Alabama Power customers, Alabama · Rebate

Electric Water Heater Rebates (Alabama Power)

Run by Alabama Power

Alabama Power pays $600 to homeowners who replace a gas water heater with an electric tank water heater (30 gallons or more) or a hybrid heat pump water heater. Apply within 90 days of purchase and installation.

Open Checked Oct 26, 2026

Amounts

How much you get

$600 for switching from a gas water heater to an electric tank water heater (minimum 30 gallons, tankless doesn't qualify) or to a hybrid heat pump water heater. The amount depends on which of these fits your install.

What you installYou get
30 gallons or more, replacing a gas water heaterElectric tank water heater$600
Replacing a gas water heaterHybrid (heat pump) water heater$600

Eligibility

Do I qualify?

You need to meet all 5 of these.

  • The home must have an active Alabama Power residential service account (temporary service accounts don't qualify).

  • The applicant must own the property where the water heater is installed.

  • Existing single-family homes only. Apartments and other multi-family homes, mobile or manufactured homes, and homes less than a year old don't qualify.

  • Must convert from an existing gas water heater, and the new electric unit must be the home's primary source of water heating.

  • The home must not have received an Alabama Power water heater incentive (free equipment or rebate) in the past eight years.

Equipment

What equipment counts

The program sets these minimums for water heaters.

  • Water heaters

    Electric tank water heater of at least 30 gallons; tankless water heaters do not qualify.

  • Heat pump water heaters

    Must use air transfer technology to heat water (other high efficiency or tankless types don't qualify).

Applying

How to apply

You apply online. Limited time offer effective January 1, 2026; Alabama Power says it is subject to end at any time.

  1. Buy and install a qualifying electric tank or hybrid water heater to replace the gas unit.
  2. Apply online within 90 days of purchase and installation.

    Upload photos of the new water heater, a W-9, the old gas water heater's brand, model and serial number (or photos of the capped gas line or flue), and proof of purchase and payment.

    Go to alabamapower.com

  3. Receive the $600 rebate.
What you'll need
  • Photos of the newly installed electric water heater

  • W-9 form

  • Brand, model and serial number of the old gas water heater

  • Proof of purchase showing purchase date, brand, model, gallon size and amount paid

Forms and instructionsAlabama Power: Save Money and Energy · Alabama Power: Heat Pump Water Heater Rebate

Questions about applying1-800-245-2244

Your address

Next steps

Check that it covers your address. Then, if you want, ask for a contractor quote.

FAQ

Questions

How much does Electric Water Heater Rebates (Alabama Power) pay?

$600 to $600, depending on what you install. The table under How much you get lists each amount.

Do I need to be a Alabama Power customer?

Yes. It’s only for homes in Alabama Power customers, Alabama. See Do I qualify for the details.

Do renters qualify?

The applicant must own the property where the water heater is installed.

What’s the deadline?

No fixed deadline. Apply any time while it’s open.

Is it still available?

Yes. It was open when we last checked, on October 26, 2026.

Plain words

Words used on this page

Flue-sharing appliances
Two appliances that vent through the same chimney pipe, such as a gas furnace and a gas water heater.

References

Sources

This page is built from these official pages, run by the program itself.

  1. Alabama Power: Rebates & Incentivesalabamapower.com · Read Oct 26, 2026 · Re-checked weekly
  2. Alabama Power: Save Money and Energyalabamapower.com · Read Oct 26, 2026 · Re-checked monthly
  3. Alabama Power: Heat Pump Water Heater Rebatealabamapower.com · Read Oct 26, 2026 · Re-checked weekly

When one of these pages changes, we re-check this page against it.

Report a problem with this page

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