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Heat Pump Water Heater Incentive Details
Energize CT Heat Pump Water Heater Rebate
The Energize CT Heat Pump Water Heater rebate is a program that provides a $750 discount for eligible heat pump water heaters. The rebate is available to residential electric service customers in the service territory of Eversource or UI, which are utility companies. The incentive duration for this program is from January 1, 2023, to December 31, 2023.
Residential electric service customers are eligible for the Energize CT Heat Pump Water Heater rebate. This means that individuals who receive electric service from Eversource or UI, the participating utility companies, can participate in the program. The rebate program is open to customers in the service territory of these utility companies. It is important to note that eligibility may be subject to specific requirements and guidelines established by the utility companies or the rebate program itself. Additionally, customers who meet certain income eligibility guidelines may be eligible for even greater incentives through the Home Energy Solutions – Income Eligible program.
The technical details for eligible equipment under the Energize CT Heat Pump Water Heater rebate program are as follows:
- Integrated HPWH with ≥ 3.30 Uniform Energy Factor (UEF):
- The heat pump water heater should have a Uniform Energy Factor (UEF) rating of at least 3.30. UEF is a measure of the energy efficiency of the water heater, indicating how effectively it converts input energy into hot water.
OR
- For 120 volt/15 amp circuit:
- If the heat pump water heater operates on a 120-volt/15 amp circuit, it should have a UEF rating of at least 2.20. This rating ensures that even smaller capacity units meet the energy efficiency requirements.
OR
- Split-System HPWH with ≥2.20 Uniform Energy Factor (UEF):
- If the heat pump water heater is a split-system unit, it should have a UEF rating of at least 2.20. A split-system heat pump water heater consists of separate components, such as a heat pump unit and a storage tank, which are connected.
These technical specifications ensure that the heat pump water heaters meet certain energy efficiency standards, as indicated by the UEF rating. A higher UEF indicates a more energy-efficient unit, which helps reduce energy consumption and lower utility costs.ENERGY STAR certification ensures that the equipment meets or exceeds these efficiency requirements. It’s worth mentioning that these technical details are subject to the guidelines and regulations set by Eversource and UI, the participating utility companies.
The Advantages

Heat pump water heaters are an excellent option homeowners in Connecticut looking to upgrade their water heating systems. These water heaters offer several benefits over traditional electric or gas water heaters, especially when paired with Energize CT’s incentives and rebates. Here are some of the benefits of acquiring heat pump water heaters for Connecticut homeowners:
- Energy Efficiency: Heat pump water heaters are much more energy-efficient than traditional electric or gas water heaters. They can help homeowners reduce their energy bills by up to 60% or more.
- Cost Savings: Heat pump water heaters can be much cheaper to operate than traditional electric or gas water heaters. This can result in significant cost savings over time for homeowners who use heat pump water heaters.
- Environmental Friendliness: Heat pump water heaters produce fewer greenhouse gas emissions compared to traditional electric or gas water heaters. This can result in a reduced carbon footprint for homeowners.
- Reliable Hot Water: Heat pump water heaters provide reliable hot water even in extreme cold temperatures. They can also heat water more quickly than traditional electric or gas water heaters.
- Increased Home Value: Homes with energy-efficient appliances, such as heat pump water heaters, can have a higher resale value compared to homes with less efficient appliances.Acquiring a heat pump water heater can provide numerous benefits to Connecticut homeowners, including energy efficiency, cost savings, environmental friendliness, reliable hot water, and increased home value.
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Costs & Savings
$1700 - $0
$3000 - $0
10 - 0
The average initial cost of an ENERGY STAR certified heat pump water heater can range from $1,700 to $3,000. This estimate reflects the typical price range for purchasing and installing a heat pump water heater. The actual cost will depend on various factors, including the capacity and features of the unit, brand, installation requirements, and any additional components or labor involved in the installation process. It’s important to consider that prices may vary among different regions and suppliers.
