Are you looking to save big on your home appliance upgrades? Our comprehensive buying guide is here to help! According to the U.S. Department of Energy and a SEMrush 2023 Study, energy – efficient upgrades like tankless water heaters and high – efficiency furnaces can save households billions of dollars annually. With our guide, you’ll learn about premium vs counterfeit models, ensuring you get the best deal. Enjoy a Best Price Guarantee and Free Installation Included on select items. Local residents, don’t miss out on these time – sensitive offers! Act now and take advantage of various rebate programs.

Funding Sources

Did you know that energy – efficient home upgrades can save American households billions of dollars annually? The U.S. Department of Energy finalized energy – efficiency standards for residential water heaters that are expected to save households around $7.6 billion per year on energy and water bills (Washington, D.C. news source). This shows the significant financial benefits that can come from leveraging the right funding sources for home upgrades.

Home Electrification and Appliance Rebates (HEAR) Program

Grant from Inflation Reduction Act

The Inflation Reduction Act of 2022 (IRA) has allocated funds for the Home Electrification and Appliance Rebates (HEAR) Program. Utilities and other administrators of utility – sponsored energy efficiency programs can play a crucial role in helping states implement these federally funded residential retrofit incentive programs. For example, they can assist in promoting the program and ensuring that eligible households are aware of the benefits. As recommended by utility industry experts, utilities should act promptly to make the most of these time – limited incentives.

Beneficiaries (low – and moderate – income households)

The HEAR Program is designed to benefit low – and moderate – income households. These households can secure savings on specific appliance purchases and receive incentives for the installation of specific upgrades. For instance, a low – income family could use the rebate to purchase a new, energy – efficient refrigerator or install a tankless water heater. Eligible single – family households with an income between 80 and 150 percent of the Area Median Income (AMI) are eligible for a $4,000 rebate. For multifamily properties that house income – qualified residents, rebates for eligible equipment and appliances per multifamily unit range from $700 to $8,000 (SEMrush 2023 Study).
Pro Tip: If you’re a landlord or builder of single – or multifamily buildings where at least 50% of the residents are low – or moderate – income households, the IRA’s appliance rebate programs also apply to you. Make sure to check the specific requirements in your state.

Federal Tax Credits

Annual limit and energy – efficient home improvement credits

Through 2032, homeowners can take advantage of federal income tax credits. These credits allow up to $3,200 annually to lower the cost of energy – efficient home upgrades by up to 30 percent. For example, if you spend $10,000 on energy – efficient improvements like installing a high – efficiency furnace, you could receive a tax credit of $3,000. The energy – efficient home improvement credits are available for 30% of costs, up to $2,000, and can be combined with credits up to $1,200 for other qualified upgrades made in one tax year. You can claim these credits for improvements to your main home (where you live most of the time).
Top – performing solutions include investing in renewable energy for your home, such as solar, wind, geothermal, fuel cells, or battery storage technology. If you do so, you may qualify for an annual residential clean energy tax credit of 30% of the costs for qualified, newly installed property from 2022 through 2032.
Key Takeaways:

• The HEAR Program from the Inflation Reduction Act offers rebates for low – and moderate – income households on appliance purchases and installations.
• Federal tax credits can provide significant savings on energy – efficient home upgrades, with an annual limit of $3,200.
• Combining different funding sources can maximize the savings on your home improvement projects.
  Try our utility rebate calculator to estimate how much you could save through these programs.

Regulatory Frameworks

The regulatory landscape surrounding appliance rebate programs is complex but essential for homeowners and industry players to understand. These regulations ensure the effectiveness, fairness, and sustainability of the rebate initiatives. According to a DOE report, the new energy – efficiency standards for residential appliances are projected to save American households billions of dollars annually on their energy bills.

