Gas Storage Water Heater

Get rebates up to $750 on qualifying gas storage water heaters.

If your water heater is more than 10 years old, it's time to start planning ahead. Avoid the hassles, stress, and high costs associated with water heater breakdowns by upgrading to a qualifying gas storage water heater today!

How To Get a Rebate on a Qualifying Gas Storage Water Heater

Look for PSE&G signage on eligible equipment while shopping at participating retailers. You can apply for a rebate in either of the following ways:

  • Post-purchase rebate: You can purchase a qualifying gas storage water heater from any retailer and submit a rebate form online. Your rebate claim must be submitted within 120 days of purchase.
  • Instant rebate (tier 1 gas storage water heaters only): Verify your eligibility at to receive an instant rebate coupon you can use either in-store at the register or during online checkout when you shop at The Home Depot or Lowe’s .

Instant rebate coupons used in-store or online are only valid in New Jersey. Water heaters purchased from The Home Depot or Lowe’s with an instant rebate coupon are not eligible for an additional post-purchase rebate.

Which Gas Storage Water Heaters Are Eligible for Rebates?

To be eligible for a rebate, the gas storage water heater you purchase must meet the following efficiency criteria:

  • Gas Storage Water Heater – Tier 1 
    • Power vented < 55 gallons
    • Uniform Energy Factor (UEF) 0.64 medium draw pattern; UEF 0.68 high draw pattern
    • $500 rebate available
  • Gas Storage Water Heater – Tier 2
    • Power vented 55 gallons
    • UEF 0.78 medium draw pattern; UEF 0.80 high draw pattern
    • $750 rebate available

Why Upgrade to a High-Efficiency Gas Storage Water Heater?

  1. You'll save energy. Qualifying gas storage water heaters use about 8% less energy compared to standard efficiency gas water heaters.*
  2. You'll save money. A typical family of four could save hundreds of dollars in energy costs over the lifetime of the new unit compared to standard efficiency gas storage water heaters.*
  3. You'll get a rebate. Select models qualify for rebates up to $750.
  4. Available tax credits. High-efficiency gas storage water heaters are eligible for a tax credit up to 30% of your project cost or $600. Visit for eligibility information.    

† PSE&G cannot offer tax advice. The tax credit information contained herein is provided for informational purposes only and is not intended to substitute for expert advice from a professional tax/financial planner or the Internal Revenue Service (IRS). For tax advice, please contact your tax adviser or the IRS.