Oregon Heat Pump Rebates 2026 — Energy Trust of Oregon, HP3, CHPDP After Federal 25C Expired

Oregon has a parallel two-track structure — and which track you’re on depends on your utility

Most states have either a single consolidated administrator or a scattered utility-by-utility patchwork. Oregon has a third arrangement that’s genuinely uncommon: a non-profit trust that has served as the consolidated incentive administrator for investor-owned utility customers since 2002, running parallel to a state agency that runs its own IRA-funded and state-funded programs for everyone else.

Energy Trust of Oregon (ETO) is that non-profit trust. It has administered residential efficiency incentives — including heat pump rebates — since 2002, funded by Oregon’s Public Purpose Charge, a small per-unit surcharge on electric and gas bills paid by customers of Portland General Electric (PGE), Pacific Power, NW Natural, Cascade Natural Gas, and Avista. If your electric or gas bill comes from any of those five utilities, ETO is your first call for heat pump rebates.

But ETO does not cover everyone. Oregon has a substantial population served by public utility districts (PUDs) and consumer-owned utilities (COUs) — Eugene Water & Electric Board (EWEB) in Lane County, Springfield Utility Board, Salem Electric, Tillamook PUD, Central Lincoln PUD, and others. These customers are outside ETO’s mandate. Each PUD and COU runs its own efficiency program separately.

On top of this utility split, the Oregon Department of Energy (ODOE) administers two additional programs funded by the federal Inflation Reduction Act and Oregon’s state budget. These programs operate independently of the ETO structure and in some cases are available to customers regardless of utility. The result is that IOU customers can potentially access three stacked layers — ETO standard rebates, ETO income-qualified track, and an ODOE program — while PUD and COU customers can access the ODOE state programs plus whatever their own utility offers.

One thing shared across every track: the federal IRS Section 25C Energy Efficient Home Improvement Credit expired on December 31, 2025. There is no federal heat pump tax credit for 2026 installations.

The programs, walked through one by one

Energy Trust of Oregon — Standard heat pump rebates (IOU customers only)

ETO’s general rebate track covers ducted heat pumps and ductless mini-splits for customers of PGE, Pacific Power, NW Natural, Cascade Natural Gas, and Avista. The program range runs $250–$4,000 depending on system type and efficiency tier. Equipment must be installed by an actively licensed Trade Ally contractor enrolled with ETO; DIY installations do not qualify. Applications must be received within 60 days of installation.

Specific standard rebate amounts by system type are not published as flat rates on the ETO overview page — the amounts filter by utility provider, residence type, and ZIP code through ETO’s interactive tool. Contact ETO at 1.866.368.7878 or use their online incentive finder to confirm the current standard rebate for your specific equipment and utility. The $250–$4,000 range is the confirmed published range across all qualifying equipment.

Energy Trust of Oregon — Savings Within Reach (income-qualified)

The income-qualified track — called Savings Within Reach — offers higher rebates for households within a specific income band. Unlike many state programs that use a simple AMI percentage ceiling, ETO’s income-qualified program has both a minimum and maximum income threshold — households below the minimum floor may qualify for free weatherization services through Oregon’s separate Low Income Home Energy Assistance Program (LIHEAP) rather than through ETO.

Oregon income thresholds for Savings Within Reach (4-person household):

• Minimum (floor): $62,400
• Maximum (ceiling): $128,564

The program also serves households from $30,120–$66,854 at the 1-person scale, reflecting sliding thresholds adjusted for household size. For a single-person household, the maximum is $66,854.

Confirmed rebate amounts through Savings Within Reach:

Qualifying utilities for Savings Within Reach: Portland General Electric, Pacific Power, NW Natural, Cascade Natural Gas, or Avista.

Oregon Heat Pump Purchase Program (HP3) — ODOE, IRA-funded

The Oregon Heat Pump Purchase Program is administered by ODOE and funded through Oregon’s $197 million Climate Pollution Reduction Grant from the EPA under the Inflation Reduction Act. HP3 is distinct from HEEHRA — it is not the federal Home Electrification and Appliance Rebates program but rather a state-level program funded through a separate IRA grant vehicle.

