Are you tired of constantly running out of hot water or paying high energy bills? If so, upgrading to a tankless water heater could be the solution you’ve been looking for. Not only do tankless water heaters provide endless hot water on demand, but they can also help you save money on your energy bills in the long run. And if that’s not enough, there are also rebates and tax credits available that can significantly reduce the upfront costs of installation. In this article by Sarmanair, we’ll look closer at the prices and savings of tankless water heaters with rebates and tax credits and how to qualify for these incentives.
The Costs and Savings of Tankless Water Heaters with Rebates and Tax Credits
Tankless water heaters can be more expensive upfront than traditional hot water tanks. However, energy savings can help offset the initial costs over time. According to the Government of Canada’s Energy Star program, tankless water heaters can be up to 34% more energy-efficient than conventional tanks. This translates to a potential savings of $100 annually for the average Canadian household. The savings can be even more remarkable when combined with rebates and tax credits significant.
In addition to energy savings, tankless water heaters have a longer lifespan than traditional tanks. On average, a tankless water heater can last up to 20 years, compared to 10-15 years for a hot water tank. This means you’ll have to replace your tankless unit less often, reducing costs over time.
How to Qualify for Rebates and Tax Credits for Tankless Water Heaters
To encourage Canadians to switch to energy-efficient systems, many provinces and territories offer rebates and tax credits for installing a tankless water heaters. The same incentives and eligibility criteria vary by location, so you must check with your local government to see what’s available in your area.
For example, in Ontario, homeowners can receive up to $1,000 in rebates for installing a tankless water heater through the Green Ontario Fund. The unit must be Energy Star certified and installed by a licensed professional to qualify. Similarly, in British Columbia, homeowners can receive up to $1,000 rebates for installing an eligible high-efficiency natural gas tankless water heater through the FortisBC Efficiency Program.
In addition to provincial and territorial incentives, federal tax credits are available for energy-efficient home upgrades. The Home Accessibility Tax Credit and the Home Efficiency Tax Credit offer incentives for installing energy-efficient systems like tankless water heaters. However, it’s important to note that these credits have different eligibility requirements and may only be available for a few years.
How to Save Money on Your Water Heater with Tax Credits and Rebates
You can save money on your water heater with tax credits, rebates, and incentives. Here are some options to consider:
Federal tax credits: You may be eligible for federal tax credits if you purchase and install a qualified energy-efficient water heater. The tax credit amount can vary depending on the type of water heater, but it can be up to 10% of the cost of the unit. Check with the Internal Revenue Service (IRS) or a tax professional to learn more about eligibility and requirements.
State rebates: Many states offer rebates for energy-efficient water heaters. These rebates can vary in amount depending on the state and the type of water heater. Check with your state’s energy office or utility company to see what rebates are available in your area.
Utility company incentives: Some utility companies offer incentives for purchasing energy-efficient appliances, including water heaters. These incentives can come in the form of rebates, discounts, or even free installation. Check with your utility company to see what incentives are available.
Manufacturer rebates: Some water heater manufacturers offer rebates or other incentives for purchasing their energy-efficient models. Check with the manufacturer to see what incentives are available for the specific model you are interested in.
Local government programs: Some local governments offer programs encouraging residents to purchase energy-efficient appliances. Check with your city or county government to see if any programs are available in your area.
When purchasing a new water heater, factor in the potential savings from tax credits, rebates, and incentives. Investing in a more expensive, energy-efficient model may make sense if the long-term savings outweigh the upfront costs.
Take advantage of Tankless Water Heaters with Rebates and Tax Credits in Canada.
If you want to upgrade your water heating system in Canada, you may be eligible for rebates and tax credits to help offset the cost of a new tankless water heater. Here are some tips on how to take advantage of these incentives.
- Research Available Rebates and Tax Credits
Start by researching what rebates and tax credits are available in your area. Check with your local utility company, provincial government, or federal government to see available incentives. For example, Ontario’s Save on Energy program offers rebates on eligible tankless water heaters. At the same time, the federal government’s Home Efficiency Rebate provides a rebate of up to $5,000 for home upgrades, including water heating systems.
- Choose an Eligible Tankless Water Heater
When selecting a tankless water heater, ensure it meets the eligibility requirements for the rebates or tax credits you plan to apply for. Some programs may have specific efficiency ratings or criteria the water heater must meet to qualify for the incentive.
- Keep Records and Receipts
To apply for a rebate or tax credit, you will likely need to provide documentation, such as receipts and proof of installation. Ensure you keep all relevant records and receipts safe to access when applying for the incentive quickly.
- Apply for the Rebate or Tax Credit
Once you have installed your new tankless water heater, it’s time to apply for a rebate or tax credit. The application process may vary depending on the program, so follow the instructions carefully. Some programs may require a pre-approval process, while others require a post-installation inspection.
By taking advantage of available rebates and tax credits, you can save money on your tankless water heater purchase while enjoying this technology’s energy-efficient and space-saving benefits. Do your research, choose an eligible water heater, and keep thorough records to ensure a smooth application process.
Conclusion
Switching to a tankless water heater can be an intelligent choice for Canadian homeowners looking to save money on their energy bills. The cost savings can be even more significant when combined with rebates and tax credits. However, it’s essential to carefully consider the costs and protection of a tankless water heater before making a purchase. Check eligibility requirements for rebates and tax credits, consider the long-term savings from reduced energy bills and increased lifespan, and choose a high-quality unit installed by a licensed professional. These steps allow you to decide whether a tankless water heater suits your household.