Oregon Mandates Heat Pumps in New Homes

The Oregon Building Code Division's Residential and Manufactured Structures Board approved the code update on February 18, 2026. This change specifically requires that if a new home includes a split-system air conditioner, it must be a heat pump that provides both heating and cooling. This mandate was driven by significant energy cost increases for residents, with bills rising approximately 50% since 2020. State officials estimate the new code will save homeowners an average of $125 per month, totaling over $1,700 annually. The regulation still allows for other fuel sources, such as natural gas, to be used for supplemental and backup heating. The heat pump is designated as the primary, or first stage, heating source, with a secondary source kicking in when it cannot maintain the required temperature. This code change supports Oregon's broader energy strategy, which includes a goal of installing at least 500,000 new heat pumps in residential and commercial buildings by 2030. The move aligns Oregon's building standards with similar energy efficiency requirements already in place in California and Washington. For electrical contractors, this type of electrification mandate often requires service and panel upgrades, as well as new branch circuits to handle the load. The shift also necessitates that technicians are trained on the newer technology as it becomes the standard in new construction. While Minnesota does not have a similar mandate, the state is encouraging adoption through significant financial incentives aimed at achieving net-zero emissions by 2050. Homeowners in Minnesota may be eligible for up to $4,000 in state rebates and up to $8,000 in federal rebates for heat pump installations. This regulatory push reflects a national trend. In 2022, for the first time, annual sales of heat pumps in the U.S. surpassed those of traditional gas furnaces.