Water Heating

Gas Storage Water Heaters

How They Work

High efficiency gas storage water heaters work the same way as standard efficiency gas storage water heaters: a glass-lined steel tank is heated by a burner at the bottom of the tank, and the water is kept hot, ready for use as needed. However, a few basic differences make high efficiency gas storage water heaters more efficient: better tank insulation, heat traps and more efficient burners – improvements that lead to 8% less energy use, but at a modest price impact. Find more information on gas storage water heaters here.

What Assistance Is Available for Me?

• The federal government offers a tax credit of up to 30% of the cost of the purchase and installation of a high efficiency gas storage water heater (maximum $600 credit). Find more information about federal tax credits for high efficiency gas storage water heaters here.

What Products Are Eligible?

• Only gas storage water heaters that have earned the ENERGY STAR are eligible for the federal tax credit. Further, water heaters smaller than 55 gallons must have a UEF greater than 0.81. Water heaters 55 gallons or larger must have a UEF greater than 0.86. Find eligible products here.

Important Dates

The federal tax credits are available for products purchased and installed between January 1, 2023, and December 31, 2032.