Take Advantage of Federal and State IRA Rebate Programs




Here’s a win-win: You can purchase a more efficient water heater to lower your energy costs AND get rebates to save money off that purchase.

Rebates are available right now that can help you save money on the purchase of energy efficient home appliances including water heaters. Part of these rebates are the result of The Inflation Reduction Act (IRA) that was signed into law in 2022. The IRA is touted by its supporters as the largest investment in clean energy in American history.

How Rebates are Managed

As it relates to home appliances, one main program in the IRA is the High Efficiency Electric Home Rebate (HEEHR) program. While much of the funding for this program comes from the federal government, state and tribal governments are entrusted with organizing how the rebates will ultimately be distributed. However, the IRA includes guardrails that state and tribal programs must generally follow. These include:

  • Income requirements for households qualifying for the rebates
  • Rebated products being, at a minimum, ENERGY STAR® certified
  • A $14,000 per household cap on awarded rebates
  • A $1,750 cap on the purchase of a heat pump water heater product

To qualify for the funding allocated in the IRA, state governments must propose their rebate program plans to the United States Department of Energy (DOE) for approval. For an up-to-date status of these rebate programs from state-to-state, visit the DOE website.

How to Save Money on Your Next Water Heater Purchase

Once your state gets its HEEHR program up and running, more rebates will be available to you. This is especially true for appliances like heat pump water heaters, that use advanced technology to heat water more efficiently than ever before. Learn more about the heat pump water heaters offered by Bradford White here.

If you meet the income requirements, these rebates can help you save hundreds or even thousands of dollars on home appliances including water heaters, and even on the labor to install them.

While high-tech innovations like a heat pump water heater have a higher up-front cost, the energy savings they provide will effectively pay for itself over the life of the unit. When you can lower your up-front cost with rebates, the unit can pay for itself even faster – and at that point the energy savings all go into your pocket!

For your convenience, all available rebates and tax credits are listed for you on Bradford White’s Rebate Center, so you can browse the available rebates as you make your water heater purchase decision. To see what rebates are available in your area, visit our Rebate Center.

For more insights and tips on lowering your energy costs and making a smart water heater purchase, stay connected with our blogs. If you’re considering an upgrade or need expert advice, use this tool to find a plumbing professional in your area.

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