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For anybody in TVA's electricity networks (mostly: Tennessee): they offer an annual promotion to single-family homeowners only to purchase an $1800 AO heatpump

For anybody in TVA's electricity networks (mostly: Tennessee): they offer an annual promotion to single-family homeowners only to purchase an $1800 AO heatpump waterheater for only $250. Maths: 85% discount on fancy new waterheater, which also dehumidifies and cools your house (passive result of heatpump). TVA usually offers this promotion between Thanksgiving and NYE. You can order online from HomeDepot, or walk into a local store [0]. This ends up costing LESS than a new traditional resistive-type heater. [0] either method: they DO verify SFH (by more than just ZIP code) -- duplexes and contractors not authorized/allowed ---- My own $250.00 "TVA homeowner special" (as a licensed electrician): <https://i.imgur.com/4wCez9u.jpeg https://i.imgur.com/4wCez9u.jpeg> this specific design draws from both bath and bedroom [dual 6" inlets], exhausts into kitchen [single 8" outlet] | utility closet is only 5ft x 4ft (~20sqft) Don't forget to use a pressure regulator, expansion tank (coldside, only), & (preferably) a sediment filter. Whatever you do: do NOT use a water softener before the tank.

GenerWork 6mo ago
I have a heat pump hot water heater, and it's been awesome. It's ROI has definitely improved with all the energy price spikes. It's located in my garage (I live in Florida) so there's no shortage of hot air for it to use.
- ProllyInfamous 6mo ago
  Same — I maintain four (one RHEEM and three AO's). The AO is a much cleaner/simpler/nicer install. The Rheem stupidly requires duct adapters (for small-space, <700sqft "closet" installations). AO won't last as long, but at $250 who cares?!
  - fsckboy 6mo ago
    >at $250 after subsidy >who cares?! fellow taxpayers, fellow ratepayers, people who care about the planet, etc. etc.
    - ProllyInfamous 6mo ago
      >fellow ratepayers This reduces electric infrastructure demand, which is why it's subsidized. Presumably, this saves money (duh) for the company (duh) and possibly the customers (presumable duh). Presumably people who care about the planet understand this. ---- Running a single heatpump waterheater is the equivalent of not driving your car, annually, according to TVA (in carbon footprint). I'm running four [two households, ten people]. What's your question? ---- edit/tone (educatable moments): <https://www.hotwater.com/water-heater-rebates/tva-heat-pump-water-heater-promotion-in-tennessee.html https://www.hotwater.com/water-heater-rebates/tva-heat-pump-...>
      - laurencerowe 6mo ago
        > Running a single heatpump waterheater is the equivalent of not driving your car, annually, according to TVA (in carbon footprint). This seems a lot but for utilities which still have coal plants it seems accurate if the reduced demand allows them to close the coal plant down. A typical car emits 4.6 tonnes CO2 per year. https://www.epa.gov/greenvehicles/greenhouse-gas-emissions-typical-passenger-vehicle#typical-passenger https://www.epa.gov/greenvehicles/greenhouse-gas-emissions-t... Heat pump saves around 3,760 kWh per year. https://www.energystar.gov/products/heat_pump_water_heaters/benefits-savings https://www.energystar.gov/products/heat_pump_water_heaters/... Coal emits 1.02 tonne CO2/MWh = 3.8 tonnes CO2 per year savings from the heat pump. Natural gas emits 0.44 tonne CO2/MWh = 1.65 tonne CO2. https://www.eia.gov/todayinenergy/detail.php?id=48296 https://www.eia.gov/todayinenergy/detail.php?id=48296 That's a pretty substantial saving which will kick in when the next administration reverses Trump's absurd orders to keep existing coal plants open.
        ProllyInfamous 6mo ago
        /r/ TheyDidTheMath [thanks!], cited, too You mean "clean coal" isn't clean?!? [•] <https://www.youtube.com/watch?v=BwP2mSZpe0Q https://www.youtube.com/watch?v=BwP2mSZpe0Q> ClimateTown
      - phil21 6mo ago
        > This reduces electric infrastructure demand, which is why it's subsidized. Presumably, this saves money Short term gain, long term pain. The story of our entire electrical infrastructure the past couple generations. Why invest in capital infrastructure like generation or transmission capacity when you can simply reduce peak demand via stuff like this. Eventually you run out of cheap tricks and need to actually build things. We are roughly at that inflection point now - brought forward maybe half a decade or so by datacenter demand. We had it really damn good the past 30-40 years due to investments in all area of the grid our grandparents and great grandparents paid for. Then we decided it was cheaper to let a lot of that stuff age out and deteriorate vs. replacing it via efficiency gains and de-industrialization. We reap what we sow. It was obvious electrical demand was going to increase at some point, and we have run out of the cheap parlor tricks of the past couple decades while we let everything else decay around us. It's been incredibly frustrating to watch since I was a teenager 30 years ago and figured out why electric companies would pay someone to use less power against the obvious incentives. It's so they didn't have to do their jobs - just sit on capital equipment others paid for and collect rent.
