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

Who is this for?


Read more about heat pump water heaters

Upfront cost

$3,600–$4,800 (not including wiring)

Average lifespan

10–15 years

Average annual energy savings

$80–$230 annually


Heat pump water heaters dehumidify and cool the space around them


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.

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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


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.

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 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!

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