Understanding the California Water Heater Rebate Programs

What Water Heater Rebate Programs are Available in California?

These water heater rebate programs are offered in California to incentivize homeowners to replace their traditional water heaters with more energy-efficient models. They’re part of the state’s broader effort to cut down energy consumption, reduce greenhouse gas emissions, and promote sustainability in residential buildings. The following programs will soon be available:

• Home Electrification and Appliance Rebates (HEEHRA): Also part of the Inflation Reduction Act, HEEHRA offers residential equipment and appliance rebates for income-qualified multifamily and single-family homeowners.

  Rebates are only available through a HEEHRA TECH Clean California trained and enrolled contractor. All appliances and equipment must be ENERGY STAR^® certified unless otherwise noted.

  Information on the rebate application process, income requirements, qualifying equipment, and contractor training are available on TECH Clean California’s HEEHRA Program page.

  A tool to verify your household income eligibility is available at the HEEHRA Income Portal.

• Golden State Rebates: The Golden State Rebates program is funded by California utility customers and implemented by various utility providers. They offer instant savings on energy efficient products including up to a $900 instant rebate on a heat pump water heater.

• Home Efficiency Rebates (HOMES): This program has been launched by the California Energy Commission (CEC) as part of the Federal Inflation Reduction Act (IRA) Residential Energy Rebate Program.

  HOMES funding will be split between two programs:

  • The CEC’s Equitable Building Decarbonization Direct Install Program (expected to launch in 2025) provides no-cost upgrades for low-income residents and A statewide Pay for Performance Program (expected to launch in 2025/2026) will offer rebates which will be based on actual measured energy savings, available to Californians of all income levels.
  • The Department of Energy (DOE) has allocated $291 million to California for HOMES rebates and program administration.

Before committing to a purchase, check with your local utility or rebate provider to confirm the specific eligibility criteria. To see what rebates are available in your area, visit our Rebate Center.

Types of Water Heaters Eligible for Rebates

Several types of energy-efficient water heaters qualify under California’s water heater rebate programs, including:

• Heat Pump Water Heaters (HPWHs): These are among the most energy-efficient models available. Heat Pump Water Heaters use advanced technology to heat water much more efficiently than conventional electric water heaters. Learn more about the heat pump water heaters offered by Bradford White here.
• 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.

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 PG&E, Southern California Edison, or local municipal energy offices. 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 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.