State of Oregon: INCENTIVES - Home Energy Rebate Programs

In September 2024, ODOE was awarded over $113 million from the U.S. Department of Energy for two new home energy rebate programs that will provide financial incentives to single-family and multifamily households for eligible high-efficiency home improvements, appliances, and equipment.

Funding for these programs comes to Oregon thanks to the 2022 Inflation Reduction Act (IRA). ODOE submitted our initial application for the home energy rebates to the U.S. DOE in March 2024. Now that the state has received the awards, ODOE can begin to finalize the programs’ design and start procuring and developing the program guidance, technology systems, coordinating agreements, and other materials necessary to launch two effective and well-run programs. ODOE expects that rebates will be available in late 2025 or early 2026.

Programs Overview

HOMES: The Home Efficiency Rebate Program (also known as HOMES) will provide performance-based rebates for energy efficiency retrofits in single-family and multifamily homes. This can include installing more efficient equipment like a heat pump or on-demand water heater, weatherization measures like insulation or air sealing, smart thermostats, and more. HOMES rebates will be issued for projects that can provide at least 20 percent estimated energy savings, with higher incentives available for projects that could save 35 percent or more. HOMES rebate amounts will vary depending on the project scope, with rebates covering 50 to 100 percent of project costs up to $10,000 per project, depending on the household's income.

HEAR: The Home Electrification and Appliance Rebate Program (also known as HEAR) will provide point-of-sale rebates to low- and moderate-income households to install eligible high-efficiency electric appliances and associated upgrades, as well as insulation and air sealing measures. HEAR Program participants could receive between 50 to 100 percent of project costs up to $14,000, depending on the energy upgrades completed and the household's income.

The home energy rebates represent a significant investment in Oregon households – particularly in low- and moderate-income households – as well as in the state’s residential energy efficiency workforce. ODOE will ensure these programs are designed to protect consumers and that funding is spent efficiently and effectively in accordance with all state and federal laws and regulations.

Frequently Asked Questions

Please see our full Program FAQs for additional information and sign up to receive email updates about the programs and opportunities to get involved. Below are a few of the most frequently asked questions we've heard from interested Oregonians.

What if I install a home efficiency upgrade before the programs launch? Will rebates be available retroactively?

According to U.S. DOE program guidance, HEAR rebates cannot be retroactively available to installations completed before the program launches.

For the HOMES program, per U.S. DOE program guidance, rebates will be allowable retroactively for projects completed after August 16, 2022 (the date of the passage of the Inflation Reduction Act) and before the program launches. However, retroactive projects will still need to comply with all program requirements, which we are still in the process of developing. Considering the complexity of the program and its requirements, ODOE does not recommend completing an installation before launch with the expectation of being able to receive a rebate. To learn more about federal retroactivity requirements, please refer to U.S. DOE's fact sheet.

We also do not recommend that households wait to accomplish essential home energy upgrades, and we encourage you to pursue other incentive options that are available to you now.

I already know that I want to apply for a rebate: Where can I find an application?

Rebate applications are not yet available. We are still in the process of developing the programs, and our plans will need to be approved by the U.S. Department of Energy before we are able to release detailed program materials, forms, or other guides.

ODOE is in the process of developing an RFP to procure a rebate processing system that will include an online application portal and website. Until this procurement process is complete and the application portal is released, all information about the programs can be found on ODOE's main website. If you think you might be interested in applying to this RFP when it is released, you should sign up for updates on the state's online procurement system, OregonBuys.

I can’t wait to install an upgrade: What incentives are available to me now?

We always recommend starting by contacting your local energy utility, which can be found using this map. Many utilities offer rebate and incentive programs to customers for the installation of energy efficient technologies. If you are a customer of one of Oregon's investor-owned utilities (Portland General Electric, Pacific Power, NW Natural, Cascade Natural Gas, or Avista), these utility programs are collectively administered by Energy Trust of Oregon.

