What HVAC rebates can Southern Oregon homeowners actually get in 2026?
In 2026, the biggest HVAC incentives for Rogue Valley homeowners come from Energy Trust of Oregon: $800 to $1,800 for a ductless heat pump, $1,000 to $3,000 for a ducted heat pump, $1,000 to $2,000 for an extended-capacity cold-climate heat pump, and $100 for a smart thermostat, for Oregon customers of Portland General Electric or Pacific Power. Stone Heating and Air in Central Point (CCB #224159) installs qualifying equipment and walks you through the paperwork.
The federal 25C heat pump tax credit is gone for 2026 installs — we cover exactly what that means below, because plenty of outdated articles still promise it. This guide sticks to the incentives that are actually on the table for Medford, Ashland, Grants Pass, Central Point, and the rest of Southern Oregon, and how to make sure your project qualifies before you sign anything.
Who qualifies for Energy Trust of Oregon incentives?
Energy Trust of Oregon incentives are available to Oregon customers of Portland General Electric or Pacific Power. Most of the Rogue Valley is Pacific Power territory, so many homes in Central Point, Medford, Ashland, and the surrounding communities qualify — but you must confirm which utility serves your address, because homes on other electric providers are not eligible for these particular incentives.
Beyond the utility requirement, eligibility depends on what you install and what it replaces. These are not no-strings rebates: Energy Trust sets minimum efficiency ratings for the new equipment and specific requirements for the existing heating system it replaces. That is exactly the kind of detail that gets missed when a homeowner buys equipment first and asks questions later, and it is why we design AC and heat pump installations in the Rogue Valley around the incentive requirements from day one.
One more rule worth knowing up front: incentive amounts are reviewed annually. The figures in this guide reflect Energy Trust of Oregon's published 2026 residential incentives, but you should confirm current amounts at energytrust.org before you sign a contract.
How much are the 2026 Energy Trust heat pump incentives?
For 2026, Energy Trust of Oregon pays $800 to $3,000 on qualifying heat pump installations, with the higher amounts reserved for rentals, attached homes, and income-qualified households through the Savings Within Reach program. Here is the full breakdown:
• Ductless heat pump — Standard incentive (owner-occupied): $800 — Rental / attached home / income-qualified: $1,800 (rentals, attached homes, or Savings Within Reach)
• Ducted heat pump — Standard incentive (owner-occupied): $1,000 — Rental / attached home / income-qualified: $3,000 (rentals, attached homes, or Savings Within Reach)
• Extended-capacity (cold-climate) heat pump — Standard incentive (owner-occupied): $1,000 — Rental / attached home / income-qualified: $2,000 (income-qualified or rental)
• Smart thermostat — Standard incentive (owner-occupied): $100 — Rental / attached home / income-qualified: $100
Notice the pattern: if you own a rental property, live in an attached home, or income-qualify for Savings Within Reach, the incentives jump substantially — up to $3,000 on a ducted heat pump. Landlords replacing old electric furnaces in rental homes around Medford and White City often have the strongest incentive case of anyone.
What are the equipment and replacement requirements?
Each incentive has two tests: the new equipment must meet a minimum efficiency rating, and it must replace a specific type of existing heat. Per Energy Trust of Oregon's 2026 requirements:
• Ductless heat pump ($800/$1,800): the new system must be rated HSPF2 8.10 or higher and must replace electric resistance heat in the main living space — think baseboard heaters, wall heaters, or ceiling cable heat.
• Ducted heat pump ($1,000/$3,000): the new system must be rated HSPF2 7.50 or higher and must replace an electric forced-air furnace as the home's primary heat.
• Extended-capacity heat pump ($1,000/$2,000): a cold-climate model engineered to keep producing heat efficiently in freezing weather — a good match for our valley's cold winter nights and inversion spells.
• Smart thermostat ($100): a straightforward add-on that pairs well with any of the above.
The replacement requirement is the one that surprises people. If your home currently heats with a gas furnace, these particular heat pump incentives generally will not apply, because they are designed to move homes off electric resistance heat. If you are weighing that decision, our comparison of heat pumps versus gas furnaces in Southern Oregon walks through when each one wins in our climate.
Can I still claim the federal 25C tax credit in 2026?
No. The federal 25C Energy Efficient Home Improvement Credit — which offered up to $2,000 for qualifying heat pumps and up to $3,200 per year in total home-efficiency credits — was terminated for property placed in service after December 31, 2025, per IRS guidance on the 2025 federal budget law. If your system is installed in 2026, you cannot claim it.
This matters because the internet is full of articles written in 2024 and 2025 that still tell homeowners to stack a $2,000 federal credit on top of state incentives. For a 2026 installation in Southern Oregon, that money is off the table. Any contractor or salesperson who promises you a federal heat pump tax credit on a 2026 install is working from stale information — and that should make you question what else in the quote is stale.
