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Oregon brings back rebates to add heat pumps in rental homes, but funds are limited

FILE - The basement of a home in Portland, Ore., is equipped with ductless mini-splits, Dec. 1, 2022. A state program that reopens Tuesday will offer rebates to landlords who install mini-splits or traditional heat pumps in rented houses, apartments, rooms, manufactured homes and recreational vehicles.
Kristyna Wentz-Graff
/
OPB
FILE - The basement of a home in Portland, Ore., is equipped with ductless mini-splits, Dec. 1, 2022. A state program that reopens Tuesday will offer rebates to landlords who install mini-splits or traditional heat pumps in rented houses, apartments, rooms, manufactured homes and recreational vehicles.

An additional $4 million will help the state relaunch the program to install energy-efficient heating and cooling devices in rental homes, but funds could run out quickly.

Oregon鈥檚 heat pump rebate program aimed at adding energy-efficient heating and cooling devices in rental homes is set to reopen. The popular program ran out of cash in less than a year when it first launched.

The Oregon Department of Energy will reopen its on Tuesday, after receiving an additional $4 million.

The program provides rebates to landlords installing heat pumps or related electrical updates to their residential rental properties, including rented rooms, houses, apartment buildings, manufactured homes and recreational vehicles. It鈥檚 helping a group of people left out of many federal programs paying for the renewable energy transition 鈥 renters.

鈥淲e鈥檙e thrilled to continue this incentive program that brings comfort and potentially life-saving heating and cooling to rental spaces,鈥 state Department of Energy Director Janine Benner said in a statement.

In 2022, issued a one-time $15 million allocation for the program, but those funds ran out before the program reached its one-year anniversary, said Duard Headley, energy incentives manager for the state agency.

鈥淚n just a little under a year, the program issued approximately $15 million in rebates for about 3,000 heat pump installations across the state,鈥 Headley said.

The additional funds allocated by the in 2024 are an indication of the importance and popularity of the program, he said, but those funds could be exhausted in the next couple of months.

鈥淭here鈥檚 a clear high demand. We鈥檝e talked to a lot of contractors. I personally talked to quite a few who are already prepared to submit their reservation. They already have customers lined up,鈥 he said. 鈥淲e expect that money to be exhausted, likely before the end of the summer, extending into early fall at the latest.鈥

The program was created in 2022 after extreme high temperatures from the event killed . As the climate crisis continues, Oregon summers are getting hotter, and intense heat waves are occurring more frequently for longer periods of time. A study conducted by the Oregon Department of Energy earlier this year found that many of the state鈥檚 most vulnerable people, in their homes.

Now, the state has designed a program aimed at helping tenants have access to energy-efficient heat pumps, helping to fill a gap in the renewable energy transition.

Rebates for the program vary based on the type of heat pump 鈥 traditional or mini-split 鈥 if there are needed electrical upgrades and if the tenant is considered low- or moderate-income.

Landlords can get up to $5,000 for installing an energy efficient heat pump to a house. For a manufactured dwelling or RV, incentives can go as high as $7,000.

Headley said from contractors to landlords to tenants, the overall response has been positive.

鈥淚t is really valuable to all Oregonians,鈥 he said. 鈥淚t helps us progress on our overall energy goals and it really benefits a wide, diverse group of people in the state.鈥

So far, the program has funded heat pump unit installations in at least 22 counties across the state.

Headley said it鈥檚 too early to tell if more funding will be allocated in the next biennial budget process.

Interested Oregon landlords can contact an approved program coordinator, located on the , to reserve rebates.

Copyright 2024 Oregon Public Broadcasting

Monica Samayoa is a science and environment reporter for Oregon Public Broadcasting, a JPR news partner. Her reporting comes to JPR through the Northwest News Network, a collaboration between public media organizations in Oregon and Washington.