- ProllyInfamous 6mo ago
  >>Florida>> "no shortage of hot air" hot HUMID air – which heatpumps love! Draw your inlet from [at least one] humid bathroom source, if you can. Always use insulated ducting to lessen local condensation. ---- I always smile knowing that using hot water doesn't cost any more than cold, at least when the AC would otherwise be cooling (offset).
gucci-on-fleek 6mo ago
> Whatever you do: do NOT use a water softener before the tank. I'm curious why not? I can't immediately think of a reason why that would be bad, but I admittedly know hardly anything about plumbing.
- ProllyInfamous 6mo ago
  Corrosion will destroy the tank's fittings/liner. Quickly. So quickly, in fact, that it is mentioned multiple times in the installation manual to not do lots of things (no salt-fed softeners in bold/red/all-the-things).
  - tass 6mo ago
    Possibly obvious point, water softeners add salt to the water.
    - ProllyInfamous 6mo ago
      Correct. This is the reason.
    - rstupek 6mo ago
      Not all water softeners add salt to the water. nuvoh2o sells a water softener that does not use salt.
      - ProllyInfamous 6mo ago
        While this may be true (have no knowledge | how does it work w/o salts?), the OEM will immediately void your warranty if you use any sort of homeowner water softener, per both Rheem and AOS installation manuals. I have both; mine are warranted "platinum|10yrs" — why chance it?
    - superxpro12 6mo ago
      and then you heat the salt, which is even better!
  - deleted 6mo ago
ethansinjin 6mo ago
Important caveat: > You must swap out an old electric unit; switching from gas to electric doesn't qualify.[0] That’s a bummer; totally would have done this otherwise [0] https://www.hotwater.com/water-heater-rebates/tva-heat-pump-water-heater-promotion-in-tennessee.html https://www.hotwater.com/water-heater-rebates/tva-heat-pump-...
- ProllyInfamous 6mo ago
  Interestingly, TVA/EPB/Lowes [7] never asked for our swaps (I threw all four oldtanks away). [7] not Home Depot; AOSmith -eligible, not Rheem (can no longer edit abovepost) ---- Didn't know about the gas disqualifier... or the great URL/reference (thanks)! For future TVA homeowner installers: the website seems to indicate that you MUST use an approved contractor for the rebate — at least December 2025, in EPB/Chatt, this was not required: just had to go to Hixson Lowes and have them look up address and then paid (w/ delivery, not in-stock). ---- Less than a decade ago, I helped install a 38kW [•] tankless/instaHot heater (¡¡¡ that's three 240v40a two-pole circuitbreakers !!!) into a beautiful new home. Homeowner is actively doing his part not maintaining the unit in eventual hopes of justify purchasing a new heatpump waterheater. Godspeed. [•] I think technically it's 28kW -rated (there's a consumer-installed limit, w/o boilermaker license), but the circuits support more w/o 80% derating applied
  - quickthrowman 6mo ago
    > I think technically it's 28kW -rated (there's a consumer-installed limit, w/o boilermaker license), but the circuits support more w/o 80% derating applied A tankless water heater is not considered a continuous load so there’s no need to apply the 80% rule. A 60A 2P breaker will have a trip curve that results in a thermal trip for just under 100% of rated current in around 2-3 hours. The fast acting part of the trip curve is magnetic, longer duration trips are thermal. Here’s a link to a Square D breaker guide: https://ressupply.com/documents/square_d/QO_and_QOB_Circuit_Breakers.pdf?srsltid=AfmBOorbc66hMmLWdCKo6m9GFjmX4JP5hDbu8VlOW8Me-GC5qZp7DWa- https://ressupply.com/documents/square_d/QO_and_QOB_Circuit_... The trip curve on page 25 of the pdf applies to Square D QO plug-in (residential breakers are usually plug-in, commercial are bolted on) 2-pole breakers rated 120/240V from 45A-60A. Find the 1 (times rated current) at the bottom and follow it up the chart until it intersects with the black area of the trip curve, that is approximately when the breaker will trip at 100% of its rated ampacity. Look at the left hand side to see the time in seconds that it will trip in. It’s hard to see exactly where it intersects, but it’s somewhere between 7000-10000 seconds, or 2-3 hours. So, you need