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TEXAS

Texas Water Heater
Replacement

Licensing, rebates, running costs and local guides for 163 Texas communities.

Local guides in Texas

Austin area

PlacePermit to replaceFeeElectricCompanies
AustinRequired—Austin Energy11
Round RockRequired$50Retail electric choice10
GeorgetownRequired$50Georgetown Utility Systems (GUS)10
Cedar ParkRequired—Pedernales Electric Cooperative (PEC)10
LeanderRequired$40Pedernales Electric Cooperative (PEC)9
San MarcosRequired$63SMTX Utilities (City of San Marcos Electric Utility)4
PflugervilleRequired$60Oncor (delivery; retail electric provider chosen by customer), Austin Energy8
KyleRequired—Pedernales Electric Cooperative (PEC)6
HuttoRequired$50Oncor7
Brushy CreekRequired (county)—Oncor (delivery; retail electric provider chosen by customer), Pedernales Electric Cooperative (PEC)2
LakewayCheck with city$75Austin Energy, Pedernales Electric Cooperative (PEC)6
Steiner RanchRequired (county)Case by case: WCID 17's Austin Energy3
ManorRequired—Bluebonnet Electric Cooperative, Oncor (delivery; retail electric provider chosen by customer)5
TaylorRequired$40Oncor4
BudaRequired—Pedernales Electric Cooperative (PEC)8
LockhartRequired$125Lockhart Electric Utility (city-owned)2
Wells BranchCheck with city (county)—Oncor (delivery; retail electric provider chosen by customer)2
Hornsby BendCheck with city (county)—Austin Energy1
ElginRequired$75Retail electric choice; Oncor delivery3
BastropRequired$125Bastrop Power & Light (city-owned)3
SonterraCheck with city (county)—Oncor (delivery; retail electric provider chosen by customer)2

