Program status checked September 12, 2026. Federal homeowner credits 25C and 25D are unavailable for new installations after December 31, 2025. Texas HEAR and HOMES rebates have not launched, according to SECO's August 21, 2026 update. Confirm current utility funding before committing to work.
Official sources: IRS: 25C, IRS: 25D, SECO: Texas rebate status.
Water-heater choices
- Heat-pump water heaters transfer heat from surrounding air. Check room volume, airflow, ambient temperature and condensate requirements.
- Tankless water heaters heat water on demand. Output depends on flow and incoming water temperature; hot water may still take time to reach a tap.
- Storage water heaters vary in fuel type, capacity and efficiency. Compare models that meet your household's needs.
Check ratings and installation needs
Compare Uniform Energy Factor (UEF), first-hour rating or flow rate, warranty and total installed cost. Electrical capacity, gas supply, venting and local permits can affect the project. A licensed professional should confirm safe installation requirements.
Confirm a specific incentive
Availability differs by utility and equipment. Check the official program for your address before buying. Do not assume a gas utility offers the same rebates in Texas as in another state. Federal 25C does not apply to new installations after 2025; Texas HEAR has not launched.
Set temperatures for your household
Follow the manufacturer's instructions and consider scald protection, water-system design and household health needs. There is no single temperature that eliminates every risk for every home. A plumber can help assess settings and mixing valves.
Further reading: Austin Energy residential programs. Program status checked September 12, 2026; confirm current terms with the administrator before purchase.