Key HP3 details:

• Amount: Up to $2,000 per heat pump installation
• Equipment requirements: HSPF2 8.1 or higher and SEER2 16 or higher; ducted, ductless, and split systems qualify
• Eligibility: Owner-occupied residences, rental properties, and new residential construction in Oregon
• One incentive per residence only
• Installation date: Heat pump must be installed after June 17, 2025 (program start date)
• Delivery: Contractor provides the incentive as an upfront cost reduction at point of installation; ODOE reimburses the contractor
• Availability: Statewide — not utility-restricted. PUD and COU customers can access HP3.

HP3 is the most broadly accessible program because it is not limited to IOU utility customers. Whether you’re in PGE territory or EWEB territory, HP3 is available if your contractor is approved.

An LMI (Low-to-Moderate Income) Eligibility Guide is referenced in contractor resources, suggesting there may be an income-tiered component to HP3. Verify current income tier structure directly at the ODOE HP3 program page before assuming a flat $2,000 applies to all income levels.

Community Heat Pump Deployment Program (CHPDP) — ODOE, state-funded

The Community Heat Pump Deployment Program is funded through SB 1536 (2022), which appropriated $10 million for ODOE to support heat pump installations in owner-occupied Oregon residences. CHPDP is administered regionally through 11 economic development districts plus two tribal governments.

CHPDP rebate amounts:

• Up to $5,000 for heat pumps meeting minimum efficiency standards
• Up to $7,000 for heat pumps meeting higher efficiency requirements
• Up to $4,000 additional for eligible upgrades (electrical panel, weatherization, or structural repairs)
• Combined incentives cannot exceed 100% of installation costs

Current CHPDP funding status (as of May 2026):

The Portland Metro and Bend/Deschutes regions — home to the largest share of Oregon’s population — both show fully reserved funding. Only the North Coast and North Central regions are actively accepting applications. Contact community.heatpump@energy.oregon.gov or the regional administrator for your area to check current availability.

HEEHRA through ODOE — status pending

Oregon has received a federal HEEHRA (Home Electrification and Appliance Rebates) allocation through the Inflation Reduction Act, separate from the HP3 and CHPDP programs. ODOE is Oregon’s designated HEEHRA administrator. At the time of this writing (May 2026), we could not locate a dedicated HEEHRA program page at oregon.gov/energy with confirmed rebate amounts and income thresholds published for public access. ODOE’s primary IRA vehicle for residential customers currently appears to be HP3. Verify current HEEHRA enrollment status and program structure directly at oregon.gov/energy or by contacting ODOE at AskEnergy@oregon.gov or 503-378-4040.

Eugene Water & Electric Board (EWEB) and other PUDs/COUs

EWEB serves Eugene and surrounding Lane County — one of Oregon’s most robust non-IOU programs. EWEB’s residential incentives program includes both ducted heat pump and ductless heat pump programs. Specific current rebate amounts were not publicly listed in the accessible EWEB program overview page (eweb.org/rebates-and-savings); confirm current EWEB rebate amounts directly at eweb.org or by calling 541-685-7000.

Other Oregon PUDs and COUs with residential efficiency programs include Springfield Utility Board, Salem Electric, Tillamook PUD, and Central Lincoln PUD. Program quality and available rebate amounts vary significantly between these utilities — some have robust programs comparable to ETO, others offer minimal incentives. Contact your specific utility directly if you are not served by PGE, Pacific Power, NW Natural, Cascade Natural Gas, or Avista.

Federal 25C — expired for 2026 installations

The IRS Section 25C Energy Efficient Home Improvement Credit, which allowed homeowners to claim up to $2,000 per year for qualifying heat pump installations, expired on December 31, 2025. For 2026 installations, there is no federal heat pump tax credit. If you installed a qualifying system in 2025, you can still claim the credit on your 2025 tax return.

Incentive stack table

Worked example: Portland metro moderate-income household (Multnomah County)

Scenario: A homeowner in Beaverton (Washington County, adjacent to Multnomah) with a household of four and a combined income of $105,000. The home is an 1,800 sq ft 1960s ranch. Utility: Pacific Power (IOU, ETO-eligible). They want to replace central electric forced-air heat with a ducted cold-climate heat pump.

