
Maximum Rebate
|
|
$14,000 |
HEARS qualified products and limits for rebates from Oregon Department of Energy. NOTE: Installation is budgeted into the limit for the upgrade!
How it Works: The state will provide point-of-sale (for participating retailers) and installation rebates for high-efficiency appliances in addition to associated electric upgrades. All HEAR applicants will be required to submit a reservation request to confirm whether their household and project upgrade(s) are eligible.
◘ More Info: Oregon Home Energy Rebate Programs
◘ More Info: FAQ - Federal Home Energy Rebate Programs
**Note: Applications to access rebates for the HOMES and HEAR programs are not expected to open until late-2025 or early-2026. Please check here for updates.**
Community Heat Pump Deployment Program
Eligibility: Oregon Homeowners. Funding currently limited to coastal counties, Baker, Union, and Wallowa counties, and the Burns Paiute Tribe.
Amount: Up to $5,000 off a minimum efficiency heat pump, or $7,000 off a higher efficiency heat pump; up to $4,000 additional is available for upgrading the electrical system, weatherization, or airflow upgrades in order to make the heat pump installation more efficient.
How it Works: The funding is managed in Oregon based on region, each of which has slightly different requirements. To learn more and the availability of funds, check your region.
◘ More Info: Check Available Funds By Region
◘ More Info: ODOE Community Heat Pump Program
◘ More Info: Community Heat Pump Program FAQs
Northwest Native Chamber (NWNC) Clean Energy Contractor Development Program
NWNC connects Native contractors and construction firms with Native homeowners. This program helps cover the costs of clean energy upgrades or repair.
◘ More Info: NWNC Clean Energy Development Program
Local
Energy Trust of Oregon (ETO) Rebates
Eligibility: Customers of PGE, Pacific Power, NW Natural, Cascade Natural Gas, or Avista.
Amount: Rebates for heat pump installation ranging from $200-$2,000.
◘ How it Works: Use ETO’s incentive’s search engine to learn more about what is available for you and search all incentives offered. There is a requirement that you use specific contractors, so make sure to factor this into your planning.
Here are some highlights:
- Gilliam, Morrow and Wallowa Counties have regional heat pump discounts of up to $4,000.
- Heat pumps without another heat source in the house are offered discounts starting at $1,000.
Local Utility Rebates
Your local utility also likely offers incentives for heat pumps. These incentives can come and go based on availability, but we’ve provided links below for the most updated information. If your utility is not listed below or in the ETO section, contact them directly to find out about any opportunities!
- Central Electric Co-op: Rebates for heat pumps, and additional funds available for duct sealing; details here.
- Central Lincoln PUD: Rebates available for different types of heat pumps; details here.
- Columbia River PUD: Works with Efficiency Service Group on rebates. Email for additional info; more details here.
- Douglas Electric Co-op: Rebates between $800-1,200 available based on the unit; details here.
- Eugene Water and Electricity Board (EWEB): EWEB offers income-based and standard rebates for ductless and ducted heat pumps. These rebates can be either money off the final cost, or 0% interest loans. EWEB ducted systems and EWEB ductless systems rebates.
- Forest Grove Light and Power: $800 rebate on a ductless heat pump installed by September 30, 2025; details here.
- Lane Electric: Offers $800 rebate or a 48-month zero-interest loan of up to $9,000 for installation; details here.
- McMinnville Water and Light: Save as much as $2,400 depending on the unit; details here.
- Springfield Utility Board: Offers a 0% interest loan (up to $4,500) or an $800 rebate on a heat pump; details here.
Local Community Groups
If you need more financial assistance in getting a heat pump, the following organizations offer programs that can help you secure a heat pump at a low cost, or oftentimes for free, depending on your income.
A SHORT REBATE STORY (INSPIRED BY REAL INCENTIVES):
Oregon residents (beavers) Chew and Bruno get their home's energy from Eugene Water and Electricity Board. They decided to purchase a ductless air-source heat pump, and an audit confirmed they do not need any home upgrades prior to installing the system. Their contractor quoted them $15,000. They were able to apply for Oregon's Community Heat Pump Deployment Program and because they were buying a higher efficiency unit they received a full rebate of $7,000. Through Eugene Water and Electricity Board they chose the loan option of a $6,000 zero-interest, 48-month loan. Next, they applied and received a $2,000 Energy Efficient Home Improvement Credit on their federal taxes for that year.
Chew and Bruno’s total cost is $6,000 over 48 months ($125 a month). Based on the average savings of $500 a year on energy, they saved at least $2,000 over the loan term. And since systems last 10-15 years, they will save even more money long term!
