New Mexico Gas Company offers two water heater rebate programs to help our business customers enjoy greater energy efficiency and long-term savings, over standard tank water heating. Installing a qualifying ultra-high efficiency tank water heater or a tankless water heater can add value to your existing business or new construction project and may reduce your energy bills and allow you to use that extra money to grow your business.
Energy Efficiency is Smart Business
If you're a business owner, you know that water heating costs can be significant. On average, 25 to 35 percent of natural gas bills for businesses, schools and restaurants go towards water heating. If your business falls into one of these categories, New Mexico Gas Company’s Business High Efficiency Water Heater Program may be of interest to you.
To qualify, you must be a General Service Small Volume (Rate 54) or General Service Medium Volume (Rate 56), non-transportation business customer. We are offering rebates for our small and medium-volume customers on two new water heater technologies:
Ultra-high Efficiency Storage Tank Water Heaters
Ultra-high efficiency storage water heaters use the same technology as standard water heaters, with a glass-lined steel tank that is heated with a burner located at the bottom of the tank, but they have special advanced features that make them operate more efficiently. They are equipped with better insulation, more efficient burners and heat traps. The combustion chambers are submerged and involve several passes to maximize heat transfer to the water. These advanced ultra-high efficiency storage tank water heaters are up to 20 percent more energy efficient, depending on their use. Payback on your purchase can be as little as two years.
To qualify for the rebate of $2 per MBtuh (1,000 Btu) of the purchase price, the water heater must be new, rated less than 400,000 Btu and have a Gas Appliance Manufacturers’ Association-certified thermal efficiency of 90 percent or greater.
Tankless Water Heaters
Tankless water heaters are sometimes called "instantaneous" or "on demand" hot water heaters. They can be wall-mounted or free-standing and are usually located where hot water is used. 
When the hot water is turned on, a natural gas burner is automatically ignited to heat the water as it circulates through large coils. Tankless water heaters save energy by heating water only when you need it, eliminating the energy lost keeping water hot in a storage tank. Spark ignitions replace continually burning pilot lights, reducing natural gas usage even more.
Energy efficient tankless water heaters can cut water heating costs by 24 to 34 percent, according to the U.S. Department of Energy, while delivering continuous hot water. While they cost more up front, most tankless water heaters also have a life expectancy of more than 20 years, nearly twice that of standard storage water heaters.
To qualify for the rebate of $1.50 per MBtuh (1,000 Btu) of the purchase price, the tankless water heater must be rated less than 200,000 Btu, have an Energy Factor greater than 0.80 and have an electronic ignition.
To Get Your Rebate
Qualifying water heaters must be purchased new after January 24, 2008 and be installed by March 31, 2010 where your business receives New Mexico Gas Company service. They may be used in new construction of as a retrofit/upgrade.
Applications must be postmarked no later than April 30, 2010. The following documentation needs to be mailed to the address listed on the rebate form:
- Completed and signed rebate form
- Original receipts from equipment purchase and installation
- Invoices must include the quantity, price, manufacturer make and model numbers, and product codes for each item
- A copy of a recent New Mexico Gas Company business gas bill
A pdf copy of the High Efficiency Water Heater Rebate Form with more details is available here.
You'll also find a list of High-Efficiency Water Heater Contractors at this link and to the left.
* Program subject to change without notice.