Step 1: AMI calculation

The Portland-Vancouver-Hillsboro OR-WA MSA 4-person AMI for 2024 (HUD FY2024) is approximately $117,000.

• 4-person AMI (HUD FY2024, Portland-Vancouver-Hillsboro MSA): approximately $117,000
• 80% threshold: 0.80 × $117,000 = approximately $93,600
• 150% threshold: 1.50 × $117,000 = approximately $175,500

At $105,000, this household sits at approximately 90% of area median income — between the 80% and 150% thresholds. Under federal HEEHRA income bands, 80–150% AMI is the moderate-income tier.

Step 2: ETO Savings Within Reach eligibility

ETO’s Savings Within Reach uses household income thresholds rather than AMI percentages. For a 4-person Oregon household, the income-qualified band is $62,400–$128,564. At $105,000, this household falls within the Savings Within Reach eligible range (below the $128,564 ceiling for 4 persons).

This is worth noting: at $105,000, the household is outside the 80% AMI threshold used by federal HEEHRA programs (which would classify them as moderate-income, not low-income), but they are inside ETO’s broader Savings Within Reach band. The ETO income-qualified rebate is available to a wider swath of moderate-income homeowners than strict 80% AMI programs because the ceiling extends to $128,564 for a family of four.

Step 3: The stack

For a ducted heat pump replacing an electric forced-air furnace (HSPF2 ≥ 7.5):

• Federal 25C: $0 — expired December 31, 2025
• ETO Savings Within Reach ducted rebate: $3,000 (replacing electric forced-air, HSPF2 7.5+ required)
• Oregon HP3 (statewide, stacks with ETO): up to $2,000 (HSPF2 8.1+/SEER2 16+ required — confirm your chosen system meets both ETO and HP3 efficiency standards simultaneously)
• ODOE HEEHRA moderate-income tier: verify at oregon.gov/energy (program structure not confirmed at time of writing)

Confirmed stack today: $5,000 (ETO $3,000 + HP3 $2,000, pending contractor and equipment qualification)

Step 4: Installation cost

A ducted heat pump replacing electric forced-air in a 1,800 sq ft 1960s ranch in the Portland metro runs approximately $7,000–$13,000 depending on whether a new air handler is required and the electrical panel condition. We’ll use $10,000 as a working midpoint for an existing duct system in reasonable condition.

• Install cost: $10,000
• ETO Savings Within Reach (ducted): −$3,000
• HP3: −$2,000
• Out-of-pocket with confirmed rebates: $5,000

If HEEHRA becomes accessible and this household qualifies for the moderate-income tier (up to $4,000 for HVAC under the federal HEEHRA structure), that could reduce the out-of-pocket to approximately $1,000 — but verify HEEHRA availability before planning around it.

Worked example: Eastern Oregon rural low-income household (Deschutes County)

Scenario: A household in Bend with a combined income of $50,000 for a family of four. Utility: Pacific Power (IOU, ETO-eligible). The property is in climate zone 5B. The home has electric resistance baseboard heat. Design-day low temperature in Bend: approximately 0°F.

Step 1: AMI calculation

Deschutes County 4-person AMI for 2024 (HUD FY2024) is approximately $95,000.

• 4-person AMI (HUD FY2024, Deschutes County): approximately $95,000
• 80% threshold: 0.80 × $95,000 = approximately $76,000
• 150% threshold: 1.50 × $95,000 = approximately $142,500

At $50,000, this household sits at approximately 53% of area median income — well below the 80% threshold. Under federal HEEHRA income bands, this is the low-income tier (≤80% AMI).

Step 2: ETO Savings Within Reach eligibility

For a 4-person household at $50,000, ETO’s Savings Within Reach income floor is $62,400. This household falls below the minimum income threshold for the standard Savings Within Reach track. Households below the floor may qualify for free weatherization services through Oregon’s LIHEAP-connected program rather than through ETO’s rebate track.

This is an important Oregon-specific wrinkle: ETO’s income-qualified program is not a floor-to-ceiling program in the way that HEEHRA is. There is a minimum income threshold below which ETO redirects households to free weatherization assistance rather than providing rebates. For a Bend household at $50,000 with a family of four, ETO’s Savings Within Reach rebates may not be the right vehicle — the free weatherization pathway may provide more value.

