Heat Pump Water Heaters

Rebates & Incentives

Rebates & Incentives

Austin Energy

Customer Energy Solutions

721 Barton Springs Road

Austin, TX 78704

email icon   Customer Energy Solutions

phone icon   512-482-5346

Save Money & Energy
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

Save money while heating your water and maximizing air conditioning.

Austin Energy offers rebates on qualified high-efficiency heat pump water heaters. In addition to our rebate, you can save up to $300 in electric costs.

When you install new water heaters for your building, consider new heat pump water heaters. Heat pump water heaters can save your residents money and are friendlier to the environment.

A heat pump extracts heat from the air and transfers it to water in an enclosed tank. In cold temperatures, it uses a heating element. In warmer Texas climates, the heating element is not often needed.  

Heat pump water heaters are more efficient because they use electricity to move the heat instead of creating heat directly. This method delivers nearly twice the heat of a conventional electric water heater. During periods of high demand, heat pump water heater switch to standard electric heat, providing sustained heat.

You may qualify for an $800 rebate per heat pump water heater you install for your business. The rebate applies to both retrofits for existing building and new construction. 

PACE Financing Available

Austin Energy provides various opportunities for our customers to purchase energy efficient technologies. Many of these reduce energy consumption, enhance comfort and indoor air quality for your customers. PACE is an effective financing approach. Travis and Williamson County PACE programs enable owners of non-profit, commercial, and industrial properties to obtain low-cost, long-term financing for water and energy efficiency improvements and solar generation retrofits.  

Private sector lenders finance qualified improvements and property owners voluntarily agree to contractual assessments imposed on the property. PACE improvements generate positive cash flow with no out-of-pocket cost to the property owner. If the property is sold before the full amount is repaid, the repayment obligation automatically transfers to the next owner. PACE assessments complement Austin Energy incentive programs. 

Other Energy Efficiency Incentives

Increasing energy efficiency in your building saves your business money.  Our Commercial Rebates help you make energy efficiency improvements that can reduce operational costs by saving you money on your monthly bill. We provide rebates on these energy efficiency improvements and more:

Austin Energy offers an $800 rebate per unit to customers who install qualifying heat pump water heaters. To identify qualifying heat pump water heaters, visit the ENERGY STAR® Find and Compare Products webpage and search for heat pump water heaters that meet the specific program requirements.


Specific Requirements

  • The heat pump water heater you purchase must:
    • Be labeled an ENERGY STAR® 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 five-year warranty on major components supplied
      by manufacturer
  • You must agree to maintain the installed heat pump water heater system in proper working condition for a minimum of five years.
  • Rebate applications for residential heat pump water heater installations do not require a pre-inspection. 

Apply for a Rebate Online

You can apply for your rebate online. To make applying easier, have all required information on hand before you start.

Apply Online

Are You Waiting For a Rebate?

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

Check Status

Comply with ECAD to Qualify for Rebate

If your building is over 10,000 sq ft, you must be in compliance with the Energy Conservation Audit and Disclosure (ECAD) ordinance. ECAD promotes energy efficiency by identifying potential energy savings for your business. You can now choose one of two reporting options that best serve your business.

Learn more about ECAD for Commercial Buildings

Contact Austin Energy for More Information

Call 512-482-5346 or email Commercial Rebates if you have any questions about our rebates.

Apply for Your Rebate Online

All rebate applications are online. You must submit your rebate application within 60 days of purchase. The following information is required for your online rebate application:

  • Active Austin Energy Customer Account Number 
  • Tax Assessor Property ID
  • Manufacturer
  • Model
  • Serial number
  • Energy factor
  • Size (gallons)
  • Location (conditioned or unconditioned space)
  • Heating Type (gas, electric strip, heat pump)
  • Receipt

Tips for Applying Online

  • Use a modern browser like Chrome, Firefox, Safari, or Internet Explorer 9 or higher.
  • You need to complete your online Commercial Rebate application in a single session. 
  • To make applying easier, have all available information on hand before beginning the application.
  • 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 using the confirmation (enrollment) number you receive after the application submission. You will also need your City of Austin utility account number, if applicable.

Additional Documents

Commercial Rebate Summary (pdf)


Funding is limited and available on a first-come, first-served basis. Offerings, program guidelines, and rebate levels are subject to change without notice. Rebate funds are encumbered (committed to be paid) during the fiscal year in which they are to be dispersed.

The Austin City Council must approve rebates of more than $61,000. The maximum combined rebate is $300,000 per customer site per fiscal year (October through September).

Last Updated: 3/28/17
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