ENERGY STAR® Heat Pump Water Heater Rebate

Double the Efficiency for Maximum Savings With Instant Discounts of Up To $600
Twice as efficient as older electric water heaters, ENERGY STAR®-certified heat pump water heaters, sold through participating distributors, qualify for instant discounts.

An Efficient Way to Heat Water

It’s not so hard to understand why heat pump water heaters are twice as efficient as electric water heaters. They simply move heat rather than make heat, just like a refrigerator, but in reverse. While a refrigerator pulls heat from inside a box and dumps it into the surrounding room, a heat pump water heater pulls heat from the surrounding air and transfers it – at a higher temperature – into the tank to heat your water. Because they use the warm ambient air temperature to do most of the work, it is a very efficient way to heat water.

As the heat pump removes heat from the surrounding ambient air, it provides a slight cooling effect. The result is dehumidification and cooling. For this reason, heat pumps work well in basements. Because they rely on surrounding air, they require at least 750 cubic feet of space around the heat pump and cannot be installed in a closet or other confined space.

We help make it affordable to upgrade to an ENERGY STAR-certified heat pump water heater with up to a $600 instant discount provided by the Connecticut Energy Efficiency Fund. Whether you’re replacing an old water heater or installing one in a new home, you'll save money up front.

ENERGY STAR is a widely recognized and trusted label on products that meet strict energy-efficiency requirements set by the U.S. Environmental Protection Agency and the U.S. Department of Energy. By using less energy, these products also help reduce greenhouse gas emissions that contribute to climate change. Learn more at the ENERGY STAR website.

Install a heat pump water heater today and save energy - and money!

Call 877-WISE-USE (877-947-3873) for more information. 

Benefits of Heat Pump Water Heaters

  • One of the most energy-efficient water heating systems on the market today
  • 25 to 50 percent savings on electric water heating costs
  • Programmable options such as “vacation mode” that save energy when you’re away and ensure you have hot water when you return
  • Dehumidify damp spaces such as a basement or unconditioned space

Steps to Take

Step 1 - Refer to your utility’s website for more details including FAQs and qualifying units. See our Find a Distributor page for a list of participating distributors.

Eversource     UI

Step 2 - Talk with an installer to find out if a heat pump water heater is right for you. Consider the following factors:

  • For the most efficient operation, the heat pump water heater should be installed in a space where temperatures average at least 50 degrees.
  • Because it exhausts cool air, the water heater should not be installed in a heated living area.
  • A heat pump water heater should be installed with at least 750 cubic feet of space around it. It cannot be installed in a closet or other confined space.

Step 3
- You or your installing contractor can purchase a qualifying unit at a discounted price through participating distributors in Connecticut. Up to a $600 instant discount will be automatically applied to the equipment cost.

Step 4 - Have your qualifying unit installed.

Learn more at the ENERGY STAR website.

Call 877-WISE-USE (877-947-3873) for more information.

Who Is Eligible

Residential customers of Eversource or UI.

Equipment must be ENERGY STAR-certified with an Energy Factor (EF) of 2.4 or greater.

To receive up to a $600 instant rebate, equipment must be purchased from a participating distributor located in Connecticut.

To find ENERGY STAR-certified units talk to your approved installer or visit the ENERGY STAR website.

If you are a Connecticut resident and are not served by one of the utilities listed above, please visit your municipal utility’s website to see what energy efficiency programs are available to you. 

Call 877-WISE-USE (877-947-3873) for more information.

Participating Locations


We strongly encourage you to contact a licensed contractor to ensure proper installation of your heat pump water heater. You or your contractor can receive up to a $600 instant discount on ENERGY STAR®-certified models through participating distributors listed on our Find a Distributor page.


Energy Efficiency & Renewable Energy Tax Credits

Did you know you might be able to take advantage of federal income tax incentives for energy-efficient and renewable energy home improvements? Congress first passed the incentives in 2005 as part of the Energy Policy Act of 2005 and has amended them several times since then.

Current incentives expire December 31, 2016. The incentives fall into two categories. Be sure to review both to maximize your incentive.

  • Renewable energy sources like geothermal, solar, wind and others are covered under Residential Energy Efficient Property Credit (Part I). You may be able to take a credit of 30% of your qualified costs.
  • Energy efficiency improvements like insulation, windows, HVAC and more are covered under Nonbusiness Energy Property Credit (Part II). Credits for 10% of cost, up to $500 or a specific amount from $50-$300 may be available.

Helpful links:

ENERGY STAR® – See which products qualify, and for what incentive amount

IRS Tax Forms:

You should contact a tax professional with questions specific to your situation.

Our Partners

Visit to CT Power Update page