Step 3: The stack for a low-income Deschutes household

• Federal 25C: $0 — expired
• ETO Savings Within Reach: likely not available at $50,000 for 4-person (below the $62,400 floor); redirect to LIHEAP weatherization pathway
• ETO standard rebate (non-income-qualified, for Pacific Power customers): $250–$4,000 — this track has no income test. A low-income household can still access the standard non-income-qualified rebate if they don’t qualify for the income-qualified track.
• Oregon HP3 (statewide): up to $2,000 — no income restriction stated at the standard tier; verify LMI guidance in contractor resources
• CHPDP (Bend/Deschutes Central region): Fully reserved — not currently accepting applications
• ODOE HEEHRA (low-income tier): verify at oregon.gov/energy — if active, low-income households (≤80% AMI) qualify for full coverage up to $8,000 for heat pump HVAC under the federal HEEHRA structure

Conservative confirmed stack: ETO standard rebate (verify amount for Pacific Power ductless) + HP3 $2,000

Step 4: Equipment requirement for Eastern Oregon

Bend’s design-day temperature of approximately 0°F means a standard 5°F-rated mini-split is at the edge of its rated performance on the coldest nights of the year. For reliable whole-home heating in Eastern Oregon, equipment with manufacturer-rated heating capacity at 0°F or below is required. Standard cold-climate units rated to 5°F may struggle at Bend’s design-day conditions; extended-range units with −13°F or lower ratings provide meaningful performance headroom.

A ductless mini-split installation in Bend for a 1,200 sq ft home with electric resistance baseboard runs approximately $5,000–$9,000 including labor and electrical. Using $7,000 as a midpoint:

• Install cost: $7,000
• ETO standard rebate (verify): −$TBD
• HP3: −$2,000
• Out-of-pocket after HP3 alone: $5,000

For a household at this income level, pursuing the ODOE HEEHRA pathway — if it’s active — would provide the most meaningful cost reduction. Contact ODOE at AskEnergy@oregon.gov or 503-378-4040 to confirm current HEEHRA enrollment before planning the installation.

Eligibility gotchas specific to Oregon

IOU vs. PUD/COU split is the single biggest structural fact about Oregon rebates. Energy Trust of Oregon covers customers of five utilities: PGE, Pacific Power, NW Natural, Cascade Natural Gas, and Avista. If you’re served by EWEB, Springfield Utility Board, Salem Electric, Tillamook PUD, Central Lincoln PUD, or any other consumer-owned utility, ETO’s programs are not available to you. You are not missing out on something you deserve — ETO is funded specifically by a surcharge on IOU customer bills. PUD and COU customers access their own utility’s programs plus the ODOE state programs (HP3, CHPDP).

ETO Trade Ally contractor requirement. To receive an ETO rebate (standard or Savings Within Reach), the installation must be completed by a licensed contractor enrolled in ETO’s Trade Ally network. Trade Ally contractors are trained on ETO program requirements. Non-enrolled contractors — even very experienced HVAC technicians — cannot process ETO rebates. Before signing any installation contract for an ETO rebate, confirm your contractor appears in ETO’s Trade Ally directory. Call ETO at 1.866.368.7878 or search energytrust.org.

HP3 contractor approval requirement. Similarly, HP3 requires an approved contractor to submit the incentive application and receive ODOE reimbursement. The homeowner doesn’t apply directly — the contractor processes HP3 on your behalf. Before hiring a contractor for an HP3 project, confirm they’re enrolled in the HP3 contractor program at oregon.gov/energy.

ETO Savings Within Reach has both a floor and a ceiling. Unlike most income-qualified programs that only require income below a certain threshold, ETO’s Savings Within Reach is designed for a middle band. Households below the minimum income floor are redirected to free weatherization services. At the 4-person level, the floor is $62,400 and the ceiling is $128,564. A $50,000 four-person household falls below the floor; a $140,000 four-person household falls above the ceiling. Both categories access ETO’s standard non-income-qualified rebate instead.

