Save BIG on Heat Pumps Right Now
July 14, 2025 – by Candace Turtle
A while ago, I learned that my upstairs heating and cooling system was more than 22 years old. HVAC (heating, ventilation, and air conditioning) systems usually last 20-25 years so I knew I had a geriatric system. It is electric, which is good for minimizing pollution, but it uses resistance strips, which is bad for energy efficiency. Whenever I crank up the heat on a cold winter’s morning, for example, it’s like I turn on a giant hair dryer to heat my home. Not a cheap way to warm up.
But I’m not made of money, and had spent a lot of dough a year ago when I replaced a 22-year old gas/electric hybrid system that served my downstairs with a new heat pump.
I love heat pump technology. The quality of heating and cooling is fabulous, with none of the blasts of hot or cold air I find irritating. My old system upstairs wakes me up frequently at night when it cranks in with a disconcerting whoosh! However, I decided to wait for my upstairs system to die on me. (I guess you can put a price on a good night’s sleep.)
Proactively, I gathered estimates, worked through some technical questions around ducting and refrigerant line relocation, and resigned myself to the extra cost of repairing the big hole in my ceiling that will be required to install the new model.
Then, a $2,000 gift fell into my lap! This summer, the state of Oregon opened up a new heat pump installation program that awards a $2,000 rebate for certain upgrades to heat pumps. The rebates go to qualified installers, and they do all the paperwork to qualify for the funds. Homeowners pay $2,000 less.
I called my installer and determined that they were certified. They refreshed my bid from a year ago, (it had gone down in price by about $1,000, with a new upgrade. When has that ever happened?) They also confirmed that my system qualifies for the $2,000 rebate.
Past experience indicates this program will run out of money fast, so I’m booked for installation in early August, the soonest I could get on the installation calendar. My upgrade should also qualify for a $2,000 tax credit from the federal government. This tax incentive ends this year, so there’s another good reason to install sooner. Lastly, I expect my new system will also qualify for a $900 rebate from the City of Ashland. That’s nearly $5,000 off my cost. (Because I already have had a home visit from the City’s energy expert, this part should be minimal, too.) You are required to have a home energy checkup to receive the award. Email climate@ashland.or.us to set up a quick visit.
I’m also researching whether I’ll get a city rebate of 25-65 cents per square foot when I have more insulation blown in after the new heating and cooling system is installed.
Lastly, I’ll eek out a few more savings by financing with my installer. They offer zero-interest, short-term loans at the cash price. So most of my money can stay in the bank and earn a little bit more interest over the term of the loan. (Note: this loan through Wells Fargo is like a credit card – miss a payment and you’ll get hit with a big penalty. You’ll also go through a short credit check/qualification process.)
In the end, I couldn’t resist the savings of nearly $5,000. The time was right for me; and I’m pretty sure there won’t be a better deal in the next couple of years. I’ll get to enjoy my new, more efficient, more comfortable system sooner, along with the nice feeling that I got a sweet deal.
Planning ahead really worked for me. My installer and I even came up with a nifty way to add in a better filter system as part of my base price. It’s easier to come up with good ideas when you aren’t under pressure because your furnace is broken and it’s icy cold outside.
If your system is old-ish and you’d like to upgrade, now might be the right time for you. But don’t delay; this program won’t last long. Contact Electrify Ashland Now or your HVAC installer to get started.
NOTE: There is a similar program for landlords who want to upgrade the heating and cooling systems in their rentals.
Electrify Ashland Now can help you figure out how old your heating and cooling systems are, if your electrical panel needs an upgrade, and how to finance improvements with incentives and rebates. Start with a free home energy assessment from one of our volunteer home energy coaches. Or send your question to info@ashlandclimate.org.
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