Water heater money in Chicago
Each card names the fact we keep on file and the date we last read the official page.
ComEd heat pump water heater
For an integrated or split-system unit that meets ComEd's efficiency score. Discount from a participating contractor or a rebate through the appliance page.
Peoples Gas tankless water heater
For a gas tankless unit rated 0.95 UEF or better, which is a score for how well the unit turns gas into hot water.
Peoples Gas indirect water heater
An indirect heater makes hot water from your boiler. It must be 88% efficient (AFUE) or better.
ComEd Home Energy Savings
Income-eligible households get free showerheads, faucet aerators and pipe insulation that cut hot water use.
Federal home energy credit
No federal credit for a water heater bought after December 31, 2025.
ComEd's Go Electric help page still says there is no residential heat pump water heater incentive. Its heating and cooling page and its appliance rebates page both list up to $750, and those are newer. Call 855-433-2700 with your model number before you buy.
What ComEd requires
The unit must meet ENERGY STAR version 5.0 and have a first hour rating of at least 45 gallons. The first hour rating is how much hot water the tank can give in one hour. The unit must also meet a minimum UEF, a yearly efficiency score. An integrated unit needs 3.30. A model on a regular 120 volt plug and a split system need 2.20. The home must be a single-family home, or a multi-family property where each unit has its own water heating system and is on a ComEd residential rate. ComEd says more than one qualifying system can be installed per account.
ComEd also says the rebate is for new systems in an existing home, an addition or new construction.
Electric or gas: which rebate fits
If your current water heater is electric, a heat pump water heater is a straight swap and ComEd's money applies. If it is gas, Peoples Gas's $150 is for a better gas unit, and switching to a heat pump water heater would use ComEd's discount instead. A heat pump water heater pulls heat from the air around it, so it needs open space and a drain nearby. Ask your installer to check the room before you buy.
Chicago homes in numbers
The Census Bureau's 2020 to 2024 survey counts 1,160,205 households in Chicago. Renters make up 54.0%, so many people do not choose their own water heater. In buildings of two to four homes, which are 27.4% of Chicago's homes, the owner decides on the heater. ComEd's multi-family rule says each unit must have its own water heating system for the heat pump water heater offer.
Gas tankless and indirect rules
Peoples Gas says equipment must be new, fully installed in 2026 and the old unit removed. Rebates cannot be more than the project cost. Applications must reach Peoples Gas within 30 days of installation or by December 31, 2026, whichever comes first. That window is short, so send the form as soon as the work is done.
Cut hot water use first
Free kits help. ComEd's Home Energy Savings program gives qualifying households faucet aerators, showerheads and up to six feet of hot water pipe insulation, with certain limits, at no cost. A smaller bill for hot water makes any new heater cheaper to run.
How to get a water heater rebate in Chicago
- Check whether your water heater runs on electricity or gas.
- For a heat pump water heater, call ComEd to confirm the offer for your model, then use a participating contractor.
- For a gas tankless or indirect unit, ask the installer for the efficiency rating on the invoice.
- Send the Peoples Gas application within 30 days of installation.
- If your income is low, call ComEd about free products before buying.
Common questions
How much is the ComEd heat pump water heater rebate?
ComEd's heating and cooling page and appliance page both list up to $750. One older help page says there is none, so confirm before you buy.
What does Peoples Gas pay for a water heater?
$150 for a gas tankless unit rated 0.95 UEF or better, and $150 for an indirect water heater rated 88% AFUE or better.
Can I get both a ComEd and a Peoples Gas rebate?
Not for the same water heater. One is for a heat pump water heater on electricity and the other is for a gas unit.
Do I apply to ComEd for the heat pump water heater?
ComEd lists both an instant discount through a contractor and an online or mail-in rebate. No application is needed for the instant discount.
Can renters get the rebate?
The person who pays for the new heater gets the rebate. A tenant needs the landlord to agree to a new heater.
What to do next
Compare with the Chicago heat pump rebates, see all ComEd rebates, or read the Chicago insulation guide.
By Sam Menard. Sources, last read October 6, 2026: ComEd heating and cooling discounts, ComEd appliance rebates, Peoples Gas home energy rebates, US Census Bureau, American Community Survey 2020-2024. All Chicago rebates → Every ComEd rebate →