Water Heater Upgrades: Guide to Rebates and Tax Credits

According to the EIA (U.S. Energy Information Administration), the U.S.'s primary energy consumption (or "raw fuels" that can either be used directly or converted into other forms of energy) comprised 16% of primary energy consumption worldwide in 2021. In the same year the U.S. accounted for roughly 4% of the entire world's population, but had the 10th largest per capita (per person) for primary energy consumption in the world. The consumption of primary energy sources such as natural gas and LP gas have led to increased environmental concern due to sourcing methods, transportation, and risk of leaks which can increase methane emissions (Source: EIA).

In the 1960s, concerns about water and air pollution in the United States led to the establishment of the EPA (Environmental Protection Agency) in 1970. Approximately 22 years later, the EPA launched its Energy Star program; this mixed public-private partnership's goal is to establish guidelines for energy efficiency and to identify appliances that comply with such guidelines. Ultimately, their goal is to work with manufacturers to reduce greenhouse gas emissions (Source: EPA Origins). The program initially focused on computers and display screens, but has since expanded to nearly every major and minor appliance one can think of, including water heaters. Energy Star first added its water heater category in 2009 and introduced its commercial water heater category in 2013 (Source: Energy Star: Our History).

Bottom Line: Water heater replacement can improve efficiency in both residential and commercial buildings, meaning lower monthly utility bills and decreased greenhouse gas emissions. In an effort to encourage consumers to consider switching to hybrid heat pump water heaters and other more energy efficient water heaters, the U.S. government, utility companies, hardware stores, and even water heater manufacturers are offering an array of tax credits and rebates. Each tax incentive and rebate program has its own specifications, requirements, and time constraints; however, many heat pump and tankless water heaters qualify for money back.

Need to review the basics before jumping into tax incentives and rebates? Review our guide to water heater efficiency and blog about heat pump water heaters (HPWH)!

Residential + Commercial Tax Rebates for Water Heaters

Inflation Reduction Act

Nicor Energy Rebates (Residential and Commercial)

Thinking About Making the Switch? Get Instant Savings on Select Heat Pump Models at Menards through July 2023

Install a New Energy Efficient Water Heater with uswhpro

Contact U.S. Water Heating Solutions to get a quote on new water heater installation today. Don't forget to mention your interest in upgrading to a new energy efficient model to take advantage of the rebates! You can buy your own water heater and have us install it, or have us do all the heavy lifting.