Commercial Water Heaters

Save Money and Energy with an Efficient Water Heater

To ensure customers receive the benefits of high-efficiency, the Sponsors of Mass Save® have created the Commercial & Industrial (C&I) Natural Gas Water Heater Initiative, a market transformation initiative that partners with distributors to offer monetary incentives on high-efficiency water heaters to commercially metered natural gas customers.

Water heating accounts for approximately 20% of natural gas use in commercial applications. Installing a high-efficiency water heater can result in thousands of dollars in energy bill savings, provide better comfort and control, and can lower water and sewage costs.


How to Receive an Incentive on High-Efficiency Water Heaters

To receive an incentive that reduces the initial equipment purchase cost of your high-efficiency water heater, ask your contractor to reach out to a participating distributor. Your contractor must provide the installation address and site information to the distributor to obtain the incentive.

Your purchase of a qualifying high-efficiency water heater is eligible for an incentive off the purchase price if:

  • The water heater(s) will be installed for commercial or industrial use at a site that has a commercial or industrial gas account with one of the Sponsors: Berkshire Gas, Columbia Gas, Eversource, Liberty Utilities, National Grid, or Unitil; and
  • You are not already receiving an incentive for the water heater equipment through another program sponsored by Mass Save® or one of the Sponsors.

Incentives are provided directly to distributors by the Sponsors.  Contractors are expected to pass the incentive amount along to their customer.  For questions on the incentive amount or to confirm that the incentive was included in your purchase, please reach out to your contractor.


Qualifying Water Heater Equipment

Incentives are available for qualifying high efficiency equipment in the chart below:


C&I Water Heater Customer Incentives
Water Heater Type
Input Rating
Required Efficiency
Customer Discount
Storage Water Heaters
< 75 Mbtuh
Energy Factor >= 0.67 or 
Uniform Energy Factor >= 0.68
$50/unit
>= 75 Mbtuh
Thermal Efficiency >= 90%
$2.00/Mbtuh
Tankless Water Heaters
< 200 Mbtuh
Energy Factor >= 0.82 or 
Uniform Energy Factor >= 0.81
$0.25/Mbtuh
<  200 Mbtuh
Energy Factor >= 0.90 or 
Uniform Energy Factor >= 0.89
$1.00/Mbtuh
Volume Water Heaters
>= 75 Mbtuh
Thermal Efficiency >= 85%
$0.50/Mbtuh
>= 75 Mbtuh
Thermal Efficiency >= 92%
$2.00/Mbtuh
Indirect Water Heaters
N/A
N/A
$200/unit

There are several high-efficiency water heating options available to commercial customers. Download the C&I water heater qualifying equipment table and discuss the best options for your business with your contractor.

Condensing storage water heaters utilize the heat from exhaust gas to heat water efficiently. Condensing storage water heaters can support multiple, simultaneous uses of hot water and are preferred for emergency replacement situations because of the ease of installation. Field-supplied materials are limited to piping and fittings near the heater because these water heaters use the same gas line as the unit they are replacing.

On-demand tankless water heaters provide a constant supply of hot water and are not subject to standby energy loss since they heat water only when needed. Tankless water heaters are well-suited for facilities with restricted or limited space because they do not require a storage tank.

Indirect water heaters consist of a storage tank that connects to a building's main furnace or boiler to heat water. The energy stored by the tank allows the furnace or boiler to turn off and on less often, saving energy. Because they can be installed without additional exhaust piping, indirect water heaters tend to have lower installation and maintenance costs than traditional water heaters.

Condensing volume water heaters utilize heat from exhaust gas to heat water efficiently. Because they produce a high output, condensing hot water boilers can be a good option for facilities with high-volume hot water demands.


Additional Information

If you have questions about how to participate in the C&I Water Heater Initiative, please contact the Initiative implementer:

Energy Solutions
617-440-5468
heat-ne@energy-solution.com