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Water Heater Offer

When you switch from gas to electric, you may qualify for a water heater rebate.

The following offers are for a limited time. Alabama Power reserves the right to discontinue offers at any time, so check back often for updates.

$500 REBATE - Water Heater of Your Choice

Looking for a lifetime warranty or a special size tank? Prefer a specific name brand? We’ll give you $500 back on the electric water heater of your choice over 30 gallons. Tankless water heaters do not qualify.

Click Here for Eligibility

  • Limited-time offer effective January 1, 2025; subject to end at any time
  • Applicants must convert from an existing gas water heater to an electric water heater 
  • Applicants must own property where the water heater will be installed 
  • 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 Water Heater Program incentive (free equipment or rebate) in the past eight years 
  • Must be the primary source of water heating for the home 
  • 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

$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.

Click Here for Eligibility

  • 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
  • Must be the primary source of water heating for the home

Why choose a Hybrid Water Heater?

Hybrid water heaters (also known as heat pump water heaters) use innovative technology to heat water by absorbing warmth from the surrounding air – rather than generating heat from electricity. That means big savings, high efficiency and added comfort for your home.

Benefits:

  • Save on Energy Bills: Uses up to 70% less energy than standard electric water heaters – with annual operating costs as low as $150.

  • Cool and Dehumidify Your Space: Hybrid units release cool, dry air as a byproduct – perfect for warm utility rooms or garages.

  • Reliable and Long-Lasting: Backed by a 10-year warranty for peace of mind and long-term performance.

  • Environmentally Friendly: ENERGY STAR® qualified, meaning it meets strict efficiency standards and reduces your carbon footprint.

  • Fits Your Home: Available in multiple sizes (50–80 gallons) to match your household’s needs.

  • The Smartest Choice on the Market: Currently the most efficient type of electric water heater available.