Heat Pumps on the Rise in 2023
About a quarter of Oregon’s overall energy use comes from homes, from lighting and cooking to heating and cooling. Making the switch to energy efficient appliances and technologies means less energy use, lower energy bills, fewer greenhouse gas emissions, and more comfortable homes. Heat pumps, which move heat rather than create it, are becoming more popular in Oregon homes thanks to their efficient heating and cooling, lower energy use, and big incentive savings on the horizon.
While heat pump technology dates back to the 19th century, the technology didn’t become widely available until the 2000s. As of 2017, just 15 percent of single-family homes in the Northwest use a heat pump. With many models now on the market – and state and federal incentive savings coming soon – ODOE predicts that 2023 will be a big year for heat pumps in Oregon.
In our 2022 Biennial Energy Report, ODOE featured heat pumps in a Technology Review on energy efficient building technologies. In heating mode, heat pumps collect heat from ambient outdoor temperatures, concentrate it, and transfer that heat inside the building – yes, even on cold days! In cooling mode, heat pumps operate like regular air conditioners, moving heat from inside the building to outside.
There are a few types of heat pumps available. The most common and often least-expensive option is an air source heat pump, which uses electricity to operate the compressor that transfers heat indoors/outdoors. Air source heat pumps can work with a home’s existing ductwork or can be ductless models. A ground source or geothermal heat pump uses the relatively constant underground temperature instead of outside air. These models are typically more expensive to install, but more efficiently transfer heat and tend to have lower operating costs. Similarly, water source heat pumps use a pumped closed water loop from a nearby water source instead of air. Like ground source, water source heat pump installations cost more, but are more efficient with lower operating costs. Finally, gas-fired or absorption heat pumps use natural gas or propane to generate the heat source to transfer into a building. These models are a relatively new technology that aren’t commercially available just yet. They can be more efficient than traditional gas furnaces, but don’t offer cooling or air conditioning.
In general, heat pumps are more energy efficient than other types of heating. Oregonians could save about 50 percent on home heating costs with a heat pump compared to electric resistant heat, like cadet or baseboard heaters. Heat pump efficiency is expressed with technical specifications like Seasonal Energy Efficiency Ratio (SEER), Heat Season Performance Factor (HSPF), and others. Heat pump incentive programs often require minimum ratings, so be sure to talk to your heat pump seller or installer to make sure your heat pump is efficient and can qualify for a rebate or incentive.
$ave Big on a Heat Pump
Coming in 2023, the Oregon Department of Energy will launch two heat pump incentive programs to help lower the costs of heat pumps for Oregonians. The first program will provide rebates covering up to 60 percent of the cost of heat pumps for landlords to install for their renters. The second program calls for our agency to contract with eligible entities who can then run their own heat pump deployment programs in the communities they serve. ODOE is holding public hearings on administrative rules for both programs in early January – see our website for more information about how to weigh in. You can also sign up to receive email updates as ODOE rolls out the programs.
There are also incentives for heat pumps under the new federal Inflation Reduction Act. New tax credits are now available, which can cover 30 percent of the costs of a heat pump, up to $2,000. In addition, Oregon also expects to receive federal funding for rebates for energy efficiency retrofits and upgrades. ODOE will submit an application to the U.S. Department of Energy for this funding in or around summer of 2023. Learn more about how ODOE is working to bring federal dollars to Oregon.
Learn more about heat pumps in our 2022 Biennial Energy Report.