The Oregon Department of Energy鈥檚 aims to help homeowners, rental property owners and builders of new homes by providing up to $2,000 in rebates. But first, the department is looking for eligible contractors to help.
The contractor鈥檚 role is to install the heat pump, apply for the incentive through the agency and pass the full savings on to the homeowner or property. That way homeowners or property owners are not paying those costs upfront, ODOE energy incentives manager Duard Headley said.
For a limited window after the program opens, qualifying Oregonians may be able to cut the price of a home heat pump installation by a combined $4,000. That鈥檚 if they participate in both the state incentive program and also get a clean energy federal tax cut.
The IRS is offering up to $2,000 in energy efficiency credits on heat pumps and other energy projects completed this year, but a .
Since opening applications on Wednesday, Headley said the agency has already seen several contractors who are enrolled in other state heat pump programs apply.
The agency is hoping to allow the public to start applying for these incentives on June 17.
鈥淥n June 17, contractors will be able to apply for incentive reservations or incentive applications on behalf of homeowners, the property owners, and developers,鈥� he said.
鈥淧art of the eligibility for an incentive is that the heat pump is installed after the program opens on the 17th, so we鈥檙e expecting to see those applications kind of ramp up over time, because it will take contractors some time to complete those installations.鈥�
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Over the past two years, the Oregon Department of Energy has encouraged heat pump installations across the state through federal- and state-funded programs. In 2023, legislators passed the Climate Resilience Package that included a goal to install 500,000 heat pumps by 2030.
The agency expects homes in the state to add 12,000 units in the next few years through the Oregon Heat Pump Purchase Program. The program is funded through the federal government鈥檚 last year.
The aim is to help reduce greenhouse gas emissions by installing energy efficient appliances like heat pumps, while providing a means for cooling or heating to the residents receiving the heat pump. Heat pumps are more efficient at cooling than traditional air conditioning systems, and produce lower carbon emissions than typical natural gas or electric furnaces.
Depending on the size of the home and what kind of unit each home would need, heat pumps can range from $6,500 to $20,000.
Headley said the program expects to distribute incentives in two rounds of funding in 2025 and 2027.
鈥淲e just want to make sure that we鈥檙e spreading that out over time and giving everyone a good opportunity to participate in the program,鈥� he said.
The agency will also limit how many incentives each contractor can claim 鈥� up to 50 per quarter or 200 per year 鈥� to give other contractors, especially in rural areas, a better chance to claim the incentive.
鈥淚n the first few days that the program opens, we will definitely see a lot of action then, we鈥檙e already seeing a lot of activity with contractors registering, but it won鈥檛 be the same situation where funding rapidly is consumed,鈥� Headley said.
Headley was referring to the agency鈥檚 , which ran out of funding within months during its first year of operation. Lawmakers allocated an additional $4 million last year 鈥� that funding was exhausted in less than 48 hours.
Interested contractors can to join the approved list.
