Many homeowners in British Columbia want to upgrade to high-efficiency tankless water heaters. 

These systems save energy, reduce emissions, and can lower utility bills. 

BC offers several rebate programs in 2025 to help with the cost. Each has its own rules. 

What rebate programs are available for tankless water heaters in BC in 2025?

BC has a couple of programs that provide rebates or incentives for tankless water heaters:

1. FortisBC Natural Gas Water Heater Rebates for income-qualified households: Up to CAD $3,000 for condensing tankless natural gas water heaters.
2. Appliance Maintenance Rebate (FortisBC / BC Furnace): If you service a tankless water heater, you may get a rebate (about CAD $50) under the appliance maintenance program.
3. There is also a “Two-Upgrade Bonus” if you combine the tankless heater upgrade with another eligible Home Renovation Rebate upgrade.

Who qualifies for the tankless water heater rebate?

To be eligible under the FortisBC income-qualified natural gas water heater rebate:

1. You must live in BC, in your primary residence.
2. The home must be your own (homeowner) with one active natural gas account.
3. The house must be at least 10 years old, less than 3,500 square feet, and be a single-family home, duplex, triplex, row/townhouse, or permanently sited manufactured home.
4. Your combined household income must be below certain limits depending on household size. You must show proof of income.
5. You must replace an existing water heater.

Which tankless heater models qualify?

Qualifying models are typically condensing tankless natural gas water heaters that meet ENERGY STAR or equivalent high-efficiency standards. 

The models must be on the eligible product list defined by the rebate program.

What is the rebate amount?

Up to CAD $3,000 for a condensing tankless natural gas water heater.

If you do another eligible home renovation upgrade at the same time, you may also receive a bonus (e.g., a “Two-Upgrade Bonus”).

What deadlines and timing rules apply?

The application must be submitted within 12 months of the installation/invoice date.

Use a licensed, certified contractor (Technical Safety BC licensed gas fitter) for your installation.

Be sure to have all necessary proof (invoice, model number, proof of income) ready.

How do you apply step by step?

Here’s a typical process to follow:

1. Check eligibility: Confirm your home and income qualify. Use FortisBC’s eligibility tool if available.
2. Select a qualifying model: Choose a condensing tankless natural gas water heater that is on the program’s qualified product list.
3. Hire a licensed contractor: The installation must be done by a Technical Safety BC licensed gas fitter.
4. Install the heater: Replace your old water heater. Obtain a detailed invoice recording model, costs, date, contractor license, etc.
5. Submit rebate application: Within one year of invoice date, fill out FortisBC’s rebate application form, include proof of income, invoice, and details of the installation.

What else should you know before applying?

1. Homes larger than 3,500 sq ft are not eligible under this income-qualified program.
2. The rebate is only for replacing an existing water heater. If you don’t have an old heater, or you’re installing in new construction, the rules may differ or you may not qualify.
3. Make sure the contractor is licensed and the product is approved ahead of time. If the product is not on the list or the contractor is not certified, the rebate may be denied.
4. Keep all documentation. Missing paperwork delays or disqualifies applications.