Takeaways
- Cape Coral residents can still claim the 30% federal rebate for qualifying heat pump water heaters installed in 2025.
- Fort Myers homeowners must pull plumbing permits and meet new thermal expansion, venting, and electrical code requirements.
- Florida’s upcoming HEAR rebates may cover up to $1,750 for heat pump installations depending on income and project scope.
This guide was developed in collaboration with licensed plumbing inspectors and reviewed in August 2025 for compliance with regional codes.
Switching from gas to electric water heating is becoming a smart move for Cape Coral residents. The federal government has tightened 2025 tax credit rules, while Florida prepares to roll out its own rebate programs later this year. At the same time, Lee County requires homeowners to follow strict permitting and plumbing codes. Understanding these updates can help you avoid costly mistakes and maximize your savings.
NFM Plumbing specializes in safe, code-compliant gas-to-electric water heater conversions. We also guide customers through the rebate paperwork, so you don’t miss a single dollar in incentives.
Why Water Heater Conversions Matter in 2025
Many homeowners are rethinking gas appliances for several reasons. Insurance companies are paying closer attention to gas safety, while federal and state programs are rewarding efficient electric upgrades. A properly installed electric or heat pump water heater not only lowers long-term costs but also helps protect your home from hidden risks.
Florida’s updated rebate programs make the timing even more attractive. Homeowners who understand the new 2025 requirements can combine tax credits, state rebates, and utility incentives. With the right guidance, your conversion can be both affordable and stress-free.
What Changed in 2025 Rebate Programs
The biggest shift in 2025 involves the federal Energy Efficient Home Improvement Credit (25C). Homeowners still qualify for 30% of project costs, up to $2,000, when they install an ENERGY STAR-certified heat pump water heater. Starting this year, however, your tax preparer must enter a Manufacturer Product Identification Number (PIN) on IRS Form 5695. Without that PIN, the credit will be denied.
Florida’s state-managed Home Energy Rebate Programs (HOMES and HEAR) are not live yet. They are expected to launch later in 2025, but income eligibility rules are already confirmed. Families earning under 80% of the area median income can receive rebates covering 100% of project costs. Families between 80–150% of area median income can receive 50% of costs covered. When the HEAR rebates launch, Florida homeowners may qualify for up to $1,750 toward a heat pump water heater. Additional rebates for electrical panel upgrades and wiring will be available, making whole-home retrofits more affordable.
Current Utility Rebates in Florida
Utility rebates vary across the state and are not uniform. In Lee County, most Cape Coral residents are served by LCEC (Lee County Electric Cooperative). At present, LCEC does not list a rebate for residential water heater upgrades.
Duke Energy Florida customers can receive up to $800 toward an ENERGY STAR-certified heat pump water heater, provided efficiency standards are met. Tampa Electric (TECO) and Florida Power & Light (FPL) currently emphasize HVAC and efficiency programs, but residential water heater rebates are limited.
That means your location directly impacts which rebates are available today. NFM Plumbing confirms eligibility during our initial consultation, so you’ll know exactly which programs apply to your home.
Florida Code and Permitting Requirements
In Lee County, permits are required for all water heater replacements. Plumbing permits cover not only the new installation but also any work involving gas capping, electrical upgrades, or safety devices.
The Florida Plumbing Code requires a thermal expansion control device, usually an expansion tank, if your cold water line has a check valve or backflow preventer.
Every installation also needs a code-compliant drain pan, discharge piping for the temperature-pressure relief valve, and safe condensate disposal.
Heat pump water heaters need adequate ventilation. Most models require at least 450–700 cubic feet of air volume, though many installers recommend closer to 1,000 cubic feet. If space is tight, duct kits or louvered doors can be installed. ENERGY STAR provides guidance on how to meet these ventilation requirements. Electrical codes also apply, since most systems require a 240-volt, 30-amp circuit, though some smaller 120-volt plug-in models exist.
