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If your water heater is more than 10 years old, avoid the hassle, stress and extra costs of water heater failure by planning ahead and replacing it early with an ENERGY STAR® certified model. Unlike traditional water heaters, an electric heat pump water heater with the ENERGY STAR label uses a highly efficient heat pump to transfer heat from the surrounding air to the water in the storage tank. This process uses much less power, helping you save energy and money.

Why Upgrade to a Heat Pump Water Heater?

  • Save money. A family of four could save up to $550 per year in energy costs compared with a standard electric water heater. Although an electric heat pump water heater costs more upfront, the savings can pay back the difference in just three and a half years for a household of four.**
  • Save energy. An ENERGY STAR certified electric heat pump water heater uses less than half the energy of a standard electric water heater.**
  • Get rebates. Select models qualify for rebates up to $1,600.††
  • Get a federal tax credit. When you buy a qualifying heat pump water heater, you may be eligible for a federal tax credit of 30% of the project cost, with a maximum credit of $2,000. Check eligibility requirements and learn more at energystar.gov.†

Questions? Check out our FAQs.

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Is an ENERGY STAR Heat Pump Water Heater Right for My Home?

In most homes it can be installed right where your current water heater sits, making it a great option. ENERGY STAR now makes it easy to determine whether an electric heat pump water heater is the best choice for your home with this new Water Heater Replacement Guide.

Ways to Get Your Rebate

There are many ways to receive your rebate.

  1. Bundle your qualifying heat pump water heater purchase with professional installation when you purchase with our Product Advisor tool.
  2. Ask your contractor or plumber about purchasing your unit from a participating distributor.
  3. Purchase your qualifying heat pump water heater directly from any retailer and fill out the rebate application. Apply online for faster processing, or print and mail in your rebate application.
  4. Get an instant rebate online or in-store at select retailers.

Questions? Check out our FAQs.


Please contact us to become a participating distributor.


*Sample pricing based on a standard 50-gallon heat pump water heater purchased from Product Advisor Plus at bgewaterheater.com.

**Savings based on a household of four compared to a standard electric water heater. Source: energystar.gov.

The Inflation Reduction Act’s federal tax credit covers 30% of your project cost, up to $2,000. The tax credit is calculated based on the project cost after the BGE rebate. Please contact a tax professional or CPA to confirm details specific to your qualifications and eligibility.

††One heat pump water heater rebate per customer address purchased after January 1, 2021. Rebate not to exceed total purchase price. Mail-in rebate is not valid if instant rebate has been received on the purchase of a qualifying unit through a participating distributor. Program is subject to change without notice.