Less than 1% of Oregon Households will Benefit from Rebates for Energy Saving Appliances

Less than 1 percent of the 1.7 million households in Oregon will benefit from federal government rebates for heat pumps and other energy-saving electric appliances.

At the beginning of this month, the Oregon Department of Energy received $113 million in federal Inflation Reduction Act funding for the long-awaited rebates. The clean energy bill was approved by Congress in 2022 to reduce greenhouse gas emissions and help the country reach climate change targets.

Applications for Rebates Can only be Made by Late 2025 or Early 2026

However, state residents will not be able to apply until late 2025 or early 2026.

The state estimates that 13,000 Oregon households will benefit from the rebates, of which 60% will go to low-income single-family households, and 20% to low-income multifamily households. Rebates to lower-income households will offset the cost of new heat pumps, electric stoves, home insulation, and other energy-related household projects.

Rebates are Available Regardless of Income

The program includes two types of rebates, regardless of income. One provides $2,000 to $4,000 for energy-efficiency upgrades for individual households and multifamily buildings, with a large percentage of the rebates going to low-income households.

The rebates pay for installing energy-efficient equipment such as heat pumps and water heaters, weatherization measures like insulation and air sealing, and devices like smart thermostats. Higher incentives will be available to lower-income households and energy- saving projects.

The second type of rebate addresses point-of-sale via retailers or contractors to low- and moderate-income households for the installation of high-efficiency electric appliances and electric upgrades. It also includes rebates for insulation and air sealing measures.

Low and moderate-income households will be eligible for up to $14,000 in rebates to switch to electric appliances. This includes up to $8,000 for heat pumps providing heating, air conditioning, and hot water. The rebates can cover 100% of project costs, including purchase and installation for low-income households, and up to 50% for moderate-income households.

Immediate 30% Federal Tax Credit is Available

However, because rebates will be delayed for at least another year and benefit few households, state officials encourage Oregonians to apply for a 30% federal tax credit immediately available, regardless of income.

The tax credit must be used for energy-efficient household improvements such as insulation, heat pumps, solar energy, and wind and battery storage. Tax credits of $2,000 for heat pumps and $1,200 for insulation are available as tax credits enabling individuals to claim up to $3,200 for energy-efficient projects every year for the next eight years.

The tax credits are renewed annually and will be made available for the purchase and installation of products until December 2032.

Further small financial incentives are offered by the Energy Trust of Oregon and local utility companies and vary according to criteria.

The Portland Clean Energy Fund is also offering residents a free heat pump and home energy retrofit. The program covers installation in rental properties or privately owned homes, recreational vehicles, and manufactured homes.