Oregon’s Heat Pump Purchase Program provides $2,000 heat pump incentives for homeowners, rental property owners, and new construction developers/builders. Funding is made available through a U.S. Environmental Protection Agency Climate Pollution Reduction Grant.
February 2025 Update:
ODOE is actively monitoring changes at the federal level and any effect they have on federally funded energy programs in Oregon. Currently, the $197 million Climate Pollution Reduction Grant that EPA awarded Oregon, which includes funding for this Heat Pump Purchase Program (HP3), is available. This program is an important part of ODOE's work to implement heat pumps to reduce energy use, lower greenhouse gas emissions, and to provide life-saving heating and cooling to Oregonians. We will continue our work at the state level while monitoring the availability of funds.
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The Oregon Department of Energy will disburse Heat Pump Purchase Program funding in two rounds, one in 2025 and one in 2027.
ODOE expects to begin accepting applications for the first round of funding in Spring 2025 (subject to change). Both rounds will consist of 6,000 incentives (1,000 incentives for owner-occupied residences, 3,000 incentives for rentals, and 2,000 incentives for new construction). Contractors must be approved by ODOE and must apply through the online portal on behalf of their customers.
Additional information and links for applications
and other materials will be available Spring 2025.
Program Timeline (subject to change)
- Program Development: December 2024 – Spring 2025
- Public Program Input Session: March 2025 (exact date to be announced)
- Contractor Training: April 2025 (exact date to be announced)
- Program Starts Accepting Applications: Spring 2025 (exact date to be announced)
Available Funding
Owner-Occupied Homes
|
Rental Properties |
New Construction |
Available Funding
| No. of Incentives Available*
| Available Funding
| No. of Incentives Available*
| Available Funding
| No. of Incentives Available*
|
$2,000,000
| 1,000
| $6,000,000
| 3,000
| $4,000,000
| 2,000
|
*Approximate
Updated February 5, 2025
Process
- Customer hires an approved contractor (recommend getting a few different bids)
- Approved contractor installs heat pump
- Contractor applies for ODOE incentive after installation
- Once application is approved, incentive payment is sent directly to contractor
This program is in development and we'll provide more details soon about how to participate! Please
sign up for email updates to stay in the loop.
Eligibility
- The heat pump must be purchased for an owner-occupied residence, residential tenancy (rental), or new residential construction located in Oregon.
- Commercial properties are not eligible.
- Heat pumps must be purchased after April 30, 2025 (subject to change).
- Only one incentive is allowed per residence.
- The incentive shall not exceed the total cost of the heat pump minus incentives from other sources included (manufacturer, utility, or state incentives), and cannot be stacked with funding from other federally funded programs such as
HOMES and HEAR.
- If funding is available and the heat pump and associated application meet program requirements, the rebate will be approved.
Program Background
Funding for this program comes from a sub-grant to Oregon Department of Energy from the
Climate Pollution Reduction Grant awarded to the Oregon Department of Environmental Quality by the United States Environmental Protection Agency. The CPRG program funding is part of the federal 2022 Inflation Reduction Act.
Engagement Opportunities
As ODOE works to stand up this new program, we may hold public meetings to gather input and share updates. Please
sign up to receive emails about future opportunities.
Program Information Meeting
Tuesday, March 4, 2025
10 a.m.
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