The average lifetime savings for upgrading to an ENERGY STAR certified heat pump water heater can range from $3,000 to $4,000. This estimate takes into account the energy efficiency and cost savings associated with using a heat pump water heater compared to traditional electric resistance water heaters. Heat pump water heaters are highly efficient as they use electricity to transfer heat from the surrounding air to heat the water, rather than generating heat directly. This results in lower energy consumption and reduced operating costs over the lifespan of the unit. The actual savings will depend on various factors, such as the initial cost of the unit, local energy rates, hot water usage patterns, and the efficiency of the previous water heater being replaced. However, on average, customers can expect to save several thousand dollars over the 10 to 15-year lifespan of the heat pump water heater. It’s important to note that the estimated lifetime savings are approximate and can vary based on individual circumstances. Actual savings will depend on factors specific to each household, including energy usage patterns and utility rates.
Other Applicable Incentives
IRA Electrification Rebate: $1750 | |
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Upfront Discount | 50%-100% of Costs |
Avg. Initial Cost | $800-$3500 |
IRA Tax Credit: 30% of Costs | |
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25C Max Credit | $2000 |
25D Max Credit | Uncapped |
The Inflation Reduction Act’s 25C tax credit offers Connecticut residents a 30% tax credit for heat pump water heaters, with a maximum cap of $2,000 per year. The credit resets annually, allowing homeowners to claim it again for additional projects. Additionally, the act provides a 30% tax credit of up to $600 for an electrical panel upgrade if done alongside a qualifying 25C upgrade. Combining both upgrades can be advantageous.
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A "Home Energy Solutions" Energy Audit is Your Best First Step.
Looking to maximize your Heat Pump Water Heater incentive/rebate and achieve optimal energy savings for your home? Look no further than a comprehensive Home Energy Solutions (H.E.S.) audit. By identifying areas of energy waste and recommending upgrades to enhance efficiency, a HES assessment is the logical first step in your energy savings journey. Plus, with the HES Score you receive, you'll be able to qualify for the best incentives available. Don't miss out on the opportunity to save energy and money - schedule your HES audit today and start your journey towards a more efficient home.
H.E.S. only costs you $50 out-of-pocket. It could be free-of charge if you qualify for Home Energy Solutions Income-Eligible (H.E.S.-IE).

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Weatherization Service Value$0
Average 1st Year SavingsInsulation
Rebate: $1.70 per Square Foot | |
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Max Rebate | N/A |
Avg. Lifetime Savings | $4000 |
Avg. Lifespan (Years) | 20 - 50 |
Triple Pane Window
Rebate: $100 per Unit | |
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Max Rebate | N/A |
Avg. Lifetime Savings | $10000 |
Avg. Lifespan (Years) | 20 - 30 |
Ground Source Heat Pump
Rebate: $1250 per Ton | |
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Max Rebate | $15000 |
Avg. Lifetime Savings | $50000 |
Avg. Lifespan (Years) | 25 - 50 |
Smart Thermostat
Rebate: $85 per Unit | |
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Max Rebate | N/A |
Avg. Lifetime Savings | $565 |
Avg. Lifespan (Years) | 9 - 10 |
Tankless Gas Water Heater
Rebate: $300 per Unit | |
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Max Rebate | N/A |
Avg. Lifetime Savings | $2000 |
Avg. Lifespan (Years) | 18 - 20 |
Natural Gas Furnace
Rebate: $650 per Unit | |
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Max Rebate | $650 |
Avg. Lifetime Savings | $1550 |
Avg. Lifespan (Years) | 18 - 20 |
Natural Gas Boiler
Rebate: $750 per Unit | |
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Max Rebate | $750 |
Avg. Lifetime Savings | $20000 |
Avg. Lifespan (Years) | 18 - 20 |
Gas Condensing Water Heater
Rebate: $300 per Unit | |
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Max Rebate | $300 |
Avg. Lifetime Savings | $1500 |
Avg. Lifespan (Years) | 10 - 11 |
Boiler Circulator Pump
Rebate: $35 per Unit | |
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Max Rebate | $35 |
Avg. Lifetime Savings | $4800 |
Avg. Lifespan (Years) | 10 - 15 |
Air Source Heat Pump
Rebate: $1250 per Ton | |
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Max Rebate | $15000 |
Avg. Lifetime Savings | $15000 |
Avg. Lifespan (Years) | 15 - 20 |