Fix First HomeWhat home-upgrade rebates actually pay — and who you apply to.

Fix First Home › Oregon › Oregon Heat Pump Purchase Program (HP3)

Oregon Heat Pump Purchase Program (HP3) partly open

Administered by the Oregon Department of Energy, through ODOE-approved contractors.

The Oregon Department of Energy pays $2,000 toward an efficient heat pump, as a discount on the contractor's invoice. On 1 October 2026 the money for existing owner-occupied homes was fully reserved; rental properties and new construction still had funding. The program is paid for by a $24 million federal Climate Pollution Reduction Grant.

source · verified 13 October 2026 · amounts in US dollars

What it pays

Funding left on 1 October 2026 (approved and pending applications)
CategoryFunding availableIncentives available
Rental properties$2,508,0001,254 of 6,000
Existing owner-occupied homes$00 of 2,000
New construction$6,652,0003,326 of 4,000
What ODOE pays the contractor, passed to the owner as an upfront discount
UpgradeConditionUp to
Heat pump, ducted, ductless or splitHSPF2 8.1 or more and SEER2 16 or more; one per residence$2,000

Who is eligible

homes
An owner-occupied residence, a residential rental, or new residential construction in Oregon; commercial, vacation and transient occupancies are not eligible.
equipment
Ducted, ductless and split heat pumps with an HSPF2 of 8.1 or greater and a SEER2 of 16 or more.
stacking
Not with HOMES, HEAR or other federally funded CERTA incentives; the $2,000 is reduced only if all incentives together would exceed the full purchase and installation price.
complete
An installation counts as complete after the final mechanical permit inspection passes.

Where the application goes

Get quotes from approved contractors; the contractor takes $2,000 off the invoice and applies to ODOE after installation. A reservation before installation is optional.

Where the application goes
If this is youApply here
Heat Pump Purchase Programoregon.gov
Contractor portal and funding noticeodoe.powerappsportals.us
ODOE HP3 line503-378-4040

The thing most pages get wrong

A 2026 heat pump buying guide tells Oregon homeowners they 'can receive a $2000 rebate'. ODOE's table, updated 1 October 2026, shows '$0 | 0 of 2,000' left for existing owner-occupied homes, and its portal says applications without reservations 'are no longer being accepted for this category'. Landlords and builders can still apply.

Check the discount on the invoice

ODOE pays the contractor, and the contractor must pass the full incentive on. ODOE asks owners to 'Verify the price you pay is reduced by the full amount of the incentive before paying your contractor' and to keep the final invoice signed by both of you.

Why it ran out

ODOE had planned a second round in 2027, but demand led it to release the whole budget on 3 November 2025, adding $12 million for 1,000 more owner-occupied homes, 3,000 rentals and 2,000 new homes.