The practical takeaway: Energy Trust incentives and financing are now the main levers for lowering the real cost of a heat pump project. Our guide to how HVAC financing works at Stone Heating and Air explains how monthly payments can pair with a rebate to keep a replacement affordable.
How does Stone Heating and Air help you capture these incentives?
Rebate programs fail homeowners at two points: choosing equipment that does not quite qualify, and paperwork that never gets filed. We address both. As a licensed Oregon contractor (CCB #224159) and a Carrier Factory Authorized Dealer with NATE-certified technicians and Certified Ductless Pro credentials, we spec systems against the actual efficiency thresholds — HSPF2 8.10+ for ductless, HSPF2 7.50+ for ducted — rather than guessing, and we confirm your existing heat source meets the replacement requirement before you commit to anything.
Then we guide you through the documentation so the incentive actually lands. We are a 4.9-star rated company with 24/7 emergency service based in Central Point, and we have installed qualifying systems across the valley — Medford, Ashland, Grants Pass, Jacksonville, Eagle Point, Talent, Phoenix, and beyond. To be clear about the boundaries: Energy Trust of Oregon sets and pays the incentives, not us, and amounts are reviewed annually. Always confirm current figures at energytrust.org and verify your utility (Pacific Power or PGE) before signing.
How do rebates change the real cost of a heat pump project?
An incentive is only meaningful against the full installed price. Published national cost guides for 2026 put a ducted heat pump at roughly $4,500 to $14,000 installed, with cold-climate models at the top of the range, and a single-zone ductless mini-split at roughly $1,500 to $4,500. Your exact price depends on home size, ductwork condition, electrical panel capacity, and equipment tier — which is why we quote each home individually. A $1,000 to $3,000 Energy Trust incentive can offset a meaningful slice of that, especially on a ductless project or a rental-property replacement.
If you are budgeting a broader system swap, our AC replacement cost guide for the Rogue Valley breaks down what drives the numbers locally. And rather than guessing, you can get a firm quote online in a few minutes — real numbers for your home, before anyone visits.
Frequently Asked Questions About HVAC Rebates in Southern Oregon
Do Medford and Central Point homes qualify for Energy Trust incentives?
Most of the Rogue Valley is Pacific Power territory, and Energy Trust of Oregon incentives are available to Oregon customers of Pacific Power or Portland General Electric — so many homes in Medford, Central Point, Ashland, and surrounding communities qualify. Confirm which utility serves your address first, because homes on other electric providers are not eligible for these incentives.
How much is the Energy Trust rebate for a ductless heat pump in 2026?
Energy Trust of Oregon's 2026 incentive for a qualifying ductless heat pump is $800 for a standard owner-occupied home, or $1,800 for rentals, attached homes, or income-qualified households through Savings Within Reach. The system must be rated HSPF2 8.10 or higher and must replace electric resistance heat in the main living space. Confirm current amounts at energytrust.org before signing.
Can I get a rebate if I'm replacing a gas furnace with a heat pump?
Generally not under these specific incentives. Energy Trust's 2026 ducted heat pump incentive requires replacing an electric forced-air furnace as the home's primary heat, and the ductless incentive requires replacing electric resistance heat in the main living space. If you currently heat with gas, talk with us about your options and check energytrust.org for programs that may fit your situation.
Is the $2,000 federal heat pump tax credit still available in 2026?
No. The federal 25C Energy Efficient Home Improvement Credit ended for property placed in service after December 31, 2025, per IRS guidance on the 2025 federal budget law. A heat pump installed in 2026 cannot claim it, no matter how efficient the equipment is. Energy Trust of Oregon incentives and financing are the practical ways to lower your 2026 project cost.
Do rebate amounts change, and how do I confirm them?
Yes — Energy Trust of Oregon reviews incentive amounts annually, and they can change. Before you sign a contract, confirm the current incentive for your specific upgrade at energytrust.org and verify that your home is served by Pacific Power or Portland General Electric. We double-check equipment eligibility on every qualifying installation we quote.
Does Stone Heating and Air handle the rebate paperwork?
We select equipment that meets Energy Trust's efficiency thresholds, verify your existing system meets the replacement requirement, and guide you through the incentive documentation so nothing gets missed. As a Carrier Factory Authorized Dealer licensed in Oregon (CCB #224159), we build the incentive into the project plan from the first conversation rather than treating it as an afterthought.
Ready to put 2026 incentives to work?
Rebates reward homeowners who plan before they buy. If a heat pump upgrade is on your list this year, let's confirm what your home qualifies for before you spend a dollar. Call us at (541) 855-5521, send us a message, or get a firm quote online right now — and if you want to spread the remaining cost into monthly payments, our financing options can pair with your Energy Trust incentive. We'll do the job right the first time.