Heat Pump Water Heater

Get rebates up to $1,000 on qualifying ENERGY STAR® certified heat pump 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 an ENERGY STAR certified heat pump water heater today!

Heat pump water heaters that are ENERGY STAR certified use a highly efficient heat pump to transfer heat from the surrounding air to water in the storage tank. This process uses much less power than traditional water heaters, which helps you save energy and money. 

How To Get a Rebate on a Qualifying ENERGY STAR Certified Heat Pump 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:

  • Instant rebate: Verify your eligibility at instantrebates.pseg.com 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.
  • Post-purchase rebate: You can purchase a qualifying heat pump water heater from any retailer and submit a rebate form online. Your rebate claim must be submitted within 120 days of purchase. Please allow approximately 6 weeks to receive your rebate check, once your completed application and documentation has been submitted and reviewed.

Which Heat Pump Water Heaters Are Eligible for Rebates?

To be eligible for a rebate, the heat pump water heater must be ENERGY STAR certified and have a Uniform Energy Factor (UEF) of 2.0 or 2.2, where a higher value means a more energy-efficient water heater. Specifically: 

  • Models 55 gallons and under must have a UEF of 2.0 or above. 
  • Models larger than 55 gallons must have a UEF of 2.2 or above. 

Visit the ENERGY STAR website to verify if your model meets the efficiency criteria.

Why Upgrade to an ENERGY STAR Certified Heat Pump Water Heater?

  1. You’ll save energy. An ENERGY STAR certified heat pump water heater uses 70% less energy compared to standard models.*
  2. You’ll save money. A typical family of four could save up to $550 per year in energy costs compared to standard electric water heaters.* Although an ENERGY STAR certified heat pump water heater costs more upfront, the savings can pay back the difference in around three years.
  3. You’ll get a rebate. Select models qualify for rebates up to $1,000.
  4. Available tax credits. ENERGY STAR certified heat pump water heaters are eligible for a tax credit up to 30% of your project cost or $2,000.†

Is an ENERGY STAR Certified Heat Pump Water Heater Right for You? 

In most homes, an ENERGY STAR certified heat pump water heater can be installed right where your current water heater sits—making it a smart, convenient option. See if an ENERGY STAR certified heat pump water heater is the best choice for your home with our new, mobile friendly Water Heater Replacement Guide. 

Eligibility 

  • Customers applying for a rebate must have an active PSE&G residential electric account. Commercial and multi-family properties are not eligible.
  • The model number must be listed on the application or invoice. If the model number is not listed on the invoice/receipt, a SKU or item number corresponding to the model number on the store’s website must be available.
  • Rebate claim must be submitted within 120 days of purchase.
  • Refurbished appliances, open-box appliances, and leased appliances do not qualify. This applies to all rent-to-own appliances, lease-to-own appliances, and appliances in layaway at stores such as Rent-A-Center and Aaron’s. If the receipt shows the terms “lease to own” or “rent to own,” then a balance owed of $0 also must be shown, or the appliance must be paid for (upfront and in full) to qualify for a rebate.
  • The rebate amount cannot exceed the value of the purchase.
  • Equipment purchased from any utility’s online marketplace is not eligible for a rebate.
  • Limit of one rebate annually per account for each heat pump water heater.
  • Heat pump water heaters purchased from The Home Depot or Lowe’s with an instant rebate coupon are not eligible for an additional post-purchase rebate.
  • Instant rebate coupons used in-store or online are only valid in New Jersey.

 

* energystar.gov

† 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.