Tankless Water Heaters

Tankless water heaters, also known as demand-type, point-of-use, on-demand and instantaneous, only heat water when it’s needed, eliminating continuous standby losses. Those that have earned ENERGY STAR® certification use 30% less energy, on average, than a storage tank type.


To qualify for a rebate, Applicants must receive a City of Medicine Hat residential Natural Gas utility statement in their name, in addition to all other eligibility criteria listed under Determine eligibility on the Existing Homes Incentive Program main page.


To qualify, the ENERGY STAR® certified tankless water heater must:

Rebate amount

$500 per qualifying unit

Maximum rebate: $500 (1 qualifying unit)

Required documentation

Attach all required documentation for the tankless water heater, as outlined below.

Omission of required documentation, and/or photos that do not clearly show the model and serial numbers for each unit, will result in an incomplete application, which will be declined by HAT Smart. A new application will be required and placed in the queue for processing based on the date it is received by HAT Smart. Payment may not be made if funds are fully subscribed.

ENERGY STAR® certification

To find proof of ENERGY STAR® certification, you will need the products’ Brand Name and Model Number.

Click on the link above and select the following from the left side menu:

  • Type: Gas Tankless
  • Fuel: Natural Gas
  • Brand Name
  • Markets: Canada

Once you've found your model number, click on the product name to view/print the product specifications to submit with your final application.

Check the certificate to make sure all search criteria are shown.


All photos must clearly show the model and serial numbers for the qualifying unit.


All receipts and invoices must be dated between January 1 and December 31, 2024 and include:

  • A detailed description of the project/purchase*
  • Model and Serial Numbers
  • Total costs

Proof of payment is required for each receipt/invoice.

* If details are not available on receipts/invoices, you must provide product information that clearly shows the model number, description and Program eligibility. This information can be obtained from either the retailer or the manufacturer’s website.

Other rebates

Confirmation of rebate amounts received, or to be received, from complementary municipal, provincial, and/or federal government programs.

Learn how to apply

Frequently asked questions

How much energy will I save by upgrading my home’s hot water system?

Refer to the Renovation Upgrade Report provided by your energy advisor.

Why should I replace my traditional tank water heater with a tankless system?

Water heaters account for 15 to 25% of your household energy bill and may become a larger portion if you upgrade the energy efficiency of your home and its space heating and cooling systems without upgrading your water heating system.

What features should I look for?

Gas-fired tankless water heaters have an Energy Factor (EF) that ranges from 0.64 to 0.98, with an average of 0.85. The higher the EF, the more efficient the water heater.

How do I determine the right size for my home?

Consider how many users will be demanding hot water at the same time. If you expect that more than one shower or other appliance (such as a dishwasher) will be operating at one time, these demands must be added, and the water heater must be able to meet these peak loads.

Consult with an experienced plumber to estimate the hot water demands in your home.