Oregon Hopes to Lure Contractors With Heat Pump ‘Rebates’

Using money from the Inflation Reduction Act, which was awarded to the state in 2024, Oregon is hoping a new heat pump incentive program will take the place of natural gas.

   The new program will give a $2,000 incentive 'credit' to builders, homeowners

The Oregon Department of Energy received $197 million from the Federal government, and the new program will encourage more heat pump use.

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It's part of Oregon's Climate Equity and Resilience Through Action Program, and the funds will be awarded toward the installation of a new heat pump in owner-occupied homes, rentals and new residential construction.

Once the pump is applied for or reserved through the program and installed, the contractor then receives the rebate, which then must be passed onto the consumer. Approximate costs for installing a heat pump in Oregon depend on the size of the home or residence, but generally run between $4,000 and $12,000, compared to the $2,000 incentive.

Oregon has not 'banned' natural gas as a heating source, but their state climate goals emphasize replacing as much 'fossil fuel' heating or power with heat pumps and other alternatives.

Based on the $2,000 rebate amount, divided by the Federal grant, would be enough to cover about 98,000 homes.

There has also been questions about how the freezing of Inflation Reduction Act funds at the beginning of the year would affect this or similar programs. Initially, many CRA funding was frozen, but a Federal judge ruled the distribution of the money had to continue.