Oregon HVAC Rebates by Utility, Checked Before We Quote
Your electric utility, not the ENERGY STAR label, decides most of what an Oregon heat pump rebate pays. We read your power bill with you, match the equipment to that program's rules, and book your Eugene, Springfield, Salem or Keizer install once any pre-approval comes through.
Rebate-eligible systems we install and check
James Heating & Air Conditioning installs heat pumps, high-efficiency gas furnaces and heat pump water heaters in Eugene, Springfield, Salem and Keizer homes, and matches each one to the EWEB, SUB, Energy Trust or Salem Electric program that pays toward it.
Ducted heat pumps
Swapping an electric furnace for a ducted heat pump earns the largest standard rebates from EWEB, SUB, Energy Trust and Salem Electric. We install it on your existing ducts after checking they can carry the airflow.
Ductless heat pumps
Baseboard and wall-heater homes qualify for a separate ductless rebate, with standard amounts running $500 to $900 across the main utilities. We install single-head and multi-zone systems.
Cold-climate heat pumps
ENERGY STAR's Cold Climate models keep at least 70% of their heating power at 5°F, compared with a mild 47°F day. We install them where a house needs steady heat through a hard freeze.
High-efficiency gas furnaces
Furnaces rated 95% AFUE and up meet the bar for Energy Trust's furnace incentive, and we install them. Whether your household qualifies for that incentive gets checked before you pick a model, since its rules are narrow.
Heat pump water heaters
EWEB and SUB each pay $1,100 toward a heat pump water heater, Energy Trust $1,200 and Salem Electric $1,400 to $1,800. We handle the water heater replacement too.
A rebate match on your quote
Your written quote names the program we matched the equipment to and the rule that comes with it. You know before signing whether approval comes first and which application window applies.
What changed in 2026 for Oregon HVAC rebates and rules
Four rules changed between January 2025 and October 2026. Together they moved most of the savings on a new system from your tax return to your utility.
- Federal 25C tax credit. It ended for equipment installed after December 31, 2025, under the One Big Beautiful Bill Act, so a 2026 install earns nothing from the IRS.
- ENERGY STAR central air conditioners. EPA ended the label for them in February 2026, so a labelled central cooling system is now a heat pump. We still install central air conditioners without the label for homes that only want cooling.
- Refrigerants. New air conditioners and heat pumps made since January 1, 2025 use R-454B or R-32, depending on the model. We still install and service older R-410A units.
- Oregon heat pump rule. Code section N1105.8 took effect October 1, 2026, with a six-month phase-in for builders. Newly built homes that install split-system air conditioning must use a heat pump for first-stage heat unless the builder picks an approved alternative, and replacements in existing homes aren't affected.
Your rebate depends on the name on your power bill
Start with the left column. We confirm the current amount when we quote, since programs revise them during the year.
| If your power bill says | You're in | Heat pump rebate comes from | Gas furnace rebate (limited) |
|---|---|---|---|
| EWEB | Most of Eugene | EWEB | Energy Trust, if NW Natural gas |
| Springfield Utility Board | Springfield | SUB | Energy Trust, if NW Natural gas |
| PGE | Most of Salem, parts of Keizer | Energy Trust of Oregon | Energy Trust, if NW Natural gas |
| Pacific Power | Some outlying towns | Energy Trust of Oregon | Energy Trust, if NW Natural gas |
| Salem Electric | Parts of West Salem, north Salem and Keizer | Salem Electric | Energy Trust, if NW Natural gas |
| Lane Electric Cooperative | Parts of rural Lane County, including the McKenzie Valley | Lane Electric | Energy Trust, if NW Natural gas |
| Emerald PUD | Parts of Lane County | Emerald PUD | Energy Trust, if NW Natural gas |
| Central Lincoln PUD | Florence and the Lane County coast | Central Lincoln PUD | Energy Trust, if NW Natural gas |
EWEB and SUB are city-owned and sit outside Energy Trust for electricity. Energy Trust's heat pump rebates for PGE and Pacific Power customers don't reach their homes. Not sure whether your Keizer or West Salem house is on PGE or Salem Electric? The bill says, or Salem Electric answers at (503) 362-3601.
Signs you're leaving rebate money on the table
Each of these can cost you the whole rebate, and we check for all six before we quote.
Booking before approval
EWEB, SUB, Lane Electric and Emerald PUD approve the project first. A heat pump installed before that approval can lose the rebate or the 0% loan, even when the equipment itself qualifies.
A gas furnace kept as backup
Energy Trust's ducted heat pump incentive needs the heat pump to replace an electric forced-air furnace with no gas backup, so a dual fuel system can't earn it.
A model that misses by a tenth
An ENERGY STAR ductless unit rated 7.8 HSPF2 still falls short of Energy Trust's 8.10 minimum. The label and the rebate rating are separate tests. Only one of them pays.
A missed application window
Energy Trust wants your application within 60 days of the install, and Salem Electric allows 6 months. Miss it and the money is gone, however efficient the system is.