Dallas–Fort Worth area

PlacePermit to replaceFeeElectricCompanies
DallasRequired$181Oncor Electric Delivery (wires) with a retail electric provider chosen by the customer8
Fort WorthRequired$10.34Oncor (delivery)12
ArlingtonRequired$100Oncor Electric Delivery (wires) with a retail electric provider chosen by the customer11
PlanoRequired$65Oncor Electric Delivery (with a retail electric provider of your choice), CoServ Electric12
IrvingRequired—Oncor10
GarlandRequired$88Garland Power & Light (GP&L), Oncor (delivery) with retail provider choice9
FriscoRequired$50CoServ Electric, Oncor Electric Delivery (wires) with a retail electric provider chosen by the customer12
McKinneyRequired$40Oncor Electric Delivery (with a retail electric provider), CoServ Electric, Grayson-Collin Electric Cooperative11
Grand PrairieRequired$60Retail electric choice; Oncor delivery11
DentonRequired$50Denton Municipal Electric (DME), Oncor / CoServ9
MesquiteRequired$65Oncor Electric Delivery (wires) with a retail electric provider chosen by the customer9
CarrolltonRequiredBy job value (from $4)Oncor10
LewisvilleRequired$50Retail electric choice; Oncor or TNMP delivery10
RichardsonRequired$100Oncor (delivery)9
AllenRequired$75Oncor Electric Delivery (wires) with a retail electric provider chosen by the customer11
Flower MoundRequired$60Oncor, CoServ9
MansfieldRequired$75Retail electric choice; Oncor delivery8
North Richland HillsRequired$17Oncor (delivery)7
RowlettRequired$75Oncor Electric Delivery (wires) with a retail electric provider chosen by the customer8
EulessRequired—Oncor5
WylieRequired$50Retail electric choice; Oncor delivery9
DeSotoRequired$62.50Oncor (delivery)6
Little ElmRequired$50Oncor Electric Delivery (wires) with a retail electric provider chosen by the customer, CoServ Electric8
BurlesonRequired—Oncor, United Cooperative Services7
RockwallRequired$100Farmers Electric Cooperative, Competitive retail providers7
GrapevineRequired$37Oncor (delivery)8
BedfordRequired—Oncor Electric Delivery (wires) with a retail electric provider chosen by the customer7
Cedar HillRequired$75HILCO Electric Cooperative7
KellerRequired$100Oncor, Tri-County Electric Cooperative7
Haltom CityCheck with city$27.50Oncor (delivery)4
The ColonyRequiredBy job value (from $10)CoServ Electric, Oncor Electric Delivery (wires) with a retail electric provider chosen by the customer, Texas-New Mexico Power (wires)8
WaxahachieCheck with city—Oncor, HILCO Electric Cooperative, Navarro County Electric Cooperative4
CoppellRequired$80Oncor9
LancasterRequired$100Oncor (delivery)7
HurstRequired$60Oncor Electric Delivery (wires) with a retail electric provider chosen by the customer5
DuncanvilleRequired$125Retail electric choice; Oncor delivery6
MidlothianRequired$50Competitive retail (Power to Choose), HILCO Electric Cooperative4
ProsperRequired$100Oncor (delivery), CoServ Electric, Grayson-Collin Electric Cooperative (GCEC)7
Farmers BranchRequired—Oncor Electric Delivery (wires) with a retail electric provider chosen by the customer6
WeatherfordCheck with city$75Weatherford Electric (City of Weatherford municipal utility)6
CleburneRequired$11Competitive retail (Power to Choose), United Cooperative Services2
CelinaCheck with city—Oncor (delivery), CoServ Electric, Grayson-Collin Electric Cooperative (GCEC)5
ForneyRequired$100Oncor Electric Delivery (wires) with a retail electric provider chosen by the customer, Trinity Valley Electric Cooperative, Farmers Electric Cooperative5
GreenvilleRequired$50GEUS (Greenville Electric Utility System)2
SouthlakeRequired$100Oncor, Tri-County Electric Cooperative8
SachseRequired$75Oncor (delivery), Farmers Electric Cooperative9
Balch SpringsRequired$85Oncor Electric Delivery (wires) with a retail electric provider chosen by the customer3
ColleyvilleRequired$100Oncor, Tri-County Electric Cooperative9
PrincetonCheck with city—Retail electric choice; Oncor or TNMP delivery3
University ParkRequired$150Oncor (delivery)7
SaginawRequired$75Oncor Electric Delivery (wires) with a retail electric provider chosen by the customer4
BenbrookRequired$75Oncor5
AnnaRequired$125Retail electric choice; Oncor delivery, Grayson-Collin Electric Cooperative4
CorinthCheck with city—Oncor (delivery) with retail provider choice4
WataugaRequired$70Oncor Electric Delivery (wires) with a retail electric provider chosen by the customer2
FateRequired$75Farmers Electric Cooperative, Oncor1
EnnisRequired$50Oncor2
MurphyRequired—Oncor (delivery), Farmers Electric Cooperative6
TerrellRequired—Oncor Electric Delivery (wires) with a retail electric provider chosen by the customer3
MelissaRequired—Oncor, Grayson-Collin Electric Cooperative (GCEC)6
Royse CityRequired$100Oncor4
CrowleyRequired—Oncor (delivery)5
SeagovilleRequired$75Oncor Electric Delivery (wires) with a retail electric provider chosen by the customer3
White SettlementRequired$20Retail electric choice; Oncor delivery1
Glenn HeightsRequired—Oncor Electric, Hilco Electric Cooperative3
AddisonRequired$50Oncor (delivery)9
Red OakRequired$100Oncor Electric Delivery (wires) with a retail electric provider chosen by the customer4
Highland VillageRequired$25CoServ6
Mineral WellsRequired$20Oncor, United Cooperative Services1
RendonNot required (conditions apply) (county)—Retail electric choice; Oncor delivery1
AzleRequired$65Oncor Electric Delivery (wires) with a retail electric provider chosen by the customer, AEP Texas North (wires) with a retail electric provider chosen by the customer, Tri-County Electric Cooperative6
Forest HillRequired$65Retail electric choice; Oncor delivery1
Trophy ClubRequired$85Oncor3
LantanaRequired (county)—CoServ2
FairviewRequired$100Oncor Electric Delivery (wires) with a retail electric provider chosen by the customer, CoServ Electric, Grayson-Collin Electric Cooperative (GCEC)5
HeathRequired—Oncor Electric Delivery3
HeartlandNot required (conditions apply) (county)—Trinity Valley Electric Cooperative3
RoanokeRequired—Oncor (delivery)6

