Estimated Annual Operating Cost
Under the Inflation Reduction Act, homeowners who upgrade to an ENERGY STAR certified Heat Pump Water Heater can claim a federal tax credit for 30% of the project cost (up to $2,000). Many state utility companies also offer instant $300-$500 point-of-sale rebates on these units.
Plumbing & Electrical Installation Help
Converting from gas to a heat pump, or upgrading to a tankless system, requires specialized plumbing modifications and dedicated electrical circuits. Connect with licensed local plumbers to get your installation quoted.
Top-Rated High Efficiency Water Heaters
How Heat Pump Water Heaters Achieve 400% Efficiency
Standard electric water heaters run an electrical current through a resistance coil to generate heat. For every 1 unit of electricity you put in, you get exactly 1 unit of heat out (100% efficiency). Heat Pump Water Heaters work like a refrigerator in reverse. They use electricity to run a compressor that pulls ambient heat out of the surrounding air and dumps it into the water tank. Because they are moving heat rather than creating it, they can move 3 to 4 units of heat for every 1 unit of electricity consumed (300% to 400% efficiency).
Things to Consider Before Upgrading to a HPWH
- Free Air Conditioning: As they pull heat from the air, they blow out cool, dehumidified air. This makes them fantastic for warm garages, but potentially problematic if placed inside a small closet inside the heated envelope of a cold-weather home.
- Space & Airflow Requirements: HPWHs typically require about 1,000 cubic feet of surrounding air space (roughly a 10x10 room) to draw enough heat. If installed in a closet, they require louvered doors.
- Condensate Drain: Because they dehumidify the air, they produce water condensation that must be routed to a floor drain or pumped outside.
Frequently Asked Questions
The payback period is how long it takes for the monthly electricity savings to cover the higher initial purchase price of the unit. With current tax credits and utility rebates, a Heat Pump Water Heater often pays for itself in just 1.5 to 3 years compared to replacing it with a standard electric tank.
In almost all regions of the United States, a Heat Pump Water Heater is cheaper to operate annually than a natural gas tankless heater. However, gas tankless heaters have the distinct advantage of never running out of hot water, regardless of how many showers are running sequentially.