High Efficiency Natural Gas Hot Water Rebates

Save Energy and Money With Instant Discounts of Up to $300
Say goodbye to your tank water heater. Install an ENERGY STAR®-certified high-efficiency natural gas-fired tankless water heater and enjoy hot water on demand, energy savings and an instant discount up to $300.

Trim Your Water Heating Costs Up to 30 Percent!

You don't use hot water 24 hours a day. Yet a standard tank-type water heater consumes energy around the clock to keep the water in its tank hot.

ENERGY STAR-certified natural gas tankless water heaters give you hot water when you need it, without an energy-consuming storage tank. Using a tankless water heater can trim your water heating costs up to 30 percent. You’ll also enjoy these benefits:

  • Continuous hot water – Tankless water heaters provide a continuous flow of hot water, on demand. That means you don’t have to suffer through a cold shower if you're the last one in line. Unlike a conventional tank-type water heater, hot water is always there when you need it.
  • Space-saving design – A qualified tankless model saves you an extra closet's worth of space compared to a tank-type water heater. Gas tankless water heaters are small and wall-mounted, unlike bulky tank-type water heaters.
  • Fewer worries – Tankless water heaters typically last 20 years, much longer than any conventional tank-type water heater. And because it’s tankless, you don’t have to worry about tank leaks and water damage.


Going tankless is more affordable with an instant discount up to $300. It’s available if you install an ENERGY STAR-certified tankless natural gas water heater with electric ignition. 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.

Go tankless today and enjoy hot water and savings you can count on.

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

How to Get an Instant Discount

Step 1 - Talk with your plumbing contractor to decide which ENERGY STAR-certified unit works best for you.

Step 2 - Your plumbing contractor can find details on qualifying units* and approval requirements at participating equipment distributor locations or refer to your utility’s website.

CNG     SCG**     Eversource

Step 3 - Have your qualifying unit installed. Simple!

*Instant Distributor Discounts: HVAC equipment distributors automatically apply our instant discount to the price they charge your contractor for qualified equipment.  Multiple instant discounts for the same unit (equipment serial number) will not be accepted. Your installer should pass this instant discount along to you through a lower equipment installation cost.

** SCG has no funding for natural gas water heaters through December 31, 2017.


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

Who Is Eligible and Equipment Requirements

Residential customers of CNG, SCG* or Eversource can participate.

Eligible Equipment

Instant discounts** are available for:

  • ENERGY STAR-certified Natural Gas Tankless Water Heater with Electric Ignition. Units must have an EF1 of .94 or greater.
  • ENERGY STAR-certified Natural Gas Condensing storage water heater. Units must have a Thermal Efficiency of 0.95 or greater. 

EF - Energy Factor.

Funding for this instant discount program is limited to the period indicated or while funds last.

Finding ENERGY STAR-certified units is easy. Just talk to your plumber or look for the ENERGY STAR label. Qualifying units are available through local plumbing distributor supply stores.

* SCG has no funding for natural gas water heaters through December 31, 2017.

**Instant Distributor Discounts:  HVAC equipment distributors can now automatically apply the Energize CT instant discount to the price they charge your contractor for qualified equipment. Multiple instant discounts for the same unit (equipment serial number) will not be accepted.

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.  


Looking for a More Efficient Conventional Hot Water Heater?

We* have instant discounts for the following hot water heater:

  • A $300 instant discount for ENERGY STAR-certified Condensing Storage Tanks with a Thermal Efficiency of 0.95 or greater

High efficiency models have better insulation, heat traps, and more efficient burners than standard models. Improvements that have a modest impact on price but increase efficiency by about 7.5%.

* SCG has no funding for natural gas water heaters through December 31, 2017.

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

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.

For Contractors

Plumbing Contractors:  Offer your customers high efficiency water heating equipment at a reduced cost without the hassle of a rebate form.

The electric and gas utilities have partnered with many Connecticut equipment distributors to offer an instant discount at your point of purchase.  Help your customers make the decision to switch to high efficiency equipment by offering it at pricing comparable to standard equipment. 

When you purchase eligible equipment from a participating distributor, the instant discount amount has already been deducted from your purchase cost.  The distributor will request some information from you including the name and address of the customer and their housing type.

Now, you have the opportunity to offer your customer the equipment at a lower price because the instant discount is already applied.  You saved your customer the hassle of completing and mailing a rebate form and provided them with superior, energy-saving equipment.

All Eversource, UI, CNG, and SCG* customers are eligible for rebates, but only licensed contractors may purchase equipment with the instant discount applied at the distributor. 

Below is a list of the types of water heating equipment included.  

Equipment TypeMinimum Efficiency for Instant DiscountInstant Discount $/Unit
ENERGY STAR certified Natural Gas Tankless Water HeaterGreater than or equal to .94 EF with Electronic Ignition$300 (Eversource and CNG only)*
ENERGY STAR certified Natural Gas Standalone Condensing Water HeaterGreater than or equal to .95 TE²$300 (Eversource and CNG only)*

1 EF – Energy Factor
2 TE – Thermal Efficiency

* SCG has no funding for natural gas water heaters through December 31, 2017.

Our Partners

Visit to CT Power Update page