For purchases from January 1 to December 31, 2026, Energize CT offers a $900 rebate on qualifying ENERGY STAR heat pump water heaters for Eversource and UI residential electric customers. Income-qualified households can get an extra $1,000 toward installation, up to $1,900 total, for installs on or after June 1, 2026. The federal 25C tax credit ended on December 31, 2025.
Information current as of October 2026. Incentive programs change. Confirm the current terms on the Energize CT website before you buy.
The 2026 Energize CT rebate at a glance
| Item | Details |
|---|---|
| Standard rebate | $900 for qualifying units |
| Purchase window | January 1, 2026 to December 31, 2026 |
| Income-qualified bonus | An extra $1,000 toward installation, up to $1,900 total, for installs on or after June 1, 2026 |
| Who's eligible | Residential electric customers of Eversource and UI, installing in their service territory |
| Equipment | ENERGY STAR certified and on the Energize CT qualified products list |
Three ways to claim the rebate
- At the store. At participating Lowe's and Home Depot locations in Connecticut, the $900 is applied as an instant rebate at checkout after you validate your eligibility online.
- Through your installer. When a contractor buys a qualifying unit from a participating Connecticut distributor, the $900 discount comes off the equipment cost. This is often the simplest route if you're hiring a pro anyway.
- After purchase. Apply online or by mail. Energize CT notes that online applications are processed faster.
The income-qualified bonus
Households that qualify by income can receive an additional $1,000 toward installation costs, for a combined incentive of up to $1,900. It applies to installations completed on or after June 1, 2026, requires installation by a licensed contractor and requires income verification through the Energize CT Income Verification Portal.
Which units qualify?
The unit must be ENERGY STAR certified and meet Energize CT's efficiency thresholds:
- Integrated heat pump water heaters: a Uniform Energy Factor (UEF) of 3.40 or higher, or 2.20 or higher for 120-volt/15-amp plug-in models
- Split-system heat pump water heaters: a UEF of 2.20 or higher
Check the model against the qualified products list before buying. Eversource and UI may verify sales and inspect installations, and refusing an inspection can forfeit the rebate.
What if my electricity comes from a municipal utility?
Energize CT rebates are for Eversource and UI customers. Some Connecticut communities, including Wallingford and Norwich and parts of Norwalk, are served by municipal electric utilities. If that's you, check with your utility directly for any water heater incentives.
What happened to the federal tax credit?
The federal Energy Efficient Home Improvement Credit (25C), which covered heat pump water heaters, expired on December 31, 2025. Units installed in 2026 don't qualify. Talk with a tax professional about anything installed in 2025 or earlier.
Is a heat pump water heater right for your home?
The DOE says heat pump water heaters can be 2 to 3 times more energy efficient than conventional electric resistance water heaters. They work best where:
- There's room. The DOE notes they require at least 1,000 cubic feet of air space around the unit. Most Connecticut basements qualify.
- The space stays reasonably warm year-round. Most basements do; unheated garages may not in deep winter.
- There's a way to drain condensate, either a floor drain or a small pump.
- You're replacing an electric tank, or want to stop running an oil boiler all summer just to make hot water.
They make a sound similar to a dehumidifier and cool the space around them, which many people find useful in a damp basement.
How to get started
Call us to be connected with a local installer. They'll confirm your space works, recommend a qualifying model and explain how the rebate will be applied. See our heat pump water heater installation page for details, compare options on our water heater replacement page or read how long water heaters last if you're deciding whether to replace now. For everything else, start with our main guide to water heater repair in Connecticut.
Common questions
How much is the Energize CT heat pump water heater rebate in 2026?
$900 for qualifying ENERGY STAR units purchased in 2026, with up to $1,900 total for income-qualified households for installs on or after June 1, 2026.
Can I still get a federal tax credit for a heat pump water heater?
Not for 2026 installations. The 25C Energy Efficient Home Improvement Credit expired on December 31, 2025.
