What is a heat pump water heater?

Most American households have what’s called a conventional storage tank water heater. This appliance heats water and stores it so there is hot water ready to go whenever you need it. Heating water is one of the most energy-intensive things we do in our homes: nearly one fifth of home energy use goes to heating water. Today, most of those hot water heaters are powered by fossil fuels like gas, propane or fuel oil.

Thankfully, there is a better way to heat water – with an electric heat pump water heater. Just like their fossil fuel-powered counterparts, heat pump water heaters can heat water and store it for later use. The difference is that instead of burning fossil fuels, a heat pump uses efficient electric technology, which can can be powered by clean renewable energy from the sun and the wind.

Advances in heat pump technology in recent years have made home water heaters more efficient and better than ever before. Heat pump hot water systems have evolved to withstand extreme temperatures, making them suitable for all environments. They are also built to last 13-15 years, which is much longer than the lifespan of less-efficient electric resistance water heaters.

How does a heat pump water heater work?

Like heat pump HVAC systems, heat pump water heaters transfer heat from the air or ground to heat water. Transferring, rather than creating heat, uses up to 63% less electricity than conventional water heating systems. This efficiency can lower home energy use, reduce carbon emissions and decrease your electricity bill.

To bring about a future where all our energy comes from 100% renewable sources, we need to ensure water is heated efficiently and without the use of fossil fuels. So when your water heater needs a replacement, look to install a heat pump water heating system that lasts longer and uses less energy.

Once you make the switch, if you have solar panels on your roof or subscribe to a community solar or 100% renewable energy purchasing program, your heat pump water heater can be one more appliance that runs renewable energy.

How can new federal tax credits help you get a heat pump water heater?

New federal clean energy tax credits can help reduce the cost of getting a heat pump water heater. The tax credits cover 30% of the cost of the project, up to $2,000. Heat pump water heaters that have earned the ENERGY STAR rating that are purchased and installed between January 1, 2023, and December 31, 2032 are eligible for this tax credit. You can find additional resources here. 

Our clean energy intern Adelina Sederman wrote about the benefits of clean efficient heat pump water heaters. Check out Adalina’s other blogs in the Clean Energy Home Technology series on heat pumps for heating and cooling, induction stoves, and everything else.