Like a heat pump that heats your home, a heat pump water heater (view photo) uses electricity to easily move heat from one place (the air) to another (the water in your tank). For all but the coldest days of the year, it moves heat instead of using electricity to heat water directly.
A heat pump water heater looks like a regular tank-style water heater (only about 18 inches taller), but because it’s so energy efficient, it’s much better for your wallet and the environment. There are, however, some considerations to keep in mind regarding size, location, installation and noise. Here’s what you need to know:
More than 200 percent efficient
Heat pump water heaters are more than twice as energy efficient as standard electric water heaters. You get the same amount of hot water while dramatically reducing energy use.*
Proven technology now available
Heat pump water heaters have been around for decades. Recently, the technology has matured, and the biggest national water heater manufacturers are now rolling out models. Locally, larger water heater dealers are beginning to offer heat pump water heaters. But be sure to compare products carefully because performance and application varies.
PGE put heat pump water heaters through real-life testing in several homes. Results were very positive, confirming manufacturers’ savings claims.
Look for ENERGY STAR®
The ENERGY STAR program has set energy-efficiency standards for heat pump water heaters. If the water heater doesn’t meet ENERGY STAR standards, product claims by the manufacturer are not verified. See the ENERGY STAR website for a list of qualifying models.
Size it right
These water heaters are great for households with fewer than five people. Also, if your current water heater is larger than 50 gallons, do not downsize to a smaller tank or you may run out of hot water.
Have it professionally installed
This is not a do-it-yourself project. Installation is more involved and a drain for condensation is needed, so you’ll want to hire a plumber familiar with heat pump water heaters. See our list of PGE-approved plumbers.
Garage placement only
There are two reasons why a heat pump water heater should be installed in a garage: energy-efficiency and sound. A heat pump water heater emits cold air while operating. If it’s inside your house, your furnace will turn on more often, wasting energy. Also, while traditional water heaters are silent, you can hear these models. The sound level is similar to an air conditioner.
Investment pays off in savings
According to the U.S. Department of Energy: “Heat pump water heater systems typically have higher initial costs than conventional storage water heaters. However, they have lower operating costs, which can offset their higher purchase and installation prices.” When compared with a tankless water heater, operating costs are similar, but installation costs for a heat pump water heater can be significantly lower.
Tax credits available
To increase your savings, choose an ENERGY STAR model that qualifies for both an Oregon Residential Energy Tax Credit and a federal tax credit.
More information
If you want to learn more about the efficiency of heat pump water heaters, see the ENERGY STAR website. You can also view the fact sheets from the U.S. Department of Energy and the Washington State University Energy Extension Program (PDF).
*Individual circumstances will vary. Ask for more information.