There are a few different rebate options you can take advantage of. Delmarva Power and Pepco customers can take advantage of a $20 rebate on newly installed water heaters.

In addition to the utility rebates available, the federal government offers the Residential Energy Efficiency Tax Credit Program, which allows homeowners a tax credit equal to 30 percent of the cost of a new water heater and the cost of labor for up to $1,500. To qualify for the tax credit, you can either buy a gas, propane or electric water heater with an Efficiency Factor of 0.82 or greater, or you can buy an electric heat pump water heater with an Efficiency Factor of 2 or better.