Water heater rebates: which programs apply to the equipment?

In some states. Water heater rebate — PSE: “$1,000 back on qualifying Tier 3 or Tier 4 heat pump water heaters” Federal credit ended: “You can claim the credit for improvements made through December 31, 2025.” IRS, read October 17, 2026; PSE, read November 3, 2026.

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By InstaBids editorial team with AI research agents. Statuses last read 17 October 2026 to 3 November 2026

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At a glance

30 daysPSE application window after installationPuget Sound Energy, read November 3, 2026
60 daysGeorgia Power application window after invoiceGeorgia Power, read November 3, 2026
5 yearsPSEG Long Island repeat-rebate intervalPSEG Long Island, read November 3, 2026

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Programs, amounts and status

Weatherization Assistance Program (WAP)	Amount not stated by U.S. Department of Energy (DOE), through state weatherization administrators (read 2026-10-17) Status: open (source read 17 October 2026). “To apply for WAP assistance, first identify your state weatherization administrator and reach out to them.” Who it is for, in the agency's words: “One of the primary factors affecting eligibility is income. Households at or below 200% of the poverty income guidelines or that receive Supplemental Security Income are considered under DOE guidelines as eligible for weatherization services. In addition, each state or territory may elect to use the U.S. Department of Health & Human Services’ (HHS) Low-Income Home Energy Assistance Program (LIHEAP) eligibility criteria of 60% of state-median income.” How to apply: energy.govU.S. Department of Energy (DOE), through state weatherization administrators, read 17 October 2026
Home Owner Managing Energy Savings (HOMES) Rebate Program	“up to $8,000” Status: open (source read 17 October 2026). “Home Energy Rebates are now available in select states.” Who it is for, in the agency's words: “The HOMES Rebate Program provides rebates for eligible whole-home energy upgrade projects for households at all income levels. American households can save up to $8,000 on home upgrades based on modeled energy savings levels with a minimum savings of 20%. HOMES offers several possible pathways to affordable upgrades including insulation, air sealing, heating and cooling equipment, water heaters, duct sealing, appliances, and lighting. HOMES rebates provide Americans with household upgrades that can lower monthly energy bills while improving comfort and quality of the home.” How to apply: naseo.org (individuals do not apply to this agency directly)U.S. Department of Energy (DOE), read 17 October 2026
Indiana Home Appliance Rebate (HEAR)	Amount not stated by Indiana Office of Energy Development (read 2026-10-22) Status: open (source read 22 October 2026). “Applications for the Indiana Energy Saver Program are NOW OPEN!” Who it is for, in the agency's words: “The Home Appliance Rebate (HEAR) provides additional cost savings to low- and moderate-income households earning less than 150% of the Area Median Income for select, first-time upgrades. Eligible upgrades may include: heat pump water heaters, heat pump HVAC systems, and electrical upgrades.” How to apply: in.govIndiana Office of Energy Development, read 22 October 2026
PSE heat pump water heater rebate	“$1,000 back on qualifying Tier 3 or Tier 4 heat pump water heaters” Status: open (source read 3 November 2026). “Equipment must be installed on or after January 1, 2026.” Pays for: “qualifying Tier 3 or Tier 4 heat pump water heaters”. Who it is for, in the agency's words: “PSE electric customers can save on qualifying electric heat pump water heaters either directly from a participating retailer or after purchase using our rebate form.” How to apply: pse.comPuget Sound Energy, read 3 November 2026
PSEG Long Island heat pump water heater rebate	“The rebate amount cannot be more than 50 percent of the retail purchase price paid.” Status: open (source read 3 November 2026). “Purchase date and installation date must be on or after January 1st, 2026, and postmarked no later than December 31, 2026.” Pays for: “Heat Pump Water Heater”. Who it is for, in the agency's words: “You must be a PSEG Long Island residential customer.” How to apply: psegliny.comPSEG Long Island, read 3 November 2026
Georgia Power heat pump water heater rebate	“Up to $800” Status: open (source read 3 November 2026). “Applications must be submitted within 60 days of the date on your paid in full invoice/receipt to qualify for rebates.” Pays for: “Heat Pump Water Heater”. Who it is for, in the agency's words: “Must be a Georgia Power residential customer. Preconditions and Requirements.” How to apply: georgiapower.comGeorgia Power, read 3 November 2026
Energy Efficient Home Improvement Credit (ended for new work)	“$600 for natural gas, propane, or oil water heaters.” Status: ended (source read 17 October 2026). Pays for: “Natural gas, propane, or oil water heaters”. Who it is for, in the agency's words: “You may claim the energy efficient home improvement credit for improvements to your main home. Your main home is generally where you live most of the time.” How to apply: irs.govInternal Revenue Service (IRS), read 17 October 2026

