Water heating system

Commercial Natural Gas Water Heating Equipment

Save Money and Energy with an Efficient Water Heater

To ensure customers receive the benefits of high-efficiency, the Sponsors of NHSaves have created the Commercial & Industrial (C&I) Natural Gas Water Heater Initiative, a market transformation initiative that partners with distributors to offer monetary incentives on high-efficiency water heaters to commercially metered natural gas customers.

How to Receive Benefits from the Commercial & Industrial Natural Gas Water Heater Initiative

To receive an incentive that reduces the initial equipment purchase cost of your high-efficiency water heater and maximizes your savings:

  1. Determine Your Water Heating Needs
    • Contact your contractor to determine the needs for your business.
  2. Find a Participating Distributor
    • Click here for a list of Participating Distributors or ask your contractor to reach out to a participating distributor who can work with you and your contractor to identify the right kind of high-efficiency equipment for your business.
  3. Start Saving Energy
    • By purchasing a high-efficiency Water Heater, you may benefit from the energy savings over the lifetime of that equipment.

Your purchase of a qualifying high-efficiency water heater is eligible for an incentive off the purchase price if:

  • The water heater(s) will be installed for commercial or industrial use at a site that has a commercial or industrial natural gas account with one of the NH Sponsors; and
  • You are not already receiving an incentive for the water heater equipment through another program sponsored by NHSaves or one of the Sponsors.

Incentives are provided directly to distributors by the Sponsors. Your contractor must provide the installation address and site information to the distributor to obtain the incentive. Contractors are expected to pass the incentive amount along to their customer.

Qualifying Water Heater Equipment

Incentives are available for qualifying high efficiency equipment in the chart below:

C&I Water Heater Customer Incentives

Water Heater Type

Input Rating

Required Efficiency

Customer Discount


>= 75 Mbtuh

Thermal Efficiency >= 94%


Tankless (On-Demand)

< 200 Mbtuh

Energy Factor >= 0.94 or Uniform Energy Factor >= 0.91


Volume (Domestic Hot Water Boiler)

>= 75 Mbtuh

Thermal Efficiency >= 94%






There are several high-efficiency water heating options available to commercial customers. Download the C&I water heater qualifying equipment table and discuss the best options for your business with your contractor.

Condensing storage water heaters utilize the heat from exhaust gas to heat water efficiently. Condensing storage water heaters can support multiple, simultaneous uses of hot water and are preferred for emergency replacement situations because of the ease of installation. Field-supplied materials are limited to piping and fittings near the heater because these water heaters use the same gas line as the unit they are replacing.

On-demand tankless water heaters provide a constant supply of hot water and are not subject to standby energy loss since they heat water only when needed. Tankless water heaters are well-suited for facilities with restricted or limited space because they do not require a storage tank.

Indirect water heaters consist of a storage tank that connects to a building’s main furnace or boiler to heat water. The energy stored by the tank allows the furnace or boiler to turn off and on less often, saving energy. Because they can be installed without additional exhaust piping, indirect water heaters tend to have lower installation and maintenance costs than traditional water heaters.

Condensing volume water heaters utilize heat from exhaust gas to heat water efficiently. Because they produce a high output, condensing hot water boilers can be a good option for facilities with high-volume hot water demands.

Additional Information

If you have questions about how to participate or enroll in the C&I Water Heater Initiative, please contact the Initiative implementer:
Energy Solutions

Natural Gas Water Heater Equipment Qualifications and Incentives