PNW Home Resilience Rebates & Incentives

By Jared White

Rebates & ROI

The rebate landscape changed dramatically at the end of 2025, and most articles you will find online are now wrong. The big federal tax credits that drove home electrification for three years, the 25C credit for heat pumps and weatherization and the 25D credit for solar and battery storage, both expired on December 31, 2025. For projects in 2026, the action has shifted almost entirely to state and utility programs, plus the federally funded but state-run rebate programs that are still rolling out. This guide maps what actually exists for Pacific Northwest homeowners now, with the strong caveat that amounts, eligibility, and launch dates change constantly, so you should verify every figure on the official program page before you count on it. Nothing here is tax advice; for your specific situation, talk to a tax professional.

The Federal Picture in 2026: What Changed

The One Big Beautiful Bill Act, signed in July 2025, accelerated the end of the Inflation Reduction Act's residential energy credits. Two matter most for home resilience, and both are gone for 2026 projects. The 25C Energy Efficient Home Improvement Credit, which gave up to $2,000 a year toward heat pumps and up to $1,200 toward insulation, air sealing, windows, and audits, is not allowed for any property placed in service after December 31, 2025. The 25D Residential Clean Energy Credit, which gave 30 percent back on solar and battery storage, is not allowed for any expenditure made after December 31, 2025. The controlling date is when the equipment was placed in service, not when you bought it, so a heat pump purchased in 2025 but installed in January 2026 does not qualify. If you completed a qualifying project on or before December 31, 2025, you can still claim it on your 2025 return using IRS Form 5695; if you are planning a 2026 project, plan as though there is no federal tax credit, because there is not. This also means solar-plus-battery lost its 30 percent federal subsidy, which meaningfully changes the math on the home battery systems discussed in the backup-power guide.

The Federal Rebates That Survived: HOMES and HEAR

Not everything federal disappeared. The IRA also created two rebate programs, distinct from the tax credits, that are funded federally but designed and run by each state: the Home Efficiency Rebates program (HOMES) and the Home Electrification and Appliance Rebates program (HEAR). These were already awarded to states and were not terminated, so they survive the loss of the tax credits, though they roll out on each state's own timeline. They are income-targeted, aimed at low- and moderate-income households, and delivered as up-front or point-of-sale rebates rather than tax credits. Oregon was awarded over $113 million for the two programs. The covered measures are squarely resilience-relevant: heat pumps, heat pump water heaters, weatherization and insulation, and electrical panel and wiring upgrades. Published HEAR caps in Oregon run up to $8,000 for a heat pump, $4,000 for an electrical panel, $2,500 for wiring, $1,750 for a heat pump water heater, and $1,600 for insulation and air sealing, with HEAR totals up to $14,000 and HOMES up to $10,000 depending on income and modeled energy savings. The important caveat: as of early 2026 these were not yet open in Oregon, with an individual-home launch expected in spring 2026 pending federal approval, and a phased rollout after that. Do not let a contractor quote you a HEAR rebate as if it is available today; confirm the current launch status with the Oregon Department of Energy or Washington Commerce before relying on it.

Oregon Programs

Oregon has one of the stronger layered structures in the country, and the ratepayer-funded pieces are active right now regardless of what happened federally. Note that Oregon has no state heat-pump tax credit; its older Residential Energy Tax Credit expired years ago, so the value here is in rebates, not credits.

Energy Trust is the workhorse for most Oregon homeowners, delivered through PGE, Pacific Power, and the gas utilities, and it recently moved to an Area Median Income basis for its income-qualified tiers, so the bracket you fall into may have shifted in 2026. HP3 adds up to $2,000 on top for heat pumps where funding remains, though general owner-occupied funding has run reserved at times, so check before counting on it. One stacking rule to know: HP3 can combine with Energy Trust, but it cannot stack with HOMES or HEAR, so you choose one path.

Washington Programs

Washington's structure leans on utility programs plus a notable tax break, with the federally funded rebates administered through the state Department of Commerce.

• Utility rebates. Puget Sound Energy, Seattle City Light, Tacoma Power, Avista, and others run their own rebates for heat pumps, weatherization, and heat pump water heaters. Amounts vary by utility, so check your provider's page directly.
• Heat pump sales-tax exemption. Washington has offered a state sales-and-use tax exemption on qualifying heat pump equipment and installation labor, which effectively discounts a heat pump at the point of sale. Eligibility and the program's end date have specific terms, so verify current status with the Washington Department of Revenue.
• HOMES and HEAR. Washington Commerce administers the same federal home energy rebates as Oregon, with similar income targeting and covered measures, on its own rollout schedule. Confirm current availability with Commerce.
• Low-income weatherization. State and local agencies run weatherization assistance that can cover insulation, sealing, and HVAC at little or no cost for income-qualified households.

