This link will redirect you to an external site containing only English content.
  • Berkshire Gas
  • cape light compact
  • Eversource
  • Liberty Utilities
Contributing sponsors

COOL SMART Heat Pump Water Heater Rebate Program

Residential customers of the COOL SMART Program Sponsors can receive up to a $750 Rebate if they have a licensed plumber install a qualified Heat Pump Water Heater when replacing an existing electric storage tank water heater or in the process of building a new home.

What is a Heat Pump Water Heater?

A ‘heat pump’ is a device that moves heat from one place to another; it works much like an air conditioner or a refrigerator. While a refrigerator moves heat from your fridge to your kitchen, a heat pump water heater (HPWH) moves heat from your home into the hot water tank. Most HPWHs include an integrated hot water tank and a ‘hybrid’ mode (i.e. they can also run as standard electric water heaters if necessary).

Is it right for you?

While HPWHs can certainly provide savings over standard electric water heaters, there are several other factors to consider before buying and installing:

  • Location - For the HPWH to run efficiently, the space should generally stay above 50°F.
  • Space - A heat pump removes heat from ambient air. Hence there must be a considerable volume of air available; most manufacturers recommend about 750 ft3.
  • HPWHs often require larger clearances from walls so that air can circulate properly, and they are often taller and heavier than standard water heaters.
  • Most closets – even closets with louvered doors –are not appropriate for HPWHs.

Before deciding to install a heat pump water heater, customers should ask if it is the right option for their home and determine whether or not it will be more energy efficient than their current water heater. We have developed educational videos to help homeowners understand heat pump water heaters and to determine if their home is a good fit, available at the link below.


If a Heat Pump Water Heater is right for you, and you are an electric customer of a COOL SMART Program Sponsor, you can receive up to a $750 Rebate when a licensed plumber installs qualified equipment either to replace an existing electric storage tank water heater or when you install one during the building of a new home.

How the COOL SMART Heat Pump Water Heater Rebate Program Works:

  1. Contact your HVAC professional to determine which qualified heat pump water heater is right for your home.
  2. Review the mail-in COOL SMART Heat Pump Water Heater Rebate Brochure & Application together.
    Rebate Brochure & Application - National Grid Customers
    Rebate Brochure & Application - Cape Light Compact, Eversource and Unitil Customers
  3. When the work is completed by a licensed plumber, fill out and submit the form along with a dated receipt and contractor invoice showing the make, model and date of installation. Note: You can also choose to complete the rebate online.