How to Choose a Heat Pump Water Heater

Heat pump water heaters (HPWHs) are among the most efficient ways to heat water in a home. Instead of generating heat directly, they transfer heat from the surrounding air to the water, using electricity more efficiently than traditional electric resistance models. For homeowners looking to cut energy bills and reduce greenhouse gas emissions, HPWHs can be a compelling option.

How they work is simple in principle but important to understand for selecting the right model. An HPWH uses a refrigerant cycle to extract heat from the ambient air, then concentrates it into the water heater tank. The process is most efficient in moderate climates and in spaces with adequate air circulation. In very cold areas, performance can drop unless the unit is properly sized and insulated.

Key considerations when choosing an HPWH include climate, space, and household hot-water needs. An efficient HPWH can dramatically reduce electricity use, but the upfront cost is higher than standard electric storage tanks. Homeowners should weigh the long-term energy savings against the purchase price, availability of tax credits or rebates, and the cost of installation.