An Otter Tail Company

Water heating and off-peak rates

Low rates make electric water heating a cost-effective option

When you install an electric water heater you may place it on controlled service you will save! There are many rate options to choose from.

  • Controlled service water heating rate is about 30% less than our standard price for electricity.
  • Add your water heater to your off peak heating rate get the same low rate your pay for heating. The deferred load, RDC programs, or dual fuel programs all work well with electric water heating.
  • For those not interested in installing a separate service panel may receive a $4-a-month credit on their monthly bill in return for allowing us to control water heaters wired to the firm service meter.

To set up a controlled service connection, we supply the radio controls and metering, and you pay installation costs and for wiring.

Estimated operating cost

The average family of four uses 350 to 400 kilowatt-hours a month to heat water. That will cost about $25, depending on which interruptible rate is used.

NEW rebates

  • A rebate of $200 is available for a new or replacement 80-gallon or larger electric water heater with a minimum efficiency of 90% (energy factor of .90) that is placed on an off-peak rate.
  • A $20 per kw rebate is offered on commercial water heating with a minimum efficiency of 90% as measured by the tank R factor (a minimum of R-16 is required) when 12 kw or more and a minimum of 120 gallons of storage capacity is installed on an off-peak rate. A $5,000 rebate limit applies.
  • All rebate requests must include a receipt showing the manufacturer and model number and/or equipment energy factor as 90% or more. (Note: Recovery efficiency ratings do not reflect energy efficiency.)  Get energy efficiency ratings for water heaters

Let us help you select your best option.   Email or call our Idea Center.