Water Heater Distributor Rebate Program

Learn about the rebates we offer to qualifying distributors to sell commercial heaters.

SoCalGas® is now offering rebates and additional processing fees to qualifying distributors to stock and sell high-efficiency water and space heating equipment to non-residential commercial, industrial and select agricultural customers at a discount. All rebates are paid directly to qualifying distributors for each verified installation in our territory.

Distributor Benefits

  • Earn rebates from $1.00 -$5/Mbtuh per qualifying unit sold. Distributor will be reimbursed for passing along the rebate discount to our SoCalGas customer.
  • Receive a distributor processing fee of $100 - $200 on each qualifying rebate application. (Amount varies based on efficiency rating of equipment.)
  • Increase your overall sales and expand your client base by being listed in our online Commercial Water Heater Distributor Directory.
  • Receive the latest updates on our current rebate and incentive programs.
  • Receive personalized training and support from our dedicated program representatives.

Primary Program Goals

  • Encourage distributors to promote, sell and install qualifying high-efficiency equipment to SoCalGas business customers.
  • Educate contractors and plumbers on the long-term dollar savings and environmental benefits of installing natural gas equipment.
  • Support our business customers in making smart decisions when choosing energy-efficient natural gas equipment.
  • Help reduce customers’ upfront equipment costs and lower their operating expenses by saving money and energy.

Eligibility Requirements

  • Distributors must complete and sign the program agreement to become a SoCalGas-qualified commercial distributor.
  • Distributors must have a federal tax ID number and a contractor state license number.
  • Distributors must purchase water-heating equipment directly from a qualified and SoCalGas-approved water heating manufacturer that sells the equipment to the end-use customers.
  • Rebates are granted only for installations at verified SoCalGas customer non-residential commercial, industrial and select agriculture facilities.
  • To qualify for a rebate, all purchase invoices or receipts must be dated between January 1, 2018 and December 31, 2018. All rebate items must be purchased and installed prior to submitting an application for a rebate. Qualifying rebate applications must be postmarked by December 31, 2018 or earlier to be eligible.
  • SoCalGas customers, manufacturers, retailers and Internet sales are not eligible to be considered for a rebate under this program.

Equipment Qualifications

  • Equipment must be new, natural gas high-efficiency equipment.
  • Equipment must be installed in a non-residential commercial building within SoCalGas service territory for a SoCalGas qualifying customer with a valid account number. The customer account must be active and equipment secured to the service line.
  • Equipment must also meet our rebate program guidelines and all required efficiencies must exceed most recent Title 20 and 24 standards.
  • Fuel switching (changing from electricity to gas) does not qualify.
Eligible Equipment Types include the following: 
Storage and Instantaneous/Tankless Water Heaters
  • Equipment must be used primarily for domestic hot water use only.
  • Instantaneous/tankless water heater(s) must provide hot water only when there is a draw from the end use without the connection to a storage tank.
  • The installation of instantaneous/tankless water heater in place of storage water heater(s) qualifies as an instantaneous/tankless water heater rebate.
  • Instantaneous/tankless water heater is available for installations where the standby loss is avoided. Therefore, any instantaneous/tankless water heater that meets the minimum efficiency requirements (CA Title 20 or Federal code) will qualify for the rebate.
  • Water heaters used for process heating, space heating or pool heating purpose, do not qualify for the midstream rebate.
Commercial Space Heating Boilers
  • Boilers used primarily for process end uses or domestic hot water do not qualify.  
  • Boiler rebates cannot exceed $25,000 per unit. 
  • Only boilers used primarily for space heating for human comfort uses qualify, as defined by California Titles 20 and 24 standards[i],[ii]  
  • The rebate applies to gas-for-gas equipment replacements on burnout or to new installations in existing buildings.  
  • Boilers used for pool or spa heating do not qualify.  
Commercial Hot Water Boilers 
  • The rebate is not eligible for water heaters or hot water boilers used for space conditioning, industrial (process) end-use applications, pools, or spas.  
Only instantaneous water heaters as defined by the California Energy Commission qualify, and they must:

1.    Be used primarily for domestic hot water
2.    Have an input rating of at least 4,000 Btu per hour per gallon of stored water.
3.    Never be used to supply hot water to a circulation loop without an intermediary hot water storage tank
Refer to California Energy Commission’s database for certified storage or tankless water heater equipment type. Under California law, models of certain types of appliances must be certified by the California Energy Commission before being sold or offered for sale in California. Some equipment in the Energy Commission's database may not be eligible for the Midstream Commercial Water Heater Distributor Rebate Program due to Program guidelines.

Tax Information

Rebates are taxable if greater than $600 and will be reported to the IRS unless you have identified yourself as a corporation or exempt.

SoCalGas will report your rebate as income to you on IRS Form 1099. You are urged to consult your tax advisor concerning the taxability of rebates. SoCalGas is not responsible for any taxes that may be imposed on your business as a result of receipt of this rebate.

Join the Program

Contact one of the program administrators listed below to join the program:

Natalie Joves

Nicole Fejeran

Or email us at C/IWaterHeatingRebateProgram@semprautilities.com with questions or more information about the program.

This program is funded by California utility customers and administered by SoCalGas under the auspices of the California Public Utilities Commission.

This program may be modified or terminated without prior notice and is provided to qualified customers on a first-come, first-served basis until program funds are no longer available. SoCalGas is not responsible for any goods or services selected by the customer.