Water Heaters Rebates by State - 2026 Guide

Water heater rebates cover heat pump water heaters, solar water heaters, and high-efficiency tankless models. Federal tax credits of 30% plus utility rebates make upgrading very affordable.

Federal Water Heaters Programs

30% up to $2,000/yrThrough 2032
Federal 25C Credit - Heat Pump Water Heater
Federal Government

Tax credit for ENERGY STAR heat pump water heaters.

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Top States for Water Heaters Rebates

States with the most water heaters incentive programs

#StateProgramsCode
1Oregon3OR
2South Dakota3SD
3Virginia3VA
4Delaware2DE
5Kansas2KS
6Kentucky2KY
7Maine2ME
8Maryland2MD
9Minnesota2MN
10Missouri2MO

Frequently Asked Questions

Heat pump water heaters qualify for the most rebates - up to $2,000 federal tax credit plus $1,750 IRA rebate for income-qualified households, plus utility rebates of $200-$800.

Some utility programs offer rebates for high-efficiency tankless water heaters. However, the largest federal incentives are specifically for heat pump water heaters.

Heat pump water heaters typically cost $1,500-$3,500 installed. After federal tax credits and utility rebates, your net cost could be as low as $500-$1,500.

Heat pump water heaters work best in spaces 40-90F. In cold garages, they may use backup electric heating. Many models are designed for semi-conditioned spaces like basements.

Yes, switching from gas to a heat pump water heater may qualify for additional IRA rebates for electrification. You may need to add a 240V outlet but no gas line work is needed.