Oregon's New Energy Code Mandates Heat Pumps in New Homes

SALEM, Oregon — Oregon’s updated residential energy code will require energy-efficient heat pumps in newly constructed homes, replacing ducted air conditioning systems and aiming to lower long-term utility costs.

On Feb. 18, the Oregon Building Code Division Residential and Manufactured Structures Board approved a package of changes to the state’s residential energy code. The updates are incorporated into the 2026 Oregon Residential Specialty Code.

An analysis conducted by the Building Code Division found the changes are projected to save residents an average of $125 per month, or more than $1,500 per year, on energy bills.

The code update comes as energy bills across Oregon have increased by about 50% since 2020, according to supporters of the measure. The revised code is designed to reduce household energy costs while improving efficiency and resilience in new homes.

Heat pumps, which provide both heating and cooling, will serve as the first stage of heating under the updated code. Methane natural gas may still be used for supplemental heating, a provision supporters say can help reduce strain on the electrical grid during peak load periods.

The Oregon Department of Energy submitted a letter supporting the changes, citing the state’s newly released energy strategy. The strategy identifies strategic electrification in buildings as a policy tool to support decarbonization, affordability, and resilience goals.

In addition to state agency support, 54 building professionals, elected officials, and climate resilience organizations submitted a letter backing the code updates.

Supporters say the revised energy code aligns Oregon’s building standards more closely with those in neighboring West Coast states as policies increasingly emphasize electrification and reduced fossil fuel use in new construction.

“I've been installing heat pumps for years, and have seen how cost-effective they can be for both builders and homeowners. Energy codes should ensure that proven technologies that can reduce energy use and costs are implemented across the state,” said Joshua Salinger, founder and CEO of Birdsmouth Design-Build. “This update does just that, and puts best practice into our statewide code, protecting the home-buyer from rising energy costs.”

For contractors and builders, the update signals a continued shift toward heat pump adoption in residential construction, reinforcing the role of high-efficiency electric systems in meeting evolving energy codes and long-term operating cost targets.

Note: This piece was created with the help of generative AI tools and edited by our content team for clarity and accuracy.