Heat pump water heaters qualify for a $2,000 federal tax credit and IRA HEEHR rebates up to $1,750. Solar water heaters qualify for the 30% Residential Clean Energy Credit. Many utilities also offer $200 to $500 rebates.
Are tankless water heaters eligible for tax credits?
Certain high-efficiency gas tankless water heaters may qualify for tax credits if they meet the Uniform Energy Factor threshold. However, heat pump water heaters offer significantly larger incentives.
How much can I save with a heat pump water heater?
Between federal tax credits ($2,000), potential IRA rebates ($1,750), state incentives, and utility rebates, total savings can reach $3,000 to $5,000. Heat pump water heaters also cut water heating costs by 50-70% annually.
Do solar water heaters qualify for the 30% federal credit?
Yes. Solar water heating systems that are certified by the SRCC qualify for the 30% Residential Clean Energy Credit with no cap. The system must provide at least half of your water heating.