Save money and energy with a heat pump water heater

Heat pump hot water heaters (HPWHs) — also referred to as hybrid hot water heaters or electric heat pump water heaters — are the most energy-efficient water heaters on the market. Like heat pumps, HPWHs efficiently transfer heat instead of creating it, which leads to hundreds of dollars per year in savings for the average household.

Why do it?

Heat pump water heaters are 3 to 4 times more efficient than traditional water heaters and work in all climates!

When?

When your current water heater is around 10 years old to avoid an emergency replacement.

Who is this for?

Homeowners.

Project at a glance

Upfront cost

$3,600–$4,800 (not including wiring)

Average lifespan

10–15 years

Average annual energy savings

$80–$230 annually

Features

Heat pump water heaters dehumidify and cool the space around them

Difficulty

Hard, hire a plumber or HVAC contractor for installation

Energy savings

3–4 times more efficient than traditional water heaters

Our Takeaway

Heat pump water heaters are cleaner, safer, and more efficient. Upgrading to a heat pump water heater is better for the climate and saves you money on your utility bills.

Rebates and Credits

Heat pump water heater rebate

Available late 2023

Up to $1,750

Heat pump water heater tax credit

Available now!

30%, up to $2,000

Calculate your personal savings

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Learn about heat pump water heaters

How much does a heat pump water heater cost?

We crunched the numbers. Here’s how much you can expect to spend (and save).

Written by: Rewiring America

How heat pump water heaters work

Learn how heat pump water heaters work, average installation costs, and maintenance.

Written by: This Old House

Guide to selecting a heat pump water heater

Written by: U.S. Department of Energy

How heat pump water heaters work in cold climates

Written by: ENERGY STAR

Why heat pump water heaters are better for our climate

Written by: CleanTechnica

A cool new technology: 120 Volt heat pump water heaters

Written by: CleanTechnica

Project Guide

1. Learn about your current water heater

Is it tankless or does it have a storage tank? Does it use electricity, gas, propane, or fuel oil? How many gallons is it? How old is it? Most of this info will be printed on its nameplate, and you can also search online for the model number. If your water heater is around 10 years old, consider replacing it before it dies so you’re not stuck in an emergency situation!

2. Find a suitable place for your new heat pump water heater (HPWH)

A HPWH needs to be installed in an area that remains between 40–90ºF year-round, with at least 450 cubic feet (which is roughly an 8-foot by 8-foot area) of free air space. It’s also possible to run ducts to get air to and from the HPWH. Some HPWHs are a bit noisy (though usually no louder than a refrigerator) so install them in a location where this won’t bother you, or add soundproofing.

3. Consider upgrading your electrical wiring in advance

If you currently have an electric water heater with a tank: You probably already have a 240 Volt circuit and don’t need to upgrade your wiring.

If you have a gas, propane, fuel oil, or tankless electric water heater: You’ll likely need a new 240 Volt circuit (though 120 Volt HPWHs are becoming available). Doing this in advance will make it easier to upgrade to a HPWH if yours breaks down. Check out our panels and wiring page for more details, or consult an electrician.

4. Call HPWH installers and get quotes for HPWHs

Try to get at least three quotes if you want to save money! Look for plumbers or HVAC contractors who mention heat pump water heaters on their website, or look for reviews that mention heat pump water heaters. If you’re not sure, feel free to call the contractor to ask — it’ll help send them a message that HPWHs are in demand!

Things to consider with your installer:

Electrical: Most HPWHs use 240 Volt/30 Amp circuits, though some are 240 Volt/15 Amp (and take up less space on your panel). There are even 120 Volt/15 Amp versions coming to market to eliminate the need to add new wiring.

Size: If you’re happy with your current water heater size in gallons, you should still consider upsizing with a 240 Volt HPWH (e.g., 40 → 50 gallons) for a HPWH, and upsizing even more with a 120 Volt HPWH (e.g., 40 → 65 gallons).

Drainage: As the HPWH pumps heat into your water, it dehumidifies the room, and you can discuss with your installer how you want to drain the water that is removed from the air.

5. Install your heat pump water heater

Enjoy your energy bill savings and a nice hot shower!

FAQs

How do I choose the right heat pump water heater size?

Base the size of your current water heater, if you’re happy with your current hot water supply. One rule of thumb is to size up by one size for a 240 Volt heat pump water heater and size up by two sizes for a 120 Volt heat pump water heater.

How do I find a heat pump water heater that is ENERGY STAR rated?

It’s easy. ENERGY STAR has a list of products that meet their energy efficiency requirements. You can view their product finder here. Also, remember that you need to purchase an ENERGY STAR heat pump water heater to qualify for the federal tax credit and rebate.

If I’m switching from a gas water heater, will I need electrical work?

If you have a gas, propane, fuel oil, or tankless electric water heater, you’ll likely need a new 240 Volt circuit with a 15–30 Amp circuit breaker. Doing this in advance will make it easier to upgrade to a HPWH if your water heater breaks down. Check out panels and wiring page for more details, or consult an electrician. 120 Volt heat pump water heater models that don’t require a new circuit are also becoming available — learn more here!