Quick quiz: how water heating works
Ten questions on the technology. Tap an answer to see why.
A heat pump water heater pulls heat from the air around it and uses it to heat water. That takes much less electricity than a regular electric tank.
Programs pay for specific models, and some only pay when you replace an electric or gas tank. Space matters too, because the unit needs room and air around it. Ask your installer where it will go, and check the program page for the list of eligible models.
What to check before you buy
- Is the model on the list? Rebates are for certain models.
- What you are replacing. Some programs pay only for replacing an electric tank. Others also cover gas.
- Where it goes. The unit needs space and airflow. A closet or a cold basement may not work.
- Other measures. Some programs pay only when you do a second upgrade at the same time.
- The installer. Many programs need a licensed or trained company.
Open heat pump water heater rebates, region by region
Each row is an open program today. Amounts are the most a program pays, and many depend on your home, your income or your utility, so use the calculator for your own number.
| Where | Program | Pays | Source |
|---|---|---|---|
| British Columbia | BC Hydro heat pump water heater rebate | up to $1,000 (CAD) | Official page, checked Oct 2, 2026 |
| New Brunswick | Total Home: heat pump water heater | up to $550 (CAD) | Official page, checked Oct 21, 2026 |
| New Brunswick | Total Home: drain water heat recovery | up to $400 (CAD) | Official page, checked Oct 21, 2026 |
| Nova Scotia | Efficiency Nova Scotia: heat pump water heater | up to $800 (CAD) | Official page, checked Oct 3, 2026 |
| Ontario | Home Renovation Savings: heat pump water heater | up to $500 (CAD) | Official page, checked Oct 3, 2026 |
| California | SMUD heat pump water heater | up to $4,000 (USD) | Official page, checked Oct 2, 2026 |
| California | Glendale Water & Power: heat pump water heater | up to $4,000 (USD) | Official page, checked Sep 28, 2026 |
| California | LADWP heat pump water heater | up to $2,500 (USD) | Official page, checked Oct 2, 2026 |
| California | Burbank Water & Power: heat pump water heater | up to $1,500 (USD) | Official page, checked Oct 2, 2026 |
| California | Pasadena Water & Power: heat pump water heater | up to $500 (USD) | Official page, checked Sep 28, 2026 |
| Illinois | ComEd heat pump water heater | Up to $750 (USD) | Official page, checked Oct 6, 2026 |
| Illinois | Peoples Gas tankless or indirect water heater | up to $150 (USD) | Official page, checked Oct 6, 2026 |
| Illinois | Nicor Gas water heater | up to $150 (USD) | Official page, checked Oct 6, 2026 |
| Massachusetts | Mass Save: heat pump water heater | up to $750 (USD) | Official page, checked Sep 26, 2026 |
| Michigan | Ann Arbor A2ZERO heat pump water heater | $1,000 ($2,000 lower income) (USD) | Official page, checked Oct 6, 2026 |
| Michigan | Lansing BWL heat pump water heater | $500 to $1,000 (USD) | Official page, checked Oct 10, 2026 |
| Minnesota | CenterPoint gas water heater | up to $1,000 (USD) | Official page, checked Oct 6, 2026 |
| Minnesota | Xcel Energy heat pump water heater | up to $500 (USD) | Official page, checked Oct 6, 2026 |
| Minnesota | Rochester Public Utilities heat pump water heater | up to $400 (USD) | Official page, checked Oct 6, 2026 |
| Minnesota | Minnesota Power heat pump water heater | up to $300 (USD) | Official page, checked Oct 6, 2026 |
| Minnesota | Xcel Energy gas water heater | up to $250 (USD) | Official page, checked Oct 6, 2026 |
| New Jersey | JCP&L heat pump water heater | up to $750 (USD) | Official page, checked Oct 6, 2026 |
| New Jersey | Atlantic City Electric heat pump water heater | up to $750 (USD) | Official page, checked Oct 6, 2026 |
| New York | PSEG Long Island heat pump water heater | up to $1,200 (USD) | Official page, checked Oct 3, 2026 |
| Pennsylvania | PPL Electric heat pump water heater | up to $400 (USD) | Official page, checked Oct 6, 2026 |
| Pennsylvania | PECO heat pump water heater | up to $350 (USD) | Official page, checked Oct 5, 2026 |
| Washington | Clark Public Utilities heat pump water heater | up to $1,500 (USD) | Official page, checked Oct 6, 2026 |
| Washington | PSE heat pump water heater | up to $1,000 (USD) | Official page, checked Oct 6, 2026 |
| Washington | Seattle City Light heat pump water heater | up to $750 (USD) | Official page, checked Oct 6, 2026 |
| Washington | Avista heat pump water heater discount | up to $500 (USD) | Official page, checked Oct 6, 2026 |
| Washington | Tacoma Power electric hybrid water heater | up to $500 (USD) | Official page, checked Oct 6, 2026 |
Start with these guides
QuizMyth or true?Heat Pump Myths, Busted: 6 Things Your Brother-in-Law Got Wrong
Questions to ask99 Questions That Make a Heat Pump Installer Sweat (In a Good Way)
Ways to lose it77 Sneaky Ways to Lose Your Rebate (and the Easy Fix for Each)
- Guide9 Ontario home energy rebates you can claim in 2026
- GuideOntario Home Renovation Savings Deadlines for 2026
- GuideStacking BC Rebates: Solar, Heat Pump and Water Heater
- GuideSMUD Rebates 2026: Heat Pump $1,000 to $3,000 and More
- GuideMassachusetts and New York Rebate Deadlines for 2026
- GuideThe $575 You Save Without Doing Anything Different
Common questions
Is a heat pump water heater loud?
Models differ. Ask for the sound rating, and ask where the unit will be installed.
Can I use one in a condo?
Some programs exclude condos and apartments. Check the official page for your home type.
How is it different from a regular tank?
It heats water with warm air from the room rather than only with an electric element.
Where do I start?
Pick your city in the rebate finder to see what is open there.
Sources, read October 21, 2026: Home Renovation Savings: heat pump water heater, BC Hydro rebates, British Columbia: BC Hydro heat pump water heater rebate, New Brunswick: Total Home: heat pump water heater, Nova Scotia: Efficiency Nova Scotia: heat pump water heater, California: SMUD heat pump water heater.