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Water Heater Offers

Water Heater Offer

No Flames, No Fumes, No Flues. Electric water heating means one less thing to worry about.

This offer is for a limited time. Alabama Power reserves the right to discontinue offers at any time, so check back for updates.

$650 REBATE – Hybrid Water Heater

Looking for the most efficient water heater on the market? Hybrid water heaters, also called heat pump water heaters, can help cut your hot water costs in half – up to $150 per year on average.


  • Applicants must convert from an existing gas water heater to a hybrid (heat pump) water heater; eligible water heaters must use air transfer technology to heat water (other types of high efficiency water heaters do not qualify; tankless water heaters do not qualify).
  • Qualifying water heaters must be purchased and installed within the last 90 days
  • The location where the water heater will be installed must:
    • Have an active Alabama Power residential service account (temporary service accounts do not qualify)
    • Be an existing single-family home (multi-family homes, such as apartments, mobile/manufactured homes, and homes less than a year old do not qualify) 
    • Not have received an Alabama Power Water Heater Program incentive (free equipment or rebate) in the past eight years
  • The owner of the home must apply for the rebate
  • Applicants must submit proof of purchase (receipt/invoice) containing the following information:
    • Purchase date
    • Brand, model and gallon size of water heater
    • Amount paid for the water heater
    • Proof of payment

Hybrid Highlights

Hybrid water heaters, also called heat pump water heaters, use advanced heating technology to absorb heat in the surrounding air and transfer it into the water. Less energy is used to absorb heat compared to standard water heaters that generate heat.

There are many reasons to switch to a hybrid water heater. Consider these features and benefits:

Special Features

  • Most efficient water heater on the market
  • Lowest operating cost
  • Energy Star qualified
  • 10-year warranty

Benefits of Hybrid Water Heaters

  • Cooling and dehumidification as by-product of heating water
  • Annual operating cost is approximately $150
  • Available in a variety of sizes (50 – 80 gallon units)

Tax Credit

A broad selection of ENERGY STAR certified heat pump water heaters is eligible for tax credits. The IRA will pay back 30% of a project cost, up to a $2,000 maximum credit for equipment purchased and installed between January 1, 2023, and December 31, 2023. Click here for more information on tax credits for energy efficiency, or discuss these tax credit options with your tax preparer. 

Why switch to electric?

A safer, healthier choice for your family.

With an electric water heater, there’s no pilot light to light – and relight. There are no fumes from gas or carbon monoxide, and no ventilation problems. It’s also economical – a family of four can have all the hot water they need for about $15 per month. An electric water heater can save you money and has other benefits that gas water heating just can’t match.