Blog

https://youtu.be/1ynqQHg9WH0

The Federal Rebate on High Efficiency Water Heaters for 2023 is a program aimed at encouraging homeowners to upgrade their current water heating system to more energy-efficient models. The rebates are offered as a way to reduce energy consumption and help the environment.

You may not realize this, but less-energy-efficient water heaters are often up to 25% of your energy usage.  A water heater is often the second most expensive appliance to run in your home next to your Air Conditioner or Heating system.  Heating water can use as much electricity as your dishwasher, refrigerator, washing machine, and dryer COMBINED!     

Who is eligible for the water heater rebate?

Homeowners with an existing home that are making an upgrade to their primary residence qualify for this tax rebate. However, new builds and rentals do not qualify for this energy-efficient upgrade.  

What water heaters are eligible for the Federal Tax Rebate? 

To be eligible for the federal tax rebate, water heaters must meet certain efficiency standards set by the government. The list is based on the efficiency rating, known as the UEF.  The UEF stands for the Unified Energy Factor, this is the metric that rates water heater efficiency.  The higher the UEF the more efficient the water heater is and the more energy savings you can expect from it.  

Eligible water heaters will depend on if you have gas or electric as your heating option.

 

Gas water heater options for the Federal Tax Rebate

There are two options for gas water heaters to meet the UEF standard. The most common type of high-efficiency water heater is a tankless or on-demand-type gas water heater, which heats water as it is needed, rather than storing it in a tank.

Tankless Gas Water Heaters

It is amazing how much more efficient gas tankless water heaters are in comparison to a storage-style water heater. While you may not notice huge savings on your energy usage converting to a gas tankless water heater, simply because natural gas is currently such an affordable fuel source.

Tank-style gas water heaters in sizes larger than 50 gallons are becoming obsolete due to their inefficiency compared to tankless units. If you’re in the market for a gas water heater and find that 50 gallons isn’t enough hot water for your home, this is the perfect opportunity to consider upgrading to a gas tankless unit with the Federal Tax Rebate.
Gas tankless water heaters also last longer than tank style water heaters making your investment in the upgrade an easier transition when you consider a gas tankless unit with yearly maintenance will usually last twice as long as a standard tank type water heater so it’s like buying two water heaters in one compact unit.

Condensing Storage Tank Water Heaters

If you choose to stay with a gas tank style water heater you will need to meet or exceed the UEF rating of >  .81 for tanks that are less than 55 gallons and a UEF rating of >  .86 for tanks that are 55 gallons or greater. Condensing storage tank water heaters are some of the few among gas tank-style water heaters that meet this UEF rating. Regardless, checking the UEF rating to confirm it meets the UEF requirement is always a good idea prior to making an upgrade. Not all manufacturers have the same UEF for their similar products.  Many of these do meet the required UEF for the Federal tax rebate. 

If given the option between the tankless and the model and the condensing storage tank model, I will professionally advise going with the tankless.  The tankless is more affordable, offers endless hot water, is about 1/8th the space, and lasts longer. 

Electric water heater options for the Federal Tax Rebate

Hybrid Water Heaters

If your water heater runs on electricity, your option is a heat pump water heater, also known as a hybrid water heater.  The UEF rating on these units is beyond stellar, in fact depending on brand the UEF rating can be as high as 4.8.  This translates to huge financial savings on electricity. Basically what this means is for every dollar spent on heating water, a hybrid unit when operating in the correct mode can produce as much as $4.80 worth of hot water.
Hybrid, or heat pump water heaters are part of the very elite family of electric water heaters that can be purchased in gallon capacities greater than 50 gallons.  If gallon capacity is a concern for your home, hybrid water heaters are available in 65 gallons and 80 gallons, whereas the low UEF rating for standard electric water heaters will soon eliminate the availability of these larger capacity models.

 

How much will I get back for my rebate? 

Amount of Rebate: The amount of the rebate can vary based on the type of water heater and its efficiency rating. The rebate will also depend on the cost of the installation.  The rebate for your gas options will be 30% up to 600.00, while your option for electric, choosing the hybrid the rebate you can apply for is 30% up to $2,000.00.  

 

How do I apply? 

How to Apply: To apply for the rebate, homeowners must purchase and install an eligible high-efficiency water heater and submit proof of purchase and installation to the government. This proof can include receipts, invoices, and manufacturer specifications.

Deadline: The deadline to apply for the federal rebate on high-efficiency water heaters for 2023 is December 31, 2023.

In conclusion, the federal rebate on high-efficiency water heaters for 2023 provides an excellent opportunity for homeowners to upgrade their current water heating system to a more energy-efficient model while receiving a financial incentive. This program not only saves energy but also helps the environment and saves money on energy bills in the long run.

 

Services in Phoenix & Beyond

When you’ve found yourself in need of plumbing services in the Phoenix, Glendale, Scottsdale, or Chandler area, you can trust Robins Plumbing to provide you with prompt and expert care, contact our team today! In addition to our toilet services, we also offer a variety of residential and commercial plumbing services, including: drain cleaning, water heater repair and replacement, sewer camera inspection and locating, backflow prevention, commercial and residential jetting, water treatments, trenchless sewer repair and more. Visit our reviews online to see what others have to say about our local plumbing company!