How to Save Money with New York State Water Heater Rebates

Why New York Promotes Water Heater Rebates

New York State has committed to reducing greenhouse gas emissions and promoting energy efficiency through programs like the Climate Leadership and Community Protection Act (CLCPA) which seeks to reduce economy-wide greenhouse gas emissions 40 percent by 2030 and no less than 85 percent by 2050 from 1990 levels. One way to achieve these goals is encouraging homeowners to install energy-efficient appliances, including more efficient water heaters.

According to the Department of Energy, 18% of your home’s energy use comes from water heating, so, upgrading your water heater can help achieve both financial and environmental savings. That’s why rebates and savings initiatives are offered by the state, to make replacing outdated, inefficient models more affordable for homeowners.

Types of Rebates and Tax Credits Offered

1. NYSERDA (New York State Energy Research and Development Authority) Rebates

NYSERDA offers incentives to encourage energy-efficient upgrades. These rebates are offered through New York State’s Clean Heat program, which encourages residents to switch to heat pump furnaces, air conditioners, and water heaters.

• Rebate Amounts: $700-$1,000 OFF a heat pump water heater purchase and installation (on average).

Eligibility:

• Must reside in New York State.
• Appliances must be ENERGY STAR^® certified.
• Installation must be performed by a participating contractor (approved by NYSERDA).

2. Utility Company Rebates

Many utility companies across New York, including Con Edison, National Grid, NYSEG, and RG&E, also offer rebates for purchasing efficient water heaters.

Rebate Amounts:

• Up to $1,000, depending on the type of equipment and efficiency rating.

Eligibility:

• Residency within the utility’s service areas.
• Proof of purchase and installation for qualifying products.

3. Federal Tax Credits

On top of New York-specific rebates, homeowners may qualify for federal tax credits. Under the Energy Efficient Home Improvement Credit, tax credits are available for eco-friendly upgrades, including high-efficiency water heaters.

• Tax Credit Amount: 30% of certain qualified efficiency improvements
• Up to $600 credit for heat pump water heater purchase

According to the IRS, eligibility is as follows:

• Located in the United States of America
• An existing home, not a new home that you’re currently building
• To qualify, your home must be your primary residence where you live (the majority of the year). This credit is not available to landlords or other property owners who don’t actually live in the home.

You can leverage BOTH IRA tax credits and NYS Clean Heat rebates to maximize your savings on a new, efficient heat pump water heater.

Types of Eligible Water Heaters

To receive rebates, you’ll need to upgrade to water heaters that meet energy efficiency standards. Here are the most commonly eligible types:

1. Heat Pump Water Heaters (HPWHs): These are among the most energy-efficient models available. Learn more about the heat pump water heaters offered by Bradford White here.

   Heat Pump Water Heaters:

   • Use electricity to transfer heat rather than generating it directly.
   • Qualify for most rebate programs, including those from NYSERDA.
   • Save up to 70% more energy compared to traditional electric water heaters.
2. Tankless Water Heaters: Designed to heat water on demand, these units minimize standby heat loss. Because they eliminate the need for a storage tank, they can also save you a lot of space. Check out Bradford White’s Infiniti^® and Kwickshot^® tankless water heaters now.

   Tankless Water Heaters:

   • Deliver on-demand water heating, so there’s no storage tank of hot water.
   • Highly efficient because it only runs when hot water is used, avoiding energy lost in standby heat from storage tanks.
   • Typically eligible for utility rebates when ENERGY STAR^® certified.

How to Apply for Rebates and Credits

Step 1: Check Eligibility

Ensure you meet the specific program criteria for each rebate or tax credit. Criteria often include residency in New York State, proof of equipment purchase, and installation by a certified professional. You can search NYSERDA’s database for rebates here. Bradford White’s Rebate Center will also show you what incentives are available in your area.

Step 2: Research Participating Products

Look for ENERGY STAR® certified or high-efficiency models. The product must meet the standards set by NYSERDA or your utility provider’s rebate program. Learn more about the energy efficient water heaters available from Bradford White.

Step 3: Save Proof of Purchase and Installation

Keep all receipts, documentation, and verification letters from contractors. These are essential when claiming your rebate or tax credit.

Step 4: Submit Your Application

For NYSERDA Rebates:

• Visit the NYSERDA website and follow their application process.
• Work with your contractor, who may help with the submission.

For Utility Rebates:

• Log in to your utility company’s portal and upload your documents.

For Federal Tax Credits:

• Visit this page to learn more. Use IRS Form 5695 when filing your federal income taxes.

Step 5: Receive Your Savings

You’ll either receive a one-time rebate check or tax deduction, depending on the program you qualified for.

Why Upgrade Now?

If your water heater is more than 10 years old, now is the perfect time to replace it with an energy-efficient model. Your older water heater is probably relatively inefficient, and you will likely have to replace it soon anyway. Incentives from New York State could significantly offset upfront costs, making your decision even easier. You’ll save money now, and continue to save with lower energy bills for years to come.

Need a plumbing contractor? NYSERDA provides a list of certified contractors for installations. Be sure to choose one from the approved list to maintain eligibility. Search here to find a Bradford White professional in your area.