Below is a simple cost comparison between heat pump and conventional gas water heaters in Florida. This highlights key differences in yearly expenses and service life for Cape Coral and Fort Myers homeowners to consider.
| Feature | Heat Pump Water Heater | Conventional Gas Water Heater |
|---|---|---|
| Annual Operating Cost (Florida average) | $96–$224 | $190–$310 |
| Expected Lifespan | 13–15 years | 8–12 years |
Sources:
- EPRI: Heat Pump Water Heaters – Are They Worth It?
- Rewiring America: How Much Does a Heat Pump Water Heater Cost?
Step-by-Step: How NFM Plumbing Handles Your Conversion
Step 1: Utility and Incentive Check
We start by confirming your electric utility and household income band. This allows us to determine immediate rebate eligibility and prepare for the Florida HEAR program once it launches.
Step 2: Model Selection
We recommend ENERGY STAR-certified units that meet both space requirements and efficiency targets. Every selected unit comes with a valid Manufacturer PIN to secure your 2025 federal tax credit.
Step 3: Permitting and Planning
NFM Plumbing pulls all required Lee County permits. We scope the project carefully, accounting for expansion tanks, pans, drains, discharge lines, and condensate systems.
Step 4: Gas Decommissioning
Our team handles safe gas line capping and coordinates with your propane or natural gas provider as needed. Safety testing ensures no leaks remain.
Step 5: Electrical Readiness
We evaluate your electrical panel and circuit capacity. If upgrades are needed, we identify rebate opportunities for wiring and panel work once state rebates open.
Step 6: Installation Day
We remove the old gas system, cap gas lines, install the new unit, and complete all plumbing and electrical connections. Every system is commissioned, tested, and prepared for inspection.
Step 7: Paperwork and Incentives
Our office provides the documentation required for the federal 25C credit, including the Manufacturer PIN. If you qualify for utility rebates, we assist with application forms and required photos. Once Florida’s HEAR program launches, we help you apply for up to $1,750 in additional rebates.
Quick Local Notes for Cape Coral/Fort Myers Homeowners
Most Cape Coral homes are LCEC customers (not Duke). If you’re on LCEC, there’s no listed HPWH rebate today; you still get the federal 25C credit now, and you can prepare for Florida HEAR later in 2025.
Permits are required for heater replacements and any plumbing/gas/electrical system changes; we handle this and schedule inspections.
While there’s no universal discount just for switching fuel, many carriers do offer credits for automatic leak-shutoff devices. Leak detection services can help meet insurance requirements and add peace of mind during the upgrade.
What We’ll Need at the Estimate
- Your address and utility (to confirm rebate options).
- A photo of your existing water heater + vent/gas line + panel.
- A rough idea of household income band (<80%, 80–150%, or >150% of AMI) to anticipate HEAR eligibility when Florida opens applications.
Three Practical Tips for Homeowners
- Plan for ventilation. Heat pump models require adequate air space, so measure your mechanical room in advance.
- Save your paperwork. Keep invoices, permits, and inspection records ready for rebate applications.
- Ask about add-ons. Water heater replacement often pairs well with smart shutoffs or flood sensors to reduce insurance risk.
Frequently Asked Questions
Do I need a permit for water heater replacement in Lee County?
Yes. Lee County requires permits for all water heater replacements. NFM Plumbing handles permitting and inspection scheduling for you.
Can I combine federal and Florida state rebates?
Yes. The federal 25C credit can be combined with Florida’s HEAR rebates, though tax credits are applied after certain rebates are subtracted from project costs.
What if my home’s electrical panel is too small?
Panel upgrades may qualify for separate rebates once Florida’s state program launches. NFM Plumbing verifies your electrical readiness during the initial estimate.
Are propane systems included in the rebate programs?
Yes. Replacing propane water heaters with qualifying electric systems is eligible, provided proper safety procedures and code compliance are followed.
Call NFM Plumbing Today
Switching from gas to electric water heating in 2025 can unlock thousands in savings when done correctly. Between federal credits, state rebates, and utility incentives, the opportunity is too important to ignore.
NFM Plumbing manages the entire process—from safe gas capping to code-compliant installation and rebate paperwork. Homeowners in Cape Coral and across Lee County trust us for water heater conversions that are safe, reliable, and financially smart.
📞 Call (239) 356-6912 today to schedule your estimate and learn how much you can save on your conversion.
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