to apply the 80% rule to continuous loads because breaker trip curves are adjusted so the thermal overload trips in 3 or fewer hours at 100% of rated ampacity. If you look at .8 times rated load, the line never intersects the trip curve. Here’s a manual for an A.O. Smith tankless water heater: > https://assets.hotwater.com/damroot/Original/1000/100306523.pdf https://assets.hotwater.com/damroot/Original/1000/100306523.... On page 10, the 4 element, 7kW per element unit draws 58.33A per 60A breaker, 7000/240 = 29.167A, two elements a piece for 58.33A per 60A breaker. It’s lot cheaper to wire up a 28kW electric heater if you have 480V three-phase, it’s only 28000/480/1.732 = 33.68A, all you need is a 35A 3P breaker, three #10s and a #10 ground. 240V single phase needs two 60A 2P breakers, four #6s and two #10 grounds, or if it was a single-point connection, one 125A 2P breaker, two #1/0s and a #6 ground.
dzhiurgis 6mo ago
> which also dehumidifies and cools your house (passive result of heatpump). Wait do you install these indoors? I get it's pretty hot in Tennessee, but still got some winters? Also isn't noise an issue? In most of Australia these are installed outdoors. Pool heaters is another one where one could harvest indoor heat.
- ProllyInfamous 6mo ago
  >Wait do you install these indoors? Absolutely. Not just because of the heat, but because large parts of Tennessee are subtropical rainforest (~60+" annual rainfall) so dehumidification is absolutely essential. Why not get free dehumidification from heating water? Installing an air-exchanging heatpump OUTSIDE?!? is absolutely a massive waste of energy in such a climate (and many more). >isn't noise an issue? All four of mine are installed in 20sqft utility closets, using insulated ducting to top-wall registers (also, insulated). For my first install, only, I used a solid metal 90° to pierce the wall/inlet (this one is loudest, basically as if the wall weren't there). Granted, there is definitely a "louder" side (the inlet-sides), but not by much. None of my utility closets are insulated (from surrounding draw rooms), and the entire unit isn't loud enough to justify more than just a layer of sheetrock on both side of the wall/partition. If this was installed in a garage, it would definitely be known-to-be-on, but not aggressively-so (if you have a workbench outside, e.g.). I don't know the decibel rating, but it's about the same loudness as a stand-alone dehumidifier (same wattage/concept, actually), without walls. Should you desire the quietest install, insulate the wall (between studs) and use dual 6" insulated ducting, with switchbacks, for both inlet and outlet (that's a lot of hardware). In such an unnecessary installation, it would be whisper-quiet.
- gopperl 6mo ago
  I recently had mine installed indoors and regret it. It's not so much the noise, it's the vibration. The damn thing reverberates through the whole house. In some areas it's quiet, in other areas there's a very disruptive hum. The worst part though? It has an app which is infuriatingly shit. None of it makes sense, and much of it is silently locked down without informing the user (get used to "Oops! Try again!" messages). There is no way to shut it up during sleeping hours. I cannot believe there is no option to do so. If I had kids trying to sleep here, I would demand a refund for this reason alone. It is marketed as a super quiet heat pump for indoor installation. The firmware is cooked. Sometimes the compressor just stays on... I've left it for 36hrs+ and it never turns off. I have to power cycle it. Fortunately there is an option in the app to use the backup electric heater instead of the heat pump. I'm willing to just use it as a poor electric heater at this point. But... It's broken. It just silently doesn't take effect. Literally as I'm typing this, the room is vibrating due to the compressor while the app reports the electric heater is off. And now I'm mad again. Fuck Stiebel Eltron.
superxpro12 6mo ago
In MD, they had rebates for gas-fired instant hot water heaters and tanked heat pump water heaters, but not electric instant water heaters. Makes no sense...
- ProllyInfamous 6mo ago
  >not electric instant water heaters The reason the electric utility offers this huge rebate is because they are attempting to reduce their peaking load delivery — a tankless instahot peaks exponentially more than a resistive-heater.
- quickthrowman 6mo ago
  An electric tankless water heater uses around four times more energy than a heat pump water heater. Natural gas water heaters don’t use electricity. That’s why the utility is offering rebates on them and not tankless (or tank) electric water heaters. The rebates are incentives to reduce peak electrical demand, which a tankless electric water heater does not do.

