Montgomery County homeowners can claim four separate rebates when installing a tankless water heater. Here's how each one works and how to apply.
That's the maximum stackable rebate for a qualifying tankless install in Montgomery County — when you combine all four available incentives.
These are the four rebates that stack for a natural-gas tankless install in 2026. Click the links below each to go directly to the application portal.
Washington Gas offers rebates on ENERGY STAR certified tankless water heaters. For Maryland customers, rebates range from $300–$450 depending on the unit's efficiency rating (UEF). Higher-efficiency condensing units qualify for the full $450.
Under the federal Energy Efficient Home Improvement Credit, homeowners can claim 30% of the project cost (unit + installation labor) on qualifying Energy Star certified gas tankless water heaters, up to a $600 annual cap.
Rinnai and Navien both offer manufacturer rebates on select models for Maryland and Virginia customers. These stack with the Washington Gas rebate for additional savings on the equipment itself.
Montgomery County offers property tax credits for energy efficiency improvements including water heating upgrades. Applications are processed in order received; annual program funding is limited.
Here's an example of how the four rebates might stack for a typical Montgomery County tankless install.
Each rebate has its own application process and timeline. Here's what you need to know.
Apply through the Washington Gas Smart Savings portal within 90 days of installation. You'll need your utility account number, the unit's serial number and UEF rating, and your contractor's invoice. Ask your contractor if they're in the Washington Gas approved network — this is required for eligibility.
Check Navien or Rinnai's rebate portal for current offers in Maryland. Register your unit online with your serial number and proof of purchase. Rebates are typically mailed as checks within 6–8 weeks of approval.
Claim the credit when you file your federal taxes for the year of installation. You'll need IRS Form 5695 and documentation including your invoice and the manufacturer's Energy Star certification. Keep these records — the IRS may request them.
Apply through the Montgomery County Department of Finance. Include documentation of your energy efficiency improvement and costs. The program has annual funding limits, so apply early in the fiscal year if possible.
If you're considering going all-electric or weatherizing your whole home, these Montgomery County programs may offer additional savings.
If you're willing to switch to all-electric, Pepco offers significant rebates on Energy Star certified heat pump water heaters. Best fit for homes converting away from gas or with basement space for the heat pump footprint.
BGE, Pepco, and Delmarva Power run a statewide electrification program offering up to $15,000 for homeowners switching from fossil fuels to heat pumps (HVAC or water heater). Requires an energy audit first.
For income-eligible Maryland households, the Weatherization Assistance Program provides no-cost insulation, air sealing, and hot water heater improvements. Family of 4 qualifies under ~$94K household income.