Oregon Department of Energy Announces Additional $4 Million for Energy Efficient Heat Pumps in Rental Homes

UPDATE: As of July 24, 2024, all program funding has been fully reserved for heat pump projects in Oregon and ODOE is no longer accepting applications.

A press release from the Oregon Department of Energy:

Media Contact: Jennifer Kalez
Program Contact: rentalhome.heatpump@energy.oregon.gov

SALEM – The Oregon Department of Energy will once again begin accepting incentive reservations through the agency’s Oregon Rental Home Heat Pump Program on Tuesday, July 23, 2024. Under this program, owners of rental homes and manufactured dwellings or recreational vehicles in a rented space may receive incentives for installing energy efficient heat pumps and related upgrades.

The heat pump program was established at ODOE by the Oregon Legislature (SB 1536) following the 2021 heat dome event, during which nearly 100 Oregonians died of heat-related illness – often in their own homes. Heat pumps, which move heat rather than create it, are becoming more popular in Oregon homes thanks to their efficient heating and cooling, lower energy use, and potential incentive savings.

ODOE first launched the program in July 2023 with about $14 million in available incentives, which was fully reserved for projects by May 2024. During the legislative session earlier this year, the Oregon Legislature allocated an additional $4 million to continue the program.

Oregonians interested in installing energy efficient heat pumps in their rental properties should contact an approved program contractor, who will be able to reserve rebates on behalf of their customers. After completing installation, the contractor will submit project completion information to receive the rebate from the agency. The full amount of the savings must be passed on to the customer.

Rebate amounts vary based on the project, and higher incentives are available for homes with tenants who have low or moderate incomes. For rental homes, rebates are available between $2,000 and $5,000, depending on the efficiency of the heat pump and the income level of the tenants. For a manufactured home or recreational vehicle renting space in a manufactured home or RV park, rebates are available between $2,000 and $7,000 depending on heat pump efficiency and income level.

Grants are also available for associated upgrades alongside the heat pumps, such as electrical wiring. For homes where tenants meet low- or moderate-income eligibility, up to a $4,000 grant is available. For those who are not low- or moderate-income, up to $2,000 is available.

“We’re thrilled to continue this incentive program that brings comfort and potentially life-saving heating and cooling to rental spaces,” said ODOE Director Janine Benner. “So far, we’ve been able to support more than 1,600 projects in 22 Oregon counties — and we expect this additional funding to be reserved quickly for new projects across the state.”

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