GenerWork 6mo ago

I have a heat pump hot water heater, and it's been awesome. It's ROI has definitely improved with all the energy price spikes. It's located in my garage (I live in Florida) so there's no shortage of hot air for it to use.

ProllyInfamous 6mo ago
Same — I maintain four (one RHEEM and three AO's). The AO is a much cleaner/simpler/nicer install. The Rheem stupidly requires duct adapters (for small-space, <700sqft "closet" installations). AO won't last as long, but at $250 who cares?!
- fsckboy 6mo ago
  >at $250 after subsidy >who cares?! fellow taxpayers, fellow ratepayers, people who care about the planet, etc. etc.
  - ProllyInfamous 6mo ago
    >fellow ratepayers This reduces electric infrastructure demand, which is why it's subsidized. Presumably, this saves money (duh) for the company (duh) and possibly the customers (presumable duh). Presumably people who care about the planet understand this. ---- Running a single heatpump waterheater is the equivalent of not driving your car, annually, according to TVA (in carbon footprint). I'm running four [two households, ten people]. What's your question? ---- edit/tone (educatable moments): <https://www.hotwater.com/water-heater-rebates/tva-heat-pump-water-heater-promotion-in-tennessee.html https://www.hotwater.com/water-heater-rebates/tva-heat-pump-...>
    - laurencerowe 6mo ago
      > Running a single heatpump waterheater is the equivalent of not driving your car, annually, according to TVA (in carbon footprint). This seems a lot but for utilities which still have coal plants it seems accurate if the reduced demand allows them to close the coal plant down. A typical car emits 4.6 tonnes CO2 per year. https://www.epa.gov/greenvehicles/greenhouse-gas-emissions-typical-passenger-vehicle#typical-passenger https://www.epa.gov/greenvehicles/greenhouse-gas-emissions-t... Heat pump saves around 3,760 kWh per year. https://www.energystar.gov/products/heat_pump_water_heaters/benefits-savings https://www.energystar.gov/products/heat_pump_water_heaters/... Coal emits 1.02 tonne CO2/MWh = 3.8 tonnes CO2 per year savings from the heat pump. Natural gas emits 0.44 tonne CO2/MWh = 1.65 tonne CO2. https://www.eia.gov/todayinenergy/detail.php?id=48296 https://www.eia.gov/todayinenergy/detail.php?id=48296 That's a pretty substantial saving which will kick in when the next administration reverses Trump's absurd orders to keep existing coal plants open.
      - ProllyInfamous 6mo ago
        /r/ TheyDidTheMath [thanks!], cited, too You mean "clean coal" isn't clean?!? [•] <https://www.youtube.com/watch?v=BwP2mSZpe0Q https://www.youtube.com/watch?v=BwP2mSZpe0Q> ClimateTown
    - phil21 6mo ago
      > This reduces electric infrastructure demand, which is why it's subsidized. Presumably, this saves money Short term gain, long term pain. The story of our entire electrical infrastructure the past couple generations. Why invest in capital infrastructure like generation or transmission capacity when you can simply reduce peak demand via stuff like this. Eventually you run out of cheap tricks and need to actually build things. We are roughly at that inflection point now - brought forward maybe half a decade or so by datacenter demand. We had it really damn good the past 30-40 years due to investments in all area of the grid our grandparents and great grandparents paid for. Then we decided it was cheaper to let a lot of that stuff age out and deteriorate vs. replacing it via efficiency gains and de-industrialization. We reap what we sow. It was obvious electrical demand was going to increase at some point, and we have run out of the cheap parlor tricks of the past couple decades while we let everything else decay around us. It's been incredibly frustrating to watch since I was a teenager 30 years ago and figured out why electric companies would pay someone to use less power against the obvious incentives. It's so they didn't have to do their jobs - just sit on capital equipment others paid for and collect rent.
ProllyInfamous 6mo ago
>>Florida>> "no shortage of hot air" hot HUMID air – which heatpumps love! Draw your inlet from [at least one] humid bathroom source, if you can. Always use insulated ducting to lessen local condensation. ---- I always smile knowing that using hot water doesn't cost any more than cold, at least when the AC would otherwise be cooling (offset).