Houston area

PlacePermit to replaceFeeElectricCompanies
HoustonRequired$34.24CenterPoint Energy Houston Electric (wires) with a retail electric provider chosen by the customer13
PasadenaRequired$15CenterPoint Energy Houston Electric (wires) with a retail electric provider chosen by the customer9
PearlandRequired$60CenterPoint Energy Houston Electric (wires) with a retail electric provider, Texas-New Mexico Power (wires) with a retail electric provider11
The WoodlandsNot required (conditions apply) (county)—CenterPoint Energy Houston Electric (wires) with a retail electric provider chosen by the customer, Entergy Texas8
League CityRequired$75Texas-New Mexico Power (TNMP) (wires) with a retail electric provider, CenterPoint Energy Houston Electric (wires) with a retail electric provider12
Sugar LandRequired$53CenterPoint Energy Houston Electric (wires) with a retail electric provider13
ConroeRequired$75Entergy Texas, CenterPoint Energy7
AtascocitaNot required (conditions apply) (county)—CenterPoint Energy Houston Electric (wires) with a retail electric provider3
BaytownRequired$100CenterPoint Energy Houston Electric (wires) with a retail electric provider9
Missouri CityRequired—CenterPoint Energy Houston Electric (wires) with a retail electric provider chosen by the customer9
SpringNot required (conditions apply) (county)—CenterPoint Energy Houston Electric (wires) with a retail electric provider11
Texas CityRequired$75Texas-New Mexico Power (wires) with a retail electric provider, CenterPoint Energy Houston Electric (wires) with a retail electric provider6
GalvestonRequired$8CenterPoint Energy Houston Electric (wires) with a retail electric provider chosen by the customer, Texas-New Mexico Power (wires) with a retail electric provider5
ChannelviewNot required (conditions apply) (county)—CenterPoint Energy Houston Electric (wires) with a retail electric provider4
FriendswoodRequired$140Texas-New Mexico Power (wires) with a retail electric provider, CenterPoint Energy Houston Electric (wires) with a retail electric provider12
RosenbergRequired$20CenterPoint Energy Houston Electric (wires) with a retail electric provider chosen by the customer6
La PorteRequired—CenterPoint Energy Houston Electric (wires) with a retail electric provider7
Mission BendNot required (conditions apply) (county)—CenterPoint Energy Houston Electric (wires) with a retail electric provider1
FulshearCheck with city—CenterPoint Energy Houston Electric (wires) with a retail electric provider chosen by the customer4
Deer ParkRequired$25CenterPoint Energy Houston Electric (wires) with a retail electric provider9
AlvinRequired$100Texas-New Mexico Power (wires) with a retail electric provider, CenterPoint Energy Houston Electric (wires) with a retail electric provider9
Lake JacksonCheck with city$25CenterPoint Energy Houston Electric (wires) with a retail electric provider chosen by the customer3
KatyRequired$30CenterPoint Energy Houston Electric (wires) with a retail electric provider12
SiennaCheck with city (county)$35CenterPoint Energy Houston Electric (wires) with a retail electric provider3
FresnoNot required (conditions apply) (county)—CenterPoint Energy Houston Electric (wires) with a retail electric provider chosen by the customer4
Pecan GroveNot required (conditions apply) (county)—CenterPoint Energy Houston Electric (wires) with a retail electric provider3
CloverleafNot required (conditions apply) (county)—CenterPoint Energy Houston Electric (wires) with a retail electric provider3
DickinsonCheck with city—CenterPoint Energy Houston Electric (wires) with a retail electric provider chosen by the customer, Texas-New Mexico Power (wires) with a retail electric provider7
AngletonRequired$30CenterPoint Energy Houston Electric or Texas-New Mexico Power (TNMP) (wires), with a retail electric provider3
La MarqueRequired$100Texas-New Mexico Power (wires) with a retail electric provider, CenterPoint Energy Houston Electric (wires) with a retail electric provider4
Cinco RanchNot required (conditions apply) (county)—CenterPoint Energy Houston Electric (wires) with a retail electric provider chosen by the customer3
StaffordRequired$75CenterPoint Energy Houston Electric (wires) with a retail electric provider7
BellaireRequired$44CenterPoint Energy Houston Electric (wires) with a retail electric provider10
AldineCheck with city (county)—CenterPoint Energy Houston Electric (wires) with a retail electric provider chosen by the customer2
HumbleRequired$50CenterPoint Energy Houston Electric (wires) with a retail electric provider8
South HoustonRequired$25CenterPoint Energy Houston Electric (wires) with a retail electric provider5
West University PlaceRequired$100CenterPoint Energy Houston Electric (wires) with a retail electric provider chosen by the customer1
ManvelRequired$107CenterPoint Energy Houston Electric (wires) with a retail electric provider8
SeabrookRequired$100CenterPoint Energy Houston Electric (wires) with a retail electric provider8
TomballRequired$45CenterPoint Energy Houston Electric (wires) with a retail electric provider chosen by the customer9
Santa FeRequired$150CenterPoint Energy Houston Electric (wires) with a retail electric provider6
Iowa ColonyRequiredBy job value (from $75)CenterPoint Energy Houston Electric (wires) with a retail electric provider3
RichmondCheck with city—CenterPoint Energy Houston Electric (wires) with a retail electric provider chosen by the customer10
WebsterRequired$45CenterPoint Energy Houston Electric (wires) with a retail electric provider7
Four CornersNot required (conditions apply) (county)—CenterPoint Energy Houston Electric (wires) with a retail electric provider3
CluteCheck with city—CenterPoint Energy Houston Electric (wires) with a retail electric provider chosen by the customer3
FreeportRequired—CenterPoint Energy Houston Electric (wires) with a retail electric provider3
Galena ParkRequired$35CenterPoint Energy Houston Electric (wires) with a retail electric provider4

