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, Heating, Air & Electric, 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.
How to Apply for Los Angeles Tankless Water Heater Rebates
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.
How to get a rebate and tax credit:
- Upgrade from a traditional water heater to a qualified high-efficiency tankless water heater.
It is recommended that you call a certified technician to replace your conventional water heater with your new tankless water heater. - Make sure you purchase a tankless water heater by December 31, 2024.
Keep your receipts! Make sure you have a documented date on your receipt to show that you purchased your tankless water heater. - Apply for your rebate on the SoCal Gas website here.
If you live in Long Beach, find the steps to submit your rebate here. - Submit your tankless water heater information and tax credit form for a credit when you’re doing your taxes.
Upgrade from a traditional water heater to a qualified high-efficiency tankless wate
By doing these four things, you can earn up to $1,600 in rebates and tax credits.
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.
Let’s break things down tier by tier based on which models match SoCal Gas’s criteria. This list may change over time due to alterations in rebate policies.
Noritz Tankless Water Heater Rebates
$1,000 Noritz Qualifying Models:
- EZ98DV
- EZ111DV
- NRCR92DV
- NRCR111DV
- EZTR50
- EZTR75
$800 Noritz Qualifying Models:
- EZTR40
- NRC71DV
- NRC71OD
- NRC98DV
- NRC98OD
- NRC66DV
- NRC66OD
- NRC111DV
- NRC111OD
$80 Noritz Qualifying Models:
- NR98OD
- NR98SV
- NR83OD
- NR66OD
- NR50OD
Navien Tankless Water Heater Rebates
$1,000 Navien Qualifying Models:
- NPE-180A2
- NPE-180S2
- NPE-210A2
- NPE-210S2
- NPE-240A2
- NPE-240S2
$800 Navien Qualifying Models:
- NPE-150S2
Takagi Tankless Water Heater Rebates
$1,000 Takagi Qualifying Models:
- TK-540X3-NEH
- TK-340X3-NIH
- TK-240×3-NEH
- T-H3J-OS-N
- T-H3-OS-N
- T-H3S-DV-N
- TK-540P-NEH
While we specialize in Noritz, Navien, and Takagi tankless water heaters, we want to give you information to continue learning about tankless water heaters. Some other brands we know that have qualifying models are:
What Qualifies for a Tax Credit?
So, what qualifies a tankless water heater for a tax credit? The only requirement is being eco-friendly, as 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 $600 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).
A UEF rating of 0.95 or higher with Energy Star Certification qualifies a tankless water heater for the top rebate tier of $1,000. Dropping down to the mid-tier, a unit with a UEF rating between 0.87 and 0.94 and with Energy Star Certification nets homeowners $800 in rebates. At the lowest rung, with a rating of between 0.82 and 0.86, garner a $80 rebate.
The higher the rating, the more eco-friendly the tankless water heater is, and the more money you get back.
On April 1, 2023, the rebate for tankless water heaters rated between 0.82 and 0.86 UEF dropped to $80 from $600 for units purchased after April 1.
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
Based on SoCal Gas’s criteria, if a tankless water heater is Energy Star Certified and has a UEF rating of .82 and above, it qualifies for a rebate, no matter the brand. And if you purchase a qualifying tankless water heater, you can get $600 back on your taxes. This is because the DOE wants homeowners to invest in more eco-friendly appliances.
Ready to buy your tankless water heater and save on rebates? Check out the articles below as we dive into the costs involved with purchasing a tankless water heater, and take a look at our tankless water heater page to learn more about all things tankless water heaters.
If you live in the Los Angeles area and are interested in purchasing a tankless water heater, hit the “Book” button below. Or if you have any other questions regarding your tankless water heater needs, feel free to call us at (818) 213-1773, and one of our call center representatives would be happy to help you.