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Ductless Heat Pumps and Packaged Terminal Heat Pumps

Ductless Heat Pumps (DHPs) can be a way to maintain year-round comfort. On hot days, they cool residences by removing heat from the indoor air and sending it outside. On cold days, they capture warmth from the outside air and send it indoors.

Packaged Terminal Heat Pumps (PTHPs) are self-contained units that offer heating and cooling and only require an electrical connection to operate. These units are commonly less expensive to install than a standard heat pump and take up less room.

To get started on your energy-efficient upgrade follow the steps below or contact a program representative.

  1. Establish your eligibility.

    Read More >
    • Property’s heating must be provided by Portland General Electric or Pacific Power.
    • Cash incentives are available to all Oregon multifamily attached residential properties with two or more units including: duplexes, triplexes and fourplexes; side-by-side units; and stacked structures with five or more units. For specific incentives based on your building type see the “Details” tab for further eligibility requirements.
    • Energy-saving improvements must meet program requirements.
  2. Find a trade ally contractor or work with your own contractor.

    We can help you get started.

  3. Install equipment that meets the requirements listed on the Details tab.

  4. Complete and submit an incentive application with supporting documentation.

    • Proof of payment (invoice or receipt marked paid) and/or contractor’s invoice
    • A W-9 or Substitute W-9 form is required for investment properties.
    • Energy Trust must receive applications within 90 days from the date of purchase and installation.

    Download Application (PDF) Download Application (Doc)

    Send by Mail

    Energy Trust of Oregon
    Existing Multifamily Program
    111 SW Columbia St., Suite 945
    Portland, OR 97201

    Send by Fax

  5. Get your incentive.

    You should receive a cash incentive check within 6-8 weeks after all information is received.

    Note: A post-installation verification may be required.

Review the incentive application equipment specifications and requirements before starting your project.

Equipment Incentive Requirements
Ductless Heat Pump (DHP) $1,800 per outdoor unit

Equipment must have an HSPF2 efficiency rating of at least 8.10. At least one indoor unit must replace electric resistance heat* in the primary living space. Replacing natural gas heating does not qualify. Ducted indoor heads are allowed.

Packaged Terminal Heat Pump (PTHP) $800 per unit

Must replace electric resistance heat (electric furnace, baseboard, in-wall unit or internal heater of PTAC). Unit must provide heat pump heating. Must be on the AHRI Certified PTHP list at

Air-Cooled Variable Refrigerant Flow (VRF) Multi-Split Ductless Heat Pump $1 per sq ft of area served by VRF

VRF systems must serve dwelling spaces and/or corridors.

Must install dedicated outdoor air supply (DOAS) with energy recovery meeting at least 50% enthalpy recovery efficiency. DOAS air must be supplied at a neutral space temperature.

Each condenser unit must have a rated cooling capacity over 5 tons with variable speed compressor operation and serve multiple ductless indoor evaporator units.

Must meet or exceed 2016 CEE Tier 1 air-cooled VRF efficiency levels listed here.

The majority of indoor unit fans must be set to cycle rather than run continuously during occupied hours.

Electric resistance heating should not be used for pre-heating ventilation air.

*Examples of electric resistance heat include baseboards, ceiling heat, wall heat and electric forced-air furnaces.

Incentives are subject to funding availability and may change. Incentives are not intended to influence consumer decisions on fuel sources.

Distributor discounts

Price discounts are available for owners and managers of investment properties purchasing PTHPs. Call Thermal Supply at 503.238.8833 for more information.

Participants receiving discounts on PTHPs are not eligible to receive any additional Energy Trust incentives on same equipment.

Need Help? Contact Us.

We’re here to explain the process and benefits. Give us a call at 1.877.510.2130 or send us an email at

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