Skipping the bigger tier
Rentals, attached homes, manufactured homes and income-qualified households can qualify for larger Energy Trust and EWEB tiers. Does one describe your home? Say so before we quote.
What each utility pays for a heat pump right now
A ducted heat pump replacing an electric furnace earns $1,000 from EWEB, $1,250 to $1,500 from SUB, $1,000 from Energy Trust for PGE and Pacific Power homes, and up to $1,560 from Salem Electric.
| Utility | Ducted heat pump | Ductless heat pump | Key rule | Do this first |
|---|---|---|---|---|
| EWEB | $1,000, or 0% loan up to $15,000 (not both) | $800, or 0% loan up to $6,000 + $2,000 per extra indoor unit | Must be your main heat | Get EWEB pre-approval before you schedule |
| SUB | $1,250 replacing an electric furnace ($1,500 variable-speed), or 0% loan up to $7,000. $600 from other heat to variable-speed | $800, or 0% loan up to $4,000 | Contractor must be on SUB's list. Ductless: home never had a heat pump | Call SUB at (541) 746-0963; get approval before you schedule |
| Energy Trust of Oregon (PGE, Pacific Power) | $1,000. Replaces an electric forced-air furnace, no gas backup | $800. Replaces electric heat (baseboards, wall heaters) in the main living space | HSPF2 7.50+ ducted, 8.10+ ductless | Apply within 60 days, contractor signs |
| Salem Electric | $500 to $1,560, by home type and current heat | $900 or $500 | HSPF2 7.6+ (some tiers 8.1 or 9.3) | Apply within 6 months. Call (503) 362-3601 |
EWEB pays up to $6,000 to income-qualified homeowners with electric heat, and $250 toward duct sealing. Energy Trust pays $3,000 for a ducted heat pump ($1,800 ductless) in rentals, attached homes and income-qualified households, and $4,000 ducted or $3,500 ductless for manufactured homes that now use electric heat. Some of those larger tiers must go through a contractor enrolled with Energy Trust.
Where we see efficiency pay off most in valley homes
The biggest rebates go to homes that swap baseboards, wall heaters or an electric furnace for a heat pump. James Heating replaces that kind of heat in older Willamette Valley houses regularly. Springfield Utility Board rates ductless heat pumps 2 to 3 times as efficient as electric resistance heat.
Gas homes are a different story. On NW Natural gas, rebates are thinner and payback depends on your gas and power rates, so no single savings percentage fits all homes. If the old system still runs, a repair-or-replace check shows whether the rebate is worth acting on now. Replacing the furnace and AC together is a whole-system replacement, and the heat pump rebate applies to its heating side.
We install for Lane County co-op and PUD customers too
Lane Electric Cooperative, Emerald PUD and Central Lincoln PUD serve Lane County homes outside the city utilities, and each runs its own heat pump program. EWEB stopped taking most incentive applications in the McKenzie Valley after March 31, 2026, so a bill there now likely says Lane Electric.
| Utility | Heat pump rebate | Key rule | Do this first |
|---|---|---|---|
| Lane Electric Cooperative | Ductless: $800, or a 48-month 0% loan up to $9,000 (not both). Ducted: check with Lane Electric | Inverter-driven ductless model in a permanent residence; insulation must meet Lane Electric's specifications; installer must be a Lane Electric-approved HVAC contractor | Get pre-approval before installation: (541) 484-1151 |
| Emerald PUD | Ducted: $1,000 replacing an electric furnace with no heat pump, $500 upgrading other heat, plus $250 for duct sealing. Ductless: up to $1,000 (July 2026 notice). 0% financing up to $7,500 | Insulation audit first; variable-speed or inverter equipment; installer registered in Emerald's programs | Get Emerald's pre-authorization before committing: (541) 744-7482 |
| Central Lincoln PUD | Check with Central Lincoln PUD. Its ductless and ducted pages list rebates but no amounts | Qualified new heat pump installed by a licensed contractor | Call the Energy Experts line: (888) 883-9879 |
Lane Electric and Emerald want installers on their own lists, so ask where we stand with yours before you sign.
Gas furnace rebates are narrower than most people expect, and we tell you early
If you buy gas from NW Natural, Energy Trust of Oregon is your furnace program, wherever your power comes from. Energy Trust pays $1,600 for a furnace rated 95% AFUE or better (AFUE is the share of the gas that becomes heat), but only in rentals, duplex-to-fourplex homes, townhomes and income-qualified households. If you own and live in a single-family house, Energy Trust lists no standard furnace rebate for you right now.
- The furnace must be your main heat, not the backup half of a dual-fuel (heat pump plus gas) system.
- Energy Trust requires a carbon monoxide monitor on each floor with a bedroom.
- A furnace needs 97% AFUE for ENERGY STAR in Oregon, while Energy Trust's bar is 95%.
- Energy Trust updates these rules each January, so we recheck them for a quote early in the year.
A 95% gas furnace vents through its own plastic pipe instead of the old chimney, and that venting is part of what a new furnace costs beyond the unit itself.