San Antonio area

PlacePermit to replaceFeeElectricCompanies
San AntonioRequired$57.50CPS Energy (City of San Antonio-owned)9
New BraunfelsRequired$15New Braunfels Utilities (NBU), Guadalupe Valley Electric Cooperative (GVEC), Pedernales Electric Cooperative8
SchertzRequired$60Guadalupe Valley Electric Cooperative (GVEC), CPS Energy, New Braunfels Utilities8
Timberwood ParkNot required (conditions apply) (county)—CPS Energy5
CiboloRequired$75Guadalupe Valley Electric Cooperative (GVEC)7
Canyon LakeNot required (conditions apply) (county)—Pedernales Electric Cooperative5
SeguinRequired$25City of Seguin Electric Department, Guadalupe Valley Electric Cooperative (GVEC)5
ConverseCheck with city$100CPS Energy8
BoerneCheck with city$31City of Boerne (Boerne Utilities), Bandera Electric Cooperative, Pedernales Electric Cooperative7
Universal CityRequired$110CPS Energy, GVEC9
Live OakRequired$60CPS Energy7
SelmaRequired$75CPS Energy, GVEC, Reliant Energy (Entex)2
Leon ValleyCheck with city$100CPS Energy5
PleasantonRequired$80AEP Texas Central (wires) with a retail electric provider chosen by the customer2
Fair Oaks RanchRequired$60CPS Energy, Pedernales Electric Cooperative4
Scenic OaksNot required (conditions apply) (county)—CPS Energy2

Licensing in Texas

The Texas State Board of Plumbing Examiners licenses plumbers. Under TDLR rules, a plumber may disconnect and reconnect a water heater on an existing circuit; a new or changed circuit needs a licensed electrician.

Texas plumbing license lookup ↗ · TDLR electrician license search ↗ · TDLR electrical compliance guide ↗

Rebates and credits in Texas

Austin Energy heat pump water heater rebate

Austin Energy · Active; limited funding

$1,000 for an ENERGY STAR heat pump water heater with an Energy Factor of 2.0 or higher and at least 40 gallons.

Requires a 6-year warranty and the required permits. Apply within 90 days of purchase.

Program details ↗

Texas Gas Service rebates

Texas Gas Service · Expired

The company says its energy efficiency program has expired and rebates are no longer available. Older gas water heater rebate amounts online are out of date.

Program details ↗

Oncor Marketplace – Heat Pump Water Heater Retailer Coupon

Oncor (Take A Load Off Texas retail products program; marketplace run by CLEAResult) · Active

$500-off coupon for an ENERGY STAR heat pump water heater, reserved through the Oncor Marketplace and used at participating retailers (Home Depot or Lowe's, online or in store).

Home must be served by Oncor's wires, whichever retail electric provider you use; you must verify your utility account before reserving the coupon; Oncor efficiency programs typically run January–November while funds last.

Program details ↗

Heat Pump Water Heater Incentive

CenterPoint Energy · Active

Incentive for replacing an existing electric storage water heater with an ENERGY STAR heat pump water heater. CenterPoint does not publish a dollar amount; it says incentives vary by equipment and to ask participating contractors.

Home in CenterPoint's Houston electric service territory (apartments excluded); the list of approved plumbing professionals is available from CenterPoint on request.

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. Texas has not launched the federal HOMES and HEAR rebates. CenterPoint's Houston gas pages list no residential gas water heater rebate; its gas water heater rebates, $250–$1,000, are Minnesota-only. CPS Energy's STEP home rebates cover HVAC, heat pumps, thermostats, insulation, cool roofs, batteries and pool pumps, but no water heaters. TXU's site lists no residential water heater rebate. Atmos Energy's SmartChoice appliance rebates page says 'Rebates are not applicable in all areas', and its ZIP-code gate would not load for Dallas, so Atmos Mid-Tex (DFW) water heater rebates are unverified. Utility rebates are only for that utility’s customers. Each city guide shows the rebates for its utilities.

What it costs to run in Texas

Estimated yearly energy cost at Texas’s average residential prices: 16.06¢ per kWh (year to date through July 2026) and $19.42 per thousand cubic feet of gas (2025 annual average).

Estimated yearly energy cost by water heater type in Texas
TypeEfficiency (UEF)Energy per yearEst. cost per year
Gas storage tank0.64174 therms$327
Gas tankless0.93120 therms$225
Electric storage tank0.923,556 kWh$571
Heat-pump tank3.5935 kWh$150

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 ↗.