Oregon Heat Pump Rebates & Incentives (2026)
Federal tax credits are gone, but Oregon has one of the strongest layered incentive structures in the country. Energy Trust of Oregon offers $800–$1,000 for most homeowners (up to $3,000 income-qualified), the ODOE Heat Pump Purchase Program adds up to $2,000, and upcoming HOMES/HEAR rebates could bring totals to $8,000+ for income-qualifying households. This guide covers all major Oregon heat pump incentives available in 2026, including Energy Trust, HP3, CHPDP, HOMES, HEAR, and Portland Clean Energy Fund programs. Here's what's actually available.
Last verified: March 22, 2026
Rates and program availability may change after this date.
Oregon
Open
Oregon heat pump rebates are available through Energy Trust of Oregon for Portland General Electric and Pacific Power customers. Rebates range from $800–$3,500+ depending on system type, efficiency, and income qualification. The Oregon Department of Energy also offers a Residential Energy Tax Credit for certain installations. Federal tax credits (25C/25D) ended December 31, 2025. Oregon's HEAR program launched in 2025.
The short version
✓ Energy Trust rebates: $800–$3,000
$800 for ductless, $1,000 for ducted or extended capacity heat pumps. Income-qualified households receive $1,800–$3,000 through Savings Within Reach. Active for PGE, Pacific Power, NW Natural, Cascade Natural Gas, and Avista customers.
✓ ODOE HP3: up to $2,000
Owner-occupied funding is fully reserved. Rental property and new construction funding remain available. HP3 stacks with Energy Trust but cannot stack with HOMES or HEAR.
✓ Potential savings: $800 to $9,000+
$800–$1,000 (above 150% AMI, Energy Trust only) to $9,000+ (below 80% AMI, after HEAR launches). Full electrification packages can reach ~$14,000 total incentives for income-qualified households.
✗ Federal tax credits expired
Section 25C ($2,000/year for heat pumps) and Section 25D (30% for geothermal) both ended December 31, 2025. No federal tax credit is available for heat pumps installed in 2026.
⚠ HOMES and HEAR have not launched yet
Oregon was awarded over $113 million in HOMES/HEAR funding, but neither program is accepting applications as of March 2026. ODOE expects a Spring 2026 launch pending DOE approval. Rebates are not retroactive — installations must occur after launch. Do not rely on contractor claims about HEAR amounts until the program is live.
Federal tax credits: both expired
Section 25C (Energy Efficient Home Improvement Credit) and Section 25D (Residential Clean Energy Credit) both terminated for any property placed in service after December 31, 2025. The One Big Beautiful Bill Act (OBBBA), signed July 4, 2025, accelerated the sunset of both credits. A heat pump purchased in 2025 but installed in January 2026 does not qualify — the "placed in service" date is the controlling event. For more details, see our federal heat pump tax credit explainer.
Section 25C previously provided 30% of project costs up to $2,000 per year for heat pumps and heat pump water heaters. Section 25D provided 30% with no dollar cap for geothermal heat pump systems.
Homeowners who completed qualifying installations on or before December 31, 2025 can still claim the credit on their 2025 tax return using IRS Form 5695. Unused Section 25D credits from 2025 installations may carry forward. Unlike Energy Trust rebates, which continue unchanged, no replacement federal tax credit exists.
Energy Trust of Oregon — primary rebates
Energy Trust is the primary incentive source for most Oregon homeowners. It's funded by utility ratepayers (not the state budget or federal programs), so it operates independently of federal policy changes. You qualify if your electric or gas utility is Portland General Electric, Pacific Power, NW Natural, Cascade Natural Gas, or Avista.
Standard rebates (January 2026)
| System type | Owner-occupied | Rental / income-qualified |
|---|---|---|
| Ductless heat pump (mini-split) | $800 | $1,800 |
| Ducted heat pump (replacing electric furnace) | $1,000 | $3,000 |
| Extended capacity heat pump (CEE Tier 1 Path A) | $1,000 | $2,000 |
| Manufactured home (special promotion through Dec 2026) | Up to $4,000 | Up to $4,000 |
Minimum requirements: HSPF2 of 8.10 for ductless, 7.50 for ducted. Must use a Trade Ally contractor. Ground-source (geothermal) heat pumps are not covered by Energy Trust — see HP3 or the upcoming HEAR program for potential geothermal coverage.
