Your Second-Largest Energy Consumer

Your water heater is the second-largest energy user in your home, so shouldn't it be as energy-efficient as possible? According to the Department of Energy, water heating accounts for up to 18 percent of our home energy use. If you are building a new home or replacing an old water heater, consider purchasing a high-efficiency replacement for your hot water needs.

There are two types of hot water heaters: gas and electric. Roughly 60 percent of homes in the United States use gas water heaters, which heat water using natural gas to generate the energy needed to heat water. Electric water heaters use coils inside the storage tank instead of fire.

Although gas may be slightly cheaper to operate, electric water heaters are the more energy-efficient option. Electric water heaters are also more flexible than other water heating appliances because they can be placed almost anywhere without requiring a minimum clearance. We’ll describe them in detail below.

Another available water heating option is a heat pump water heater. Many homeowners use heat pumps to heat and cool their homes more efficiently, but a heat pump can also be used to heat water, either as a stand-alone water heating system or in combination with a space conditioning system. Heat pump water heaters use electricity to move heat from one place to another instead of generating heat directly.

However, before making a decision on your new energy-efficient water heater, be sure to research the right kind for you and your family.

Sizing Your System Heat Pump Water Heaters

United Power offers a special rebate program to members who purchase and install new electric water heaters in their homes or businesses. You can purchase an electric water heater from a licensed contractor (plumber or electrician) or local appliance or hardware store. 

Electric Water Heating Rebates

Please check with United Power’s Energy Management team for details and requirements before making any purchases.

Electric Water Heaters Tri-State G&T Rebate United Power Rebate
Water Heater - new construction $30 $120
Water Heater - fossil fuel to electric conversion $50 $100
Water Heater - on United Power utility control $50 $200
GSHP Desuperheater with steel glass-lined tank $100 $200*
Heat Pump Water Heater $350 $20

Minimum size of all units is 2.5 kW and 30 gallon. Must have R-16 manufacturer insulation or equivalent. Applies to both new or replacement units. Must meet minimum DOE energy factors. Plastic or stone-lined lifetime product.

Rebates must be requested within 90 days of installation. An invoice detailing equipment brand, model number, and itemized pricing for equipment and labor costs to help determine rebate amount, is required with rebate application.

*Rebate limit ONE wired tank on two tank GSHP desuperheater configuration. 
*United Power no longer offers an electric to electric water heater rebate. 

Electric Water Heaters vs. Gas Water Heaters

Electric Water Heaters

Installing a new electric water heater is generally less expensive than replacing or installing a gas water heater. Electric water heaters have been designed to only heat water you need when you turn it on, resulting in less standby heat loss and more energy efficiency than gas water heaters, which burn constantly. They are more flexible because they require less space, and come in various sizes for both long term and immediate use.

Gas Water Heaters

Gas water heaters may be slightly cheaper to operate than electric water heaters due to the cost of natural gas. While being able to heat more water per hour than electric, they are also less energy efficient. Gas water heaters are constantly heating, which results in heat loss through the storage tank walls. Without proper maintenance, gas water heaters may also pose a significant safety risk, and are more expensive to replace.

Taxes – By requesting a rebate you acknowledge and agree that you are and will be solely responsible for any and all applicable state and federal taxes on any rebates you receive through this program.