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Water Heater Tax Rebates

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Water Heater Tax RebatesTax rebates make now the time buy a new hot water heater

Federal Tax Rebates

You can save receive a tax rebate up to $1500 for the purchase of qualifying water heaters.
  • Qualifying Gas, Oil, Propane. Water Heaters must have Energy Factor greater than or equal to 0.82
  • Qualifying Electric Heat Pump. Water Heaters must have same criteria as ENERGY STAR: Energy Factor greater than or equal to 2.0

Local rebates through SDGE

SDG&E® offers rebates on qualifying ENERGY STAR® natural gas and electric storage water heaters.

When purchasing a new water heater, choose an energy-efficient model. A water heater's energy efficiency is rated by its Energy Factor (EF) - a metric that rates energy performance.

  • $30 rebate on Gas Storage Water Heaters (30-gallon minimum. Must have an EF rating of .62 or higher)
  • $30 rebate on Electric Storage Water Heaters(30-gallon minimum. Must have an EF rating of .93 or higher)
Water heating is typically the second largest energy expense in your home, after heating and cooling.
  • Gas water heater costs account for as much as 16% of the average utility bill.
  • Electric water heater costs account for as much as 33% of the average utility bill
  • If your gas water heater is more than 10 years old, it probably has an efficiency level no higher than 50%, which means that a lot of that energy is going to waste.
  • Replacing your old water heater with a newer energy-efficient model should result in a lower monthly cost. For example, a 40-gallon gas condensing ENERGY STAR-rated water heater with a .62 EF can save about 25% on water heating costs.

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