Utah Water Heater Rebates and Incentives: Every Program in One Place (2026)
Quick Answer:
Utah homeowners can still get utility rebates on efficient water heaters in 2026. Rocky Mountain Power’s Wattsmart program pays $350 for heat pump models, and Enbridge (ThermWise) offers rebates on qualifying gas equipment. The federal tax credit is gone, though. The IRS Energy Efficient Home Improvement Credit only covers equipment installed through December 31, 2025, so a heater installed in 2026 gets no federal credit. Plan your budget around the utility rebate.
Program Landscape (2026)
Updated March 2026. Data from Rocky Mountain Power official rebate program, Enbridge ThermWise, IRS Energy Efficient Home Improvement Credit:
ProgramTerritoryWater Heater TypeRebate AmountDeadlineRocky Mountain Power WattsmartNorthern/Central Utah (Salt Lake, Ogden, Provo)Heat pump, electric$350Apply within 180 days of installationEnbridge ThermWiseServes 90% of Utah including Southwest Utah (Cedar City area)Gas only: storage, tankless, condensing, hybrid, controllergas storage $100, gas tankless $300, condensing storage $350, gas hybrid $350, smart controller $50Six months from installationFederal Energy Tax Credit (25C)All U.S.Heat pump water heaterNone for 2026 installsEnded December 31, 2025
Per IRS Section 25C Energy Efficient Home Improvement Credit:
Eligible models:
ENERGY STAR certified electric heat pump water heaters
Credit amount: Up to $2,000 (30% of qualified cost), for equipment installed in 2023–2025 only
Duration: Ended. Only improvements made through December 31, 2025 qualify.
Updated as of March 2026. Rebate amounts and deadlines change annually. Always verify on official websites before purchasing.
Rocky Mountain Power Wattsmart (Primary Program)
Coverage: Northern and central Utah (Salt Lake City, Provo, Ogden, Layton, Draper, and surrounding communities served by Rocky Mountain Power).
Eligible models:
ENERGY STAR certified electric heat pump water heaters (UEF ≥ 2.75)
Your old water heater must be electric or gas. Replacing an existing heat pump water heater does not qualify, and switching from gas requires a program-participating HVAC contractor.
Rebate amounts (2026) per Rocky Mountain Power official Wattsmart rebate program:
| Model Type | Size | Rebate | Requirements |
|---|---|---|---|
| Electric heat pump | Any | $350 | New unit, existing home, replacing an electric or gas water heater |
How to claim:
Purchase an eligible model from a participating contractor or retailer.
Have the contractor fill out the rebate application during installation.
Submit photos of the heater model/serial number.
The $350 rebate is issued within about 14 business days after your application is approved.
Participating contractors: Most Utah plumbers are enrolled. Ask your contractor, “Are you a Wattsmart rebate provider?”
Application deadline: 180 days after installation.
Pro tip: Some contractors submit rebates on your behalf. Verify this before signing the contract. If you’re buying the heater yourself (DIY or through a big-box store), you’ll need to apply manually—more complex but possible.
Link: Rocky Mountain Power Wattsmart or call 1-877-299-2775.
Enbridge ThermWise
Coverage: 90% of Utah (Salt Lake, Provo, Cedar City, St. George, Hurricane, Kanab areas). Most use Enbridge (formerly Dominion and Questar Gas), you’re eligible.
Eligible models:
Gas water heaters only. ThermWise does not rebate electric heat pump water heaters.
Rebate amounts (2026, single-family homes):
| Model | Rebate |
|---|---|
| Gas storage (ENERGY STAR) | $100 |
| Gas tankless (ENERGY STAR) | $300 |
| Condensing gas storage | $350 |
| Gas hybrid | $350 |
| Smart controller (on a gas tank) | $50 |
How to claim:
No pre-approval is needed. Buy and install the heater first, then apply online or by mail.
Your application must be postmarked within 6 months of installation.
You need an active Enbridge Gas account. Processing takes up to 8 weeks.
Link: Enbridge ThermWise or call the ThermWise Rebate Hotline at 1-877-932-0610.
Federal Energy Tax Credit (Ended December 31, 2025)
The federal credit for heat pump water heaters (Section 25C) no longer applies to new installs. The IRS says it covers improvements made through December 31, 2025. A heater installed in 2026 gets no federal tax credit, however efficient it is.
