Heat pump (ducted, outdoor unit + air handler) replacement cost in Portland, OR
Installed, 3 ton system
A typical heat pump (3 ton system) costs about $5,800 installed in the Portland area, 1% above the national figure, because HVAC technicians here earn a median $31 an hour against $29 nationally.
Prices by size in Portland
| Size | Low | Typical | High | National typical |
|---|---|---|---|---|
| 2 ton system | $4,000 | $4,900 | $7,000 | $4,850 |
| 3 ton system | $5,150 | $5,800 | $7,750 | $5,750 |
| 4 ton system | $6,700 | $7,250 | $9,550 | $7,150 |
| 5 ton system | $8,050 | $8,600 | $11,150 | $8,450 |
Local labor: what HVAC technicians earn here
| Hourly wage | Portland metro | United States |
|---|---|---|
| 25th percentile | $29 | $23 |
| Median | $31 | $29 |
| 75th percentile | $39 | $37 |
The Portland market
In Portland, Permitting & Development lists water heater replacement as plumbing permit work, and furnaces, heat pumps and AC condensing units as mechanical permit work. Fees follow the city's plumbing and mechanical schedules effective July 10, 2026, with minimums of $161 (plumbing) and $167 (mechanical), and the State of Oregon adds a 12% surcharge. Every permit closes with a final inspection: 399 for plumbing, 699 for mechanical. The recorded owner (not an LLC) may permit their own work; contractors need an Oregon State Plumbing Board license for plumbing or a CCB license for mechanical. Across Oregon, EIA's 2020 housing survey found electricity slightly ahead of gas as the main heating fuel (45% vs 41%), only 49% of homes with central air, and 65% heating water with electricity. Addresses on the Washington side of the metro follow their own city or county rules.
Heat pumps are already the main heating system in about 13% of Oregon homes. Energy Trust of Oregon funds heating incentives for customers of the major local utilities. Oregon's federally funded Home Energy Rebates had not launched as of October 2026, though contractor enrollment opened October 12. Ask for the unit's heating capacity in cold weather and how large the backup heat is, and get the efficiency ratings in writing.
Permits in Portland
| Permit for this job | Yes (source) |
|---|---|
| Fee | Fixture/item-based fees per City of Portland Plumbing and Mechanical Permit Fee Schedules effective July 10, 2026. Individual water-heater and furnace/heat-pump line amounts could not be reliably extracted from the PDFs. Lines confirmed: plumbing valuation-table 'Minimum Fee $161.00'; mechanical 'Minimum Fee $167.00'; mechanical one & two family dwellings '60% of total mechanical permit fee';… |
| Who can pull it | Homeowner allowed (recorded owner, not an LLC) or licensed contractor |
| Inspection | Yes |
Rebates in Oregon
HEAR: announced, not open yet. HOMES: announced, not open yet. Source: Oregon Department of Energy, checked October 13, 2026.
- Energy Trust of Oregon: Heat pump, HPWH and efficiency incentives for PGE, Pacific Power, NW Natural, Cascade, Avista customers
What these programs cover, and other states
Other systems in Portland
Heat pump (ducted, outdoor unit + air handler) cost in other metros
Sources
- Portland, OR permit source (water heater permit)
- Portland, OR permit source (hvac permit)
- Portland, OR permit source (notable local rule)
- Portland, OR permit source: Lists 'Replace a water heater' (plumbing permit) and heating/cooling
- Portland, OR permit source: Mechanical fee schedule effective July 10, 2026; minimum fee $167;
- Portland, OR permit source: Plumbing fee schedule effective July 10, 2026; 'Water heater' line
- Energy Trust of Oregon: residential incentives
- Oregon Department of Energy: Home Energy Rebates
- EIA RECS 2020: Highlights for space heating fuel in U.S. homes by state
- EIA RECS 2020: Highlights for space heating in U.S. homes by state
- EIA RECS 2020: Highlights for air conditioning in U.S. homes by state
- EIA RECS 2020: Highlights for water heating in U.S. homes by state
- BLS OEWS May 2025, Portland-Vancouver-Hillsboro, OR-WA (49-9021 HVAC mechanics and installers)
- DOE Residential CAC & Heat Pumps Direct Final Rule TSD (Dec 2016), Table 8.2.30, split heat pump (2015$; 4-ton interpolated)