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OREGON

Oregon Water Heater
Replacement

Licensing, rebates, running costs and local guides for 31 Oregon communities.

Local guides in Oregon

Portland area

PlacePermit to replaceFeeElectricCompanies
PortlandRequired$63Portland General Electric, Pacific Power18
GreshamRequired$62,Portland General Electric10
HillsboroRequired$35.40Portland General Electric12
BeavertonRequired$27.83Portland General Electric13
TigardRequired$37.52Portland General Electric14
AlohaRequired (county)$37Portland General Electric5
Lake OswegoRequired$24,Portland General Electric13
Oregon CityRequired$38Portland General Electric11
McMinnvilleRequired$66McMinnville Water & Light1
BethanyRequired (county)$37,Portland General Electric3
TualatinRequired$27.55Portland General Electric11
WilsonvilleRequired$25Portland General Electric9
West LinnRequired$34Portland General Electric11
Happy ValleyRequired$35,Portland General Electric10
Forest GroveRequired$13.90Forest Grove Light & Power6
NewbergRequired$26.11Portland General Electric3
MilwaukieRequired$33.60Portland General Electric10
SherwoodRequired$20.74Portland General Electric7
Cedar MillRequired (county)$37,Portland General Electric1
CanbyRequired$31.75Canby Utility5
Oak GroveRequired (county)$31.75Portland General Electric4
TroutdaleRequired$62,Portland General Electric7
St. HelensRequired$26.60Columbia River PUD3
CorneliusRequired$13.90Portland General Electric5
OatfieldRequired (county)$31.75Portland General Electric4
SandyRequired$95Portland General Electric4
GladstoneRequired$31.75Portland General Electric8
DamascusRequired (county)$31.75Portland General Electric5
Oak HillsRequired (county)$37Portland General Electric3
FairviewRequired—Portland General Electric6
MolallaRequired$31.75Portland General Electric2

Licensing in Oregon

Any business doing residential construction work, including water heater replacement, must be licensed by the Oregon Construction Contractors Board (CCB). Plumbing work itself falls under the Building Codes Division (BCD), which licenses plumbing contractors and individual plumbers.

Check the company on the CCB search and the plumbing license on BCD's license search, which looks up individuals, businesses or license numbers.

Oregon CCB license search ↗ · CCB license search ↗ · BCD license search ↗ · BCD plumbing program ↗

Rebates and credits in Oregon

Oregon Home Energy Rebates (IRA HEAR and HOMES)

Oregon Department of Energy, delivered by Energy Trust of Oregon (PGE and Pacific Power areas) and Earth Advantage (consumer-owned utility areas) · Not launched

Oregon received over $113 million for the two federal rebate programs, but ODOE says no rebates are currently available and there is no application opening date. Contractor enrollment opens October 12, 2026.

HEAR will be limited to households up to 150% of Area Median Income. Launch requires U.S. DOE approval; state pages do not yet list a heat pump water heater amount.

Program details ↗

Energy Trust heat pump water heater incentive

Energy Trust of Oregon · Active

$1,200 for a Tier 3 or higher heat pump water heater installed by a licensed contractor in an existing home, applied as an instant discount through the distributor. DIY buyers get a $1,000 instant discount when buying in store at a participating retailer.

For Portland General Electric and Pacific Power customers. New construction excluded; retail discount limited to one unit per customer and not valid on online orders.

Program details ↗

Energy Trust gas tankless water heater incentive

Energy Trust of Oregon · Active

$400 for an ENERGY STAR gas tankless water heater that replaces an existing gas storage tank water heater.

For NW Natural (and Cascade Natural Gas or Avista) gas customers in Oregon; the unit must be on Energy Trust's qualified products list.

Program details ↗

Federal Energy Efficient Home Improvement Credit (25C)

IRS · Ended

Covered improvements made through December 31, 2025. Not available for 2026 installations.

Program details ↗

Checked September 29, 2026. Utility rebates are only for that utility’s customers. Each city guide shows the rebates for its utilities.

What it costs to run in Oregon

Estimated yearly energy cost at Oregon’s average residential prices: 15.40¢ per kWh (year to date through July 2026) and $16.71 per thousand cubic feet of gas (2025 annual average).

Estimated yearly energy cost by water heater type in Oregon
TypeEfficiency (UEF)Energy per yearEst. cost per year
Gas storage tank0.64174 therms$281
Gas tankless0.93120 therms$193
Electric storage tank0.923,556 kWh$548
Heat-pump tank3.5935 kWh$144

Assumes the Department of Energy’s medium-use test: 55 gallons a day heated 67°F, and typical efficiency ratings for each type. Colder incoming water, larger households and your utility’s actual rates change the result. Sources: EIA Electric Power Monthly, Table 5.6.B ↗ · EIA Natural Gas Prices, residential ↗ · ENERGY STAR test conditions ↗.