What water heater rebates pay in Tacoma
We read Tacoma Power's electric hybrid water heater page on October 6, 2026. The page also lists a zero percent loan but we did not read the loan amount, so we do not quote one.
Tacoma Power electric hybrid water heater
For replacing a standard electric water heater with a Tier 3 or Tier 4 model on the Bonneville Power Administration's qualified list. You need permits before installation and the unit must be installed to the maker's instructions.
State home electrification rebates
The City of Tacoma received $637,000 and Pierce County $500,000 for rebates to households at or below 150 percent of area median income, with heat pump water heaters on the covered list.
Federal tax credit
The IRS says the residential clean energy credit does not apply after 2025.
Working it out
If a qualifying unit and its installation cost $2,800, which is only an example, the $500 rebate leaves $2,300. Tacoma Power says a hybrid unit can save about $350 a year compared with a standard electric tank, and that it uses 60 percent less energy. At $350 a year, a $2,300 cost would take about seven years to earn back from savings alone. Those are Tacoma Power's estimates, not a guarantee for your home.
Why the rebate says electric
Tacoma Power only pays when you replace a standard electric water heater. The US Census Bureau's American Community Survey (2020 to 2024) says about 63 percent of Tacoma homes use electricity as their main heat, and many electrically heated homes also use electric water heaters, but the survey does not count water heaters, so check your own tank. A gas tank does not qualify. If your gas tank is old, ask Tacoma Power before you plan a switch.
What Tacoma Power says about hybrids
Tacoma Power's page says a standard electric water heater is the second-largest energy user in a home, after heating. It says replacing one with a hybrid can save about $350 a year, that hybrid units use 60 percent less energy and that they come with a 10-year limited warranty, compared with six years for a standard electric tank. It also says a hybrid has an electronic display with four operating modes, including a vacation mode. These are the utility's own statements. Ask the maker of any model you consider for its warranty in writing.
Rules to follow
Get all permits before installation, follow the water heater program specifications and make sure the model is on the Tier 3 or Tier 4 list. You can request the rebate online or by paper form, and you need to include a copy of your receipt. You must be a Tacoma Power customer. The page says you can hire a contractor or buy and install your own unit, which is different from Tacoma Power's heat pump and insulation rebates, where do-it-yourself work is not eligible.
A hybrid water heater works best in a room with enough space around it. Ask whoever installs it where the cold air will go and whether the room will stay warm enough in winter.
How to claim a Tacoma water heater rebate
- Check that your current water heater is a standard electric tank and that Tacoma Power serves your home.
- Pick a Tier 3 or Tier 4 model from the qualified list.
- Get permits before installation.
- Install the unit following the maker's instructions, or hire a licensed installer.
- Send the online or paper rebate form with a copy of your receipt.
Common questions
How much is the Tacoma Power water heater rebate?
$500 for replacing a standard electric water heater with a Tier 3 or Tier 4 electric hybrid water heater.
Can I install it myself?
Yes. Tacoma Power says you can hire a contractor or buy and install your own unit, as long as permits are in place and the maker's directions are followed.
Do I need to be a customer?
Yes. You must be a Tacoma Power customer.
How much could I save?
Tacoma Power says about $350 a year compared with a standard electric tank. That is the utility's estimate.
Is there a federal credit?
No. The IRS says it ended after 2025.
What to do next
See the Tacoma heat pump page or return to the Tacoma rebate hub.
By Sam Menard. Sources, last read October 6, 2026: Tacoma Power electric hybrid water heater, Washington Commerce HEAR program, IRS Residential Clean Energy Credit. All Tacoma rebates → Every Tacoma Power rebate →