If your heater went in during 2025, you can still claim it on your 2025 return with Form 5695: 30% of the cost, up to $2,000 for a qualifying heat pump water heater. For 2025 installs the unit also had to come from a qualified manufacturer, and you report its identification number on the return. The IRS credit page has the details, or ask your tax preparer.
Earlier versions of this page said the credit ran through 2032. That was the schedule before the 2025 tax law ended it early. For a 2026 install, count on utility rebates only.
Utah State Programs
Utah does not currently offer a state water heater rebate. The federal Home Energy Rebate programs the Utah Office of Energy Development applied for are on hold and have not launched, so for now the utility rebates above are the ones you can claim.
Stacking Strategy: Maximize Your Incentives
Scenario: Family in Salt Lake City replaces 50-gallon tank water heater with Rheem Proterra 80-gallon heat pump.
Step 1: Research eligibility
Home in Rocky Mountain Power territory? ✓ Rheem Proterra ENERGY STAR certified? ✓ Budget under $2,400? ✓
Step 2: Calculate incentives
Rocky Mountain Power Wattsmart rebate: $350. Federal tax credit: $0 (it ended in 2025).
Total incentives: $350
Step 3: Calculate net cost
Heater purchase: $2,400 Installation: $600
Total before incentives: $3,000
Less Rocky Mountain Power: -$350 (rebate issued about 14 business days after approval)
Net cost: $2,650
Timeline:
Month 1: Buy and install the Rheem. Pay $3,000 out of pocket. Month 3: The Rocky Mountain Power rebate arrives ($350). Final net cost: $2,650.
Annual savings: $200–$300 on energy. Without the federal credit the payback takes longer, so compare this net price against a quote for a standard tank before you decide.
Non-Utah Residents: Check Your Territory
Utah has a complex utility patchwork.
Examples:
Logan area: Cache Valley Electric Cooperative (similar rebate programs)
Southern Utah: Some communities served by municipal power
Moab/La Sal: Check with city utility
Call your utility directly and ask: “Do you offer water heater rebates?”
Common Rebate Mistakes to Avoid
Claiming rebates for ineligible equipment. Only ENERGY STAR models qualify.
Applying after the deadline. Rocky Mountain Power: 180 days. Enbridge ThermWise: 6 months.
How to Verify Eligibility Before Purchase
Checklist before buying:
I live in Rocky Mountain Power or Enbridge territory
The heater is ENERGY STAR certified
A licensed contractor will install the heater
Installation will occur before rebate deadlines
Find Local Help
Understanding rebate programs can be complex.
When requesting quotes, ask contractors: “What rebates are we eligible for?”
Also ask:
Pre-rebate cost (true out-of-pocket price)
Who files the rebate
Confirmation it will be submitted within deadlines
Find a rebate-savvy contractor: Browse by city.
Frequently Asked Questions
Do I have to install a heat pump to get rebates? No. Tankless gas units qualify for smaller rebates, but heat pump models typically provide the highest total incentives.
Is there still a federal tax credit for water heaters? Not for 2026 installs. The federal credit covered equipment installed through December 31, 2025. Utility rebates from Rocky Mountain Power and Enbridge are still available.
Do I need the most expensive heater to get the maximum rebate? No. Incentives are usually flat amounts regardless of heater cost.
What if I rent? Most rebates require owner-occupied homes. Landlords may claim incentives.
Can I get rebates if I don’t install right away? Both programs pay after installation, not before. Apply within 180 days (Rocky Mountain Power) or 6 months (ThermWise) of installing.
What if the heater is not ENERGY STAR? You may still receive smaller rebates, but major incentives require ENERGY STAR certification.
How long does it take to receive rebate checks? Rocky Mountain Power: about 14 business days after approval. Enbridge: up to 8 weeks.
Sources:
Rocky Mountain Power Wattsmart Program – heat pump and electric rebate eligibility (electric only; gas rebates come from Enbridge ThermWise)
Enbridge ThermWise Program — Southwest Utah rebate programs
IRS Energy Efficient Home Improvement Credit (Section 25C) — Federal credit rules, including the December 31, 2025 end date
U.S. Department of Energy Water Heating — Cost and efficiency comparisons
Utah Office of Energy Development — Home Energy Rebate program status (on hold)
This article updates quarterly as programs and rebate amounts change.