ENERGY STAR Heat Pump Water Heater Discount

ENERGY STAR Heat Pump Water Heater Discount

It’s not so hard to understand why heat pump water heaters are twice as efficient as electric water heaters. They simply move heat rather than make heat, just like a refrigerator, but in reverse.

We help make it affordable to upgrade to an ENERGY STAR-certified heat pump water heater with a $650 discount at the point of purchase. Discount provided through the Connecticut Energy Efficiency Fund. Whether you’re replacing an old water heater or installing one in a new home, you'll save money up front.

For customers who meet certain income eligibility guidelines, even greater incentives may be available through the Home Energy Solutions – Income Eligible program.

ENERGY STAR is a widely recognized and trusted label on products that meet strict energy-efficiency requirements set by the U.S. Environmental Protection Agency and the U.S. Department of Energy. By using less energy, these products also help reduce greenhouse gas emissions that contribute to climate change. Learn more at the ENERGY STAR website.

Install a heat pump water heater today and save energy - and money!

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  • One of the most energy-efficient water heating systems on the market today
  • 25 to 50 percent savings on electric water-heating costs
  • Programmable options such as “vacation mode” that save energy when you’re away and ensure you have hot water when you return
  • Dehumidify damp spaces such as a basement or unconditioned space

Consider the following factors:

  • For the most efficient operation, the heat pump water heater should be installed in a space where temperatures average at least 50 degrees
  • Because it exhausts cool air, the water heater should not be installed in a heated living area
  • A heat pump water heater should be installed with at least 750 cubic feet of space around it

While a refrigerator pulls heat from inside a box and dumps it into the surrounding room, a heat pump water heater pulls heat from the surrounding air and transfers it – at a higher temperature – into the tank to heat your water. Because they use the warm ambient air temperature to do most of the work, it is very efficient.

As the heat pump removes heat from the surrounding ambient air, it also provides a slight cooling effect. The result is dehumidification and cooling. For this reason, heat pumps work well in basements. Because they rely on surrounding air, they require at least 750 cubic feet of space around the heat pump and should not be installed in a closet or other confined space.

UI residential customers who install a ENERGY STAR-certified Heat Pump Water heater that meets the efficiency criteria listed in the table below are eligible to receive a $650 discount.

Equipment must be purchased from a participating distributor located in Connecticut, that can be found on

To find ENERGY STAR-certified units talk to a licensed contractor or visit the ENERGY STAR website.

Type of System Energy Efficiency Requirements Incentive Amount
Integrated HPWH ENERGY STAR certified ≥ 3.40 Uniform Energy Factor (UEF) $650
Integrated HPWH (120 volt / 15 amp) ENERGY STAR certified ≥ 2.20 Uniform Energy Factor (UEF) $650
Split-System HPWHs ENERGY STAR certified ≥ 2.20 Uniform Energy Factor (UEF) $650

There are two ways to receive the discount on qualifying heat pump water heater units:

Work with an installer

When your installing contractor purchases a qualifying unit at a participating distributor in Connecticut, a $650 instant discount will be automatically applied to the equipment that meets required efficiency criteria. Visit for a list of participating distributors.

Purchase a qualifying unit from a participating retailer

UI partners with several retailers across the state to offer you instant discounts and/or paper rebates for heat pump water heaters. You may purchase a heat pump water heater directly from the retailer to receive:

  • A $650 instant discount through participating Retail Stores with address verification.
  • A mail-in rebate will be provided to residential customers who are not able to validate eligibility in store at participating retailers.

The instant discount and/or rebate is available at the following Connecticut retailers:

  • Lowe's
  • Home Depot

Learn more at the ENERGY STAR website.

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