Water Heaters

The second highest energy user in most homes


Water heaters are the under-appreciated heroes of the household – and also a big energy user.

Cut Costs

Cut costs by up to half

If you have an electric water heater, you could save hundreds of dollars every year by switching to a heat pump water heater.* They’re the most efficient water heaters you can buy.

Most qualify for a generous state tax credit and Energy Trust of Oregon cash-back incentives, which could make your final cost lower than a standard water heater.

Sizing is important to efficient operation. Use this guide to help select the right heat pump water heater for you.

How a heat pump water heater works

*Source: Northwest Energy Efficiency Alliance. Individual circumstances may vary.

More Info

Heat pump water heaters:

  • Are slightly larger than standard electric water heaters
  • Sound similar to an air conditioner (sound level varies by model)
  • Produce condensate (water), which is drained or pumped out of the home
  • Offer maximum energy savings when located in an unheated space such as a garage
  • Generally require a 10’x10’x10’ room or space to allow sufficient airflow. Tier 2 models (see below), which use ducting, can be installed in confined spaces

What’s best for our climate

The Northwest Energy Efficiency Alliance specifies two classes of heat pump water heaters for this region: Tier 1 and Tier 2.

Both Tier 1 and Tier 2 models are eligible for tax credits and cash-back incentives.


Tier Installation Locations Homeowner Install
Tier 1
Excellent efficiency
Garage (unheated) Yes
Tier 2
Highest efficiency
Garages and interior locations. Energy Trust requires plumber for interior/ducted installations

*based on a 12-year life

Get Money Back

Qualifying Tier 1 heat pump water heater models are eligible for the following incentives:

Qualifying Tier 2 and Tier 3 heat pump water heater models are eligible for the following: