Thinking about switching your Decatur home to natural gas, but not sure if the rebates make it worth it? You want lower bills and reliable hot water and heat, without surprise costs or delays. In this guide, you’ll see the current Decatur Utilities rebates, what they cover, example costs and savings, and how to compare gas with electric incentives so you choose what is best for your home. Let’s dive in.
Decatur Utilities rebates at a glance
Decatur Utilities (DU) is the city’s natural gas provider and the main source of rebates for homeowners in Decatur. As of Oct 16, 2025, DU lists specific incentive amounts and a limited-time conversion bonus for switching from electric to gas. Review the full details on the Decatur Utilities Natural Gas Rebates page and in the DU rebate brochure.
Current rebate amounts
- Storage tank water heater: up to $200 for gas-to-gas replacement, or up to $400 for electric-to-gas conversion (limits often “up to two” units).
- Tankless water heater: up to $300 for gas-to-gas replacement, or up to $500 for electric-to-gas conversion.
- Furnace: $250.
- Natural gas logs: $50.
- Standard or commercial gas range: $100.
- Gas clothes dryer: $150.
- Two-mantle or open-flame gas light: $50.
See DU’s live page for the latest rules and unit limits: DU gas rebates.
Conversion bonus deadline
DU’s brochure states the electric-to-gas conversion bonus is extended through December 31, 2025 as of Oct 16, 2025. Utilities can change programs, so confirm terms and any application deadlines with DU before you buy.
Free service line up to 300 feet
DU will install a natural gas service line to your home at no charge for distances up to 300 feet. You are responsible for interior gas piping, appliance installation, and required permits. If you are inside the City of Decatur police jurisdiction, a building inspection is required before DU turns on service. Learn more on DU’s Natural Gas page and the rebate brochure.
How to switch and claim your rebate
Quick checklist
Confirm DU serves your address. Call 256-552-1400 (opt. 4) or email [email protected] to verify service and ask about the free service-line offer.
Request the latest rebate terms and application steps. Ask how to submit receipts and the typical processing timeline. Start with the DU gas rebates page.
Get written quotes from licensed natural gas plumbers or contractors. Compare scope, warranties, and any venting or piping work.
Line up permits and inspections with the City of Decatur if required. DU cannot activate service until inspections are complete.
Purchase eligible appliances and keep all documentation. Submit your rebate with proof of purchase and contractor invoices as DU instructs.
What to save for your file
- Itemized receipts and paid invoices for equipment and labor.
- Contractor license and contact information.
- DU rebate forms and email confirmations.
- Permit and inspection approvals.
Real-world cost examples
DU’s brochure shares examples to help you budget. Actual costs vary by home, model, and labor.
Example 1: Storage tank water heater conversion to gas. Equipment about $600, installation about $600, DU rebate $400. Example net cost about $800, with estimated annual savings versus propane of $505 and versus electricity of $292 in DU’s example. See the DU rebate brochure.
Example 2: Natural gas furnace conversion. Installation about $6,000, DU rebate $200. Example net cost about $5,800, with estimated annual savings versus propane of $853 and versus electricity of $122 in DU’s example. Review details in the same brochure.
Gas vs electric incentives in North Alabama
If you are comparing gas conversion to electrification, factor in regional and federal offers for electric equipment. TVA’s EnergyRight program provides rebates and point-of-sale deals for efficient electric upgrades, including a reported $1,300 instant rebate on heat pump water heaters at participating retailers. Start with DU’s page for TVA guidance and links, then explore TVA EnergyRight’s residential programs and DU’s TVA incentives page.
Federal programs created by the Inflation Reduction Act emphasize electrification measures such as heat pumps, heat pump water heaters, induction cooking, and heat pump dryers. Many households may qualify for significant rebates depending on income and project type. You can review a plain-English overview of IRA rebates and credits here: Inflation Reduction Act home energy rebates and credits. For tax-credit coordination rules, the IRS has guidance on how rebates and credits interact: IRS guidance on energy credits and coordination.
How to compare options
- List the appliances you plan to replace and your goals for comfort and cost.
- Get contractor quotes for both a gas path and an electric path when practical.
- Make a simple worksheet of upfront costs minus all rebates, plus expected 5-year energy costs.
- Consider timing, available service-line distance, necessary venting or panel upgrades, and local contractor availability.
- Choose the path that delivers the best total value for your home and budget.
Timeline and safety
Your timeline depends on service availability at the street, permits, contractor schedules, and DU’s crew workload. Ask DU for a service-line timeframe, and get your contractor’s lead times in writing. Remember that passing inspection is required before DU activates gas service. See the DU brochure for the inspection note.
DU highlights natural gas safety and system upgrades, but safety comes down to proper installation, venting, and maintenance. Use licensed professionals and follow all codes and inspection steps. For general information, visit DU’s Natural Gas page.
Common pitfalls to avoid
- Buying appliances before confirming your address qualifies and the rebate is active.
- Missing permit or inspection steps that delay service activation.
- Assuming the free service-line offer covers interior piping or beyond 300 feet.
- Overlooking unit limits like “up to two” per home on certain rebates.
- Not saving receipts and contractor invoices for your rebate submission.
- Ignoring electric incentives that could change your total project cost.
Plan your upgrade with a local guide
Whether you are upgrading for day-to-day comfort or preparing to sell, a clear plan helps you avoid delays and surprise costs. If you want a second opinion on timing upgrades with a move or how buyers may view your choices in Decatur, we are here to help. Reach out to Stallworth Real Estate, LLC for local guidance, introductions to trusted contractors, and a plan that supports your long-term goals.
FAQs
What rebates does Decatur Utilities offer for gas appliances in 2025?
- As of Oct 16, 2025, DU lists rebates for water heaters (tank and tankless), furnaces, gas logs, gas ranges, gas dryers, and gas lights, with higher amounts for electric-to-gas conversions; see the DU gas rebates page for current amounts and limits.
Is the DU electric-to-gas conversion bonus still available?
- The DU brochure shows the conversion bonus extended through December 31, 2025 as of Oct 16, 2025, but you should confirm with DU before purchasing since programs can change.
Does DU install the natural gas service line for free in Decatur?
- DU publishes that it installs the service line to your home at no charge for distances up to 300 feet; you pay for interior piping, appliances, and permits.
Can I combine DU gas rebates with TVA or federal incentives?
- Many rebates can stack, but federal credits and rebates have coordination rules; review IRS guidance and consider speaking with a tax professional about your specific situation.
How long does switching to natural gas take in Decatur?
- Timelines vary based on service availability, permits, contractor schedules, and DU workload; ask DU for a service-line estimate and get contractor lead times in writing.
What paperwork do I need for DU rebates?
- Keep itemized receipts, paid invoices, contractor information, and any DU forms or email confirmations; DU will advise how and when to submit.
Are there rebates for electric heat pumps instead of gas in North Alabama?
- Yes; TVA EnergyRight lists rebates and point-of-sale offers for heat pumps and heat pump water heaters, and federal IRA programs also favor electrification; start with EnergyRight’s residential programs and compare them with DU’s offers.