The State of Oregon also offers two heat pump programs:

The Oregon Rental Home Heat Pump Program offers rebates to install heat pumps in rental homes and in recreational vehicles or manufactured homes in a rented space. ODOE's general program funding has been completely reserved, and the agency is no longer accepting applications. However, the program is accepting applications for rental housing occupied by members of specific Tribes; please visit the program website for more information. We will not know about the potential for additional state funds for the program until the next legislative session, which begins in January 2025. We anticipate re-opening the program in 2025 when federal funding becomes available. Please sign up to receive future email updates about the program.
The Community Heat Pump Deployment Program distributes grant funds to regional administers, who in turn provide financial assistance to homeowners. More information on regional administrators and funding availability can be found here.

In addition to utility incentives, federal tax credits are available through the Inflation Reduction Act to support installation of energy efficient technologies. You can find more information about these tax credits on the Energy Star website and the IRS provides details on how to qualify for these credits. We recommend contacting a qualified tax professional to help you navigate any potential tax credits.

In addition, Oregon Housing and Community Services operates a low-income weatherization program that provides low-income households with home weatherization services that can increase energy savings and improve comfort. You can find information about the Weatherization Assistance Program here.

There are many other federal opportunities available to businesses, non-profits, Tribes, and residents in Oregon. While this list is not exhaustive, a list of the ones ODOE is tracking can be found here.

I am a contractor or energy auditor – How do I sign up to participate in these programs?

More information will become available in the coming months for interested contractors. In the meantime, please sign up to receive email updates.

When will the 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, and set an application deadline of January 31, 2025. ODOE submitted its applications to U.S. DOE on March 27, 2024, and received approval and awards for both programs in September 2024.

Now that the state has received the awards, ODOE can finalize the program design and start developing the materials and guidance that are necessary to launch two effective and well-run programs. Doing this work – and doing it right – will take time, but ODOE will work with our partners to roll out these programs as quickly as possible. Although there is still much uncertainty in our anticipated launch date, at this time, we anticipate rebates will not be available to Oregon consumers before late 2025 or early 2026.

We understand the excitement and anticipation around these programs in Oregon and are working hard to develop programs that are accessible to consumers and support a safe, equitable, clean, and sustainable future for Oregon. If you would like to stay on top of our progress, we will continue to provide updates through the program's website, and you can also sign up to receive email updates.

The IRA passed in August 2022, why aren’t rebates available yet?

ODOE received approval of our applications for both programs in September 2024, however, rebate funding cannot be available until ODOE has the necessary people and systems in place to deliver rebates. ODOE is well-positioned to design and implement these programs in an efficient manner; however, these are large and complex investments, and it is important to ensure these public funds are spent efficiently and effectively. ODOE is working diligently to roll out the programs as quickly as possible, while ensuring customers are protected and the impact of the programs is maximized.

I saw that other states have launched their programs; why hasn’t Oregon launched yet?

While a few states have been able to roll out their programs relatively quickly in comparison to other states, those programs are supported by existing process and systems that Oregon does not have. To roll out these programs as quickly as possible, ODOE submitted both applications almost a year before the deadline and we continue to work diligently to finalize our plans and preparations for launch.

Additional Background

On July 27, 2023, the HOMES and HEAR guidance was released by the U.S. DOE. These two programs will provide single-family and multifamily households with varying discounts for efficiency upgrades and rebates on high-efficiency home appliances and equipment. Although the application is not due until January 31, 2025, ODOE applied for both programs on March 27, 2024 and will prioritize rapidly deploying this program, while ensuring a thorough and efficient implementation design. The applications for these programs are the first of many steps necessary to launch these programs in Oregon (read the approved HOMES and HEAR submitted narratives for more information).

Now that ODOE has been awarded funding for these programs, the agency will continue developing implementation blueprints, as well as creating a Request for Proposals for an implementer to deliver rebates in consumer-owned utility and Idaho Power service territories. Energy Trust of Oregon has been selected to deliver rebates in investor-owned utility service territory and will partner with ODOE to finalize program determinations. ODOE will also be selecting and implementing a statewide rebate management system for the combined HOMES and HEAR program needs.

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