The news release below was first shared with us by Oregon DOE.
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 3,000 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.
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.
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.
For more information, check out the original press release here.