Water heating rebates

After home heating, water heating uses the most natural gas in your home. Get a rebate to save now and for years to come with lower gas bills. Work with your contractor or retailer to select a qualifying water heater that best fits your needs.


Equipment Minimum efficiency Rebate
Natural gas storage water heater ≤ 55 gallon Medium usage bin and .64 UEF or greater $125
High usage bin and .68 UEF or greater
Natural gas storage water heater .82 UEF or greater $250
Natural gas storage or tankless water heater .87 UEF or greater $300
Drain water heat recovery device (DHR)   $150

UEF: Uniform Energy Factor


Water heater must be fueled by natural gas to be eligible for rebates. Indirect water heaters are not eligible for rebate. When upgrading your water heater, first identify the usage bin level, then the efficiency rating to ensure your model qualifies.

Visit the Air Conditioning, Heating and Refrigeration Institute (AHRI) website to verify water heater eligibility.

How it works

  • Find a contractor.
  • Purchase and install a qualifying water heater in your home.
  • Apply and submit a rebate application online or download and mail a paper copy along with a copy of a dated invoice.
  • Receive your rebate check within six weeks of completed application.

Apply online or


Check all rebate requirements on the application prior to service to ensure eligibility. We must receive the application within 60 days of service.

When applying online, have your 15-digit Minnesota Energy Resources account number where equipment was installed. Have an electronic copy of your original receipt or invoice that includes model and proof of purchase.

Funding is limited and can change or end at any time. Applications are processed on a first-come, first-served basis.


866-872-0052, option 1

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