CHPDP regional funding exhaustion. Most of Oregon’s heavily populated regions — Metro Portland, Central Oregon (Bend), Southern Oregon — have fully reserved CHPDP funding. Only North Coast and North Central regions were accepting applications as of May 2026. If you’re in a fully reserved region, contact community.heatpump@energy.oregon.gov to ask about waitlist status or future funding tranches.

Eastern Oregon design-day temperature requires extended-range equipment. The Cascades divide Oregon into two climates. Western Oregon (Portland, Eugene, Salem, the coast) sits in climate zones 4C and 4B — mild, damp, rarely below 25°F at design-day. Eastern Oregon (Bend, Pendleton, La Grande, Ontario) sits in climate zone 5B, with design-day temperatures at or below 0°F and hot summers. Standard 5°F-rated mini-splits are marginal in Eastern Oregon. Extended-range cold-climate units rated to −13°F or lower are the right specification for Bend and points east.

Heat pump water heater note. Both ETO and ODOE programs also provide incentives for heat pump water heaters, which stack separately from space conditioning incentives. Oregon’s per-capita heat pump water heater adoption is high — the efficiency economics are compelling in Oregon’s mild climate. If you’re replacing a storage water heater at the same time as your space conditioning system, ask your contractor about combined HPWH rebates. This guide focuses on space conditioning, but the water heater rebate stack is worth exploring separately.

Eligible product picks by Oregon climate zone

Oregon’s four IECC zones map to distinct equipment needs.

Western Oregon coastal and valley (zones 4C, 4B) — Portland, Eugene, Salem, coast

The Willamette Valley and coastal Oregon see mild, damp winters with design-day lows rarely below 25°F in Portland and 28°F on the coast. Heating loads are moderate; cooling loads are modest. Standard cold-climate mini-splits perform well here. The focus is on mild-climate efficiency (high HSPF2 and SEER2) rather than extreme cold-weather capacity.

For a single-zone Portland ADU or primary living space, or a smaller Lane County home, the Mr Cool DIY 24k provides solid efficiency for Western Oregon’s mild winters. The pre-charged line sets make it accessible to licensed electricians without specialty refrigerant technicians — a practical advantage in Western Oregon’s busy HVAC market. Verify HSPF2 and SEER2 ratings for HP3 eligibility (HSPF2 8.1+/SEER2 16+ required) before purchase.

Eastern Oregon high desert (zone 5B) — Bend, Pendleton, La Grande, Ontario

Eastern Oregon’s high desert climate demands extended-range cold-climate performance. Design-day lows in Bend run approximately 0°F; Pendleton and La Grande can reach −5°F to −10°F on the coldest nights. Standard 5°F-rated units lose meaningful capacity at these temperatures. The Mr Cool Hyper 18k is rated to −13°F, which covers most Bend design-day conditions with performance headroom. For La Grande or Ontario where design days can push colder, confirm the unit’s rated capacity at the specific design-day temperature for your microclimate.

Whole-home multi-zone retrofit (any zone) — 1960s–1980s ranch or split-level

Oregon’s housing stock includes a substantial share of 1960s–1980s single-story ranch homes and split-levels, many with existing forced-air duct systems. For a whole-home multi-zone ductless retrofit on a home that lacks existing ductwork, the Mr Cool DIY 36k provides four-zone capability that can serve separate bedrooms, living areas, and bonus rooms independently.

What changes after mid-2026

ETO program cycles annually. Energy Trust conducts year-end performance reviews and adjusts rebate amounts and program structures on an annual cycle. The Savings Within Reach income thresholds and specific rebate amounts may change with the next cycle. Check energytrust.org or call 1.866.368.7878 in the fall before planning a late-year installation.

HP3 ($24 million, EPA grant) is a fixed-dollar federal grant program. When the $24 million is exhausted, the program ends unless additional funding is authorized. Given the statewide $2,000 incentive and Oregon’s substantial housing stock, funding depletion is a real planning consideration. No public waitlist or funding runway timeline was confirmed at the time of writing — verify current availability before making installation commitments.

CHPDP (SB 1536, $10 million) has already shown its funding limits: most regions are fully reserved. A second tranche would require new state budget action. Check community.heatpump@energy.oregon.gov for updates on additional funding cycles.

