Upgrading to energy-efficient plumbing equipment, such as water heaters, can lead to significant savings on utility bills and reduce environmental impact. Pennsylvania residents have access to various rebates and incentives that make these upgrades more affordable. This article outlines state-wide and utility-specific programs available to help you invest in energy-efficient water heating solutions.​

State-Wide Rebates and Incentives

While Pennsylvania does not currently offer a state-wide rebate program specifically for energy-efficient water heaters, residents can benefit from federal tax credits under the Inflation Reduction Act (IRA). The IRA provides a 30% tax credit on the cost of installing qualifying heat pump water heaters, up to $2,000 annually, through 2032. For more details, visit the ENERGY STAR Heat Pump Water Heaters Tax Credit page.​

Utility Company Rebates

Several Pennsylvania utility companies offer rebates for customers who upgrade to energy-efficient water heaters:​

• FirstEnergy’s Pennsylvania Utilities (Met-Ed, Penelec, Penn Power, West Penn Power): Residential customers can receive a $500 rebate on ENERGY STAR certified heat pump water heaters. Purchases must be made between June 1, 2021, and May 31, 2026, with rebate applications submitted within 90 days of purchase. For more information and to apply, visit FirstEnergy's Heat Pump Water Heater Rebate page.

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• Columbia Gas of Pennsylvania: Offers a $400 rebate for installing an ENERGY STAR certified natural gas tankless water heater with a Uniform Energy Factor (UEF) of ≥ 0.90. Additionally, customers may receive rebates for high-efficiency natural gas furnaces, boilers, and insulation projects. Details are available on Columbia Gas's Energy Efficiency Rebates Program page.

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• UGI Utilities: Provides a $400 rebate for the purchase and installation of an ENERGY STAR certified natural gas tankless water heater. Certain models may also qualify for additional federal tax credits under the IRA. Learn more at UGI's Gas Tankless Water Heater Rebate page.​

   

• PPL Electric Utilities: Offers a $400 rebate for ENERGY STAR certified heat pump water heaters with a UEF of ≥ 3.3. Customers can find more information and apply through PPL's Products & Rebates Overview page.

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How to Apply for Rebates

To take advantage of these rebates:

1. Verify Eligibility: Ensure you are a residential customer of the utility offering the rebate and that your planned equipment meets the specified efficiency criteria.​

2. Purchase Qualifying Equipment: Select and purchase an eligible energy-efficient water heater.​

3. Install the Equipment: Consider professional installation to ensure optimal performance and safety.​

4. Submit Rebate Application: Complete the rebate application provided by your utility company, including necessary documentation such as proof of purchase and installation.​

By leveraging these rebates and incentives, Pennsylvania homeowners can reduce the upfront costs of upgrading to energy-efficient water heaters, leading to long-term savings and environmental benefits.