State of Oregon: INCENTIVES - Oregon Rental Home Heat Pump Program

SB 1536, passed by the Oregon Legislature in 2022, allocated $15 million to the Oregon Department of Energy to support heat pump installations in Oregon rental homes. In 2024, the Legislature allocated an additional $4 million to the program.

ODOE's general program funding has been completely reserved, and the agency is no longer accepting applications. We will not know about the potential for additional state funds for the program until the next legislative session, which begins in January 2025.

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For Tribes

Funding is available and the agency is accepting applications for the installation of heat pumps and related upgrades in rental housing occupied by members of the federally recognized Tribes in Oregon listed in the table below. Click here for more information for Tribes and Tribal members.

	Total Allocated	Low- & Moderate Income	Affordable Housing Provider	Non-Income Restricted
Confederated Tribes of Coos, Lower Umpqua & Siuslaw Indians	$127,668	$31,917	$31,917	$63,834
Cow Creek Band of Umpqua Tribe of Indians	$127,770	$31,943	$31,943	$63,885
Confederated Tribes of Grand Ronde	$128,186	$32,047	$32,047	$64,093
Klamath Tribes	$127,620	$31,905	$31,905	$63,810
Confederated Tribes of Siletz Indians	$128,177	$32,044	$32,044	$64,089
Confederated Tribes of Umatilla Indian Reservation	$134,868	$33,717	$33,717	$67,434
Confederated Tribes of Warm Springs Reservation	$131,517	$32,879	$32,879	$65,759

A minimum of 25% of funds must be allocated to low- and moderate-income households and a minimum of 25% of funds must be allocated to affordable housing providers, as displayed in the table.

In 2024, the State Legislature passed SB 1525, outlining the transfer of funding from the Community Heat Pump Deployment Program to the Oregon Rental Home Heat Pump Program for regions or federally recognized Indian Tribes that had not been awarded a grant. Funding was transferred for seven of the federally recognized Indian tribes in Oregon. This funding is available only for heat pumps installed in rental housing where members of each of those Tribes reside.

General Program Background

The Oregon Rental Home Heat Pump Program provides rebates and grants for the installation of heat pumps and related upgrades in dwellings used as residential tenancy (rentals) and manufactured dwellings or recreational vehicles located in a rented space.

Heat pumps must be installed by ODOE-approved contractors (PDF version), who will reserve and receive rebates for eligible heat pump projects. The full rebate savings must be passed on to the dwelling owner.

While ODOE is not currently accepting rebate reservations, we are still accepting registrations for additional approved contractors.

General Program Funding

	Low- & Moderate-Income	Affordable Housing Provider	Non-Income Restricted
Funding	$1,250,000	$1,250,000	$2,500,000
Reserved	$1,250,000	$1,250,000	$2,500,000
Remaining	$0	$0	$0

$1 million was added from denied, withdrawn, or canceled projects from the original program budget.

Updated July 24, 2024, 3 p.m.

Of the original $15 million program budget, $3.1 million supported homes with low- and moderate-income tenants, $3.1 million supported affordable housing communities, and $6.5 million supported non-income restricted rental homes.

More Information:

LEARN MORE ABOUT HEAT PUMP TECHNOLOGY

Stakeholder Engagement

See our Rulemaking page for more information on public rulemaking meetings and hearings.

Meetings

Date/Time	Meeting Materials
Wednesday, June 28, 2023 11 a.m. - noon Oregon Rental Home Heat Pump Program Overview for Contractors	Meeting Presentation Meeting Recording
Wednesday, April 26, 2023 - Oregon Rental Home Heat Pump Program Overview 11 a.m.	Meeting Presentation Meeting Recording
Thursday, January 5, 2023 - Oregon Rental Home Heat Pump Program Public Hearing 3 - 4 p.m.	More details Hearing Recording
Program Design Input Monday, September 26, 2022 1 - 2 p.m.	Meeting Presentation Meeting Recording
Program Design Input Monday, September 19, 2022 10 - 11 a.m.	Meeting Presentation Meeting Recording