If you’ve ever dealt with running out of hot water mid-shower, or if you simply want to lower monthly utility bills, switching to a tankless water heater is one of the smartest upgrades you can make. And in 2025, homeowners across the US and Canada are benefiting from massive rebates and incentive programs that can reduce the cost of tankless water heaters by hundreds—sometimes even thousands—of dollars.
Unlike traditional bulky tanks, tankless water heaters heat water on demand, meaning they’re more energy-efficient and last significantly longer. But what makes 2025 a game-changing year is the wave of national and regional rebate programs designed to reward homeowners for choosing more efficient home systems.
Let’s break down the best rebate programs, where to shop, which models offer the best value, and how Americans and Canadians can cash in before funding expires.
Why Tankless Water Heaters Are Growing in Popularity
Tankless water heaters offer several advantages that make them attractive to homeowners:
- Endless hot water on demand
- Lower utility bills (gas or electric)
- Up to 20 years of lifespan
- Compact, space-saving design
- Reduced carbon emissions
- Eligible for multiple rebates and incentives
For those upgrading older homes, a tankless setup can improve both comfort and property value.
Top Rebates for Tankless Water Heaters in the United States
The US offers multiple rebate avenues—federal, state, and utility-company based.
Federal Energy Efficiency Rebates
The Inflation Reduction Act provides tax credits of up to 30% on qualifying high-efficiency tankless systems.
https://www.energystar.gov
State-Level Rebates
Many states offer tankless incentives:
- California’s TECH Clean California program
- New York’s NYSERDA rebates
- Massachusetts Mass Save rebates
- Colorado & Washington efficiency rebates
Check your state here:
https://www.dsireusa.org
Utility Provider Rebates
Local gas and electric companies frequently offer $200–$800 rebates.
Search your utility rebate here:
https://www.energy.gov/savings
Tankless Water Heater Rebates in Canada
Canadian residents also benefit from federal and provincial incentives.
Canada Greener Homes Initiatives
Rebates often range from $400 to $1,000, depending on efficiency ratings.
https://www.nrcan.gc.ca
Provincial Rebates
Programs vary by province:
- BC Hydro & FortisBC
- Ontario Enbridge Gas rebates
- Alberta Energy Efficiency
- Quebec Hydro-Québec incentives
Provincial list:
https://www.nrcan.gc.ca/energy-efficiency
Best Places to Shop for Tankless Water Heaters (US & Canada)
Home Depot US & Canada
Huge selection of tankless units, often with installation packages.
US: https://www.homedepot.com
Canada: https://www.homedepot.ca
Lowe’s
Reliable stock and mid-range pricing.
https://www.lowes.com
Rinnai and Navien Direct
Two of the top-rated tankless brands.
https://www.rinnai.us
https://www.navieninc.com
Costco
Seasonal tankless water heater discounts.
https://www.costco.com