Energy Trust is independent of federal policy
Because Energy Trust is funded by ratepayers rather than federal appropriations, its rebates survived the federal credit expiration and the IRA funding debates completely intact. Energy Trust existed before the IRA and will continue regardless of federal policy shifts. This makes it the most reliable incentive layer in Oregon.
ODOE state programs — HP3, CHPDP, and rental
Heat Pump Purchase Program (HP3) — up to $2,000
HP3 provides up to $2,000 per residence for heat pump installations, funded by a $24 million EPA Climate Pollution Reduction Grant. It covers both air-source and ground-source systems. ODOE released $12 million in additional Round 2 funding in November 2025, but owner-occupied funding was quickly exhausted.
⚠ Common mistake: assuming HP3 owner-occupied funding is still available
Round 1 and Round 2 funding for owner-occupied homes is fully reserved. Rental property funding ($6.5M remaining) and new construction funding ($6.8M remaining) are still available as of February 2026. HP3 can stack with Energy Trust but cannot stack with HOMES or HEAR — you must choose one path.
Community Heat Pump Deployment Program (CHPDP) — up to $7,000
Provides up to $5,000–$7,000 for heat pump systems plus up to $4,000 for electrical and weatherization upgrades, distributed through regional administrators in select counties. Currently limited to coastal counties, Baker, Union, Wallowa counties, and the Burns Paiute Tribe. Availability varies by location.
Rental Home Heat Pump Program
Covers 60–80% of costs for income-qualified tenant households. General funding is fully reserved — only tribal member applications remain open. Oregon has no state tax credit for heat pumps — the Residential Energy Tax Credit (RETC) expired in 2017 with no successor.
HOMES and HEAR — expected Spring 2026
Oregon was awarded over $113 million (~$57M per program) in IRA-funded HOMES and HEAR rebates. As of March 2026, neither program has launched for consumers. ODOE expects a Spring 2026 launch pending U.S. DOE approval. Energy Trust will administer in PGE and Pacific Power service areas; Earth Advantage handles consumer-owned utility and Idaho Power territories.
HEAR rebate amounts (when live)
| Income tier | Heat pump rebate | Coverage |
|---|---|---|
| Below 80% AMI | Up to $8,000 | 100% of costs (up to cap) |
| 80–150% AMI | Up to $8,000 | 50% of costs (up to cap) |
| Above 150% AMI | — | Not eligible |
Additional HEAR caps include $1,750 for heat pump water heaters, $4,000 for electrical panel upgrades, $2,500 for electric wiring, and $1,600 for insulation and air sealing. The per-household cap is $14,000.
HOMES rebate amounts (when live)
| Energy savings | Standard rebate | LMI rebate (≤80% AMI) |
|---|---|---|
| 20–35% reduction | $2,000 | $4,000 |
| 35%+ reduction | $4,000 | $8,000 |
HOMES and HEAR cannot be combined for the same single upgrade but can apply to different measures within the same home — for example, HEAR for a heat pump and HOMES for insulation and air sealing. HOMES is available at all income levels.
Portland Clean Energy Fund (PCEF)
Portland residents may access additional support through PCEF-funded programs. PCEF explicitly funds gaps not covered by other incentive sources, making it a complement to Energy Trust and ODOE programs. The city expanded its Cooling Portland Program in December 2024 with an added $10.3 million, and the program had installed over 13,000 portable heat pump and cooling units at that point — with the expansion intended to help 10,000 additional households through 2026.
PCEF is city-funded (not federal), so it operates independently of IRA funding status. Portland residents should check PCEF program availability in addition to Energy Trust and ODOE programs.
