New Super-Efficient Technologies Deliver Hot Rebates
by Ben Scott
For most homes, heating water is the second highest energy use, so upgrading your old water heater is a great way to improve efficiency, minimize energy costs, and reduce climate warming pollution.
Have you heard of heat pump water heaters? These water heaters are the most efficient systems available today for domestic water heating. And for Ashland Electric customers, there’s rarely been a better time to consider replacing an aging or inefficient water heating system.
The city now offers a rebate of up to $1,400 if you replace a gas or electric tank style water heater with a qualified heat pump water heater. The incentive doubles up to $2,800 if a household is income qualified.
If you need to upgrade your home’s electrical panel or add a new circuit, there are also incentives to help with that. Ashland residents can get up to $1,000 towards a panel upgrade (up to 50% of costs) and income-qualified homes could receive up to $2,000 or 100% of costs. For a circuit upgrade, there is a rebate of $600 (up to 50% of costs) and income-qualified homes could receive 100% reimbursement up to $600.)
The beauty of a heat hump water heater is that it does not require burning fossil fuels. Heat pumps run on electricity (Ashland’s electric power is green) and transfer heat collected from the air. This makes heat pump water heaters three to five times more efficient than standard gas or electric water heaters, saving about 60% on energy costs.
This graph shows the average annual cost to operate water heaters by fuel type. Based on U.S. Energy Information Administration (EIA) data for national average cost of gas and electricity at the end of 2025 (1.93/therm. .17/kwh) and Energy Guide labels for water heater energy usage. (Note: Avista charges about $1.28/therm. Ashland’s electric rate is closer to .12/kwh, so savings for Ashland residents will be a little less, but relative savings should remain the same.)
There are a few considerations before installing a heat pump water heater:
- Noise – Heat pump water heaters have a compressor on top of the tank that makes some noise when running, so carefully consider the location. Garages are a good choice.
- Space – Heat pump water heaters need more vertical space, and some space around them for air circulation.
- Temperature – Ideal locations for installation are where temperatures don’t drop below about 40 degrees. They also tend to cool off their surroundings – great in the summer, but less desirable in the winter. However, they can be vented to the outside, allowing for other flexible installation locations.
Details can be found at the City’s energy incentives webpage, or contact a certified coach with Electrify Ashland Now to make your plan to update your water heater. Email us at HomeEnergy@AshlandClimate.org or call/text: (541) 646-2641.
Thanks to the Advanced Water Heating Initiative for sharing their heat pump graphics.
Ben Scott
Ben Scott is a volunteer with Ashland Climate’s Electrify Ashland Now action team. He installed a heat pump water heater as the final electrification project in his home, replacing a gas on-demand water heater. He loves the energy savings!