How we walk you through your rebate, step by step
Approval comes before the install and the application comes after it, so we take the steps in this order.
- Find your utility. The name on your power bill sets the program.
- Get approval where it's required. Apply to EWEB for pre-approval, or call SUB at (541) 746-0963, Lane Electric at (541) 484-1151 or Emerald at (541) 744-7482.
- Pick qualifying equipment. We confirm the model's rating on its AHRI certificate, the official record utilities check.
- Keep the paid invoice showing the model numbers.
- Apply on time. Energy Trust's form needs the installing contractor's signature.
- Wait for payment. EWEB pays about 4 to 6 weeks after it approves the finished install, and Energy Trust in 6 to 8 weeks.
What the ENERGY STAR label means in 2026, and how we check it against your rebate
The label still covers heat pumps, gas furnaces and heat pump water heaters, but rebate programs set their own minimums, some higher than ENERGY STAR's. HSPF2 measures heating efficiency over a whole season and decides most heat pump rebates, while SEER2 does the same job for cooling. Higher is better for both.
| Program or standard | Minimum HSPF2 |
|---|---|
| Federal minimum, split heat pump | 7.5 |
| Energy Trust ducted | 7.50 |
| Salem Electric heat pumps (base tier) | 7.6 |
| ENERGY STAR split heat pump | 7.8 |
| Energy Trust ductless · Oregon's state rebate (HP3, also SEER2 16+) · ENERGY STAR Cold Climate ducted | 8.1 |
| ENERGY STAR Cold Climate ductless · Energy Trust extended-capacity (cold-weather) heat pump | 8.5 |
An unlabelled ducted unit at 7.5 can still earn Energy Trust's $1,000 if it replaces an electric furnace. You can look up any model on the ENERGY STAR product finder. ENERGY STAR's own spec calls proper sizing and installation critical, which is why we size the system to your house rather than to the old label.
What's left for your 2026 install after the 25C credit, and how we plan around it
With the federal credit gone, three sources of money remain. Oregon's $2,000 state heat pump rebate (ODOE HP3) has no owner-occupied funding left, though rentals and new construction can still claim it through ODOE-approved contractors. The federal HOMES and HEAR rebates aren't open in Oregon yet.
That leaves the utilities. EWEB, SUB, Energy Trust and Salem Electric are paying rebates now, EWEB and SUB still offer 0% loans, and we build your quote around whichever one you're on.
Why homeowners choose us for rebate-eligible installs
James Heating has served valley homes as a family-owned company since 1983, and two local utilities list us as a contractor.
- EWEB's participating-contractor list carries us in its top participation tier for ducted heat pumps.
- Springfield Utility Board lists us as an eligible contractor for its Energy Services Program.
- Licensed, bonded and insured under Oregon CCB #47396.
- Straight answers on enrollment. Some of Energy Trust's larger tiers need an enrolled contractor, and we say where we stand with each program before you sign.
- Permit pulled on the install, once your approval is in hand.
HVAC rebate questions
What is an HVAC rebate, and who pays it?
It's money a utility or energy program pays back after you install qualifying equipment, separate from any tax credit. In Oregon, your electric utility funds most heat pump rebates, and Energy Trust of Oregon funds its incentives through charges on PGE, Pacific Power and NW Natural bills.
How much will my heat pump cost after the rebate?
We can't give that number until we've seen the house. System type, duct and electrical work, the permit and your utility's rebate all move an HVAC installation price. Several programs pay you weeks after the install. Plan to cover the full price first.
Can I still claim the 25C credit for a 2025 install?
Yes, if the equipment was installed by December 31, 2025. Claim it on your 2025 return with IRS Form 5695. The install date decides, not when you signed the contract or paid a deposit.
Can I get an Energy Trust rebate if I'm on EWEB or SUB?
Not for a heat pump. If you buy gas from NW Natural, though, Energy Trust's gas incentives can still apply to a furnace in your home.
My bill says Salem Electric. What can I get?
Salem Electric pays $500 to $1,560 for a ducted heat pump and $900 or $500 for ductless, depending on your home and what heats it now. Call Salem Electric at (503) 362-3601, or our Salem office at (503) 581-9982.
Our rebate and installation service areas
We handle the rebate check and the install in every town we serve.
What our customers say
"We appreciate your courteous and prompt service, it is so reassuring to know that we can depend on you to help us if we have problems."
The Richmonds
"Your salesman, installers, technicians, and office ladies were all professional, courteous and helpful. We have nothing but admiration for your company and will recommend you to everyone."
The Farsson Family
Gallery
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Call with your power bill and we'll find your rebate
Tell us the name on your power bill and what heats your home now. We'll tell you which rebate fits and what to do first, and we book the install after any pre-approval. Call Eugene at (541) 461-2101 or Salem at (503) 581-9982, or check my rebate online.
Call Eugene at (541) 461-2101 or Salem at (503) 581-9982 with your power bill nearby.
Oregon CCB #47396 · Family-owned since 1983 · On EWEB's participating-contractor list · On Springfield Utility Board's HVAC contractor list