How programs stack in Oregon
Oregon has one of the more complex stacking environments because multiple independent funding sources overlap. Energy Trust (ratepayer) stacks with HP3 (EPA grant) and is expected to stack with HEAR (IRA). HP3 cannot stack with HOMES or HEAR. Total incentives from all sources cannot exceed 100% of project cost. For a typical 3-ton ducted heat pump installation costing $10,000–$14,000:
Above 150% AMI — ducted heat pump ($12,000 installed)
- Energy Trust: $1,000
- HP3 (rental/new construction only): up to $2,000
- HEAR: not eligible
- HOMES (when launched, 20%+ savings): $2,000
Realistic maximum: ~$1,000–$3,000
80–150% AMI — ducted heat pump ($12,000 installed)
- Energy Trust: $1,000
- HEAR (when launched, 50% of cost): up to $6,000
Realistic maximum: ~$7,000
Below 80% AMI — ducted heat pump ($12,000 installed)
- Energy Trust (Savings Within Reach): $3,000
- HEAR (when launched, 100% of cost): up to $8,000
- PCEF (Portland only): gap funding
Realistic maximum: ~$9,000–$11,000
What you'll actually pay
Until HEAR launches, most Oregon homeowners pay $9,000–$13,200 out of pocket after Energy Trust rebates for a typical ducted heat pump system. Once HEAR is available, income-qualified households below 80% AMI could see out-of-pocket costs drop to $1,000–$3,000. Above 150% AMI homeowners will see the smallest benefit — primarily Energy Trust rebates plus potential HOMES rebates when launched.
Oregon has no state tax credit for heat pumps (RETC expired 2017). The stacking scenarios above do not include potential manufacturer rebates, which vary by brand and change frequently.
Oregon Weatherization Assistance Program
Oregon's Weatherization Assistance Program (WAP), administered by Oregon Housing and Community Services through 17 Community Action Agencies statewide, provides free weatherization services to households at or below 200% of the federal poverty level. Services are determined by an energy audit and can include heat pump replacement if identified as cost-effective.
A waitlist is typical due to demand. Priority is given to elderly, disabled, and families with young children. Contact your local Community Action Agency or call 211 to apply. Energy Trust also offers no-cost duct testing, sealing, and repair for manufactured homes through its Manufactured Homes Free Services program.
Oregon climate and heat pump performance
Oregon spans IECC Climate Zones 4C (marine, western Oregon) and 5B (dry, eastern Oregon). Western Oregon has mild winters well-suited to standard air-source heat pumps. Eastern Oregon is significantly colder, and cold-climate-rated equipment is recommended for reliable performance.
| City | ASHRAE 99.6% design temp | Climate zone |
|---|---|---|
| Portland | 17.0°F | 4C |
| Eugene | 17.4°F | 4C |
| Medford | 19.0°F | 4C |
| Bend | -2.0°F | 5B |
Oregon was the site of the devastating June 2021 heat dome, which killed approximately 100 people and directly motivated the legislature to pass SB 1536, creating the ODOE heat pump programs. Heat pumps provide both heating and cooling, making them critical for Oregon's increasingly extreme temperature swings.
Oregon homeowners considering a heat pump paired with battery storage can review our guide to home batteries for current economics and incentive details.
✓ Best candidates for a heat pump in Oregon
Homeowners replacing electric furnaces (highest Energy Trust rebate tier), PGE and Pacific Power customers eligible for full Energy Trust programs, income-qualified households below 150% AMI (once HEAR launches), manufactured home residents (Energy Trust promotional pricing through December 2026), and Portland residents who can layer PCEF gap funding. Western Oregon's mild climate means standard heat pumps perform efficiently without cold-climate ratings in most of the state.
How to apply for Oregon incentives
Oregon has multiple programs with different application paths. Start with Energy Trust, which is available to most homeowners immediately.
Confirm your utility eligibility
Energy Trust serves PGE, Pacific Power, NW Natural, Cascade Natural Gas, and Avista customers. Idaho Power customers should contact Earth Advantage for HOMES/HEAR when available. Check your electric bill for your provider.
Get quotes from Energy Trust Trade Ally contractors
Energy Trust requires work by a registered Trade Ally. Request at least three quotes. Confirm equipment meets minimum HSPF2 requirements (8.10 ductless, 7.50 ducted) and ENERGY STAR certification.
Apply for Energy Trust rebate
Apply online at form.energytrust.org within 60 days of installation. Many Trade Ally contractors process instant incentives at point of sale. Phone: 1-866-311-1822.
Check ODOE programs and monitor HEAR launch
Use Oregon HIPPO at incentives.oregon.gov to navigate all available state programs. Monitor ODOE's Home Energy Rebates page for HOMES/HEAR launch announcements. If you can delay installation, waiting for HEAR could add $4,000–$8,000 for income-qualified households.
