Whether or not you are eligible for a rebate depends on two things – your water heater and your utility provider. But hopefully you will qualify for one of three possible incentives.

Pepco customers who buy an electric water heater with an Efficiency Factor of .93 or better qualify for a $20 rebate.

If you are a SMECO customer with an electric water heater, SMECO will insulate your tank and pipe, as well as add faucet aerators and water-saving showerheads to your home for free. Not quite a rebate but it's still a nice incentive.

Didn’t buy an electric water heater? If you purchased an ENERGY STAR qualified gas, oil or propane water heater, you qualify for the U.S. Residential Energy Efficiency Tax Credit, which will credit you for up to 30 percent of the cost of your water heater (max $1,500).