gucci-on-fleek 6mo ago

> Whatever you do: do NOT use a water softener before the tank. I'm curious why not? I can't immediately think of a reason why that would be bad, but I admittedly know hardly anything about plumbing.

ProllyInfamous 6mo ago
Corrosion will destroy the tank's fittings/liner. Quickly. So quickly, in fact, that it is mentioned multiple times in the installation manual to not do lots of things (no salt-fed softeners in bold/red/all-the-things).
- tass 6mo ago
  Possibly obvious point, water softeners add salt to the water.
  - ProllyInfamous 6mo ago
    Correct. This is the reason.
  - rstupek 6mo ago
    Not all water softeners add salt to the water. nuvoh2o sells a water softener that does not use salt.
    - ProllyInfamous 6mo ago
      While this may be true (have no knowledge | how does it work w/o salts?), the OEM will immediately void your warranty if you use any sort of homeowner water softener, per both Rheem and AOS installation manuals. I have both; mine are warranted "platinum|10yrs" — why chance it?
  - superxpro12 6mo ago
    and then you heat the salt, which is even better!
- deleted 6mo ago

ethansinjin 6mo ago

Important caveat: > You must swap out an old electric unit; switching from gas to electric doesn't qualify.[0] That’s a bummer; totally would have done this otherwise [0] https://www.hotwater.com/water-heater-rebates/tva-heat-pump-water-heater-promotion-in-tennessee.html https://www.hotwater.com/water-heater-rebates/tva-heat-pump-...

ProllyInfamous 6mo ago
Interestingly, TVA/EPB/Lowes [7] never asked for our swaps (I threw all four oldtanks away). [7] not Home Depot; AOSmith -eligible, not Rheem (can no longer edit abovepost) ---- Didn't know about the gas disqualifier... or the great URL/reference (thanks)! For future TVA homeowner installers: the website seems to indicate that you MUST use an approved contractor for the rebate — at least December 2025, in EPB/Chatt, this was not required: just had to go to Hixson Lowes and have them look up address and then paid (w/ delivery, not in-stock). ---- Less than a decade ago, I helped install a 38kW [•] tankless/instaHot heater (¡¡¡ that's three 240v40a two-pole circuitbreakers !!!) into a beautiful new home. Homeowner is actively doing his part not maintaining the unit in eventual hopes of justify purchasing a new heatpump waterheater. Godspeed. [•] I think technically it's 28kW -rated (there's a consumer-installed limit, w/o boilermaker license), but the circuits support more w/o 80% derating applied
- quickthrowman 6mo ago
  > I think technically it's 28kW -rated (there's a consumer-installed limit, w/o boilermaker license), but the circuits support more w/o 80% derating applied A tankless water heater is not considered a continuous load so there’s no need to apply the 80% rule. A 60A 2P breaker will have a trip curve that results in a thermal trip for just under 100% of rated current in around 2-3 hours. The fast acting part of the trip curve is magnetic, longer duration trips are thermal. Here’s a link to a Square D breaker guide: https://ressupply.com/documents/square_d/QO_and_QOB_Circuit_Breakers.pdf?srsltid=AfmBOorbc66hMmLWdCKo6m9GFjmX4JP5hDbu8VlOW8Me-GC5qZp7DWa- https://ressupply.com/documents/square_d/QO_and_QOB_Circuit_... The trip curve on page 25 of the pdf applies to Square D QO plug-in (residential breakers are usually plug-in, commercial are bolted on) 2-pole breakers rated 120/240V from 45A-60A. Find the 1 (times rated current) at the bottom and follow it up the chart until it intersects with the black area of the trip curve, that is approximately when the breaker will trip at 100% of its rated ampacity. Look at the left hand side to see the time in seconds that it will trip in. It’s hard to see exactly where it intersects, but it’s somewhere between 7000-10000 seconds, or 2-3 hours. So, you need to apply the 80% rule to continuous loads because breaker trip curves are adjusted so the thermal overload trips in 3 or fewer hours at 100% of rated ampacity. If you look at .8 times rated load, the line never intersects the trip curve. Here’s a manual for an A.O. Smith tankless water heater: > https://assets.hotwater.com/damroot/Original/1000/100306523.pdf https://assets.hotwater.com/damroot/Original/1000/100306523.... On page 10, the 4 element, 7kW per element unit draws 58.33A per 60A breaker, 7000/240 = 29.167A, two elements a piece for 58.33A per 60A breaker. It’s lot cheaper to wire up a 28kW electric heater if you have 480V three-phase, it’s only 28000/480/1.732 = 33.68A, all you need is a 35A 3P breaker, three #10s and a #10 ground. 240V single phase needs two 60A 2P breakers, four #6s and two #10 grounds, or if it was a single-point connection, one 125A 2P breaker, two #1/0s and a #6 ground.

