Rebates for Tankless Water Heaters: A Guide to Savings and Incentives

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Tankless water heaters are a fantastic way to save energy and money, and with the right incentives, you can make the switch even more affordable. Many utility companies offer rebates for tankless water heaters, ranging from $50 to $500.

These rebates are usually tied to energy-efficient models, which can save you up to 30% on your water heating costs. In some areas, you can even get a rebate for the installation of a tankless water heater.

Some utility companies also offer special promotions and discounts for customers who switch to tankless water heaters. For example, Pacific Gas and Electric Company (PG&E) offers a $300 rebate for customers in California.

Rebate Information

You can receive a $400 rebate from UGI for purchasing and installing an ENERGY STAR certified natural gas tankless water heater in your home.

The application process is straightforward, and you can claim your rebate online or by printing an application to mail in. You'll need to submit the application within 90 days of installation, along with a copy of an invoice showing the manufacturer, model number, quantity, and total price.

The program is open to UGI residential gas customers in Pennsylvania, and the rebate is available for qualifying equipment installed prior to September 30, 2026, pending available funds.

Check Rebate Status

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To check the status of your rebate, you'll need to head to the designated link and enter the confirmation number you received when you initially submitted your application.

This confirmation number is crucial, as it allows you to see if your application has been processed and closed, which typically takes 14-21 business days to receive a check.

You can access an existing rebate application by selecting the relevant link, and then simply enter your confirmation number to check the status and make any necessary changes.

If you're unsure about the status of your rebate, don't hesitate to reach out for assistance – it's always better to be safe than sorry when it comes to keeping track of your rebate application.

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Savings at a Glance

Tankless water heaters use about 9% less energy compared to conventional water heaters.

By installing a tankless water heater, you can save a family of four $95 per year on gas bills, or $1,800 over the lifetime of the water heater.

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Qualifying tankless water heaters may be eligible for a tax credit of 30% of your project costs, up to $600, if they have a Uniform Energy Factor (UEF) rating ≥ 0.95.

A tankless water heater can deliver savings on monthly energy bills, ranging from 8% to 34% according to the U.S. Department of Energy.

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Benefits of Tankless Water Heaters

Tankless water heaters offer numerous benefits, making them a smart choice for homeowners. They provide an endless flow of hot water, eliminating the need for a tank to fill up with enough hot water. This is especially useful for families, who can save $95 on natural gas bills per year.

Compact design is another advantage of tankless water heaters. They are small and wall-mounted, leaving more versatility for placement in your home. This is a significant improvement over bulky tank-type water heaters.

By choosing a tankless water heater, you can enjoy long-term cost savings. According to the U.S. Department of Energy, they can deliver savings on monthly energy bills, ranging from 8% to 34%. This can lead to a quick return on investment when factoring in tax credits and energy savings.

Why Choose?

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Tankless water heaters provide an endless flow of hot water, heating it on demand and eliminating energy losses that occur in storage tank water heaters.

You can save money on your natural gas bills with an ENERGY STAR certified tankless water heater - a family of four can save $95 per year.

Their compact design allows for more versatility in placement, as gas tankless water heaters are small and wall-mounted.

This means you can place them in a location that suits your home's layout, unlike bulky tank-type water heaters that take up more space.

Qualifying tankless water heaters are eligible for a $500 post-purchase rebate if they have a Uniform Energy Factor (UEF) rating of 0.87 or higher.

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Long-Term Cost Savings

A tankless water heater can deliver savings on monthly energy bills, ranging from 8% to 34% according to the U.S. Department of Energy. This means you can expect significant reductions in your energy costs.

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Qualifying tankless water heaters use about 9% less energy compared to conventional water heaters. This is a notable difference that can add up over time.

A family of four can save $95 on natural gas bills per year with an ENERGY STAR certified tankless water heater. That's money you can put towards other important things.

Tankless water heaters with a Uniform Energy Factor (UEF) rating ≥ 0.95 may be eligible for a tax credit of 30% of your project costs, up to $600. This can help offset the initial cost of installation and make the switch even more worthwhile.

Environmental Impact

Tankless water heaters are a game-changer for the environment. They reduce energy consumption, which translates to a lower carbon footprint and a more sustainable home.

