What Are the Current Tankless Water Heater Rebates Available in California?
In 2026, SoCalGas offers rebates of $80 to $1,500 for a qualifying tankless gas water heater that replaces a tank-type unit in a single-family detached home, first-come first-served through December 31, 2026. Other utilities' offers change during the year, so check your utility's current rebates. Federal tax credits no longer apply (IRS FS-2025-05).
SoCalGas lists $80 to $1,500 for high-efficiency tankless water heaters; the tankless unit must replace a tank-type water heater in a single-family detached home. Outside SoCalGas territory we have not yet verified a current tankless water heater rebate from another California utility, so use the rebate calculator to see what is available at your address.
If you see a heat pump water heater rebate, note that heat pump water heaters are a storage-tank technology, not a tankless one: they keep a tank of hot water and use a compressor to move heat out of the surrounding air into it, rather than heating water as it flows. Check which of the two a given rebate actually covers before buying.
SoCalGas says its rebate funds are allocated first-come, first-served until December 31, 2026 or until funds run out.
The federal Energy Efficient Home Improvement Credit (Section 25C) ended for property placed in service after December 31, 2025 (IRS FS-2025-05). Federal tax credits for this work have ended, but state, local and utility rebates may still apply; check what is available at your address with the DuloCore rebate calculator.
How Much Can You Save with California's Tankless Water Heater Rebates?
Utility rebates lower the upfront cost of tankless water heater installations, and reduced energy bills add savings every year; federal tax credits no longer apply (IRS FS-2025-05).
The rebate calculator estimates savings for your household.
What's the Deadline for Claiming Your Tankless Water Heater Rebate?
Utility rebates are usually first-come, first-served and can close when funds run out; SoCalGas's current rebates run through December 31, 2026 or until funds are exhausted.
SoCalGas requires that the qualifying appliance be purchased and installed within the calendar year in an existing residential property.
Can You Stack Tankless Water Heater Rebates with Other Energy Incentives?
Some cities, community choice energy providers and local agencies run their own efficiency programs. Check your city and utility for current offers and whether they can be combined.
What Documentation Do You Need to Apply for a California Tankless Water Heater Rebate?
SoCalGas's online application asks for photos of your receipt and the appliance's model tag. Other utilities set their own documentation requirements.
How Does the Tankless Water Heater Rebate Application Process Work?
For SoCalGas, confirm your model qualifies, install it, then apply online with photos of the receipt and model tag; SoCalGas says rebate payments are issued within six to eight weeks if all requirements are met.
Step one: confirm eligibility. Visit your utility provider's website to check if your address qualifies and whether your selected tankless model meets minimum efficiency requirements. SoCalGas points to ENERGY STAR's product listings for qualifying models.
Step two: hire a licensed contractor and make sure the required local permit is pulled.
Step three: submit the application. SoCalGas applications are submitted online through its rebate page (https://eecp.socalgas.com/m/rebates/3702M/2023TWH).
Step four: track approval and payment. SoCalGas says payment is issued within six to eight weeks if all program requirements are met.
Use the rebate calculator to estimate utility savings before starting the application process.
Official Sources
- SoCalGas Rebates and Incentives — Current SoCalGas appliance rebates, including tankless water heaters
- ENERGY STAR Residential Water Heater Key Product Criteria — Equipment specifications and ENERGY STAR UEF minimums
Related Reading: Learn more about Tankless Water Heater Energy Savings.
Frequently Asked Questions
What are the eligibility requirements for tankless water heater rebates in California?
Requirements depend on the program. SoCalGas's tankless rebate requires that the tankless unit replace a tank-type water heater in a single-family detached home and be purchased and installed within the calendar year in an existing residential property. Check your utility's current terms.
How much money can you get back from a tankless water heater rebate in California?
SoCalGas lists $80 to $1,500 for qualifying tankless water heaters. Amounts from other utilities and local programs vary and change during the year. The federal Energy Efficient Home Improvement Credit (Section 25C) ended for property placed in service after December 31, 2025 (IRS FS-2025-05).
What is the application process for claiming a tankless water heater rebate?
Confirm your model qualifies, have it installed (with the local permit), then apply on your utility's site. SoCalGas customers apply online with photos of the receipt and model tag, and SoCalGas says payment is issued within six to eight weeks.
When is the deadline to apply for California tankless water heater rebates?
SoCalGas's current rebate funds are available first-come, first-served until December 31, 2026 or until funds run out. Check other utilities' sites for their current deadlines.
Are tankless water heaters cheaper than traditional water heaters with rebates?
Tankless units usually cost more to install than a like-for-like tank replacement; a rebate such as SoCalGas's ($80-$1,500) narrows the gap. Get quotes for both before deciding. Federal tax credits no longer apply (IRS FS-2025-05).
Ready to calculate your exact rebate savings? Use our free rebate calculator to estimate utility rebates and energy savings based on your specific household size, current water heater type, and California utility provider. Get your personalized savings breakdown in under 60 seconds.
Last reviewed: October 8, 2026. Reviewed by DuloCore Energy Specialists. About the team.
Check your California water heater rebate eligibility — see the programs you qualify for and the dollar amounts on our California water heater rebate finder.