Heat Pump Water Heaters

Heat pump water heater rebates are available on an annual basis to CMLP's residential and commercial customers.

Heat Pump Water Heaters (HPWHs) - also called Hybrid Water Heaters - are powered by electricity, bBobZoggHPWHcroppedut are much more efficient than previous electric water heaters, which exclusively used electric resistance to raise the temperature of the water.  HPWHs can use electric resistance when needed (such as when a homeowner has visitors staying with them, causing an increased load on their water heater), but their default is to use heat pump technology.  

Heat naturally moves from warmer places to cooler places.  Heat pumps use electricity to move heat in the opposite direction, from cooler places to warmer places, making the cool space cooler and the warm space warmer.  A refrigerator is a heat pump, moving heat from inside the refrigerated cabinet (cooler place) into the kitchen (warmer place).  An air conditioner is a heat pump, moving heat from inside the building (cooler place) to the outside summer air (warmer place).

A Heat Pump Water Heater collects heat from the ambient air, concentrates it via a compressor, and uses it to heat the water in the tank.  Even in the winter in unheated spaces (such as a basement), the surrounding air is warm enough for HPWHs to work in our climate.  Heat pumps require electricity to run, but can deliver more energy than they use.

Learn more from the Massachusetts Clean Energy Center's Guide to Heat Pump Water Heaters. Still have questions? Ask one of CMLP's heat pump coaches, at no cost. Supported by CMLP funds, our coaches have no affiliations with private businesses, and can offer impartial information. 

CMLP offers a $750 rebate for HPWHs replacing oil, natural gas or propane-fired water heaters or for new construction. Customers replacing an electric resistance unit are eligible for a $185 rebate. 

For each calendar year: 
Residential customers may receive a rebate for one (1) HPWH per account number.
Commercial customers may receive rebates for up to five (5) HPWHs per account number. 

Customers must apply for the rebate within 90 days of installation, as shown by the date on the invoice or receipt.  If the amount requested in any given rebate application is $750 or less, it will be issued as a credit on your electric bill.  Any customer in good standing may choose to receive a rebate greater than $750 either as a bill credit or a check from the Town.  A rebate check will arrive in 4-6 weeks after rebate approval.  If a customer requesting a check has been in arrears frequently in the past two years, CMLP may apply all or part of the rebate as a bill credit rather than as a check.

The HPWH must:

  • be installed by a licensed plumber
  • be ENERGY STAR Certified
  • have a Uniform Energy Factor (UEF) that meets or exceeds the requirements displayed below.

If your NEW
water heater
is this size...
...and your OLD water heater
 used this fuel...
...your NEW water heater
 must have this
Uniform Energy Factor* ...
...to get 
≤ 55
Fossil Fuel (oil, natural gas, or propane)
None (new construction)
UEF ≥ 2.0
Electric Resistance

> 55 
Fossil Fuel (oil, natural gas, or propane)
None (new construction)
UEF ≥ 2.7
Electric Resistance
UEF ≥ 3.0

*Units not meeting these UEF requirements are not eligible for a rebate.

Click the button below to access the online rebate application. 

APPLY BUTTON Opens in new window               

Tax Credits

A federal tax credit of 30% of project cost, capped at $2,000, is now available for ENERGY STAR Certified heat pump water heaters.   Click to find out more.

Watch a 3-minute video of an area homeowner talking about his heat pump water heater.

CMLP recommends getting 3 quotes before you have any significant work done on your house.  HPWH rebate eligibility is not tied to any specific installers, but whoever you use, they must be a licensed plumber.  Below are various resources to help you identify contractors. 

Questions? Please contact Pamela Cady, Energy Specialist at (978) 318-3149 or pcady@concordma.gov.