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A water-heating unit in a basement.

Water heating is typically the second highest energy expense in your building and can account for up to 19 percent of your 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 transfers it into the surrounding room, a heat-pump water heater pulls heat from the surrounding air and transfers it—at a higher temperature—into a tank to warm up the water inside.

Benefits of a Heat-Pump Water Heater

A family of four could save $330 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.

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:

  • 1,000 cubic feet of air space around the water heater. 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 Your Heat-Pump Water Heater Rebate