ENERGY STAR® Heat Pump Water Heater Rebate

Double the Efficiency for Maximum Savings with a $500 Discount

Twice as efficient as older electric water heaters, ENERGY STAR®-certified heat pump water heaters qualify for instant discounts.

An Efficient Way to Heat Water

It’s not so hard to understand why heat pump water heaters are twice as efficient as electric water heaters. They simply move heat rather than make heat, just like a refrigerator, but in reverse. While a refrigerator pulls heat from inside a box and dumps it into the surrounding room, a heat pump water heater pulls heat from the surrounding air and transfers it – at a higher temperature – into the tank to heat your water. Because they use the warm ambient air temperature to do most of the work, it is very efficient.

As the heat pump removes heat from the surrounding ambient air, it also provides a slight cooling effect. The result is dehumidification and cooling. For this reason, heat pumps work well in basements. Because they rely on surrounding air, they require at least 750 cubic feet of space around the heat pump and should not be installed in a closet or other confined space.

We help make it affordable to upgrade to an ENERGY STAR-certified heat pump water heater with a $500 discount provided through the Connecticut Energy Efficiency Fund. Whether you’re replacing an old water heater or installing one in a new home, you'll save money up front.

For customers who meet certain income eligibility guidelines, even greater incentives may be available through the Home Energy Solutions – Income Eligible program.

ENERGY STAR is a widely recognized and trusted label on products that meet strict energy-efficiency requirements set by the U.S. Environmental Protection Agency and the U.S. Department of Energy. By using less energy, these products also help reduce greenhouse gas emissions that contribute to climate change. Learn more at the ENERGY STAR website.

Install a heat pump water heater today and save energy - and money!

Call 877-WISE-USE (877-947-3873) for more information. 

Benefits of Heat Pump Water Heaters

  • One of the most energy-efficient water heating systems on the market today
  • 25 to 50 percent savings on electric water-heating costs
  • Programmable options such as “vacation mode” that save energy when you’re away and ensure you have hot water when you return
  • Dehumidify damp spaces such as a basement or unconditioned space

Consider the following factors:

  • For the most efficient operation, the heat pump water heater should be installed in a space where temperatures average at least 50 degrees
  • Because it exhausts cool air, the water heater should not be installed in a heated living area
  • A heat pump water heater should be installed with at least 750 cubic feet of space around it

How to Get a Discount

There are two ways to receive the discount on qualifying heat pump water heater units:

Work with an installer

When your installing contractor purchases a qualifying unit at a participating distributor in Connecticut, a $500 instant discount will be automatically applied to the equipment cost.

Purchase a qualifying unit from a participating retailer

Eversource and United Illuminating (UI) partner with several retailers across the state to offer you instant discounts and/or paper rebates for heat pump water heaters. You may purchase a heat pump water heater directly from the retailer. Depending on the retailer, you will receive either:

  • A $500 instant discount; or
  • A $300 instant discount PLUS a $200 mail-in rebate

Learn more at the ENERGY STAR website.

Call 877-WISE-USE (877-947-3873) for more information.

Who Is Eligible

Residential customers of Eversource or UI.

Equipment must be ENERGY STAR-certified with an Energy Factor (EF) of 3.0 or greater.

To receive a $500 discount, equipment must be purchased from a participating distributor located in Connecticut.

To find ENERGY STAR-certified units talk to a licensed contractor or visit the ENERGY STAR website.

If you are a Connecticut resident and are not served by one of the utilities listed above, please visit your municipal utility’s website to see what energy efficiency programs are available to you. 

Call 877-WISE-USE (877-947-3873) for more information.

Participating Locations


We strongly encourage you to contact a licensed contractor to ensure proper installation of your heat pump water heater. You or your contractor can receive a $500 instant discount on ENERGY STAR®-certified models through participating distributors listed on our Find a Distributor page.

The instant discount and/or rebate is also available at the following Connecticut retailers:

  • Lowe's
  • Home Depot
  • Zemel's TV and Appliances


Our Partners

Visit to CT Power Update page