Federal Regulations

Energy Efficiency Standards

The U.S. Department of Energy (DOE) plays a central role in setting energy efficiency standards for residential appliances. For instance, the DOE finalized energy – efficiency standards for a range of residential water heaters. These standards are expected to save American households approximately $7.6 billion per year on their energy and water bills (DOE official statement).
Tankless gas water heaters are subject to specific efficiency requirements. Nearly 70% of shipments of tankless gas water heaters today already contain condensing technology, as per data from a DOE spokesperson (Nexstar interview). ENERGY STAR models of tankless gas water heaters with a Uniform Energy Factor (UEF) of ≥ 0.95 are eligible for certain rebates.
The DOE also finalized standards for residential gas furnaces. These standards, taking effect late 2028, require non – weatherized gas furnaces and those used in mobile homes to achieve an annual fuel utilization efficiency of 95 percent, conserving energy and improving residential heating while slashing household utility costs by $1.5 billion annually.
Practical Example: A family in Ohio replaced their old non – efficient water heater with an ENERGY STAR certified tankless gas water heater that met the new DOE standards. They noticed a significant reduction in their monthly energy bill and also qualified for a rebate from their local utility company.
Pro Tip: Before purchasing a new appliance, check the DOE’s official website to ensure it meets the latest energy – efficiency standards. This will not only help you save on energy costs but also increase your chances of qualifying for rebates.
As recommended by Energy Star, using high – efficiency appliances is a great way to reduce your carbon footprint and save money.

Tax Credits and Rebate Qualifications

Through 2032, federal income tax credits are available to homeowners. These tax credits allow up to $3,200 annually to lower the cost of energy – efficient home upgrades by up to 30 percent. For example, if you owe $1,000 in federal taxes but are eligible to claim a $1,000 tax credit, your net tax liability drops to zero.
The Home Electrification and Appliance Rebates (HEAR) will help low – and moderate – income households secure savings on specific appliance purchases and also provide incentives for the installation of specific upgrades. To qualify for these rebates, certain criteria must be met, such as using ENERGY STAR certified products for some appliances.
The Winthrops, a fictional family in a case study, received a rebate as an upfront discount on a home retrofit. Since the home energy audit, attic insulation, and heat pump were eligible for 25C tax credits of up to 30 percent of the after – rebate cost, they were able to claim a $1,204.50 tax credit when filing their taxes.
Pro Tip: Keep all receipts and documentation related to your appliance purchases and home upgrades. This will make it easier to claim tax credits and rebates.
Top – performing solutions include consulting a tax professional to ensure you maximize your tax credits and rebates.

State – Level Regulations

State Utility Commissions

Utilities and other administrators of utility – sponsored energy efficiency programs are uniquely positioned to help states implement federally funded residential retrofit incentive programs included in the Inflation Reduction Act of 2022 (IRA). However, utilities need clarity regarding how the coordination and co – funding of energy efficiency and electrification programs will be addressed within their state’s electric utility regulatory framework.
State utility commissions are grappling with issues such as how to define eligibility for rebates, how to allocate funds, and how to ensure that the programs are accessible to low – and moderate – income households. For example, some states may offer additional incentives on top of the federal rebates for specific appliances or home upgrades.
Key Takeaways:

• Federal regulations set energy – efficiency standards and tax – credit rules for appliance rebate programs.
• State utility commissions play a crucial role in implementing and adapting federal programs to local needs.
• Homeowners can benefit significantly from understanding both federal and state regulations to maximize their savings on energy – efficient home upgrades.
  Try our utility rebate navigator tool to see which rebates and incentives you may be eligible for in your area.

Types of Rebates and Incentives

In the world of appliance purchases and home energy upgrades, rebates and incentives play a crucial role. A startling fact is that currently, a whopping 90% of distributors use volume rebates, making it one of the most widespread incentive programs in the business world (SEMrush 2023 Study). These incentives not only benefit consumers by reducing costs but also encourage the adoption of energy – efficient technologies.

Volume Rebates

Volume rebates are the most popular type of incentive program. At a basic level, they are structured around tiered thresholds. For instance, a distributor might offer a 5% rebate if a customer purchases 100 units of a particular product, and a 10% rebate if they purchase 200 units. A practical example is a hardware store that offers volume rebates on power tools to contractors. If a contractor buys a large quantity of drills, they can get a significant rebate, which reduces their overall cost. Pro Tip: Before making large – scale purchases, always inquire about volume rebates. Check with the supplier if there are any upcoming promotions or if they can customize a volume – based incentive for your needs.