ODOE HEEHRA continues as an open IRA allocation through federal HEEHRA funding channels. As ODOE builds out its HEEHRA program infrastructure, the rebate amounts and enrollment windows will become clearer. Monitor oregon.gov/energy and sign up for ODOE program updates.

Related

Tools and guides:

• BTU sizing calculator — size your system before specifying equipment; Oregon’s Western/Eastern climate split can shift the right BTU class by 30–40% for the same square footage.
• DIY mini-split installation guide — ETO rebates require Trade Ally contractor installation; understand the scope of what a DIY approach means for rebate eligibility before proceeding.
• Federal heat pump rebates — 25C history, the December 2025 cutoff, and how the federal credit stacked with state programs while it was active.

Other state rebate pages:

• Washington heat pump rebates — Oregon’s closest neighbor; WA Commerce + BPA utility structure; similar Pacific Northwest climate but different program architecture.
• California heat pump rebates — TECH Clean closed, SMUD still active; contrast with Oregon’s ETO consolidated-administrator model.
• Maine heat pump rebates — Efficiency Maine is the country’s most analogous consolidated administrator to ETO; compare how two non-profit trust models operate in very different climates.
• Massachusetts heat pump rebates — Mass Save up to $10k, HEAT Loan; New England equivalent of ETO in program depth.
• Colorado heat pump rebates — CEO + Xcel BE stack; another state with deliberate statutory backing for heat pump programs.

Frequently asked questions

How do I know if I’m an ETO customer?

Check your utility bill. If your electricity comes from Portland General Electric or Pacific Power, or your gas comes from NW Natural, Cascade Natural Gas, or Avista — you’re an ETO customer. These are the five investor-owned utilities that pay into the Public Purpose Charge funding ETO. Electric cooperatives, PUDs, and municipal utilities like EWEB are not ETO utilities. When in doubt, call ETO at 1.866.368.7878 and give them your address — they can confirm your utility territory.

What if I’m in Eugene (EWEB) or another PUD territory?

EWEB customers are outside ETO and must use EWEB’s own rebate programs for utility-funded incentives. Contact EWEB at 541-685-7000 or visit eweb.org for current heat pump rebate amounts. The statewide ODOE programs — HP3 and, where available, CHPDP — are accessible regardless of utility territory. So an EWEB customer can’t access ETO rebates but can still apply for Oregon HP3 ($2,000 statewide) and CHPDP if their region has funding.

Can I stack ETO Savings Within Reach + HP3 together?

Yes, based on how the programs are structured. ETO rebates are funded by the Public Purpose Charge and administered by a non-profit trust; HP3 is an ODOE-administered program funded by a federal EPA grant. They operate through separate application channels and have no published prohibition on stacking. For a ducted heat pump install in Pacific Power territory at $105,000 household income (4-person), the combined confirmed stack is $5,000 ($3,000 ETO + $2,000 HP3). Confirm stacking compatibility with your Trade Ally contractor, who must be enrolled in both ETO and HP3 contractor programs.

Do I need an ETO Trade Ally contractor, and can I do it myself?

ETO rebates — both standard and Savings Within Reach — require installation by an ETO-enrolled Trade Ally contractor. DIY installations, even by a licensed electrician, do not qualify for ETO rebates. HP3 also requires an ODOE-approved contractor. The contractor requirement ensures proper refrigerant handling and system commissioning, which directly affects long-term efficiency. Use ETO’s Trade Ally contractor search at energytrust.org or call 1.866.368.7878 to find enrolled contractors in your area.

Why does Bend need a different heat pump than Portland?

The Cascade Range divides Oregon into two distinct climate regimes. Portland sits in IECC zone 4C with design-day lows around 25°F and rarely sees sustained temperatures below 20°F. Bend sits in zone 5B at roughly 3,600 feet elevation; design-day lows run approximately 0°F. A mini-split rated to 5°F performs adequately in Portland all winter. In Bend, the same unit is at the absolute bottom of its rated heating range on cold January nights — it may struggle to maintain setpoint and will modulate at low capacity, reducing efficiency. The right Bend specification is a unit with a −13°F or lower heating rating, which maintains meaningful capacity at the 0°F design-day condition and doesn’t drop into inefficient operation on the coldest nights.