September 2025 Newsletter

In 2023, the Oregon Legislature directed ODOE to evaluate the adoption of heat pumps, including details on the technology, an analysis of barriers to heat pump adoption, and progress toward a new goal of 500,000 additional heat pump installations in the state by 2030. In ODOE's inaugural report, published earlier this month, the agency found that based on estimated growth, Oregon may achieve its goal by mid-2033.

Heat pumps represent an energy efficient and increasingly cost-effective solution for reducing carbon emissions in residential heating and cooling. According to a recent national study, these systems have the potential to yield an average total energy savings of 31 to 47 percent, depending on the efficiency of the installed heat pump, and 41 to 52 percent when combined with building upgrades such as better insulation.

The report provides a snapshot for where the state is now in terms of heat pump adoption. Using a prediction model, ODOE estimates that Oregon will have about 458,500 residences, multifamily, and commercial buildings using heat pumps by the end of this year. Of that total, nearly 122,000 were installed since passage of the bill.

There are barriers to heat pump adoption, notes the report, including upfront cost of installation - heat pumps often cost more to install than a tradition heating system. Incentives, including those offered by the Oregon Department of Energy, can help make heat pumps more accessible for Oregon households. In addition to the technology itself, ensuring a building is well-insulated and ready for a heat pump is important to capture the greatest efficiency - which can also add costs.

Check out ODOE's report online, which dives more into technology trends, adoption trends, barriers, and potential recommendations to keep Oregon marching toward its 500,000 heat pumps goal. ODOE will publish an updated report every two years to continue sharing progress.