Quick Steps to find your new residential water heater

What to buy, where to buy, Rebates and tax credits, energy savings, self-install help and plumbing installation services.

Step 1: Check what your have - Find the Rating plate

Step 2: The most common replacement options

Step 3: Consider an ENERGY STAR® model and take advantage of the Federal tax credits now set to expire on December 31, 2025

Replace your old water heater now before it fails……Incentives of this magnitude are not likely to come back for a long, long time:

Federal tax credits for ENERGY STAR® certified Water Heaters (see details of which models to pick below under “resources”):

https://www.energystar.gov/about/federal-tax-credits/heat-pump-water-heaters
https://www.energystar.gov/about/federal-tax-credits/water-heaters-natural-gas-oil-propane-tax-credit

“Your home’s water heater uses more energy than your refrigerator, clothes washer, dishwasher, and dryer combined!” 

Source ENERGY STAR®: https://www.energystar.gov/products/energy_star_home_upgrade/super_efficient_water_heater

Step 4: Pick your fuel type; Consider electrification options

Electric Water heater
gas water heater
Electrification Options

Step 5: If you Select a Heat Pump Water Heater or a Tankless Natural Gas Water heater, Check out if local Utility rebates are Available in Your State

Utility Rebates for Electric Heat Pump Water Heaters in Your State
Utility Rebates for Tankless Gas Water Heaters in your State

Our Selection. Buy with confidence. Great offers on Ultra-Efficient Heat Pump water heaters:

For reference:
-A water heater’s energy efficiency is determined by the uniform energy factor (UEF), which is based on how much energy the water heater uses and how much energy is used to power the water heater itself.  The higher the uniform energy factor, the more efficient the water heater.
Source: DOE – Energy.gov
-The first-hour rating [FHR] refers to the amount of hot water a storage-type water heater (including heat pump models) will deliver in the hour after you turn on the tap.
Source: Consumer Reports

-Free shipping to your home. HVAC Direct is the largest online HVAC supplier in the US. 
-Lowest Every Day Low Price (EDLP) in the market. Shop with confidence with the “eBay Money Back Guarantee” provision.
-Best in class 12-year limited warranty upon product registration. Made by Midea.
-UEF = 3.75
-FHR = 69 Gallons
-30 days returns minus return shipping costs

-Free shipping to your home. Power Equipment Direct (PED) is a wholly-owned subsidiary of Ferguson Enterprises. Shop with confidence with the “eBay Money Back Guarantee” provision.
-10-year limited warranty on parts and tank.
-Flex capacity. Leak detection.
-UEF = 3.84
-FHR = 83 Gallons
-30 days returns minus return shipping costs

-Free shipping to your home. HVAC Direct is the largest online HVAC supplier in the US.  
-Lowest Every Day Low Price (EDLP) in the market.
-Best in class 12-year limited warranty upon product registration. Made by Midea.
-UEF = 4.0. 
-FHR = 91 Gallons
-60 days returns, minus returns shipping costs and a 15% restocking fee. 

DIY Installation. If you prefer to have it installed professionally, we recommend that you request minimum 3 plumber quotes for the cost of the installation. Until December 31, 2025 the 30% Federal tax credit also applies to the professional installation of qualified ENERGY STAR® electric or gas water heaters (see “Resources” below for details on which products qualify)
Click to access a list of qualified Heat Pump water heater installers published by ENERGY STAR® .
Resource: LocalPlumbingQuotes by ImproveNet® powered by Angi®

Resources: Just published - Consumer reports® - How to choose a water heater

https://www.consumerreports.org/appliances/water-heaters/how-to-choose-a-water-heater-a8051742980/

Resources: Details on the Federal tax credit - Heat Pump water heaters

“Heat pumps that meet or exceed the CEE highest efficiency tier, not including any advanced tier, in effect at the beginning of the year when the property is installed, and biomass stoves and boilers with a thermal efficiency rating of at least 75% qualify for a credit up to $2,000 per year. Costs may include labor for installation.

Qualified property includes new:

  • Electric or natural gas heat pumps
  • Electric or natural gas heat pump water heaters
  • Biomass stoves and boilers”

Reference: https://www.irs.gov/credits-deductions/energy-efficient-home-improvement-credit

Pick a 240V integrated Heat Pump water heater model with a Universal Energy Factor (UEF) of 3.3 or higher. The requirement for split system and 120V 15A Heat Pump water heaters is a UEF of 2.2 or higher.
Reference CEE – Consortium for Energy Efficiency Residential Electric Water Heating Specification: https://cee1.my.site.com/s/resources?id=a0V2R00000sUQd1

For example, the 240V ACiQ® Heat Pump water heaters qualify for the Federal tax credit. The 50 Gallon model ACIQ-50-HP-WH has a UEF of 3.75 and the 80 Gallon model ACIQ-80-HP-WH has a UEF of 4.0.
Reference:
https://www.energystar.gov/productfinder/product/certified-heat-pump-water-heaters/results?formId=b16b4f32-abfa-4053-b6ed-d5c36ce41c97&scrollTo=542&search_text=&low_price=&high_price=&type2_filter=&brand_name_filter_proxy=ACIQ&brand_name_isopen=0&markets_filter=United+States&zip_code_filter=&product+types+to+select=Select+a+Product+Category&sort_by=uniform_energy_factor_uef&sort_direction=desc&page_number=0&lastpage=0&brand_name_filter=ACIQ

Consult with your tax professional if you have questions.

IRS Qualified Manufacturer (QM) codes for inclusion as needed in the Federal tax returns for tax year 2025:
-A. O. Smith: A5X5
-Midea (Manufacturer of the ACiQ Heat Pump water heaters): TBA

Resources: Details on the Federal tax credit - Gas water heaters

“Residential energy property that meets or exceeds the Consortium for Energy Efficiency (CEE) highest efficiency tier, not including any advanced tier, in effect at the beginning of the year when the property is installed qualifies for a credit up to $600 per item. Costs may include labor for installation”.

Qualified property includes new:

  • Central air conditioners
  • Natural gas, propane, or oil water heaters
  • Natural gas, propane, or oil furnaces and hot water boilers”

Reference: https://www.irs.gov/credits-deductions/energy-efficient-home-improvement-credit

-Pick a residential gas tank water heater between 20 and 55 gallons with a Universal Energy Factor (UEF) of 0.81 or higher (medium draw pattern) or 0.86 or higher (high draw pattern). 
-Pick a residential gas tank water heater larger than 55 gallons with a UEF of 0.86 or higher (high draw pattern).
-Pick a residential tankless gas water heaters with a UEF of 0.95 or larger.
Reference CEE – Consortium for Energy Efficiency Residential Electric Water Heating Specification: https://cee1.my.site.com/s/resources?id=a0V7V00000Ke9Wy

Consult with your tax professional if you have questions.