dzhiurgis 6mo ago

> which also dehumidifies and cools your house (passive result of heatpump). Wait do you install these indoors? I get it's pretty hot in Tennessee, but still got some winters? Also isn't noise an issue? In most of Australia these are installed outdoors. Pool heaters is another one where one could harvest indoor heat.

ProllyInfamous 6mo ago
>Wait do you install these indoors? Absolutely. Not just because of the heat, but because large parts of Tennessee are subtropical rainforest (~60+" annual rainfall) so dehumidification is absolutely essential. Why not get free dehumidification from heating water? Installing an air-exchanging heatpump OUTSIDE?!? is absolutely a massive waste of energy in such a climate (and many more). >isn't noise an issue? All four of mine are installed in 20sqft utility closets, using insulated ducting to top-wall registers (also, insulated). For my first install, only, I used a solid metal 90° to pierce the wall/inlet (this one is loudest, basically as if the wall weren't there). Granted, there is definitely a "louder" side (the inlet-sides), but not by much. None of my utility closets are insulated (from surrounding draw rooms), and the entire unit isn't loud enough to justify more than just a layer of sheetrock on both side of the wall/partition. If this was installed in a garage, it would definitely be known-to-be-on, but not aggressively-so (if you have a workbench outside, e.g.). I don't know the decibel rating, but it's about the same loudness as a stand-alone dehumidifier (same wattage/concept, actually), without walls. Should you desire the quietest install, insulate the wall (between studs) and use dual 6" insulated ducting, with switchbacks, for both inlet and outlet (that's a lot of hardware). In such an unnecessary installation, it would be whisper-quiet.
gopperl 6mo ago
I recently had mine installed indoors and regret it. It's not so much the noise, it's the vibration. The damn thing reverberates through the whole house. In some areas it's quiet, in other areas there's a very disruptive hum. The worst part though? It has an app which is infuriatingly shit. None of it makes sense, and much of it is silently locked down without informing the user (get used to "Oops! Try again!" messages). There is no way to shut it up during sleeping hours. I cannot believe there is no option to do so. If I had kids trying to sleep here, I would demand a refund for this reason alone. It is marketed as a super quiet heat pump for indoor installation. The firmware is cooked. Sometimes the compressor just stays on... I've left it for 36hrs+ and it never turns off. I have to power cycle it. Fortunately there is an option in the app to use the backup electric heater instead of the heat pump. I'm willing to just use it as a poor electric heater at this point. But... It's broken. It just silently doesn't take effect. Literally as I'm typing this, the room is vibrating due to the compressor while the app reports the electric heater is off. And now I'm mad again. Fuck Stiebel Eltron.

superxpro12 6mo ago

In MD, they had rebates for gas-fired instant hot water heaters and tanked heat pump water heaters, but not electric instant water heaters. Makes no sense...

ProllyInfamous 6mo ago
>not electric instant water heaters The reason the electric utility offers this huge rebate is because they are attempting to reduce their peaking load delivery — a tankless instahot peaks exponentially more than a resistive-heater.
quickthrowman 6mo ago
An electric tankless water heater uses around four times more energy than a heat pump water heater. Natural gas water heaters don’t use electricity. That’s why the utility is offering rebates on them and not tankless (or tank) electric water heaters. The rebates are incentives to reduce peak electrical demand, which a tankless electric water heater does not do.