This table as data: data.csv · data.json

Federal tax credit status, in the IRS's words

The IRS credit ended for new work after the earlier installation period. The credit guide holds the prior-period rules. Federal home improvement credit guide

Programs by state

Indiana	Indiana Energy Saver Program (HOMES and HEAR) (open, as of 22 October 2026) “Applications for the Indiana Energy Saver Program are NOW OPEN!”Indiana Office of Energy Development — Sources read: 22 October 2026

Water heater rebate?

PSE lists a heat pump water heater rebate for its electric customers. Its stated standard offer is tied to the equipment tier:

“$1,000 back on qualifying Tier 3 or Tier 4 heat pump water heaters”

This is PSE’s equipment-specific offer; it is distinct from an IRS tax credit. The utility links its qualifying product list beside the offer.

Source: Puget Sound Energy, read 3 November 2026.

Post the heat pump water heater installation on InstaBids to compare written bids for the equipment.

Water heater replacement rebate?

PSEG Long Island limits repeat water heater rebates by customer account. Its residential requirement says:

“Beginning in 2021, limit of one electric heat pump water heater per residential customer account every 5 years.”

The customer-account interval matters when replacing another heat pump water heater; the utility’s model and installation-date requirements also apply.

Source: PSEG Long Island, read 3 November 2026.

Describe the existing water heater and its replacement in your InstaBids request.

Water heater replacement tax credit?

For a new installation after the federal cutoff, the IRS instructions state:

“You can’t claim energy efficient home improvement credits for expenditures or property placed in service after December 31, 2025.”

The earlier-period equipment rules are on the federal credit guide. Utility rebate deadlines remain separate. Federal home improvement credit guide

Source: Internal Revenue Service (IRS), read 21 October 2026.

Use InstaBids to compare the replacement scope while retaining your equipment records.

How quickly do I have to submit an application?

Georgia Power measures its application window from the paid invoice or receipt:

“Applications must be submitted within 60 days of the date on your paid in full invoice/receipt to qualify for rebates.”

PSE instead measures its window from installation:

“Your rebate application must be submitted within 30 days of installation.”

Keep both dates in the project record and follow the relevant utility’s own application instructions.

Sources: Georgia Power, read 3 November 2026; Puget Sound Energy, read 3 November 2026.

Ask for the water heater installation date and invoice details in written bids through InstaBids.

What should I have when submitting a rebate application?

Georgia Power’s application checklist includes a utility account identifier:

“You must have your Georgia Power meter number available to apply for rebates. You can find this information on your monthly Georgia Power bill or your home’s meter.”

The same checklist also calls for an account in its rebate system and signed terms. These documents go to the utility’s application process.

Source: Georgia Power, read 3 November 2026.

Keep water heater equipment documents alongside the scope you post on InstaBids.

Do I qualify?

PSE states equipment and account conditions rather than making a decision for every reader. Its water heater requirements include:

“Post installation, the equipment must consume PSE electricity”

“Only one rebate will be issued per qualified single-family residence.”

“You must have an online PSE account to apply online.”

Consult PSE’s qualifying equipment list and application instructions for the household’s installation. The utility makes its own program decision.

Source: Puget Sound Energy, read 3 November 2026.

Identify the proposed water heater model in your InstaBids scope for comparable written bids.

What photos does a water heater rebate application need?

PSEG Long Island specifies the photo pair for its heat pump water heater application:

“Two photos required: One photo of the unit at customers permanent installed location and one photo of the place showing model #/serial# from unit. Photo Requirements”

Its invoice requirement separately identifies the installed model. Keep the unit and its model label accessible for those records.