You’re ready to get that sweet-sweet endless hot water you’ve always dreamed about. But you also love a good deal. And I mean, can anyone really blame you?
Well, did you know you can save money by upgrading to a tankless water heater? And we’re not just talking about the reduced monthly bills that come standard with all tankless systems.
At Monkey Wrench Plumbing, we’re directly certified with Noritz, Navien and Takagi tankless water heaters, so we know what models qualify for rebates and tax credits. We want to share this knowledge with you so you’re empowered to make the best decision to fit your water heater needs (whether you buy one from us or not).
By the end of this article, we promise you will know why there are rebates and tax credits on certain tankless water heaters, what rebates are available, and what models we carry that qualify. We will also give resources to protect your tankless once it’s installed.
Why Can I Get Money Back from a Tankless Water Heater?
I know what you’re thinking. This deal sounds too good to be true, but it’s real. Because of the Energy Policy and Conservation Act, the Department of Energy DOE is committed to incentivizing homeowners to make greener choices. That incentive comes in the form of rebates and tax credits.
To get a rebate and tax credit, you must:
- Upgrade from a traditional water heater to a qualified high-efficiency tankless water heater.
- Make sure you purchase a tankless water heater by December 31, 2022.
- Apply for your rebate on the SoCal Gas website.
- Submit your tankless water heater information for a credit when you’re doing your taxes.
By doing these four things, you can earn up to $1,300 in rebates and tax credits. And, of course, you’re helping the planet.
Models that Qualify for Rebates
So, what tankless water heaters qualify? Well, since we work with Noritz, Navien, and Takagi every day, we know which models qualify for rebates. For ease of use, we’ve made a table for each brand. Each table lists the models and the amount of money you can get back.
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While we choose to sell Noritz, Navien, and Takagi, we want to give you information to continue learning about water heaters. Some other brands we know that have qualifying models are:
So if you’re feeling studious, take a look at their websites.
What Qualifies for a Tax Credit?
So, what qualifies a tankless water heater for a tax credit? The only requirement is being eco-friendly, like we talked about earlier! A tankless water heater falls under a residential energy property credit from the IRS by being “any item of energy-efficient building property.” Cool right? This will net you an easy $300 back when you do your taxes.
Tankless Water Heater Testing for Rebates
So, how does the DOE determine which tankless water heaters are high-efficiency water heaters and qualify for rebates? The DOE has a 167pg report here, but to sum up, they test tankless water heaters for their efficiency in real-life conditions. The efficiency measurement in the testing is called the Uniform Energy Factor rating (UEF rating).
The UEF scale goes like this:
The higher the rating, the more eco-friendly the tankless water heater is, and the more money you get back. Once you submit an application, the rebate usually comes back in 4-8 weeks in the form of a check. If the application gets denied for incorrect information, you will have to resubmit it and wait an additional 4-8 weeks.
Buying a Tankless Water Heater
If a tankless water heater has a UEF rating of .82 and above, it qualifies for a rebate no matter the brand. And if you purchase any tankless water heater, you can get $300 back on your taxes. This is because the DOE wants homeowners to invest in more eco-friendly appliances.
If you want to be prepared to take care of a new tankless water heater, we’ve put together these great resources for you. In them, you can learn about why tankless water heaters need maintenance to function, how LA water affects your tankless, and how you can protect it.
- 2 Types of Tankless Water Heater Maintenance: Why They’re Important
- Flow-Tech: What It Is and How it Saves You Cash
- Water Softeners: A Crash Course
- Water Filtration: Water Softener vs. Flow-Tech
- Optimal Plumbing Solutions Home Protection Plan: What is it and How it Protects Your Home
Ready to get endless hot water and money back on a tankless water heater? Call us at +19169176280, and we’ll get you set up! We even submit your rebate form for you, so you don’t have to worry about it.