Top Heat Pump Water Heater Rebates Available Nationally
A Heat Pump Water Heater (HPWH) is an energy-saving, utility-bill-lowering champion, but its upfront cost can sometimes be a barrier. Standard gas and electric water heaters can cost half to a third as much as a HPWH.
Incentives are key to reducing this initial cost, making it affordable for families to install HPWHs and unlock their significant savings potential (ENERGY STAR estimates that a HPWH saves $500 a year compared to a electric resistance water heater).
We did a scan of the hundreds of HPWH incentives across the US and this article profiles some of the top ones in each region of the country. With the federal tax credit for HPWHs (of up to $2,000) expiring at the end of the year, it’s the perfect time to take advantage of all the funding available to decrease your upfront cost and get your heat pump water heater on.
Northeast
Top rebate — Efficiency Maine: $1,100. Efficiency Maine has long provided some of the top and most consistent incentives for HPWHs, and has the highest rates of HPWH installations in the country as a result. Efficiency Maine is currently offering a $1,100 instant rebate at retailers and distributors. With this generous rebate, HPWHs typically cost under $500. Gold Star for Maine! Learn more here.
Other notable rebates: Massachusetts, Vermont, New York, and National Grid.
Outside of Maine, there are many other great HPWH rebates available in the Northeast.
National Grid: $1,000. If you live in National Grid territory (NY, MA, RI), you can get an exceptional $1,000 incentive.
Vermont: $600–$800. Vermonters have lots of good options for rebates as well. Burlington Electric offers an $800 rebate for most HPWHs, Efficiency Vermont also currently offers a $600 rebate with an additional $400 for income-eligible customers.
Massachusetts and New York: $700–$900. Most homeowners in Massachusetts can receive a $750 rebate when selecting an ENERGY STAR certified unitary HPWH. Interestingly enough, for the emerging split system HPWHs, the rebate increases to $1,500 per system. In New York, homeowners can get a rebate of $700–$900 for HPWHs through the Clean Heat Program.
Midwest
Top rebate — Ameren: $800–$1,150. Ameren leads rebates in the Midwest with an $800 instant rebate for DIY or a $1,150 discount on HPWHs through its contractor program.
Michigan: $850. Another notable mention is Efficiency United through its program partnership with Michigan utilities, which offers an $850 incentive for HPWHs.
Most other Midwest rebates in our scan were between $300–$400. You can look for your utility using ENERGY STAR’s incentive finder.
South
The South is the perfect area of the country for HPWHs, because most existing water heaters are electric resistance, making for an easy switch since the needed electricity is already there. Also, the region’s warm climate means the cooling from HPWHs is a welcome bonus. There are some really good HPWH rebates in the South right now!
Top rebate — Tennessee Valley Authority (TVA): $1,300. TVA’s Energy Right program offers an instant rebate of up to $1,300, which is available through its Quality Contractor Network (QCN) and at participating retail locations (in-store and online).
Georgia Power: $1,000. Home Energy offers a $1,000 rebate (up to 50% of the HPWH cost) to single-family residential consumers.
Dominion Energy: $750, in South Carolina. Provides a $750 rebate for HPWHs, but for replacing electric resistance water heaters only.
Duke Energy, Florida: $500–$800. Duke Energy in Florida provides a rebate of $500 for a 50-gallon HPWH unit and $800 for a 80 gallon unit.
Austin Energy: $800. Austin Energy customers can earn a $800 rebate on a qualifying Energy Star certified HPWH.
West & Northwest Regions
Top Rebate — Northwestern Energy: $3,000. Northwestern Energy, which provides energy to customers in Montana, South Dakota and Nebraska, offers up to a $3,000 instant incentive for customers and a $500 sales performance incentive (SPIF) to contractors for every qualifying installation. They provide free training and assistance to contractors.
Xcel Energy: $750. Xcel Energy in Colorado offers a standard incentive of $750 for a HPWH.
Eugene Water & Electric Board (EWEB): $900 to $1,700. EWEB in Oregon offers a $900 rebate for HPWHs, with a higher incentive of $1,700 for income-qualified owners and $1,000 for rental properties.
Central Electric Cooperative Inc. (CEC): $300 to $1,000. CEC in Oregon has two HPWH rebates: $1,000 for existing homes (in site-built, multi-family, or manufactured homes) that replace an electric water heater, and $300 for new-construction single-family homes or fuel-switching from a non-electric unit.
Seattle City Light: $750. The utility offers a $750 rebate for qualifying HPWHs through three channels: an instant discount passed on by a participating contractor, a digital coupon for DIY purchases at The Home Depot or Lowe’s, or a post-purchase rebate form for units bought from other suppliers.
California
Top Rebate — Sacramento Utility District (SMUD): $2,000–$3,000. SMUD offers tiered rebates of $2,000 (50+ gallon), $2,500 (65+ gallon), and $3,000 (80+ gallon) for replacing a gas water heater with a heat pump model. For electric-to-electric replacements, a $500 rebate is also available. Additionally, they offer an Igo Electric Bonus/Panel Upgrade up to $2,000.
Silicon Valley Clean Energy: Up to $3,000. Customers replacing a gas water heater are eligible for $2,000 HPWH rebates, with that incentive increasing to $3,000 for income qualified customers. For those replacing an electric resistance model, the incentive is $500, and income-qualified customers receive $1,500.
Los Angeles Department of Water and Power (LADWP): $1,500. LADWP provides a significant rebate of up to $1,500 for residential customers who install an ENERGY STAR qualified HPWH.
TECH Clean California: $1,100–$3,500. TECH Clean California offers varying incentives for single-family residents to install a HPWH, with rates based on location and income verification. Market-rate incentives are $1,100 in Northern California and $2,100 in Southern California, while the statewide Equity rate incentive is $3,500 for income-verified customers.
Golden State Rebates: $700–$900. A statewide initiative, the Golden State Rebates program offer up to a $900 instant rebate for customers of California’s largest utilities (SCE, SDG&E, PG&E) who replace natural gas storage tanks with HPWHs. Those replacing an electric storage tank will receive a $500 rebate. Note: Golden State Rebates are on pause until November 1, 2025.
This list is just a taste of some of the best HPWH rebates around the country. Check out ENERGY STAR’s incentive finder if you don’t see your utility on here. Incentives help make heat pump water heaters become an economical and affordable possibility for many more households. So, take advantage of these electrifying rebates and the tax credit while they last!
This article was written by Vidhisha Moopnar and Joe Wachunas.
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