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Austin Energy offers $800 heat‑pump water‑heater rebates, expands pilots as participation lags
Summary
Austin Energy reported a roughly $800 average rebate for heat‑pump water heaters, pilot installations with Habitat for Humanity and a low‑income builder, and a home energy savings program facing declining participation; staff plans data‑driven targeting, contractor training and an EM&V engagement to redesign the program.
Hammad Chaudhry, director of energy efficiency at Austin Energy, briefed the Resource Management Commission on heat‑pump water‑heater rebates and the utility’s Home Energy Savings (HES) program.
Heat‑pump water‑heater rebates and pilots
Chaudhry said Austin Energy currently offers an average rebate of $800 per heat‑pump water‑heater unit across several channels (residential, commercial and instant‑savings programs) and is working to expand incentives in the new‑construction market. He said Austin Energy piloted 12 Wi‑Fi‑enabled heat‑pump water heaters with Habitat for Humanity in 2025 and plans a 2026 pilot with a low‑to‑moderate‑income builder (Drowsy Willow) covering about 30 homes.
Chaudhry described barriers to adoption: higher first costs for heat‑pump water heaters compared with conventional electric resistance or gas tankless units; retrofit size and closet‑space constraints; the need to run dedicated 240‑volt circuits in some retrofits; and customer…
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