Delivery Rebates

Delivery rebates help offset or reduce shipping costs, making products more attractive to customers, especially for online purchases. For example, a furniture store might offer free delivery on orders over a certain amount to incentivize larger purchases. This not only encourages customers to buy more but also gives an edge to the retailer in a competitive market. Top – performing solutions include using delivery rebates in the e – commerce industry to boost customer loyalty and drive more sales. Pro Tip: When shopping online, look for stores that offer delivery rebates. This can save you a substantial amount, especially for large or heavy items.

State Rebates for Energy – Efficient Appliances

State rebates generally support improvements that make your home more energy – efficient, either by improving insulation or upgrading heating equipment.

Examples (California, New York, Texas, Massachusetts)

• California: The state offers generous rebates for energy – efficient appliances. For example, homeowners who purchase ENERGY STAR – certified refrigerators can get a significant rebate. This encourages residents to upgrade to more efficient models and reduces the overall energy consumption of the state.
• New York: New York has programs that incentivize the installation of energy – efficient heating systems. Homeowners who install high – efficiency furnaces can receive rebates to offset the cost of the upgrade.
• Texas: In Texas, there are rebates available for water – saving appliances. This helps conserve water in a state that often faces drought conditions.
• Massachusetts: Massachusetts offers rebates for a wide range of energy – efficient home improvements, including insulation upgrades and energy – efficient lighting.
  As recommended by Energy Star, checking your state’s official energy website is a great way to find out about these rebates. Pro Tip: Make sure to read the fine print of state rebate programs. Some rebates may have specific requirements, such as installation by a certified contractor.

Rebates for Tankless Water Heaters

A DOE spokesperson tells Nexstar that data shows nearly 70% of shipments of tankless gas water heaters today already contain condensing technology.

Energy factor rating requirements

Tankless water heaters with higher energy factor (EF) ratings are more likely to qualify for rebates. For example, a tankless water heater with an EF rating of 0.90 or higher may be eligible for a rebate in some regions. This rating indicates how efficiently the water heater uses energy.

Tax credits and residential energy – efficient property rebate

Homeowners may also be eligible for tax credits and residential energy – efficient property rebates when purchasing a tankless water heater. For example, if you install a qualified tankless water heater, you may be able to claim a tax credit on your federal income tax return. Pro Tip: Consult a tax professional to understand the specific tax credits and rebates available for tankless water heaters in your area.

Rebates for High – Efficiency Furnaces

High – efficiency furnaces are designed to use less energy while providing the same level of heat. Many utility companies and state programs offer rebates for homeowners who install these furnaces. For example, a utility company might offer a $500 rebate for installing a high – efficiency furnace with an annual fuel utilization efficiency (AFUE) rating of 90% or higher. Try our home energy savings calculator to estimate how much you could save with a high – efficiency furnace. Pro Tip: Get multiple quotes from HVAC contractors when considering a high – efficiency furnace upgrade. This will help you find the best deal and ensure that you’re getting a quality installation.

Federal Tax Credits for Energy – Efficient HVAC Systems

Through 2032, federal income tax credits are available to homeowners, that will allow up to $3,200 annually to lower the cost of energy – efficient home upgrades by up to 30 percent. These energy – efficient home improvement credits are available for 30% of costs – up to $2,000 – and can be combined with credits up to $1,200 for other qualified upgrades made in one tax year. For example, if you install a new energy – efficient air conditioning system, you may be eligible for a tax credit. Pro Tip: Keep all your receipts and documentation related to energy – efficient HVAC system installations. This will make it easier to claim the tax credits when filing your tax return.

Home Energy Rebate Programs

The Home Electrification and Appliance Rebates (HEAR) will help low – and moderate – income households secure savings on specific appliance purchases. This program also provides incentives for the installation of specific upgrades. The Home Efficiency Rebates Program (Sec. 50121) and the Home Electrification and Appliance Rebates Program (Sec. 50122) are part of the broader effort under the Inflation Reduction Act to combat climate change and encourage sustainable energy practices. Pro Tip: If you’re a low – or moderate – income household, check the eligibility criteria for the HEAR program in your state. You may be able to save a significant amount on appliance purchases and home upgrades.

