Heat Pump Purchase Program
Up to $2,000 off a qualifying heat pump for an Oregon home, rental property or new residential construction, paid through an approved contractor.
Diese Finanzierungsmöglichkeit ist derzeit auf Englisch beschrieben.
The incentive reduces the purchase price of a new heat pump that heats and cools the home’s living area: space used for living, sleeping, eating or cooking. Bathrooms, closets, halls, storage, garages, workshops, detached offices, sheds and utility spaces do not count. It covers the equipment purchase, with installation and labour costs recorded separately; it does not cover enabling upgrades such as electrical-panel work, wiring, duct repairs or insulation.
The maximum is $2,000 per dwelling unit. The incentive is reduced if it and other incentives or discounts would exceed the heat pump purchase price. The contractor passes the full eligible incentive to you as an upfront price reduction, then claims payment from the Oregon Department of Energy (ODOE).
The funding chart updated on 1 October 2026 shows funds remaining for rental properties and new construction. Both existing owner-occupied funding rounds are fully reserved. Applications are processed in submission order, and further applications in a fully claimed category are denied.
Eligibility
- The heat pump must serve an Oregon residential dwelling: an existing owner-occupied home, a residential rental, or new residential construction. Commercial properties, vacation occupancy and transient hotel or motel occupancy are excluded. New construction means a dwelling not previously occupied.
- Rental property owners can live outside Oregon. There is no income qualification requirement.
- Manufactured homes and apartments qualify. An owner-occupied manufactured home on rented space on Tribal land or in a manufactured-home park can fit either the owner-occupied or rental category.
- Buy from an ODOE-approved contractor and have the heat pump installed on or after the programme start date, 17 June 2025. Removing the old heating system is not required.
- Standard heat pumps need a Heating Seasonal Performance Factor 2 (HSPF2) of at least 8.1 and a Seasonal Energy Efficiency Ratio 2 (SEER2) of at least 16. These are heating and cooling efficiency ratings: your contractor supplies an Air-Conditioning, Heating, and Refrigeration Institute (AHRI) certificate proving the equipment meets them. Packaged terminal heat pumps have a size-specific alternative test of energy efficiency ratio (EER) and coefficient of performance (COP) under section 5 and Table 1 of the policies; the approved contractor must check the applicable heating and cooling performance requirements.
- The equipment must be new, have at least a five-year manufacturer-defect warranty and come with at least a one-year labour warranty. The contractor must declare that it is appropriately sized for the space.
- Only one incentive is allowed per residence/address and the same heat pump cannot receive two HP3 incentives. Multifamily projects need one application per dwelling; programme limits include a maximum of 124 incentives for a single multifamily building or address. Contractors normally have a limit of 50 reservations or incentives per quarter and 200 per year; ODOE may allow a higher quarterly limit for large multifamily installations while retaining the annual cap.
- Do not combine this incentive with federally funded heat-pump programmes such as HOMES or HEAR, or Climate Equity and Resilience Through Action (CERTA) funded support from Energy Trust of Oregon EPS New Homes, Oregon Multifamily Energy Program (OR-MEP) Federal Funds for new construction, or the Building Energy Reduction Incentive. HP3 also cannot be used when another Climate Pollution Reduction Grant (CPRG)/CERTA programme counts the heat pump towards its efficiency improvements. Other qualifying nonfederal incentives can be combined within the purchase-cost limit. A different federally funded programme may be compatible if it supports a separate measure, such as insulation, and includes no incentive for the heat pump.
- The homeowner, building owner or developer must attest that they are not excluded, disbarred or disqualified from receiving federal payments and sign the invoice with the contractor.
How to apply
- Status
- Laufende Antragstellung
- Beschränkungen dieser Antragsrunde
- Existing owner-occupied rounds 1 and 2 fully reserved; rental and new-construction funds remained in the chart updated 1 October 2026.
- Applications are denied once the relevant category funds are fully claimed.
Contact an ODOE-approved contractor using the approved-contractor list on the programme page. ODOE recommends comparing several quotes; check the current funding category, equipment eligibility and that the full incentive is deducted before paying. Keep the final invoice signed by you and the contractor.
The contractor can optionally reserve an incentive before installation; a reservation is not required. After installation and the passed final permit inspection, the contractor applies through ODOE’s online system with the invoice, efficiency certificate and other required information. Participants in the Building Codes Division minor-label programme can submit the minor-label number and a photo instead of the passed final inspection notice.
ODOE pays the approved incentive directly to the contractor. A reservation that has not led to a claim within a year may be investigated and cancelled if the project is no longer viable. Federal funding becoming unavailable would suspend reservations, redemptions and payments.
ODOE may audit the documentation and inspect the installation, normally with at least 15 days’ notice. The owner, their representative or contractor must attend and provide safe access. A project that fails the eligibility or agreed-project checks can have its application denied; the contractor may correct discrepancies and reapply.