Does Texas Have Water Heater Rebates? A Complete Guide for Homeowners




Did you know your water heater is likely the second largest consumer of energy in your home? By purchasing a more efficient water heater, you can reduce your energy bills, save money every month, and help protect our environment. Fortunately, there are water heater rebate programs available in Texas that can help you save money right now on the purchase of a new, high efficiency water heater.

This blog will break down everything you need to know about these rebate programs, including their benefits, eligibility criteria, how to apply, and the financial and environmental impacts of upgrading to a more energy-efficient water heater.

What Water Heater Rebate Programs are Available in Texas?

Water heater rebate programs are offered in Texas to incentivize homeowners to replace their current water heaters with more energy-efficient models. Rebates are currently available through utility companies, while federal rebates and tax incentives are expected to be available in the Summer of 2025.

Additional Texas rebates may be available. To check what rebates are available in your area, visit our Rebate Center.

Inflation Reduction Act Rebates and Tax Credits

The Federal Inflation Reduction Act authorized the Home Energy Performance-Based, Whole House (HOMES) rebate program and the Home Electrification and Application Rebate (HEAR) program. These programs are designed to provide residential energy efficiency and beneficial electrification rebates to Texans, and will likely offer rebates on qualifying high efficiency water heaters.

Applications for the HOMES and HEAR rebate programs are expected to be available in Summer 2025.

HOMES Rebate Program

The HOMES rebate program incentivizes whole-home retrofits in both single-family and multifamily dwelling units. Efficiency rebates are available to households of any income level, but the rebate amounts are doubled for low- and moderate-income households. Rebate amounts will be determined based on energy savings.

HEAR Rebate Program

The HEAR program is an appliance rebate program. The DOE has not determined which specific appliances will qualify but has indicated they will be ENERGY STAR® certified. Electrification rebates are available only to low- or moderate-income (LMI) households.

Types of Water Heaters Eligible for Rebates

Several types of energy-efficient water heaters will qualify for various rebates in Texas, including:

How to Apply for Rebates

Applying for a water heater rebate is easier than you might think. Here’s a step-by-step guide to smooth the process:

  • 1. Research Local Rebates

Rebates are often offered through utility providers, such as Texas Gas, Atmos Energy, Summit Utilities, Heart of Texas Electric Co-Op (HOTEC), Austin Energy, and Southwestern Electric Power Company. Visit their websites to find detailed program information. Our Rebate Center will show you what rebates are available in your area.

  • 2. Verify Eligibility

Ensure both your household and your water heater model meet the eligibility criteria.

  • 3. Purchase and Install the Equipment

Buy an eligible water heater and ensure it’s installed according to any program-specific guidelines. Your plumbing professional can ensure that the water heater is installed properly, and will often help you with your rebate paperwork.

Don’t have a plumbing professional? Search here to find a Bradford White professional in your area.

  • 4. Collect Documentation

Gather all necessary paperwork, including the sales receipt, proof of installation, and product specifications.

  • 5. Submit Your Application

Complete the application form provided by your utility company or the program website, attaching all required documentation.

  • 6. Receive Your Rebate

Once your application is approved, you’ll receive your rebate either as a check, prepaid VISA® card, or a credit to your utility account.

Tips to Maximize Savings

  • Look for additional state or federal tax incentives for energy-efficient appliances. Visit our Rebate Center to get started.
  • Combine the water heater rebate with other available rebates to further reduce costs.
  • Invest in a model that offers the highest efficiency for long-term savings, such as a heat pump water heater. Check out these models offered by Bradford White.

The Benefits of Upgrading to Energy-Efficient Water Heaters

Significant Energy Savings

Switching to an energy-efficient water heater can lower your energy consumption by up to 50%, resulting in significant cost savings. This is especially true for heat pump water heaters, which use up to 60% less energy than traditional models. These highly efficient water heaters essentially pay for themselves over time.

Environmental Impact

Reducing energy consumption with an energy-efficient water heater also means reducing greenhouse gas emissions. By upgrading to a more efficient model, you are contributing to the state’s efforts toward a more sustainable and greener future.

Increased Home Value

Energy-efficient upgrades can increase your property value, making it more attractive to potential buyers. If you’re thinking about selling your home, purchasing an energy-efficient water heater will add value and make your home more desirable.

Better Performance and Durability

In addition to energy-efficiency, these new models often have advanced features that improve performance and durability. You’ll likely save money in the long run by avoiding frequent repairs or replacements, and you’ll have peace-of-mind knowing your water heater will work well for years to come.

Conclusion

Now is a great time to invest in an energy-efficient water heater and take advantage of available rebates in Texas. You could save money on your initial purchase, lower your energy bill every month, and help create a more sustainable future for your state.

Ready to upgrade to a more energy-efficient water heater? Bradford White’s team can help guide you through the process, give you valuable information about your available options, and help you find a Bradford White professional in your area.

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