Short answer: Heat pump water heater rebates in Delaware come mainly from Energize Delaware. Its flyer lists $1,100, or $1,350 for assisted homes, through Home Performance with ENERGY STAR, which starts with an energy audit. Some town and co-op utilities add about $300. The federal tax credit ended for installs after December 31, 2025.
Heat pump water heaters cost more up front than a standard electric tank. They also cost much less to run. Rebates help close the gap. This guide covers what Delaware programs offer, who runs them and how not to miss out. If you're in the Newark area, our heat pump water heater team can check if one fits your home.
Important: Rebate programs change often, sometimes mid-year. Treat the amounts below as a starting point and confirm current terms with the program before you buy.
Heat pump water heater basics
A heat pump water heater is a tank with a small heat pump on top. It pulls heat from the room air and moves it into the water, like a fridge in reverse. It uses far less power than a standard electric tank. For the full picture, read what a heat pump water heater is and how it works.
Delaware heat pump water heater rebates at a glance
| Program | What it has offered | Who it is for |
|---|---|---|
| Energize Delaware (Home Performance with ENERGY STAR) | $1,100 standard; $1,350 assisted | Homes that get an energy audit first |
| Town and city electric utilities (DEMEC) | About $300 has been listed | Newark, Middletown and other town power customers |
| Delaware Electric Cooperative | $300 (2026 form) | Co-op members, mostly in Kent and Sussex |
| Federal 25C tax credit | 30%, up to $2,000 | Bought and installed in 2023 to 2025 |
| Federal HEAR rebate | Up to $1,750 listed | Income-based; only where the state program is open |
Figures come from the sources listed at the end of this page. Check each program's own site for current details.
Energize Delaware: the main program
Energize Delaware is the public name of the Delaware Sustainable Energy Utility. Its Home Performance with ENERGY STAR flyer, effective November 1, 2024, lists $1,100 for a heat pump water heater. Assisted households can get $1,350.
Key points to know:
- It starts with a home energy audit by a participating contractor.
- Equipment must be recommended by that audit to qualify.
- The heater must be ENERGY STAR-qualified.
- Bundling bonuses have been offered for pairing upgrades like air sealing.
Want help sorting out rebates?
Call us. We will give you the model and install details programs usually ask for.
Newark and other municipal electric customers
Newark and Middletown run their own power companies. Both belong to the Delaware Municipal Electric Corporation (DEMEC). DEMEC has listed a separate rebate of about $300 for an ENERGY STAR heat pump water heater, one per year. If the City of Newark sends your power bill, ask the city what is offered now.
What happened to the federal tax credit?
ENERGY STAR lists a federal credit of 30% of the cost, up to $2,000. It covered heat pump water heaters bought and installed from January 1, 2023 to December 31, 2025. If yours went in during 2025, ask a tax pro about claiming it.
Is a heat pump water heater right for your home?
Before chasing a rebate, make sure the heater will work well where you want it:
| Requirement | What to check |
|---|---|
| Space | About 700 to 1,000 cubic feet of air, or ducting |
| Temperature | Best where the air stays above about 40°F |
| Drain | A floor drain, sink or condensate pump nearby |
| Power | Most need a 240-volt circuit; some plug into 120 volts |
| Noise | A low hum, like a dehumidifier |
Unfinished basements in Newark and Pike Creek homes are often good spots. Small townhome closets usually are not, unless they have louvered doors or ducting.
How to avoid missing a rebate
- Check the program before you buy. Some require pre-approval or an audit first.
- Buy an ENERGY STAR-qualified model. Keep the model number.
- Use a qualified installer if the program requires one.
- Keep your itemized invoice with the model, serial number and install date.
- Apply on time. Some rebates must be filed within 60 days of purchase.
How does a heat pump compare with other options?
Still deciding? Read our tankless vs. tank guide and our look at what a new water heater costs in Delaware.
How to prepare for a heat pump install
- Measure the space. ENERGY STAR says most models need about 700 cubic feet of air.
- Check power. Most units need a 240-volt circuit.
- Find a drain for condensate, or plan a small pump.
- Keep your paperwork: model number, receipt and install date.
Local note: Newark and Middletown electric customers buy power from municipal utilities that belong to DEMEC, so their rebate options differ from Delmarva Power customers in Wilmington or Bear. Roomy basements in Hockessin are often a good fit for these units.
Related reading: See how long water heaters last to time your upgrade, and the signs your water heater is going out.
When should you call a water heater professional?
Call a pro if:
- You need help choosing a model that meets rebate rules
- The install needs a new 240-volt circuit
- You are switching from gas and need the gas line capped
- You are not sure your space has enough air
This guide is general information, not tax advice. Rebate amounts and rules change, so confirm with each program.
Planning a heat pump water heater in Newark? Call (302) 732-0874 for heat pump water heater installation from Newark Heater Pros.
Frequently asked questions
Can I still get the federal tax credit for a heat pump water heater?
The federal Energy Efficient Home Improvement Credit (25C) applied to qualifying heat pump water heaters placed in service by December 31, 2025. Check with a tax professional about your situation.
Does Delmarva Power offer a heat pump water heater rebate in Delaware?
Delaware customers of Delmarva Power have generally accessed efficiency rebates through Energize Delaware's programs. Delmarva Power's own home rebate portal has served Maryland customers. Check current programs for your account.
Do I need an energy audit to get a rebate?
Energize Delaware's Home Performance with ENERGY STAR program has required a home energy audit first, and covers equipment recommended by that audit. Other programs may have different rules.
Can I combine Energize Delaware and utility rebates?
Sometimes. Each program sets its own rules on stacking. Read both applications or call the programs before you buy.
Do I need a contractor to get a Delaware rebate?
Many programs require professional installation, and the Energize Delaware rebates run through its Home Performance with ENERGY STAR process. Check each program's terms.
Sources
- Energize Delaware: Available Rebates flyer, effective Nov. 1, 2024 (PDF)
- Delaware Electric Cooperative: 2026 Heat Pump Water Heating Rebate Application (PDF)
- ENERGY STAR: Heat Pump Water Heaters Tax Credit
- ENERGY STAR: Super-Efficient Water Heater buying and installation guidance
- Delaware Municipal Electric Corporation: member communities
- U.S. DOE FEMP: Purchasing Energy-Efficient Residential Water Heaters