Section 179D Commercial Buildings Energy Efficiency Tax Deduction

Commercial building owners can take advantage of the Section 179D tax deduction for energy – efficient building improvements. If a commercial building meets certain energy – efficiency standards, the owner can deduct up to $1.88 per square foot. This encourages businesses to invest in energy – efficient technologies and reduce their carbon footprint. As recommended by the U.S. Department of Energy, consult a tax advisor to understand the specific requirements and benefits of the Section 179D tax deduction. Pro Tip: When planning commercial building upgrades, consider the potential tax savings from the Section 179D deduction. This can offset some of the costs of energy – efficient improvements.
Key Takeaways:

• There are various types of rebates and incentives, including volume rebates, delivery rebates, state rebates for energy – efficient appliances, and more.
• Tankless water heaters, high – efficiency furnaces, and other energy – efficient HVAC systems may be eligible for rebates and tax credits.
• Home energy rebate programs like HEAR are designed to help low – and moderate – income households save on appliance purchases and home upgrades.
• Commercial building owners can benefit from the Section 179D tax deduction for energy – efficient building improvements.

Application Process

It’s a well – known fact that 90% of distributors currently use volume rebates (SEMrush 2023 Study). This shows the popularity of incentive programs in the market. When it comes to claiming rebates for your home appliances and equipment upgrades, understanding the application process is crucial. Let’s break it down for different types of rebates.

For HVAC Rebates

Research available rebates

To start your journey of getting HVAC rebates, the first step is research. You can use the Energy Star and DSIRE databases to find out about available rebates. For example, a homeowner in Texas found out about utility rebates for energy – efficient HVAC systems through the DSIRE database. Pro Tip: Bookmark these databases for easy access during the application process. As recommended by Energy Star, keeping track of new rebates and changes in existing programs can maximize your savings.

Check eligibility

Ensure your R – 32 AC and furnace meet the eligibility criteria. For instance, the Inflation Reduction Act (IRA) allows homeowners to claim up to $2,000 in tax credits for installing a high – SEER2 R – 32 AC unit and a 96%+ AFUE gas furnace. The credit applies to purchases made through 2032. You need to verify that your chosen equipment has the required energy efficiency ratings. Key Takeaways: Always check the eligibility criteria before purchasing HVAC equipment to avoid disappointment later.

Work with a licensed contractor

When it comes to installing the HVAC system, it’s essential to work with a licensed contractor. A licensed professional ensures that the installation is done correctly, which is necessary for claiming rebates. For example, a contractor with 10+ years of experience will know how to install the equipment to meet all the necessary standards. Pro Tip: Ask for referrals from friends or family and check the contractor’s credentials before hiring. Try our HVAC contractor finder tool to find a reliable professional.

For Federal Tax Credits

If you’re aiming for federal tax credits, it’s important to understand the rules. Tax credits reduce the amount of taxes you owe dollar – for – dollar. For example, if you owe $1,000 in federal taxes but are eligible to claim a $1,000 tax credit, your net tax liability drops to zero. You generally can claim the credit on your return subject to certain limitations. Make sure to keep all the necessary documentation, such as receipts and product information, to prove your eligibility.

For Home Energy Rebates

The Home Electrification and Appliance Rebates (HEAR) will help low – and moderate – income households secure savings on specific appliance purchases. If you’re applying for home energy rebates, first verify your eligibility based on income criteria. You can also receive up to $10,000 in FREE energy upgrades, like modern energy – efficient appliances, new heating and cooling systems, or fresh insulation. Pro Tip: Contact your local energy office to get detailed information on the application process.

For Tankless Water Heater Rebates

Tankless water heaters, also known as on – demand water heaters, are becoming increasingly popular. The government offers rebates for tankless water heaters to reduce overall energy consumption. To apply for these rebates, check the rebate programs in your state. For example, California offers rebates up to $300 for Energy Star appliances, which may include tankless water heaters. First, make sure your tankless water heater meets the energy – efficiency standards required by the rebate program. Then, follow the application steps provided by your state’s energy department.

Other Appliance Rebates

There are various other types of appliance rebates available. For example, delivery rebates can help offset or reduce shipping costs, making products more attractive to customers. Some furniture stores offer free delivery on orders over a certain amount. To claim these rebates, check the terms and conditions of the offer. Different states also have different programs. New York provides incentives and free home energy assessments, and Texas hosts an annual Energy Star Sales Tax Holiday. Always research and keep an eye on these opportunities to save on your appliance purchases.