By only heating water when it's needed, tankless water heaters eliminate the energy waste of heating unused water. This can make a significant difference in your energy bills and your home's environmental impact.

Reduced energy consumption also means less greenhouse gas emissions, contributing to a cleaner and healthier planet.

Incentives and Credits

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Tankless water heaters can be a cost-effective choice in the long run, but the up-front cost can be a barrier for many homeowners. The federal government has incentivized the adoption of energy-efficient appliances, including tankless water heaters, through tax credits.

The Federal Water Heaters Tax Credit offers a 30% credit on the project cost, including installation, with a maximum of $600, for tankless water heaters installed in existing homes by December 31, 2032. Many states also have their own tankless water heater tax credit programs, which can vary in terms of eligibility and credit amount.

Some utility companies, like UGI, offer rebates for tankless water heaters. For example, UGI provides a $400 rebate for purchasing and installing an ENERGY STAR certified natural gas tankless water heater. Additionally, some natural gas water heater models may be eligible for up to $600 in tax credits under the Inflation Reduction Act.

To claim your rebate, you'll need to submit an application online or by mail, along with a copy of your invoice showing the manufacturer, model number, quantity, and total price. The application must be submitted within 90 days of installation, and the program is open to UGI residential gas customers in Pennsylvania who install qualifying equipment prior to September 30, 2026.

Eligibility and Requirements

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To qualify for a rebate, your tankless water heater must have a Uniform Energy Factor (UEF) rating of 0.87 or higher. This is a key requirement that ensures your new water heater meets energy efficiency standards.

You must have an active PSE&G residential gas account to apply for a rebate. Commercial and multi-family properties are not eligible.

To submit your rebate claim, you'll need to provide the model number of your tankless water heater. This number must be listed on the application or invoice, or you can use the SKU or item number from the store's website.

You have 120 days from the date of purchase to submit your rebate claim. Your receipt or invoice must include the day, month, and year of purchase.

Refurbished appliances, open-box appliances, and leased appliances don't qualify for rebates. This includes rent-to-own and lease-to-own appliances from stores like Rent-A-Center and Aaron's.

The rebate amount cannot exceed the value of your purchase. So, be sure to keep this in mind when applying for a rebate.

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Here are some key eligibility requirements at a glance:

  • UEF rating ≥ 0.87
  • Active PSE&G residential gas account
  • Model number or SKU listed on application/invoice
  • Receipt/invoice with date of purchase
  • New appliance, not refurbished or leased
  • Rebate amount ≤ purchase value

Remember, you can only receive one rebate per year per account for each water heater.

Installation and Efficiency

To qualify for rebates, your tankless water heater must meet specific energy efficiency standards, which typically means an Energy Factor (EF) rating above a certain number.

Proper installation is crucial, and for some incentives, using a professional installer certified by the manufacturer may be required.

Keeping detailed records of the purchase, including the model number, energy efficiency rating, and the installer's certification, is essential to ensure you can claim your rebate.

Installation Guidelines

Proper installation is key to qualifying for incentives, so it's essential to follow the manufacturer's guidelines.

Using a professional installer certified by the manufacturer may be required for some tax credits and rebates.

Keeping documentation of the purchase, including the model number, energy efficiency rating, and the installer's certification, is crucial.

You can find a certified installer in your area through the manufacturer's website or by searching online.

Energy Efficiency Standards

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To meet energy efficiency standards, tankless water heaters must have an Energy Factor (EF) rating above a specified number. This ensures a notable improvement in energy use over standard models.

The Energy Factor rating is a key indicator of a tankless water heater's efficiency. It's a measure of how much hot water the system can produce while using a minimum amount of energy.

For any tax credit or rebate, the installed tankless water heater must meet these energy efficiency standards. This typically requires an EF rating above a certain number.

Not meeting these standards can mean missing out on potential tax credits or rebates. It's essential to check the EF rating before purchasing a tankless water heater.

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Tom Tate

Lead Writer

Tom Tate is a seasoned writer and editor, with years of experience creating compelling content for online audiences. He has a talent for distilling complex topics into clear and concise language that engages readers on a deep level. In addition to his writing skills, Tom is also an expert in digital marketing and web design.

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