ODOE to Make Full Heat Pump Purchase Program Funding Available November 3

Media contact: Jennifer Kalez, 503-480-9239 Program contact: [email protected]

SALEM - The Oregon Department of Energy will make all remaining funding available for its Heat Pump Purchase Program on November 3, 2025, following high program demand during the initial round.

ODOE's program first launched in June 2025 with $12 million in incentives available for heat pumps installed in owner-occupied, new construction, and rental homes. The program has been very successful so far - including more than 2,000 approved incentives and reservations within the first few months. The initial funding available for the existing owner-occupied home category ($2 million total) was fully reserved as of early August.

ODOE originally intended to make a second round of $12 million in program funding available in 2027. With the clear demand from this first round, the agency will instead consolidate the funding rounds and make the full program budget available on November 3, 2025 for incentive reservations and applications from approved contractors.

This will add $12 million to the program budget (for a total of $24 million), supporting an additional 1,000 incentives 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.

"The Oregon Department of Energy is thrilled to see such high demand for our Heat Pump Purchase Program," said ODOE Director Janine Benner. "This energy efficient and potentially life-saving equipment is making a big difference in Oregon households, from comfort to cost savings. Heat pumps also support the pathways identified in the upcoming Oregon Energy Strategy - including increasing energy efficiency and strategic electrification in buildings."

Applications that were previously denied due unavailable funding may be resubmitted as long as they meet program eligibility requirements, including those that were installed after the program start date of June 17, 2025.

More information and a list of approved contractors are available on ODOE's website. The agency also continues to recruit contractors statewide to participate in the program. Interested contractors can register online.

Additional Program Background

The Heat Pump Purchase Program provides up to $2,000 in incentives for the installation of heat pumps in owner-occupied homes, rental homes, and homes under construction. Incentives are issued to approved program contractors, who then pass the savings on to the customer.

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.

Oregonians interested in installing energy efficient heat pumps in their homes should contact an approved program contractor, who will be able to access incentives on behalf of their customers. After completing installation, the contractor will apply to receive an incentive from the agency and the full $2,000 savings must be passed on to the customer.

Program Updates and Contractor Feedback Webinar October 31

The Department would like to take this opportunity to share program updates, reiterate program requirements, share best practices, collect feedback on the program, and answer any questions from contractors.

Interested contractors are invited to attend an ODOE webinar on October 31, 2025 at 10 a.m. Meeting materials and log-in information will be available on ODOE's website ahead of the meeting.

ODOE Now Accepting Incentive Applications for Building Performance Standard Early Compliance Action and Planning Program