High-Efficiency Gas Water Heaters

By heating water only when it’s needed, high-efficiency gas water heaters can cut water heating expenses — while providing continuous hot water delivery.

Water heating makes up 20% of your energy bill. Replace your hot water tank with a high-efficiency gas model to save money and get up to $400 cash back when you upgrade.


Get up to $400 cash back on a high-efficiency gas water heater when you work with a BayREN Participating Contractor.

Energy ratings (UEF — or Uniform Energy Factor) indicate how efficient the equipment is. The more efficient your equipment, the more energy you save and the lower your water heating costs will be.

See which upgrades qualify and how much you can earn, based on the energy efficiency of your new equipment:

Program and Rebate Detail
High-Efficiency Gas Water Heater Upgrade Rebates

High-Efficiency Gas Water Heater

High-efficiency storage gas water heater medium usage ≥ 0.64 UEF

High usage ≥ 0.68 UEF Instantaneous water heater ≥ 0.87 UEF (must replace existing gas storage water heater) 


Combustion Appliance Safety (CAS) test-out 

CAS test-out required for all measures. Not available as a standalone rebate. Only one per service address.

$100 bonus rebate

*High-Efficiency Gas Water Heater rebates will be phased out by April 15th, 2024. Alternative rebates are available through TECH California and Golden State Rebates. Learn more.

  • Rebates are available on a first-come, first-served basis and available for qualifying Bay Area residents with homes built in 2016 or earlier.
  • Customers who receive only one, electric or gas, service from PG&E can apply for measures that correspond to the services received.
  • Customers must complete eligible improvements with a BayREN Participating Contractor in order to receive a rebate (except for electrification appliance measures).
  • Customer must not have previously received a rebate for the same product or equipment from more than one energy-efficiency program offering rebates, financing or other rebates funded with PG&E ratepayer dollars within the past three years for O&M measures and eight years for building shell, HVAC and water heating measures
  • One rebate is offered per measure per address. 
  • Rebates are capped at $4,000 per eligible customer over an eight-year period. Individual measure rebates may not exceed the measure cost.
How to Apply

Your BayREN Participating Contractor will assist you through the rebate process to make sure you get the best price on your projects.

To get started, contact your Home Energy Advisor for information about qualifying projects. Then hire a BayREN Participating Contractor and get your project started!

Your BayREN contractor will work with you to determine the scope and budget of your project. They will be able to tell you which rebates your project qualifies for.

Your contractor will create documentation of your project before and after it is completed. Once the project is completed, the contractor will submit program documentation to BayREN on your behalf.

After your documentation has been submitted, you can track the progress of your rebate online.

Get Started

Contact a Home Energy Advisor to learn more about home heating and cooling projects and rebates.

Find a Contractor

Have you chosen your project? Find a BayREN Participating Contractor in your area.

heat pump water heater
Heat Pump Water Heater

Go electric. Heat pump water heaters are up to four times more efficient than standard models — for big energy bill savings, plus up to $1,000 cash back.

Heat Pump Dryer
Heat Pump Dryers

Replace your conventional gas dryer with a high-efficiency heat pump dryer and watch your energy use tumble — by at least 28%.