Georgians looking to upgrade to a more energy-efficient water heating system can benefit from significant financial incentives through various federal, state, and utility programs. One of the primary programs offering rebates for the installation of heat pump water heaters is the federally funded Home Electrification and Appliance Rebates (HEAR) program.
The HEAR program is designed to assist low- and moderate-income households in transitioning to energy-efficient electric appliances. Funded by the U.S. Department of Energy through the Inflation Reduction Act, this program provides an instant rebate of $1,750.
Additionally, Georgia Power offers a utility rebate covering 50% of the remaining cost not covered by HEAR's rebate, up to $750.
After applying these rebates, homeowners are eligible for a tax incentive of 30% of the remaining out-of-pocket costs.
Example Calculation:
- Total project cost: $3,000
- Subtract HEAR's rebate: $1,750, leaving $1,250
- Subtract Utility rebate: $625, leaving $625 out-of-pocket expense for installation
After installation, homeowners can claim 30% of $625, which is $187.50, as a tax write-off. This results in a total out-of-pocket expense of $437.50 for the turnkey installation, including labor and the water heater.
With average savings of $30 per month and $360 per year, the system pays for itself in approximately one year.
