Oregon Department of Energy Announces $113 Million Federal Award for Home Energy Rebates

The home energy rebate programs will support energy efficiency projects like installing heat pumps in Oregon homes.

SALEM - The Oregon Department of Energy has been 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.

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. 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.

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. Similarly, 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.

Funding for these programs comes to Oregon thanks to the 2022 Inflation Reduction Act (IRA). Oregon has previously been awarded IRA and other federal funding, including a Solar for All award and a Climate Pollution Reduction Grant. ODOE submitted its initial application for 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.

"The Oregon Department of Energy is thrilled to receive this award for home energy rebates, and we know Oregonians are anxious to participate in the programs," said ODOE Director Janine Benner. "Our agency will work with our partners and stakeholders to stand up these programs as quickly as possible."

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.

ODOE keeps a Frequently Asked Questions document about the home energy rebates on its website, and Oregonians can sign up for email updates about future program announcements and opportunities to get involved.