What water heater rebates does Arizona offer?

Here is what we found on the official program pages, each opened on 2026-10-04. Read each one as a snapshot, not a promise.

### Does SRP offer a heat pump water heater rebate?

Yes, for SRP electric customers. SRP's page offers a rebate when you install an ENERGY STAR certified heat pump water heater. A heat pump water heater pulls heat from the surrounding air instead of making heat with a heating element alone. SRP says a new one "uses about half the electricity of normal electric resistance water heaters."

The requirements on SRP's page are specific. To qualify, you must:

• be a permanent SRP residential electric customer in a single-family detached or attached home, a mobile home, or an apartment or condo
• replace your current water heater with a new ENERGY STAR certified heat pump water heater with a Uniform Energy Factor (UEF) of 2.8 or better
• have the heater installed in a home that has had permanent SRP electric service for more than one year, since rebates are not available for new construction
• have it installed by a contractor licensed in Arizona to install residential plumbing before April 30, 2027
• allow SRP or its agent to inspect the installation if asked

The page adds three more limits. A customer is eligible once every 10 years. The rebate must be submitted within 6 months of installation. And installations before July 1, 2023 do not qualify. SRP also says it "reserves the right to change or cancel this promotion or its terms and conditions at any time."

SRP's application asks for a signed contractor agreement from your installer, so raise the rebate before the work starts, not after. The SRP Rebate Program phone number on the page is (602) 264-3108.

### What is Efficiency Arizona?

Efficiency Arizona is a state program. Its site describes it as "a rebate program for qualified households to install highly efficient appliances and HVAC equipment," and says heat pump water heaters are among the qualified products. It states that "Program participation and rebate amounts are subject to eligibility requirements," and that eligibility depends on factors including income.

Two things to know:

• There are two paths. The site describes a contractor pathway and a retail pathway. It says heat pump water heaters are covered under both, while other work such as electrical upgrades goes through the contractor path.
• The rules were changing. When we read the page, it carried a notice that significant changes were coming to the program because of a federal government notice, and that "Applications are still being accepted, but must meet the new program guidelines."

The program's site says the rebate may not cover the full cost of the product. You pay the balance, plus taxes and installation fees. Check the site's eligibility questions before you buy anything. Separately, the U.S. Department of Energy's Home Energy Rebates Program lists water heaters among the upgrades its HOMES rebates can cover. The DOE says the rebates are available in select states and tells people to contact their State or Territory Energy Office for status and eligibility.

### Does Southwest Gas have a rebate for gas water heaters?

We did not see one. Southwest Gas's Arizona rebate list shows a solar water heating rebate for Southwest Gas residential customers, with a listed expiration date of Jan 1, 2027. The Water Heating rows we could see also included a low-flow showerhead. We did not see a rebate for a tank or tankless gas water heater in the rows the page displayed, and the page has a Load More button, so check the full list yourself. Our page on solar water heaters in Arizona covers whether that route pays off.

### What about APS, TEP and city programs?

We could not confirm a current water heater rebate from APS or TEP on the pages we could open, so we are not going to guess. If either utility serves you, look at its rebate page and ask.

Some cities run their own gas programs. The City of Mesa lists a rebate for natural gas water heaters, with rules on which customers and heaters qualify. We cover it in Mesa's gas appliance rebate page and in Mesa's other water and energy rebates. Read the eligibility rules there before you assume a tankless heater counts.

Not for new installs, as far as the official pages show. ENERGY STAR says there are "federal tax credits available through the end of 2025." The IRS page for the Energy Efficient Home Improvement Credit says you can claim it "for improvements made through December 31, 2025." While it was open, the IRS listed new natural gas, propane or oil water heaters as qualified property, along with electric and natural gas heat pump water heaters.

That means a heater installed in 2026 or later would not qualify under those pages. If you installed one in 2025, talk to a tax professional and read the IRS page, since the credit had conditions such as a qualified manufacturer identification number.

Rebates you receive can matter for taxes. The IRS page says you may need to subtract certain subsidies, rebates or other incentives when you calculate a credit. Ask your tax preparer.

Yes, and they are worth a look. ENERGY STAR describes the Department of Energy's Weatherization Assistance Program as available to households that qualify for Supplemental Security Income, Aid to Families with Dependent Children and other income criteria. It says the help can include fixing or replacing old windows or water heaters. SRP's page says Arizona offers its own Weatherization Assistance Program for lower-income households, and that in some cases heating and cooling equipment may be replaced.

Rebates are the part that changes fastest. Use this routine.

1. 1Start with the program, not a blog or a listing. Open the utility, state or federal page. Note the date you read it.
2. 2Confirm your utility. SRP's rebate is for SRP electric customers. Mesa's is for Mesa gas customers. Southwest Gas has its own list. Your bill shows who serves you.
3. 3Check the heater's certification. SRP points to the ENERGY STAR product finder to search for heat pump water heaters that meet its program requirements.
4. 4Ask about the installer. SRP wants a contractor licensed in Arizona to install residential plumbing. Efficiency Arizona has its own process. Ask before you sign.
5. 5Watch the clocks. Look for a purchase or install deadline, a submission window after install, and any limit on how often you can claim.
6. 6Save paperwork. Keep the invoice, the model and serial number, and the signed forms.
7. 7Use the ENERGY STAR tool. ENERGY STAR says to enter your zip code in its Home Improvement Savings Tool to see what incentives are available in your area. It also says "Check eligibility details before making your purchase."

### Is a heat pump water heater right for the house?

A rebate should not pick the heater for you. ENERGY STAR says most models need about 700 cubic feet of surrounding air space, though some run with as little as 450, and that heat pump water heaters produce a small amount of clean condensate that goes to a nearby drain or a condensate pump. It also says they are generally a bit larger than conventional water heaters. That is the plumbing side of the decision. Our page on the hybrid water heater covers how it works, and gas versus electric covers the tradeoffs. The right size is a separate question, and what size water heater you need covers it. If the old heater is failing, repair or replace helps you decide, and permits for replacing a water heater in Phoenix explains the paperwork.

Call before you buy. A rebate can hinge on the model, the installer and the date, so it pays to sort that out first. HQ Plumbing & Air is licensed and insured, and we give free estimates with upfront pricing before work starts. If your heater is leaking or you have no hot water, we offer 24/7 emergency service, and you do not have to wait on a rebate to get the water back on. Learn more on our residential plumbing page, and read what to know before buying a water heater.