CPS Energy - Solar Hot Water Rebate Program

Last updated: June 27, 2019

Program Overview

Implementing Sector:Utility
Category:Financial Incentive
Incentive Type:Rebate Program
Web Site:https://www.cpsenergy.com/en/my-home/savenow/rebates-rebate/solar-water-heater-rebate.html
Administrator:CPS Energy
Funding Source:Save for Tomorrow Energy Plan (STEP)
Eligible Renewable/Other Technologies:Solar Water Heat
Incentive Amount:$0.60 per kWh saved annually (conventional 50-gallon electric water heater)
Maximum Incentive:$2,000 per account
Equipment Requirements:Must have a permanently installed electric water heater for back-up (alternatively, an auxiliary natural gas heater may be used if it replaces the current installed electric water); Systems must be new, SRCC OG-300 certified, and have a 5-year warranty on all major components
Installation Requirements:Applications must be completed and approved prior to installation of the solar water heating system; Proposed location must provide maximum benefits; System must meet all applicable codes and be installed by a CPS Energy registered installer (minimum qualifications apply); System must be designed for frost protection and scale elimination or remediation; Customer will have 90 days (from receipt date of application) to install equipment


As part of a larger program designed to reduce electricity demand within its service territory, CPS Energy offers rebates for solar water heaters to its customers. In general, any CPS Energy customer is eligible to receive the rebate; however, systems must be new and have a permanently installed electric back-up system. Rebates will be calculated according to the annual savings estimated by the system's Solar Rating Certification Corporation (SRCC) OG-300 table as applied in the San Antonio area. Estimated annual electricity savings will be multiplied by a standard rate of $0.60/kilowatt-hour (kWh) in order to determine the value of the one-time rebate. The maximum rebate is $2,000, although there are no explicit size limitations on eligible systems. The rebate is reflected as a credit on the customer's bill.

Customers will be responsible for choosing their own contractor from a list of installers registered with CPS Energy. Customers are also responsible for obtaining all applicable permissions and permits associated with the installation and operation of the system. All applications must be submitted and approved before the installation of the system. Motors, pumps, batteries and all other devices associated with the operation of the solar water heating system will not be covered by the rebate.

The details and guidelines:

  • The maximum allowable rebate amount is $2,000.
  • The solar water heater equipment must be new.
  • The heater must be OG-300 certified by the Solar Rating Certification Corporation (SRCC).
  • Only systems currently served by an electric hot water heater are eligible.
  • Applications must be completed and approved prior to installation.
  • Permits and inspections by local authorities are required, when necessary.
  • Post-inspections are required prior to issuance of the rebate

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