Electric Water Heater Rebate

How it works

Alabama Power says customers may qualify for a rebate when they replace an existing gas water heater with a qualifying electric water heater. The page presents this as a limited-time offer effective January 1, 2026.

What the money covers

The rebate covers a qualifying electric tank water heater. The page says tankless water heaters do not qualify. For the tank water heater offer, the minimum size is 30 gallons.

Amounts and matching

• Rebate amount: $600
• The page says the program is limited time and effective January 1, 2026.
• The offer is subject to end at any time.

How to apply

Applicants must submit photos of the newly installed electric water heater, a W-9 form, brand/model/serial number of the previously installed gas water heater, and proof of purchase showing purchase date, brand, model, gallon size, amount paid, and proof of payment.

Timing and deadlines

• Qualifying water heaters must be purchased and installed within the last 90 days
• The application must be submitted while the offer remains available

Important notes

The location must have an active Alabama Power residential service account, and temporary service accounts do not qualify. The page also says the rebate has a past-participation limit: the home must not have received an Alabama Power Water Heater Program incentive in the past eight years.