Due to recent legislation, the federal tax credit for heat pump water heaters is set to expire on December 31, 2025.
HEAT PUMP
WATER HEATERS
Heat pump water heaters take the heat from the air to heat the water in their tanks. They can produce lots of hot water, just like traditional heaters and they are often more efficient. To learn more, check out this video from Efficiency Maine.
Heat pump water heaters move heat instead of generating it, making them more efficient than traditional water heaters.
Heat pump water heaters have low operating costs. While they might have higher upfront costs, they can save you a substantial amount of money on your monthly energy bills.
However, heat pump water heaters can last 10-15 years if well maintained, while traditional water heaters typically last 8-12 years.
Heat pump hot water heaters can help dehumidify spaces in your home. They are not substitutes for dehumidifiers.
POTENTIAL SAVINGS
Heat pump water heaters can save you hundreds of dollars annually due to their high efficiency and the lack of reliance on delivered fuels. Rebates and other incentives lower the upfront cost of these systems and allow you to start saving sooner.
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Efficiency Maine provides a savings calculator to help determine how much you could save based on fuel costs and your preexisting system.
FINANCIAL INCENTIVES
Rebates
​For moderate-income homeowners, there are a few different ways to receive a rebate on a heat pump water heater:
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$399 after an instant discount at Granite Group.**
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$449 after a $950 instant discount at Lowe’s.**
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$449 after a $950 instant discount at Home Depot.**
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Participating distributors offer an instant discount to contractors.
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Heat pump water heaters purchased without an instant discount qualify for an $950 mail-in rebate.
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Unlike other Efficiency Maine rebates, there is no requirement to use a registered vendor to receive the rebate.
For low-income homeowners, if certain guidelines are met, they can receive a heat pump water heater installed at no cost to them. This includes the price of the water heater and the installation cost.
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Guidelines:
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A member of the household must participate in SNAP, HEAP, TANF, or MaineCare to be verified as low-income.
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The home must already have a water heater in the basement
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The basement ceiling height must be six feet.
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To learn more and apply for the program, visit Efficiency Maine.
Tax Incentives
Through the Energy Efficient Home Improvement Credit, homeowners who install heat pump water heaters can receive a nonrefundable tax credit for 30% of the project cost up to $2,000. The credit has no lifetime limit, but it cannot be rolled over to the following tax year.