Traditional Mail-In/Online Rebates Do Not Work for Water Heating
Despite the sharp distinctions between the typical water heater purchase process and other white goods, most efficiency programs rely on the same mail-in and online rebate system. For appliances, the consumer risk of a $25 mail-in incentive for a clothes washer is relatively minor. Still, most HPWH utility programs ask consumers to pay more than $500 upfront, and then wait 8-12 weeks to be repaid. More than half of the nation's HPWH programs follow this model, requiring households to front hundreds of dollars for many weeks or even months and occasionally risk the not receiving the rebate. In contrast, as we will detail later in this Guide, successful programs eliminate the burden and consumer financial risk with incentives applied at the point-of-sale, such that the “out the door” cost of HPWHs at retail and at plumbing supply houses is similar to the price of a standard electric storage water heater.
