COSTCHECK

Rebate Guide

Water Heater Rebates & Incentives (2026)

The federal 25C tax credit expired after 2025. Utility and state programs continue. Here's what's available by market.

Federal Tax Credit — Expired

The Section 25C credit (30%, up to $2,000 for heat pump water heaters) expired December 31, 2025. Water heaters installed in 2026 do not qualify for a federal tax credit. The HEAR program (up to $1,750, income-qualified) is pending launch in most states.

Active Utility Rebates by Market

Albany, NY

NYSERDA Heat Pump Water Heater Rebate

NYSERDA

Must use a NYSERDA-approved installer. ENERGY STAR certified unit required.

Program details
Up to $700

National Grid Rebates

National Grid

Must be a National Grid electric customer.

Program details
Up to $1,250
Columbus, OH

AEP Ohio Water Heater Rebate

AEP Ohio

Must be an AEP Ohio customer. ENERGY STAR certified unit required.

Program details
$400 flat rebate
Raleigh, NC

Duke Energy Heat Pump Water Heater Rebate

Duke Energy

Must be a Duke Energy customer. Home Energy Check required.

Program details
$500 (50 gal) / $800 (80 gal)
Denver, CO

Xcel Energy Heat Pump Water Heater Rebate

Xcel Energy

Must be an Xcel Energy customer. ENERGY STAR certified heat pump water heater. No income qualification required.

Program details
$2,250 flat rebate

Power Ahead Colorado

State of Colorado

Household income below 150% area median income. HEAR program — availability pending.

Program details
Up to $1,750 (income-qualified)
Portland, OR

Energy Trust of Oregon Heat Pump Water Heater

Energy Trust of Oregon

Must use a Trade Ally contractor. Available to all PGE and Pacific Power customers.

Program details
Up to $1,200 (contractor install)
Rochester, NY

NYSERDA Heat Pump Water Heater Rebate

NYSERDA

Must use a NYSERDA-approved installer. ENERGY STAR certified unit required.

Program details
Up to $700

RG&E / NYSEG Rebate

RG&E / NYSEG

Must be an RG&E or NYSEG electric customer.

Program details
Up to $1,250
Tampa, FL

TECO Energy Rebate

Tampa Electric (TECO)

Program details
Up to $550

Peoples Gas Rebate

Peoples Gas

$550 for tank replacing electric, $350 for tank replacing gas.

Program details
Up to $700
Verified October 2026. Amounts change — confirm with provider before relying on these figures.

Markets — Rebate Status Unknown

Pittsburgh, PACheck local utility

Frequently Asked Questions

Is there still a federal tax credit for water heaters in 2026?▼
No. The Section 25C Energy Efficient Home Improvement Credit — which covered 30% of cost up to $2,000 for qualifying heat pump water heaters — expired after December 31, 2025. State and utility rebate programs continue independently.
What water heater rebates are available in 2026?▼
Utility rebates range from $400 to $2,250 depending on your provider. Xcel Energy (CO) offers $2,250, National Grid/RG&E (NY) up to $1,250, Energy Trust of Oregon up to $1,200, Duke Energy (NC) $500–$800, and AEP Ohio $400. HEAR rebates (up to $1,750, income-qualified) are pending in most states.
Do rebates apply to all water heater types?▼
Most 2026 rebates apply only to heat pump (hybrid) water heaters that are ENERGY STAR certified. Standard gas and electric tank water heaters rarely qualify for utility rebates. Some gas utilities offer rebates for high-efficiency gas units.
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