Smart Central Oregon landlords are always looking for ways to improve their properties, attract quality tenants, and reduce operating costs. If you’re seeking a solution that ticks all these boxes, look no further than the Oregon Department of Energy’s (ODOE) heat pump incentives program. This initiative offers a significant opportunity for property owners to upgrade their rental units with energy-efficient heat pumps, unlocking substantial financial benefits.
What the 2025 Heat Pump Incentives Cover
The ODOE is currently offering a $2,000 incentive per unit for the installation of qualifying heat pump or ductless heat pump systems in rental properties. This includes apartments, duplexes, fourplexes (excluding manufactured homes), single-family rental homes, and new construction. However, the spots for single-family homes are limited to 2,000 for the state of Oregon, so we highly encourage landlords to act fast to reserve their spot.
With a substantial allocation of 4,000 spots for rentals and 2,000 for single-family/new construction, this program is designed for longevity, offering a more stable opportunity compared to previous rapid sellouts. This immediate reduction in upfront costs makes upgrading to modern, energy-efficient HVAC more accessible than ever for landlords in our region.
Financial Benefits for Property Owners
Investing in energy-efficient upgrades, such as heat pumps, not only saves you money in the short term but also attracts higher-quality tenants, potentially reduces vacancy rates, and justifies competitive rental prices. The comfort and cost savings provided by a heat pump are valuable selling points in today’s rental market.
By offering efficient heating and cooling, you can also:
- Lower utility bills for tenants: Energy-efficient systems use less power, which reduces monthly expenses and makes your units more attractive to renters.
- Improve property value: Sustainable, modern systems can increase the property’s marketability and attract long-term tenants.
- Future-proof: As building codes evolve and energy standards tighten, installing an efficient HVAC system now helps you stay ahead of potential regulations.
Maximize Savings by Stacking Incentives
The financial advantages don’t stop with the ODOE’s generous offer. Many local utility companies in Central Oregon also provide their own heat pump incentives that can be combined with the state funding. This stacking effect can lead to even more significant savings on your upgrade costs, making the transition to energy-efficient HVAC an exceptionally smart financial decision for landlords. We encourage our clients to explore the specific rebates available from local energy providers to maximize savings.
How to Qualify
The first step would be to call Bend Heating and ask for Shawn Zettle. In order to qualify, landlords must:
- Verify ownership of the rental property
- Work with certified contractors for installation
- Submit basic property information
- Provide proof of ownership
- Document the heat pump system specifications
The application process involves selecting a qualified contractor, confirming eligibility, and submitting the required documentation. At Bend Heating & Sheet Metal, we’ve been helping Central Oregon property owners upgrade their HVAC systems for over 70 years. Our team can handle the installation and paperwork and guide you through the incentive process from start to finish. We’ll ensure your system qualifies, install it to spec, and help you take full advantage of all available savings.
Ready to Upgrade?
If you’re considering a heat pump or ductless system for your rental property, this is the year to make it happen. With generous heat pump incentives, additional utility rebates, and growing demand for energy-efficient cooling, the benefits are clear.
Contact Bend Heating today to schedule a consultation and take the first step toward a smarter, cooler, and more sustainable property.