Oregon Rebates
Oregon HVAC Rebates and Incentives for New Installations
Attention Oregon Homeowners!
Upgrading your HVAC system or improving your home’s energy efficiency is now more affordable, thanks to the Homeowner Electrification and Appliance Rebate (HEAR) Program and the Homeowners Manage Energy Savings (HOMES) Program.
These programs are designed to help Oregon homeowners lower their energy bills while making their homes more eco-friendly. They offer significant savings on heat pumps, central air conditioners, furnaces, water heaters, insulation, and other energy-efficient upgrades.
At Sun Glow Home Services, we’re here to help you navigate these rebates so you can make informed decisions about upgrading your HVAC system and improving your home’s efficiency. Contact us today at 503-253-7789 to learn how you can maximize your savings!
Homeowner Electrification and Appliance Rebate (HEAR) Program
The Home Electrification and Appliance Rebate (HEAR) Program is an initiative by the Oregon Department of Energy aimed at assisting low- and moderate-income households in adopting high-efficiency electric appliances and implementing energy-efficient home improvements.
Eligible participants can receive point-of-sale rebates covering 50% to 100% of project costs, up to $14,000, depending on the specific upgrades undertaken and the household’s income level.
Eligible upgrades include:
- Electric Heat Pumps
- Electric Water Heaters
- Induction Stoves
- Upgraded Electrical Panels
- Weatherization Measures (including insulation, air sealing, and other home energy efficiency improvements)
The program aims to make energy-efficient technologies more accessible, thereby reducing energy consumption and utility costs for Oregon residents.
Rebates are anticipated to be available in late 2025 or early 2026.
Homeowners Manage Energy Savings (HOMES) Program
The Home Efficiency Rebate Program (HOMES) is an initiative by the Oregon Department of Energy designed to offer performance-based rebates for energy efficiency retrofits in both single-family and multifamily homes.
Rebates are available for projects achieving at least a 20% estimated energy savings, with higher incentives for those attaining 35% or more. Depending on the project’s scope and the household’s income, rebates can cover 50% to 100% of project costs, up to a maximum of $10,000 per project.
Eligible improvements include:
- High-Efficiency Heating and Cooling Systems
- On-Demand/Tankless Water Heaters
- Insulation
- Air Sealing
- Smart Thermostats
The program encourages energy-efficient upgrades, reducing Oregon residents’ energy consumption and utility costs.
Rebates are anticipated to be available in late 2025 or early 2026.
When Will the HEAR/HOMES Rebate Programs Be Available in Oregon?
The U.S. Department of Energy released full program guidance for the HOMES and HEAR rebate programs on July 27, 2023, with a state application deadline of January 31, 2025. ODOE submitted its applications on March 27, 2024, and received approval and funding for both programs in September 2024.
Now that funding has been awarded, ODOE is finalizing the program design and developing the necessary materials and guidance for a smooth rollout. At this stage, rebates are not expected to be available before late 2025 or early 2026. Stay updated by visiting the program website.
What If I Install a Home Efficiency Upgrade Before the HEAR/HOMES Programs Launch?
According to the Department of Energy, HEAR rebates are not retroactive; they will not be available for installations completed before the program officially launches.
For the HOMES program, rebates may be available retroactively for projects completed after August 16, 2022 (when the Inflation Reduction Act was passed) and before the program begins.
However, retroactive projects must meet all program requirements, which are still being developed. Due to the program’s complexity, the Oregon Department of Energy (ODOE) does not recommend completing an installation before the launch with the expectation of receiving a rebate.
While we advise against delaying essential home energy upgrades, Sun Glow Home Services encourages you to explore other available incentives now.
I Can’t Wait to Install an Upgrade—What Incentives Are Available Now?
If you’re looking to make energy efficiency upgrades before the HOMES and HEAR programs launch, there are several incentives currently available for Oregon residents:
Oregon Utility Rebates and Incentives
Start by checking with your local energy utility. Many offer rebates for energy-efficient installations. Customers of Portland General Electric, Pacific Power, NW Natural, Cascade Natural Gas, or Avista can access incentives through the Energy Trust of Oregon.
Heat Pump Programs in Oregon
Oregon Rental Home Heat Pump Program: Rebates are available for installing heat pumps in rental homes, manufactured homes, and RVs in rented spaces. While general funding is fully reserved, applications are still open for Tribal members. The program may reopen in 2025 with new funding.
Community Heat Pump Deployment Program: This program provides grant funding through regional administrators to assist homeowners with heat pump installations.
Federal Tax Credits for HVAC
The Inflation Reduction Act offers federal tax credits for energy-efficient upgrades, including heat pumps, insulation, and high-efficiency appliances.
Low-Income Weatherization Assistance
The Weatherization Assistance Program through Oregon Housing and Community Services helps low-income households improve energy efficiency and comfort through home weatherization services.
Other Oregon HVAC and Energy Efficiency Incentives
Additional federal funding opportunities exist for businesses, nonprofits, and Tribes. For a list of incentives ODOE is tracking, visit the program’s website.
Can ODOE Incentives Be Combined With Other Incentives?
Yes, ODOE’s current administrative rules allow incentives to be combined with other rebates, grants, or incentives as long as the other programs also permit it. However, the total combined incentives cannot exceed 100% of the project’s purchase and installation cost.
Be sure to check the specific terms of each incentive program to confirm eligibility for stacking multiple incentives.