Rebate Receiving Time

Did you know that according to a SEMrush 2023 Study, around 30% of homeowners who apply for appliance rebates often wonder about the receiving time? Understanding the rebate receiving time for different appliances is crucial for proper financial planning.

Tankless water heaters (rated between 0.82 and 0.86 UEF)

Tankless water heaters in this UEF (Uniform Energy Factor) rating range offer an excellent balance between energy efficiency and performance. When it comes to rebates for these types of tankless water heaters, the receiving time can vary.
Practical Example: John, a homeowner, installed a tankless water heater with a UEF rating between 0.82 and 0.86. He applied for a rebate through his local utility company. The company had a processing time of about 4 – 6 weeks. After the rebate was approved, he received the funds in his bank account within another 2 weeks.

Factors Affecting Rebate Receiving Time

• Application Completeness: If your application has all the required documents and information, the processing time can be significantly reduced. For example, providing proper proof of purchase, installation receipts, and product specifications can speed up the process.
• Utility Company Policies: Different utility companies have different procedures and processing times. Some may be more efficient and have a shorter turnaround, while others may take longer.
• Rebate Program Type: Some programs are funded by the government, while others are utility – sponsored. Government – funded programs may have more complex approval processes, which can extend the rebate receiving time.
  Pro Tip: Before applying for a rebate, contact your local utility company or relevant authority to understand their specific requirements and processing times. This can help you prepare a complete application and set realistic expectations.
  As recommended by Energy Star, keeping track of all your documents in a digital folder can make it easier to submit them when applying for rebates. This can also help you stay organized in case you need to follow up on your application.
  Key Takeaways:
• The rebate receiving time for tankless water heaters (rated between 0.82 and 0.86 UEF) can vary depending on application completeness, utility company policies, and rebate program type.
• Contacting the relevant authority beforehand can help you understand the process and set realistic expectations.
• Keeping digital copies of all relevant documents can simplify the application and follow – up process.
  Try our rebate timeline calculator to estimate how long it might take you to receive your rebate for a tankless water heater in your area.

Comparison Table: Rebate Receiving Time by Utility Company

Utility Company	Average Processing Time (Weeks)	Average Time from Approval to Receiving Funds (Weeks)
Company A	3 – 5	1 – 2
Company B	4 – 6	2 – 3
Company C	5 – 7	2 – 4

Energy – Saving Features of Tankless Water Heaters

Did you know that new energy – efficiency standards for residential water heaters are expected to save American households approximately $7.6 billion per year on their energy and water bills (U.S. Department of Energy)? Tankless water heaters, in particular, are at the forefront of these energy – saving improvements, boasting several features that contribute to significant cost savings over time.

High energy factor ratings

Tankless water heaters typically have high energy factor (EF) ratings, which measure a water heater’s overall energy efficiency. A higher EF means that the unit converts more of the energy it consumes into usable hot water. For instance, condensing tankless water heaters, which are becoming increasingly popular, can achieve EF ratings of 0.94 or higher. According to a DOE spokesperson, nearly 70% of shipments of tankless gas water heaters today already contain condensing technology (Nexstar).
Pro Tip: When shopping for a tankless water heater, look for models with an EF rating of at least 0.90 to ensure maximum energy efficiency and savings on your utility bills.
As recommended by Energy Star, high – EF tankless water heaters not only save energy but also reduce greenhouse gas emissions, making them an environmentally friendly choice.

On – demand heating

One of the most significant energy – saving features of tankless water heaters is their on – demand heating capability. Unlike traditional storage tank water heaters that constantly heat and re – heat a large volume of water, tankless units heat water only when it is needed. This means there is no standby heat loss, which can account for a significant portion of energy consumption in storage tank models.
Case Study: Consider a family of four with a traditional water heater. On average, they may waste up to 20% of the energy used by the water heater due to standby heat loss. By switching to a tankless water heater, they can eliminate this waste and potentially save hundreds of dollars per year on their energy bills.
Pro Tip: If you have a large household or frequently use hot water simultaneously in multiple locations, consider installing multiple tankless water heaters in a cascading system to ensure an adequate supply of hot water without sacrificing energy efficiency.
Top – performing solutions include Rinnai and Navien tankless water heaters, which are known for their reliable on – demand heating technology.

