Skip to Main Content
ajax loader animation
A water heater unit in a white room.

Swap Your Water Heater and Save

Heat pump water heaters warm your water just like standard models, but with much less energy, saving you thousands of dollars over the unit’s lifetime. On top of your year-round savings, we’re offering $1,000 back on your purchase of a new heat pump water heater.

Water heating is typically the second highest energy expense in your home and can account for up to 19 percent of your home energy costs. Heat pump water heaters are up to three times more energy efficient than conventional electric resistance water heaters since they use electricity to move heat from one place to another instead of generating heat directly.

The system works like a refrigerator in reverse. While a refrigerator pulls heat from inside and dumps it into the surrounding room, a heat pump water heater pulls heat from the surrounding air and dumps it—at a higher temperature—into a tank to warm up the water inside.

Benefits of a Heat-Pump Water Heater

The U.S Environmental Protection Agency (EPA) calculates that a family of four could save $350 annually by switching to a heat pump water heater from a conventional electric unit. That adds up to thousands in savings over the heater’s 10-to-15-year lifespan.

In addition to the cost-saving benefits, heat-pump water heaters offer significant advantages over conventional heating systems in terms of CO2 emissions. According to EPA, if every residential electric water heater in the country were replaced with a heat-pump water heater, 140 billion pounds of annual greenhouse gas emissions would be prevented, equivalent to the emissions from more than 13 million vehicles.

Installation Guidelines:

  • Locations that remain in the 40º–90ºF range year-round. Heat pump systems typically work more efficiently in warmer climates because they remove heat from the air.
  • 1,000 cubic feet of air space around the water heater.
  • An installation space with excess heat, such as a furnace room. Heat pump water heaters will not operate efficiently in a cold space. They tend to cool the spaces they are in.

Get $150 Off a Desuperheater for Your Geothermal System

If you already have a geothermal heat pump, you can earn $150 if you install a desuperheater to supplement your existing water heater.

A desuperheater is a small, auxiliary heat exchanger that uses superheated gases from the heat pump's compressor to heat water. This hot water then circulates through a pipe to the home's storage water heater tank.

In the summer, the desuperheater uses the excess heat that would otherwise be expelled to the ground to heat your water. During the fall, winter, and spring—when the desuperheater isn't producing as much excess heat—you'll need to rely more on your storage or demand water heater to heat the water. You can install a triple-function geothermal heat pump system, to meet your home’s hot-water needs year-round.

Ready to save?

Contact one of our participating contractors to purchase and install your new heat pump water heater, or buy one yourself and have it installed by one of our participating contractors.

Find a Participating Contractor

was this information helpful?

Heat pump water heater incentives are limited to one per customer. If you require more than one unit, please call 1-800-430-9505 or email