Evaluating Your Water Heater: Gresham’s Guide to Replacement This Winter

Water Heater Rebates in Oregon: What Homeowners Should Know 

Thinking about replacing your water heater? Before you decide on a system, there’s one important step you shouldn’t skip: checking for rebates

Homeowners in Gresham, Happy Valley, and throughout Oregon may be eligible for hundreds of dollars in savings when upgrading to a more energy-efficient water heater. These incentives come from utility companies, state programs, and federal tax credits—designed to help offset the cost of switching to high-performance systems. 

At Da Vinci’s Best Plumbing, we help clients take advantage of every possible rebate when replacing their systems. In this post, we’ll break down which rebates are available in Oregon, who qualifies, and how to maximize your savings. 

Why Rebates Exist—and Why You Should Take Advantage 

Water heating is the second-largest energy expense in most homes. That’s why energy providers and the government encourage homeowners to switch to efficient systems—they reduce strain on the grid, lower emissions, and save money in the long run. 

By choosing an ENERGY STAR® certified system or a hybrid/heat pump model, you may qualify for: 

  • Direct cash rebates from your local utility provider 
  • State-sponsored energy efficiency programs 
  • Federal tax credits under the Inflation Reduction Act 

The result? You could save $300–$1,000 or more just by choosing the right model—and filing the paperwork correctly. 

Top Oregon Water Heater Rebates in 2025 

Rebates vary by provider and region, but here are some of the most common available this year: 

1. Energy Trust of Oregon (ETO) 

If you’re a customer of Portland General Electric (PGE) or NW Natural, you may be eligible for: 

  • Up to $500 for installing a qualifying heat pump water heater 
  • $300–$400 for tankless natural gas models with 0.90+ Uniform Energy Factor (UEF) 
  • $150–$250 for high-efficiency electric tanks (depending on model and size) 

Da Vinci’s Best Plumbing works with ETO to ensure all qualifying installs are documented properly for fast rebate turnaround. 

2. Oregon Department of Energy (ODOE) 

Through ODOE’s Residential Energy Tax Credit Program (RETC), eligible homeowners may receive: 

  • 30% Federal Tax Credit for ENERGY STAR® certified water heaters (up to $600) 
  • Additional income-based rebates for qualifying households 

These credits apply to both equipment and labor costs—and can be claimed when you file your taxes. 

3. Manufacturer Rebates 

Occasionally, major brands like Rheem, AO Smith, and Navien offer seasonal or promotional discounts. These rebates may include prepaid Visa cards, installation credits, or extended warranty packages. 

We stay current on available offers and notify clients when a brand promotion can increase their savings. 

How to Claim Your Water Heater Rebate 

The process typically involves: 

  1. Choosing a qualifying model (we’ll help with this) 
  1. Having the system installed by a licensed contractor 
  1. Filing documentation, including proof of purchase and installation details 
  1. Submitting your application online or by mail (some programs require both) 

We handle most of this for our customers and can even pre-fill forms to speed up approval. 

For more details on qualifying models and rebate information, visit our Water Heater Replacement page

Who Qualifies for Water Heater Rebates? 

Most rebates apply to homeowners who: 

  • Are replacing an existing water heater (not new construction) 
  • Use a participating utility company (like PGE, Pacific Power, or NW Natural) 
  • Install the system through a licensed contractor like Da Vinci’s Best Plumbing 
  • Choose a model listed on the qualifying product database (ENERGY STAR® or ETO-approved) 

Low- to moderate-income households may also qualify for additional support through Oregon Housing and Community Services (OHCS) or community energy programs. 

How Much Can You Really Save? 

Let’s say you install a $3,800 heat pump water heater: 

  • You qualify for a $500 Energy Trust of Oregon rebate 
  • You receive a $600 federal tax credit 
  • You apply a $100 manufacturer rebate 

Total savings: $1,200—bringing your out-of-pocket cost closer to $2,600. Factor in annual energy savings of $250–$400, and the system pays for itself in just a few years. 

Get Expert Help Navigating Your Rebate Options 

At Da Vinci’s Best Plumbing, we make sure you don’t miss out. We’ll: 

  • Recommend rebate-eligible models 
  • Submit required documentation 
  • Guide you through tax credit forms 
  • Alert you to new or limited-time incentive programs 

The best part? There’s no extra fee—we include rebate assistance as part of your installation package. 

Need a Plumbing Pro You Can Trust? 

Whether you’re in Gresham, Happy Valley, or the Greater Portland area, Da Vinci’s Best Plumbing is your trusted local expert for water heater replacement and rebate-eligible upgrades. 

Contact us today to request a rebate-ready installation quote or learn how much you could save.