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.
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 install | You 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.
- Buy and install a qualifying electric tank or hybrid water heater to replace the gas unit.
- 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.
- Receive the $600 rebate.
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
Stacking
Use it with
Your address
Next steps
Check that it covers your address. Then, if you want, ask for a contractor quote.
Is it available at your address?
Before anything else
Your quote request is in If a contractor we work with serves your ZIP, they can contact you. We take one request per person; contact us to change it.
Get an email if this program changes
We'll write if its amount, status or deadline changes. Nothing else.
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.
- Alabama Power: Rebates & Incentives
- Alabama Power: Save Money and Energy
- Alabama Power: Heat Pump Water Heater Rebate
When one of these pages changes, we re-check this page against it.
Nearby
More in Alabama
All of Alabama
Smart Financing (Alabama Power)
Up to $25,000 loan
Alabama Power Smart Financing lends Alabama single-family homeowners $2,000 to $25,000 at 9.9% to 19.9% APR, over 60 or 84 months, for heat pumps, HVAC, insulation, windows, water heaters, EV charger installs and more, applied for through an approved dealer. You don't have to be an Alabama Power customer.
Checked Oct 26, 2026
Albertville Municipal Utilities Board customers, Alabama
Albertville MUB Electric Water Heater Credit
$100
Albertville MUB electric customers get a $100 power bill credit for an electric water heater of 38 gallons or larger, whether switching from gas or replacing a failed electric unit.
Checked Oct 26, 2026
Baldwin EMC customers, Alabama
Energy Efficiency Loan Program (Baldwin EMC and MAX Credit Union)
$20,000
Baldwin EMC members can finance heat pumps, insulation, air sealing, heat pump water heaters, windows, doors and other efficiency upgrades with low-interest loans from MAX Credit Union.
Checked Oct 26, 2026