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ENERGY STAR® Water Heater Program

Replace your aging water heater with a qualifying natural gas ENERGY STAR model and you could save on energy costs, plus you’ll be eligible for a rebate of up to $1,000.


Heating water typically takes between 20 per cent and 35 per cent of your home’s total energy use. So it makes sense to install the most efficient model you can afford. Natural gas water heater efficiency is usually measured by an energy factor (EF) rating. The higher the EF rating, the more efficient the water heater. To qualify as ENERGY STAR, gas-fired water heaters must achieve a minimum 0.67EF rating.

Keep the tank, add some savings

ENERGY STAR non-condensing storage tank models have an EF between 0.67 and 0.70 making them more efficient than standard storage tank models (typically between 0.50 and 0.62 EF) operating in many homes today. As these models aren’t as efficient as tankless and/or condensing technology, their price point is more affordable.

Some model numbers are similar, however, efficiency ratings may differ. Please check our qualifying water heater list prior to making your purchase.

Go tankless to boost efficiency

ENERGY STAR tankless models have an EF between 0.82 and 0.99, making them much more efficient than standard natural gas storage tanks typically found in homes today. They also take up much less space, freeing up valuable square footage.

Tankless models don’t store hot water, so they may not be able to meet many simultaneous demands like a storage tank can. Before deciding if you want to go tankless, consider the ways you use hot water at home, including appliances, faucets and the number of people using hot water at any given time.

Tankless not for you?

Consider a hybrid or condensing storage tank. Hybrids offer the best features of a tankless model with the added convenience of a small storage tank. Condensing storage tanks provide all the benefits of a traditional gas-fired storage tank, but at a much higher efficiency. You won't find an energy factor if you choose one of these technologies, but you will find a thermal efficiency (TE) rating. Rebate qualifying condensing storage tanks and hybrid water heaters will not have an ENERGY STAR® label at this time (both technologies are currently under review to be eligible for the ENERGY STAR label). 

Available rebates

Water heater type​ ​Efficiency rating* ​Rebate
Storage tank​ ​0.67 - 0.69 EF ​$200
Non-condensing tankless​ 0.82 - 0.89 EF​ $400​
Condensing tankless​ 0.90 - 0.99 EF​ $500​
Condensing hybrid ​ 90 - 99% TE ​ $500​
Condensing storage tank​ 90 - 99% TE /.80 EF**​ $1,000​

*Ef - energy factor; TE = thermal efficiency
**Residential-grade condensing storage tank water heaters

Still not sure?

Deciding which technology is right for you can be tough. It’s a balance between how much you want to spend and how much you hope to save over time. You’ll likely pay more for a water heater with a higher EF or TE rating, but your utility costs should be lower.

How to apply

  1. Review the terms and conditions on the reverse side of the application form.
  2. Purchase a qualifying water heater and have it installed by a gas contractor registered with the BC Safety Authority (BCSA).
  3. Complete your application form and include a copy of the invoice showing details of all work performed, the purchase date, make and model number and the installation permit number.
  4. Submit the completed and signed application with the invoice to:

    ENERGY STAR Water Heater Program
    PO Box 9090
    Surrey, BC  V3T 5W4
  5. If you qualify, we’ll mail you the rebate. Please allow a minimum of 90 days to process.


  • Water heaters must be purchased between January 1, 2015 and December 31, 2015.
  • Applications must be submitted within 60 days of purchase.

Qualify for additional rebates 

If you’re making multiple energy-efficiency upgrades to your home, consider having an EnerGuide® home evaluation first. As well as the water heater rebate, you could qualify for an additional $750 bonus and insulation and draftproofing rebates through our Home Energy Rebate Offer​


Read the frequently asked questions, call us toll free at 1-800-663-8400 or email us at