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Heat Pump Water Heater Install


Did you know that water heaters are the second-highest source of energy usage in most homes? Heat pump water heaters can help you save energy and money every day, plus you can get a $350 rebate when you install an ENERGY STAR® model.

Install an energy-efficient heat pump water heater and enjoy the benefits, including:

  • Save $250 each year – or more – on your water heating costs*
  • Receive $350 for each new, qualifying water heater installed
  • Use less energy without sacrificing performance or reliability

Save big on energy costs with a new
heat pump water heater.

Water heaters typically account for about 15 to 25 percent of your monthly energy bill. An ENERGY STAR qualified heat pump water heater is one of the most efficient water heaters you can buy. That means lower operating costs – and lower monthly electric bills. In fact, most households are able to cut their water heating costs in half.

Water heaters typically last 10 to 15 years, and they can fail without warning. Upgrade now and start saving on your energy bill right away.

Contractor Search

Contractor Search

Find a participating contractor in your area or visit Lowe's, Home Depot or Sears for more details.

Eligibility requirements

  • You must be a Duke Energy electric service customer residing in a single-family residence. Customers living in apartments and multifamily homes are not eligible at this time.
  • Your new heat pump water heater must be installed by one of our Smart $aver participating contractors. Your system must be installed and operable before you submit your rebate application.
  • Homeowners must fill out and submit the rebate application within 90 days of the installation to receive a rebate check by mail.
  • For your heat pump water heater to qualify for the rebate, it must be ENERGY STAR qualified and have an energy factor of at least 2.0.
Why heat pump water
heaters are more efficient
They work much like a refrigerator, but in reverse. Their advanced technology absorbs heat from the air and transfers it into the water in the storage tank. This makes them two to three times more energy efficient than conventional water heaters and more environmentally friendly.

* Cost savings is comparing a heat pump hot water heater to a standard 50-gallon electric water heater.

Heat pump water heater must be ENERGY STAR qualified.

Frequently asked questions

Are heat pump water heaters easy to install?

Yes. Heat pump water heaters use the same water and electric connections as conventional electric water heaters, making installation fast and simple.

What are the estimated savings?

According to ENERGY STAR, certified heat pump water heaters can save the average household approximately $250 per year on electric bills compared to a standard electric water heater. Larger families that use more hot water will save even more.

How about maintenance?

Heat pump water heaters may also require annual maintenance, including changing air filters. Please review the manufacturer's operating instructions, or ask your contractor for direction.

A heat pump water heater costs more. Will I still save money?

A certified heat pump water heater is a smart investment. While it costs more up front, the savings will pay back the difference in about three years for a typical home, according to ENERGY STAR. Replace your aging electric water heater before it fails, and start enjoying the savings right away.

How do I apply for the rebate?

After the Smart $aver participating contractor completes the work, he or she will assist you with submitting the rebate form – and any required documentation – to receive your rebate. Simply mail it to the address on the form. Once we receive it, you will get your incentive check within four to six weeks.

What is a Smart $aver participating contractor?

Each of our participating contractors is a local professional who has met our service quality and reliability requirements. Only these contractors are approved to perform work eligible for Duke Energy Smart $aver rebates.

Duke Energy reserves the right to revise program requirements and incentive levels at any time. Incentives are subject to availability. For questions not addressed on the website, call 866.507.3496 or email