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Oregon Accelerates Energy Efficiency Efforts in 2026

Oregon is advancing energy efficiency through updated building codes, expanded funding, and a strong statewide strategy to improve energy efficiency by 60% compared to 2005 levels by 2030. Together, these policies and investments aim to modernize infrastructure, reduce emissions, and improve energy affordability—especially for underserved communities creating a more sustainable, equitable energy future.

What’s Changing in 2026 -   Several key developments are shaping Oregon’s energy landscape this year:

  • Cleaner New Homes
     The Oregon Building Codes Division adopted new building codes requiring heat pumps as the primary heating and cooling system for most new residential construction.  It estimates that it will save an average of $1700 annually for the homes.
  • Expanded Funding & Rebates
     The Oregon Department of Energy is distributing $1.2 million in federal grants to local governments. In parallel, federal HOMES and HEAR rebates will support home retrofits and appliance upgrades, with a focus on low- to moderate-income households.
  • Statewide Strategy
     Under the leadership of Governor Tina Kotek, Oregon’s Energy Strategy emphasizes efficiency and building decarbonization to meet clean energy goals by 2040.

Building the Workforce -  To meet growing demand, Oregon is investing in workforce development:

  • $2 million in new funding for training programs
  • Focus areas include HVAC systems, home energy auditing, and energy modeling
  • Goal: ensure a skilled workforce to support long-term efficiency efforts

Support for Communities & Businesses - Organizations like Energy Trust of Oregon  in partnership with community-based-organizations like Seeds for the Sol continue to provide:

  • Technical assistance for efficiency upgrades
  • Cash incentives for residential, commercial, agricultural, and industrial projects
  • Support to help reduce upfront costs and accelerate adoption

Challenges to Watch - Not all trends are moving forward without friction:

  • In Portland, proposed budget cuts could impact local programs
  • The Home Energy Score program—requiring energy disclosures during home sales—may be at risk
  • Reduced program funding could limit consumer awareness and slow progress

For more information, visit the Oregon Department of Energy or Energy Trust of Oregon.

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