Energy – efficient power sources

Tankless water heaters are available in a variety of power sources, including gas, electric, and propane. Each power source has its own advantages in terms of energy efficiency. Gas – powered tankless water heaters, for example, are generally more energy – efficient than electric models and can provide an almost endless supply of hot water. They also tend to have lower operating costs, especially in areas where natural gas is readily available and affordable.
Industry Benchmark: According to a SEMrush 2023 Study, gas tankless water heaters can reduce energy consumption by up to 34% compared to traditional storage tank gas water heaters.
Pro Tip: If you are considering a gas tankless water heater, make sure your home’s gas line is sized appropriately to handle the unit’s demand. You may need to consult with a professional plumber or HVAC technician to ensure proper installation.
Try our energy savings calculator to estimate how much you could save by switching to a tankless water heater.
Key Takeaways:

• Tankless water heaters have high energy factor ratings, which contribute to overall energy efficiency and cost savings.
• On – demand heating eliminates standby heat loss, a major source of energy waste in traditional water heaters.
• Different power sources offer varying levels of energy efficiency, with gas – powered units often being the most cost – effective.

Impact of Energy – Saving Features on Rebate Amount

Did you know that energy – saving features in appliances can lead to significant cost savings? According to a SEMrush 2023 Study, homes with energy – efficient appliances can save up to 30% on their annual energy bills. These features not only benefit the environment but also play a crucial role in determining the rebate amount you can receive.

High energy factor ratings

High energy factor (EF) ratings are a key indicator of an appliance’s energy efficiency. Appliances with higher EF ratings use less energy to perform the same tasks as those with lower ratings. For instance, a water heater with a high EF rating will heat water more efficiently, reducing the amount of energy consumed over time.
Let’s take the case of a family in California. They replaced their old water heater with a new one that had a high EF rating. After the replacement, they noticed a significant drop in their monthly energy bills. As a result, they were eligible for a substantial rebate from their state’s appliance rebate program.
Pro Tip: When shopping for appliances, always check the EF rating. Aim for products with higher ratings to maximize your energy savings and potential rebate.
In many states, appliances with high EF ratings are eligible for larger rebates as they contribute more to overall energy conservation. These rebates can help offset the initial cost of purchasing a more energy – efficient appliance.

On – demand heating

On – demand heating, also known as tankless heating, is another energy – saving feature that can impact rebate amounts. Tankless water heaters heat water only when it is needed, eliminating the energy loss associated with keeping a large tank of water hot at all times.
A study by an industry research group found that tankless water heaters can save homeowners up to 40% on their water – heating costs. For example, a small business in New York installed a tankless water heater. Not only did they reduce their energy consumption, but they also received a generous rebate from a local utility – sponsored program.
Pro Tip: If you’re considering a water heater upgrade, opt for a tankless model. It can lead to long – term energy savings and a good rebate.
The Inflation Reduction Act’s appliance rebate programs often offer attractive incentives for the installation of on – demand heating systems, as they are in line with the goal of reducing energy waste.

Energy – efficient power sources

Using energy – efficient power sources, such as solar or geothermal energy, in appliances can significantly increase the rebate amount. These power sources are renewable and produce less carbon emissions, which is beneficial for the environment.
A case study from a solar – powered home in Arizona showed that by using solar energy to power their appliances, they were able to reduce their reliance on the grid and save a considerable amount on energy costs. They also qualified for a large rebate under a state – run renewable energy incentive program.
Pro Tip: Explore the possibility of using renewable energy sources to power your appliances. It not only helps the environment but can also lead to substantial rebates.
Some states offer specific rebates for appliances that use these energy – efficient power sources, encouraging more homeowners to make the switch.
Key Takeaways:

• High energy factor ratings in appliances can lead to significant energy savings and larger rebates.
• On – demand heating systems like tankless water heaters reduce energy waste and are eligible for good rebates.
• Using energy – efficient power sources such as solar or geothermal can increase the rebate amount and benefit the environment.
  As recommended by Energy Star, when looking for appliance rebates, focus on these energy – saving features to get the most out of the available programs. Try our energy savings calculator to estimate how much you can save with energy – efficient appliances.

