Austin Energy,

Customer Energy Solutions,

4815 Mueller Blvd.

Austin, TX 78723-3573

  Customer Energy Solutions



Save Money & Energy

Saving energy and money go hand-in-hand. We can all contribute to reducing Austin’s energy demand by making simple lifestyle changes and energy-efficient home improvements. When demand decreases, we all save. Austin Energy is committed to helping our customers achieve the greatest savings possible.

Heat Pump Water Heaters

Earn an $800 rebate on a qualifying ENERGY STAR® heat pump water heater.

  • Description
  • Incentive
  • Eligibility
  • How to Apply

Installing a new water heater? Consider a heat pump water heater for maximum energy savings. Austin Energy offers an $800 rebate when you install a qualifying ENERGY STAR® hybrid/heat pump water heater

Heat pump water heaters, also known as hybrid electric water heaters, efficiently transfer heat instead of creating it. This method is three to four times more efficient than that of traditional water heaters. Switching to a heat pump water heater can add up to big savings: 

Learn more about choosing a heat pump water heater by visiting ENERGY STAR.

Other Energy Efficiency Incentives

Austin Energy also offers rebates for the following equipment that can improve energy efficiency in your home: 

Austin Energy offers an $800 rebate on qualifying heat pump water heaters. To find a qualifying heat pump water heater, visit the ENERGY STAR® Find and Compare Products webpage and search for heat pump water heaters that meet the program requirements. 


  • The heat pump water heater must be installed at a residence that receives electricity from Austin Energy.
  • The heat pump water heater must be installed in a home that has had permanent electric service from Austin Energy for more than one year. Rebates are not available for new construction.
  • New equipment is not eligible for rebates if the existing equipment received rebates within the last 10 years.
  • All existing heat pump water heaters being replaced must be 10 years old or older.
  • You must purchase a qualifying ENERGY STAR® hybrid/heat pump water heater.
  • You must use electricity to heat your water.
  • You must submit your application within 90 days of purchase. Applications submitted after this timeframe will not be approved.
  • You must adhere to all applicable permitting requirements.*


  • The heat pump water heater you purchase must:
    • Be labeled an ENERGY STAR® hybrid electric water heater, also referred to as a heat pump water heater, and have an Energy Factor of 2.0 or better
    • Store a minimum of 40 gallons of water
    • Be installed new (not used)
    • Be installed meeting all applicable codes and adhering to all applicable building permit processes for proper installation
    • Be permanently installed at the structure
    • Have minimum required clearances and free area as determined by
      the manufacturer
    • Carry a minimum six-year warranty on major components supplied
      by manufacturer
  • If required, you must agree to a post-installation inspection by Austin Energy.

Permitting Information

*It is the customer's responsibility to meet all permitting and building code requirements for their Authority Having Jurisdiction (AHJ). Use the following resources to help you research permitting requirements for your AHJ:

If you do not see your AHJ listed or are unsure which AHJ you are located in, please contact your City for assistance. Contact information for cities and villages located in Travis County may be found at the Travis County website. If you live in Williamson County, please contact the Williamson County Courthouse for assistance finding your City’s information at the Williamson County website.

Rebate Recipient Eligibility Requirements

  • Property owners or electric account holders that purchased and installed the equipment are eligible to receive the rebates.
  • By default, the rebate payment is directed to the customer listed on the Austin Energy electric account. The rebate may also be directed to one of the below parties if all requirements are met.
    • The property owner, verified using county tax records.
    • A tenant at the property, when the property owner submits a signed Letter of Authorization to issue the rebate to the tenant.
    • A property manager, when the property owner submits a signed Letter of Authorization to issue the rebate to the property manager.
    • If you need a Letter of Authorization, please email the Austin Energy Appliance Efficiency Program.
  • Participating contractors are not eligible to receive the water heater rebates.
  • Gas water heaters and tankless gas water heaters are not eligible for this rebate.


Apply for Your Rebate Online

You must submit your rebate application online within 90 days of purchase. Applications submitted after this timeframe will not be approved. The following information is required for your online rebate application: 

  • Active Austin Energy Customer Account Number 
  • Tax Assessor Property ID
  • Permit number (if required)
  • Manufacturer
  • Model
  • Serial number
  • Energy factor
  • Size (gallons)
  • Location (conditioned or unconditioned space)
  • Heating type (gas, electric strip, heat pump)
  • Receipt
  • Letter of Authorization (if applicable – see Eligibility for details)

Apply for a Rebate Online

You can apply for your rebate online once you purchase and install your heat pump water heater.

Check Your Rebate Status

Use the confirmation (enrollment) and utility account numbers to check the status of your rebate application.

Tips for Applying Online

  • Before you submit the application, you will need to have all required information on hand.
  • If your application requires supporting documentation, such as invoices or sales receipts, you will need to scan or photograph these documents and upload into the application system. The system will accept any of the following file formats:
    • Adobe Acrobat PDF (.pdf)
    • Microsoft Word Document (.doc or .docx)
    • JPEG (.jpg)
    • ZIP (.zip)
  • Check your rebate status online using the confirmation (enrollment) number you receive after the application submission. You will also need your City of Austin utility account number.

Please email the Austin Energy Appliance Efficiency Program if you have questions about your rebate status or need help with your rebate application.


Funding is limited and available only to Austin Energy customers on a first-come, first-served basis. Offerings are subject to change without notice. Rebates are not guaranteed until after Austin Energy's review and approval of the rebate application. Program guidelines include additional requirements and limitations for receiving the above rebates. Contact us for more details.

Date last reviewed or modified: 05/14/2024