2026 energy rebates and tax credits for Ashland, Talent and Medford homes
2026 energy rebates and tax credits for Ashland, Talent and Medford homes
Last checked: October 8, 2026. Rebates change often and some run out of money. Confirm with the program before you buy anything.
A lot changed this year. The two federal tax credits most homeowners used are gone, and the state’s heat pump money for owner-occupied homes is spoken for. Local rebates are still there. Which ones you can use depends mostly on who sends your electric bill.
The federal 25C and 25D credits have ended
According to the IRS, the 2025 federal law known as the One, Big, Beautiful Bill (Public Law 119-21, signed July 4, 2025) ended these credits:
- 25C, the Energy Efficient Home Improvement Credit (heat pumps, insulation, windows): not allowed for anything placed in service after December 31, 2025.
- 25D, the Residential Clean Energy Credit (solar, batteries, geothermal): not allowed for expenses made after December 31, 2025. The IRS counts an expense as made when the installation is complete.
- 45L, the New Energy Efficient Home Credit, which goes to builders: not allowed for homes acquired after June 30, 2026.
Some ENERGY STAR product pages still say the federal credits run through 2032. That text is out of date.
First, find your utility
If you live in Ashland, your electricity comes from the City of Ashland Electric Department, a city-owned utility. City rebates are for city electric customers. Energy Trust of Oregon does not serve Ashland’s electric utility, so its electric rebates generally do not apply in Ashland.
Talent and Medford are likely Pacific Power territory for electricity, and Energy Trust serves Pacific Power customers. We have not confirmed the exact boundaries, so check the name on your bill. Avista provides natural gas in Ashland and Medford, and Energy Trust serves Avista gas customers too.
City of Ashland rebates
As published on the city’s Residential Incentives page on October 8, 2026:
- Forced-air heat pump with a variable speed compressor, HSPF2 8.5, replacing the main heat: $1,500.
- Ductless heat pump (mini split), HSPF2 8.5: $900.
- Duct sealing, only where the existing heat is electric: $250.
- Heat pump water heater, 40 gallons or more, Tier III or higher, on the city’s product list: $1,400. It can replace an electric or gas water heater.
- Electrical panel upgrade: $1,000, up to half the cost. Circuit upgrade: $600, up to half the cost.
- Induction cooktop or range: $150 replacing an electric cooktop or in new construction, $200 replacing gas.
- Smart thermostat on the city’s list: $100. Not combined with a new heating system rebate.
- Solar electric: $600, for systems of at least 2,500 watts that are net-metered and permitted by the city.
Weatherization rebates are for electrically heated homes only:
- Windows: $8 per square foot of glass for U-0.30 to 0.23, or $10 for U-0.22 or lower.
- Attic insulation to R-49 or more: $0.75 per square foot from R-0 to R-19 existing, or $0.30 from R-20 to R-49.
- Wall insulation in empty walls: $2.00 per square foot.
- Floor insulation in an empty floor: $0.75 per square foot. It must fill the cavity.
A home energy review is required before heating, cooling and weatherization rebates. For a panel upgrade, photos of the existing panel can stand in for the review.
Income-qualified households get double the heat pump and heat pump water heater rebates, and up to the full cost of panel and circuit upgrades (panel up to $2,000). The city lists yearly income limits of $31,920 for one person, $43,280 for two, $54,600 for three and $66,000 for four. Renters can qualify on their own income for the heat pump and panel rebates.
Energy Trust of Oregon, for Pacific Power and Avista customers
From Energy Trust’s Oregon residential sheet dated January 1, 2026:
- Ductless heat pump in an owner-occupied home: $800. It must replace electric resistance heat in the main living space. Pacific Power and PGE customers only.
- Ducted heat pump replacing an electric furnace: $1,000 to $3,000 depending on the home and program. The sheet’s table is hard to read, so confirm the amount. Pacific Power and PGE customers only.
- Heat pump water heater: $1,200, as an instant discount through participating stores and distributors.
- Insulation in owner-occupied homes heated by a participating utility, including Avista gas: attic $1.25, walls $1.50, floors $0.75 per square foot, each with minimum and starting levels.
- No window rebate appears on the Oregon sheet.
Energy Trust says all incentives depend on funding and may change. Many of its rebates go through enrolled contractors, so ask before you hire.
State programs
- Oregon Heat Pump Purchase Program: up to $2,000 per home through approved contractors. As of the state’s October 1, 2026 update, money for existing owner-occupied homes is fully reserved. Money remains for rental homes and new construction.
- Oregon Solar + Storage Rebate Program: reopened June 15, 2026 and was fully reserved within minutes. It is not taking applications.
- Federal HOMES and HEAR home energy rebates: not available in Oregon yet. The state is waiting on U.S. Department of Energy approval.
What this means for a project
In Ashland, the city rebates are the main money left, and the home energy review comes first. In Talent and Medford, Energy Trust is the main source. In both, plan the work around the rule sheet before you buy equipment, because model ratings, existing heat type and contractor enrollment all decide whether you qualify.
Whether a heat pump or other upgrade pays off depends on your current heat source, your utility and the house. We would rather you hear the real numbers for your home than a promise.
Want help sorting it out?
If you are planning upgrades and want to know which rebates fit, I’m happy to talk it over. Fill out the contact form; it reaches us right away and we respond within a day. If you’d rather call, the office is 541-300-8118. The chat on this site can answer questions, pull up costs, code and similar projects, and send your request to the office too.
Sources
- IRS, FAQs on 25C, 25D, 45L and other credits under Public Law 119-21 (checked 10/07/2026)
- City of Ashland, Residential Incentives (checked 10/08/2026)
- City of Ashland, Solar (checked 10/08/2026)
- City of Ashland, State and Federal Rebates (checked 10/07/2026)
- Energy Trust of Oregon, Who we serve (checked 10/07/2026)
- Energy Trust, January 1, 2026 Oregon Residential Incentive Information Sheet (checked 10/08/2026)
- Energy Trust blog, southern Oregon customers (checked 10/08/2026)
- Energy Trust, services now available to Avista customers (checked 10/08/2026)
- Oregon Department of Energy, Heat Pump Purchase Program (checked 10/08/2026)
- Oregon Department of Energy, Solar + Storage funds fully reserved (checked 10/07/2026)
- Oregon Department of Energy, Home Energy Rebates (checked 10/07/2026)