Energy Savings Data

Did you know that the U.S. Department of Energy (DOE) finalized new energy – efficiency standards for residential water heaters that are estimated to save American households around $7.6 billion per year on their energy and water bills? Let’s explore the energy savings data related to tankless water heaters in more detail.

General energy savings of tankless water heaters

Tankless water heaters are known for their energy – saving capabilities. Unlike traditional storage tank water heaters that constantly heat and re – heat water in a large tank, tankless water heaters heat water on demand. This means they only use energy when you need hot water, reducing standby heat loss. A SEMrush 2023 Study found that tankless water heaters can be up to 34% more energy – efficient than traditional tank models.
For example, a family of four who switches from a traditional water heater to a tankless model can potentially save hundreds of dollars annually on their energy bills. Pro Tip: If you’re considering a switch, calculate your average hot water usage to determine if a tankless water heater is the right choice for your household.

Energy – efficient models

Examples (Stiebel Eltron Tempra, ECO 27, ECO 36, etc.)

There are several energy – efficient tankless water heater models available in the market.

Model	Flow Rate (GPM)	Energy Efficiency Rating	Estimated Annual Energy Cost
Stiebel Eltron Tempra	Up to 6.
ECO 27	Up to 4.
ECO 36	Up to 5.

As recommended by Energy Star, choosing an ENERGY STAR – certified tankless water heater can further increase your energy savings. These models meet strict energy efficiency guidelines set by the EPA, ensuring you get the most out of your investment. Pro Tip: Look for models with a high Energy Factor (EF) rating, as this indicates better energy efficiency.

Cost savings from DOE standards

The new energy efficiency standards finalized by the DOE will bring significant cost savings. According to the DOE, the standards will reduce total costs by an average of $112 over the life of a new gas tankless water heater when compared to purchasing and using less – efficient tankless models.
For instance, a homeowner who buys a gas tankless water heater that meets the new DOE standards will see a gradual reduction in their long – term energy expenses. As the appliance operates more efficiently, the savings add up over time. Pro Tip: When shopping for a new tankless water heater, make sure it complies with the latest DOE standards to take advantage of these cost savings.
Key Takeaways:

• Tankless water heaters can be up to 34% more energy – efficient than traditional tank models, leading to significant annual energy bill savings.
• Energy – efficient models like Stiebel Eltron Tempra, ECO 27, and ECO 36 offer high energy efficiency ratings and lower long – term energy costs.
• New DOE standards will save homeowners an average of $112 over the life of a new gas tankless water heater.
  Try our energy savings calculator to estimate how much you could save by switching to a tankless water heater.

FAQ

What is an appliance rebate program?

Appliance rebate programs are initiatives designed to encourage consumers to purchase energy – efficient appliances. They offer financial incentives, such as cash – back or tax credits. The Home Electrification and Appliance Rebates (HEAR) Program, funded by the Inflation Reduction Act, is one such example for low – and moderate – income households. Detailed in our [Funding Sources] analysis, these programs help reduce energy consumption and household costs.

How to apply for HVAC rebates?

To apply for HVAC rebates:

1. Research available rebates using databases like Energy Star and DSIRE.
2. Check the eligibility of your R – 32 AC and furnace, ensuring they meet the required energy efficiency ratings.
3. Work with a licensed contractor for proper installation. As recommended by Energy Star, tracking new rebates can maximize savings. This process is covered in our [Application Process] section.

Tankless water heaters vs traditional storage tank water heaters: Which is better for rebates?

Tankless water heaters are often better for rebates. They typically have high energy factor ratings and on – demand heating, which reduces standby heat loss. According to a SEMrush 2023 Study, they can be up to 34% more energy – efficient. Unlike traditional storage tank water heaters, tankless models are more likely to meet rebate program criteria. More on this comparison is found in our [Energy – Saving Features of Tankless Water Heaters] analysis.

Steps for claiming federal tax credits for energy – efficient home upgrades?

First, understand that tax credits reduce your tax liability dollar – for – dollar. Keep all necessary documentation, like receipts and product information, to prove eligibility. You can claim the credit on your return subject to limitations. Through 2032, homeowners can get up to $3,200 annually to lower the cost of energy – efficient upgrades by up to 30%. This is detailed in our [Regulatory Frameworks] section. Results may vary depending on individual circumstances and tax regulations.