Save Big with the BGE Water Heater Rebate: A Simple Guide for You
Want a new water heater that pays you back?
Here’s the scoop on the Baltimore Gas & Electric (BGE) rebate for water heaters.
- You could get up to $1,600 back on select ENERGY STAR® certified heat pump water heaters.
- Plus, the Inflation Reduction Act offers a 30% federal tax credit, up to $2,000 on eligible units.
Let’s break it down in bite-sized steps.
Why You Should Care
Heat pump water heaters use air to heat water. That means they use less electricity than standard models.
That leads to lower energy bills and a comfy, greener home.
Combine that with rebates and tax credits—and you save big.
Who Can Get It?
You qualify if:
- You are a BGE residential customer.
- You buy a new, ENERGY STAR certified heat pump water heater.
- You submit the rebate with correct info including your receipt and account number.
How to Claim Your Rebate
- Buy a qualifying heat pump model.
- Keep your receipt, model info, and BGE account number.
- Submit an online rebate application on the BGE Smart Energy Savers website.
- Attach all docs—receipt plus photo of installed unit if required.
- Submit and save your confirmation.
- Wait about 6 to 8 weeks. Your rebate arrives as a check or prepaid card.
Max Rebate Details
- Up to $1,600 back for a qualifying unit.
- Projects that include home energy upgrades (like insulation or air sealing) may qualify for a larger rebate through Home Performance with ENERGY STAR, up to 75% of project cost or $10,000+
Federal Tax Credit Alert
After you submit your BGE rebate, talk to your tax pro.
You may qualify for the 30% federal tax credit, capped at $2,000.
That reduces what you owe in taxes.
How Much Can You Save?
Let’s say your new heat pump water heater costs $2,500.
With the $1,600 rebate, you pay $900 upfront.
Then the tax credit knocks off 30% of that—up to $2,000.
Your actual cost? Pretty low with payback in under four years.
Real-Life Wins
Reddit users in Baltimore shared stories: one homeowner got a $1,600 discount at checkout for a $1,900 water heater. “Cashier’s eyes bugged out,” they said.
Looks like the rebate applies right at purchase if your installer uses the code system.
Tips to Make It Easy
- Confirm your model qualifies before you buy.
- Submit your rebate quickly while your purchase is fresh.
- Keep everything—receipt, account details, and any photos.
- Use a participating contractor if a Home Performance project is part of your plan.
What If You’re Doing a Bigger Energy Overhaul?
If you’re planning insulation, air sealing, or switching to an electric heat pump furnace or hybrid water heater, you could land much bigger rebates.
Some projects earn $3,000 to $8,000, or even up to $15,000 in total rebates and financing support
Final Thought
The BGE heat pump water heater rebate is serious money back—all for making a smart ENERGY STAR choice.
Add the federal tax credit and good installers—they make it a smart upgrade.So if you’ve been putting off replacing that old water heater, now’s the time.
Get that rebate. Slash your bills. Keep water hot for years.
