Efficient Home Water Heating

Cut water heating costs in half

Through TEP’s Efficient Home program, residential customers can receive a $400 rebate for the purchase and installation of an ENERGY STAR® heat pump water heater equipped with a wireless, programmable timer/controller.  The rebate will be issued as a credit on your TEP account.

Water heaters are the second highest energy user in a typical home.  An electric water heater can account for up to 25 percent of your electric bills. Heat pump water heaters are at least twice as efficient as standard electric water heaters.

By upgrading to an ENERGY STAR® heat pump water heater, you can start saving money today and for years to come.

Why heat pump water heaters are highly efficient

Heat pump water heaters are ideal for use in warmer climates like Arizona because they use heat from the surrounding air to warm the water in the tank, and then expel the cooled air. They use electricity to move heat instead of creating heat. This makes them up to three times more efficient than standard electric water heaters.

A heat pump water heater can reduce your operating costs and improve performance and reliability. They also last longer than conventional water heaters – up to 15 years.

For tips on how to choose the right-sized water heater for your home, visit Energy.gov.

Rebate Eligibility

To participate in the program, you must:

  • Be a TEP residential customer
  • Install a heat pump water heater with a timer/controller, either included with the unit or purchased and installed separately in this calendar year
  • Use a licensed installer and provide proof that the work was properly permitted
  • Provide proof of purchase for the water heater
  • Have the timer/controller connected to Wi-Fi with a strong signal strength
  • Allow a TEP representative to visit and enter your property to verify program requirements are met

Easy 3-Step Application Process

  1. Please download and complete the rebate Application Form.
  2. Submit the completed and signed rebate Application Form to TEPExistingHomes@tep.com.
  3. A TEP representative will review your application for completeness and program eligibility and schedule a visit to your home to verify compliance with program requirements.


Rebates are subject to the availability of funding and the program is subject to change without notice.