As with Oregon, the practical move is to identify your utility first, because the utility program is usually the most accessible active incentive, then layer the sales-tax exemption and any rebate you qualify for on top.

What Is Covered for Resilience Specifically

Focus your attention on the upgrades that actually move the needle on smoke, heat, and outages.

The hardest hit is solar plus battery, which lost its 30 percent federal credit and now depends on whatever limited state or utility incentives exist, so the payback math has genuinely lengthened. Heat pumps remain the best-supported resilience upgrade because they qualify across Energy Trust, HP3, HOMES/HEAR, and Washington utilities, and they solve both heat and winter heating. Weatherization is the next best supported and the cheapest to start. The cooling guide covers heat pump selection, and the sealing guide covers weatherization.

How to Stack and Sequence

With the federal credits gone, stacking now means combining a utility rebate with a state program, and layering an income-qualified rebate on top if you qualify. A few rules shape how that works. Utility and state rebates generally reduce your net project cost directly. Income-qualified programs like HOMES and HEAR target low- and moderate-income households with much larger coverage, sometimes most of the project, but you usually cannot combine HOMES and HEAR on the same project, and HP3 will not stack with them either. Many programs require an energy assessment or a certified Home Energy Score first, especially HOMES, which expects modeled savings of around 20 percent, so an audit is often the true first step. The practical sequence for most homeowners: confirm your utility and its active rebates, check Energy Trust eligibility if you are in Oregon, determine whether you income-qualify for HOMES or HEAR once they launch, and have your contractor confirm which combination is allowed before you sign. Ask the contractor and, where money is significant, a tax professional, because the rules are specific and they change.

How to Actually Claim

The process depends on the program type. For utility and Energy Trust rebates, you typically use a participating or trade-ally contractor who installs qualifying equipment and helps file the paperwork, with applications often due within a set window after installation, so keep your itemized invoice, model and efficiency details, and proof of payment. For point-of-sale rebates like HEAR, once live, the discount is applied at purchase through a participating contractor or retailer, which means you must use an enrolled provider and sometimes reserve funds in advance. Across all of them, keep the same documentation: itemized invoices with model numbers and efficiency ratings, proof of payment, and any pre-approval or reservation numbers. If you did complete a qualifying project in 2025 and are claiming the now-expired 25C or 25D credit on your 2025 return, that goes on IRS Form 5695, and you will want the manufacturer certification or AHRI number on file.

A Standing Caveat

This area moves faster than almost any other in home improvement. Funding runs out mid-year, launch dates slip, income brackets get redefined, and programs change their terms. Treat every number on this page as a starting point to verify, not a promise. The authoritative sources are the IRS for anything tax-related, the Oregon Department of Energy and Energy Trust of Oregon for Oregon, the Washington Departments of Commerce and Revenue and your utility for Washington, and the US Department of Energy's Home Energy Rebates pages for HOMES and HEAR. Check those before you buy, and confirm with your contractor that the combination you are counting on is actually allowed today.

Frequently Asked Questions

Are there still federal tax credits for heat pumps or solar in 2026?

No. The 25C credit for heat pumps and weatherization and the 25D credit for solar and battery both expired for any project placed in service after December 31, 2025. For 2026 projects, plan around state, utility, and the income-qualified HOMES and HEAR rebate programs instead.

Does any program cover home battery backup now?

The federal 25D credit that covered battery storage has ended, so battery backup currently depends on limited state or utility incentives, which vary and are often modest. Check your utility and state energy office, and expect a longer payback than under the old federal credit.

Can I combine state and utility rebates for the same project?

Often yes, with limits. Utility and Energy Trust rebates generally stack, but income-qualified programs have specific rules: in Oregon, HOMES and HEAR cannot be combined on the same project, and HP3 will not stack with them. Have your contractor confirm the allowed combination before you commit.

Do I need an energy audit first?

For some programs, yes. The HOMES program in particular requires a home energy assessment showing modeled savings of around 20 percent, and a certified Home Energy Score is often how that is met. Even where not required, an audit helps you target the highest-value upgrades.

When will Oregon's HOMES and HEAR rebates actually be available?

Oregon expected to open individual-home applications in spring 2026, with multifamily and in-store rebates phasing in later, all pending federal approval. Because timelines have shifted before, confirm the current status with the Oregon Department of Energy rather than assuming a date.

The short version for 2026: the federal tax credits are gone, so build your plan around your utility, Energy Trust if you are in Oregon, the Washington sales-tax exemption, and the income-qualified HOMES and HEAR rebates as they launch, and verify every figure on the official page first. Plan rebate-eligible upgrades alongside the cooling, sealing, and backup power guides, see how they fit the whole resilience stack, or get a tailored plan from the Resilient Home Stack Builder.