What to watch for in Oregon
IRA funding runway
IRA funding for HEAR and HOMES remains authorized through September 30, 2031 or until depleted. The OBBBA did not terminate these programs. Oregon's $113 million allocation is secure for now, but the political environment around IRA spending remains volatile.
HOMES/HEAR phased rollout
Phase 1 (Spring 2026): individual home applications. Phase 2 (Summer 2026): multi-unit and shared system upgrades. Phase 3 (Fall 2026): HEAR retail point-of-sale coupons at participating stores. All timelines are subject to change pending DOE approval.
HP3 remaining funds
Owner-occupied funding is exhausted, but rental property ($6.5M) and new construction ($6.8M) funding remain available. Once depleted, HP3 will not be replenished — it is a one-time EPA grant. Rental property owners and developers should act while funding lasts.
Energy Trust 2026 program changes
Energy Trust launched 2026 incentives early and may adjust amounts as HOMES/HEAR integration becomes clearer. The manufactured home promotional pricing runs through December 2026. Watch for updates to incentive amounts and Savings Within Reach eligibility.
Frequently asked questions
What heat pump rebates are available in Oregon in 2026?
Oregon heat pump rebates in 2026 come primarily from Energy Trust of Oregon ($800–1,000 for most homeowners, up to $3,000 income-qualified) and the ODOE Heat Pump Purchase Program (HP3, up to $2,000 — owner-occupied funding exhausted, rental and new construction still available). The Community Heat Pump Deployment Program offers up to $7,000 in select counties. Federal tax credits (25C/25D) expired December 31, 2025. HOMES and HEAR rebates (up to $8,000) are expected to launch Spring 2026 but are not yet available.
Can I stack Energy Trust rebates with HEAR and HP3 in Oregon?
Energy Trust rebates can stack with HP3 (e.g., $1,000 + $2,000 = $3,000). Energy Trust is ratepayer-funded (not federal), so stacking with HOMES and HEAR is anticipated when those programs launch. However, HP3 cannot stack with HOMES or HEAR — you must choose one path. Total incentives from all sources cannot exceed 100% of project cost.
What is Energy Trust of Oregon and do I qualify?
Energy Trust of Oregon is a nonprofit funded by utility ratepayers. You qualify if you are a customer of Portland General Electric, Pacific Power, NW Natural, Cascade Natural Gas, or Avista. Most Oregon residents qualify. Energy Trust rebates are the primary heat pump incentive for most Oregonians and operate independently of federal policy changes.
When will Oregon’s HOMES and HEAR rebates launch?
ODOE expects HOMES and HEAR to launch in Spring 2026, but no specific date has been announced and all timelines are subject to U.S. DOE approval. Energy Trust will administer rebates in PGE and Pacific Power service areas. Earth Advantage handles consumer-owned utility and Idaho Power territories. Rebates are not retroactive — installations must occur after program launch.
Is the HP3 program still accepting applications?
Owner-occupied Round 1 and Round 2 funding is fully reserved as of early 2026. Rental property and new construction funding remain available. Each HP3 incentive is up to $2,000 per residence. HP3 is funded by a $24 million EPA Climate Pollution Reduction Grant. Check oregon.gov/energy for current status.
Do cold-climate heat pumps work well in Oregon?
Yes. Western Oregon (Climate Zone 4C) has mild winters with design temps around 17°F in Portland and Eugene. Standard heat pumps perform well. Eastern Oregon (Climate Zone 5B) is colder — Bend reaches -2°F — and cold-climate-rated equipment is recommended. Energy Trust requires HSPF2 of 8.10 for ductless and 7.50 for ducted systems.
Disclaimer: This page covers the main statewide, utility, and IRA heat pump incentives available to Oregon homeowners in 2026. It does not calculate savings, guarantee eligibility, or represent any incentive program. Oregon's HOMES and HEAR programs have not launched as of March 2026, and expected rebate amounts may change when programs are finalized. Energy Trust rebate amounts are subject to change. We verify status regularly but programs can change without notice. Always confirm current amounts and eligibility with Energy Trust of Oregon, ODOE, and your contractor before making decisions.