Oregon Heat Pump Purchase Program

Oregon's Heat Pump Purchase Program provides $2,000 heat pump incentives for homeowners, rental property owners, and homes under construction.

ODOE is now accepting incentive reservations and incentive applications. Homeowners, rental property owners, and builders/developers can get started by contacting one or more approved contractors.

Note: For existing-owner occupied homes, Round 1 and Round 2 funding is fully reserved. See the below chart for available rental property and new construction funding.

Property Owners, Be Sure To:

1. Get quotes from at least three approved contractors before selecting a contractor. (Recommended)
2. Verify the price you pay is reduced by the full amount of the incentive before paying your contractor.
3. Confirm with your contractor that your heat pump meets efficiency requirements in Section 5 of the Program Policies.
4. Get and retain a copy of the final invoice (signed by both you and your contractor) from your contractor that meets the full HP3 invoice requirements.

Incentive Process

1. Customer hires an approved contractor (recommend getting a few different bids).
2. Optional: Contractor may submit an incentive reservation prior to installation (An approved reservation is not required to move forward with installation).
3. Approved contractor installs heat pump and provides the incentive as an upfront reduction in the cost of the heat pump purchase. Contractor may submit an optional incentive reservation prior to installation or may install directly.
4. The contractor then applies for the ODOE incentive after installation.
5. Once application is approved, incentive payment is sent directly to contractor by ODOE.

Eligibilty

• The heat pump must be purchased for an owner-occupied residence, residential tenancy (rental), or new residential construction located in Oregon.
• Heat pumps (including ducted, ductless, and split systems) must have an HSPF2 of 8.1 or greater and a SEER2 rating of 16 or more.
• Commercial properties, vacation occupancies, and transient occupancies are not eligible.
• Heat pumps may be purchased prior to the program start date. Heat pumps must be installed after the program start date to be eligible.
• 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 incentive will be approved.

Available Funding

Notes on incentive applications and available funds

• Incentive reservations and applications are processed in the order that they are submitted.
• Once funds are fully claimed in a category, additional applications will be denied.

Approved Contractors

Contractors must register and be approved by ODOE to submit incentive reservations and incentive applications.

Additional details on approved contractor eligibility requirements and registration can be found in the Contractor Registration Requirements document. Prior to submitting a registration, please watch the Contractor Training meeting recording; the training is a requirement for participation in the program. To register to become an approved contractor please visit the HP3 Portal.

Key Facts for Incentive Reservations and Applications:

• Incentive reservations can be submitted but are not required.
• Reservation approval is not required prior to installation.
• A single incentive reservation can be submitted for a multifamily building/project.
• Only approved contractors can submit incentive applications
• One incentive application must be submitted per heat pump installed.
• A single application cannot be accepted for multifamily projects.
• Contractors may utilize the copy function to submit multiple applications that are similar to one another.
• Details on invoice requirements can be found in the Contractor Final Invoice Requirements document.
• Installations are not considered complete until the projects have received passed final mechanical permit inspections, unless participating in the BCD minor label program
• A full overview of the application process is demonstrated in the contractor training meeting recording.

Program Timeline

• Program Development: December 2024 - Spring 2025
• Public Program Input Session: March 2025
• Contractor Training: April 2025
• Program Opens Approved Contractor Registration: June 4, 2025
• Program Starts Accepting Applications: June 17, 2025
• Round 2 Funding Available: November 3, 2025

Program Overview

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.

ODOE initially intended to make a second round of program funding available in 2027. With the clear demand we are seeing in the first round, we are going to consolidate the funding rounds and make the full program budget available on November 3, 2025 for incentive reservations and incentive applications from approved contractors. This will add $12 million to the program budget, supporting an additional 1,000 rebates for owner-occupied homes, 3,000 for rental homes, and 2,000 for new construction. The agency will keep the program website updated with remaining funding available for each category.

Incentives for any eligible residence are up to $2,000 and will only be reduced if the full incentive amount combined with other incentives received for the installation exceeds 100 percent of the total purchase and installation price.

Incentives will be issued to approved contractors who install eligible heat pumps in homes. The full incentive amount issued to the contractor is then passed on to the customer (homeowner, rental property owner, or developer) as savings on the cost of the heat pump.

ODOE recommends receiving quotes from at least three contractors prior to signing an agreement or proceeding with any major purchase for work on your home such as a heat pump.

Homeowners, rental property owners, and developers can find approved contractors through the HP3 approved contractor list.

Engagement Opportunities