Water Heater and Water Saving Rebates in Phoenix: SRP, APS, Southwest Gas and City Programs

from SRP, as of September 2026, for a heat pump water heater installed by a licensed plumbing contractor before April 30, 2027

from APS or Southwest Gas for a home water heater as of September 2026: neither lists a residential tank, tankless or heat pump rebate

The federal 25C tax credit stopped for anything installed after December 31, 2025

per toilet from Phoenix, Glendale, Peoria, Tempe, Avondale and Buckeye for WaterSense models

Heat pump water heater rebate

For SRP electric customers who replace a water heater with a new ENERGY STAR heat pump water heater rated UEF 2.8 or better. It must be installed by a contractor licensed in Arizona for residential plumbing, before April 30, 2027, and you apply within 6 months of installation. One per home every 10 years. Not for new construction.

Heat pump water heater rebate

We found no residential heat pump water heater rebate on any APS page. The only APS water heater incentive we found is for apartment owners in its multifamily program. If you are an APS customer, check before you buy, because utility programs change each year.

Tank or tankless gas water heater rebate

Southwest Gas lists four rebates for Arizona homeowners and renters: a low flow shower head, a clothes washer, solar water heating and windows. No tank or tankless gas water heater rebate appears on that list. It does offer tankless rebates to Arizona businesses.

Solar water heating rebate

For Southwest Gas residential customers. Collectors must carry OG 100 certification and the system must be installed by a qualified contractor. First come, first served until funds run out.

Low flow shower head rebate

For homes with natural gas water heating. The shower head must carry the WaterSense label and flow at 1.5 gallons a minute or less. First come, first served until funds run out.

Energy efficient home improvement tax credit (25C)

The IRS says the credit can be claimed for improvements made through December 31, 2025. A heat pump water heater installed in 2026 does not qualify. If yours went in during 2025, you can still claim it on that year's return.

Home energy upgrade incentives

The Governor's Office of Resiliency keeps a running list of home energy incentives open to Arizona households, including the income based federal home rebate programs as they launch. We do not print amounts here because the state page did not state them when we checked.

Bring Your Own Thermostat

For SRP customers who enroll an approved smart thermostat and allow SRP to adjust it during conservation events, generally May through October.

WaterSense toilet incentive

For a new WaterSense toilet rated 1.28 gallons a flush or less, replacing a toilet that uses 3 gallons a flush or more, bought within 60 days of applying. First come, first served while funding lasts.

WaterSense toilet rebate

For single family Glendale water customers replacing an older toilet with a WaterSense model, bought within the past 12 months. One application each fiscal year.

High efficiency toilet rebate

For Peoria residential water customers installing WaterSense toilets. Limited funding each fiscal year, first come, first served.

High efficiency toilet rebate

For single family homes installing WaterSense toilets that use no more than 1.28 gallons a flush.

Plumbing fixture rebate

For high efficiency toilets and low flow shower heads. The same page lists $100 for a clothes washer, up to $800 for turf conversion and $50 to $150 for rain barrels and cisterns.

High efficiency toilet rebate

For Buckeye residential water customers installing WaterSense toilets of 1.28 gallons a flush or less within the fiscal year, July through June. Installation fees do not count. Limited funding.

Smart irrigation controller incentive

For a WaterSense smart irrigation controller bought within 60 days of applying. While funding lasts.

Residential grass removal

For homeowners who pay a city services bill. You must be approved and receive a notice to proceed before removing any grass.

Smart irrigation controller rebate

For a WaterSense controller bought on or after July 8, 2026. The listed deadline is April 30, 2027.

Smart home water monitor rebate

A whole home leak monitor. The city's table lists it with an April 30, 2027 deadline, while a notice on the same page says this rebate returns when the new season launches. Confirm it is open before you buy.

Grass removal and pool removal rebates

The city's table lists both, but a notice on the same page says grass removal closed on October 31, 2025, other removal rebates closed on March 31, 2026, and both return when the new season launches. A notice to proceed is required before any removal.

Xeriscape conversion for existing homes

For converting grass to low water use landscape. Artificial grass earns up to $250 at $0.25 per square foot. The city also rebates WaterSense irrigation controllers that replace a manual controller, up to $800 for removing a pool, and up to $200 for an ENERGY STAR clothes washer. One application each fiscal year.

Smart irrigation controller rebate

For a standalone WaterSense smart controller. Limited funding each fiscal year.

Grass to xeriscape rebate

For Peoria residential water customers converting high water use grass to low water use plants. Limited funding each fiscal year.

High efficiency irrigation rebate

For single family customers, on the price before tax of efficient irrigation parts.

Grass removal and conversion rebate

A consultation and approval are required before any work starts.

Free and discounted water saving devices

Goodyear lists a free weather based irrigation timer, a free rain sensor, a free home water check, a free conservation kit and a discounted Flume smart water sensor. It lists no cash rebates.

Smart irrigation controller rebate

For a weather based smart controller. A photo of the installed controller is required.

Smart controller and turf removal rebates

Turf removal needs an appointment and plan review with the city before work starts, and at least 200 square feet of grass.

Conservation incentives

EPCOR's Arizona incentives page lists water conservation kits only. This covers Sun City, Sun City West, Anthem and the EPCOR part of Paradise Valley.

Electric territory in the Valley is split between SRP and APS, and the line does not follow city limits. Several cities, Phoenix and Scottsdale among them, have neighborhoods on both. Your electric bill is the only sure answer, and it decides whether the $500 heat pump water heater rebate is open to you. Natural gas across these cities comes from Southwest Gas. Water comes from your city, or from EPCOR in Sun City, Sun City West, Anthem and part of Paradise Valley, and the water provider is the one that pays toilet and irrigation rebates.

A heat pump water heater pulls heat out of the surrounding air and puts it into the water, using a fraction of the electricity of a standard electric tank. A hot Phoenix garage is close to the ideal place for one: there is plenty of heat to draw on for most of the year, and the unit cools and dries the garage a little as it runs. It needs roughly a closet's worth of air space around it, a drain for condensate, and a 240 volt circuit in most cases. It makes the most sense when you are replacing an electric tank. If you have gas now, the wiring can change the sums. We will price both so you can compare.