Thinking of ways to boost your home’s energy efficiency and lower energy bills? Upgrading your water heater might not be top of mind; however, heat pump water heaters can be a game-changing solution, delivering hot water to your home while consuming far less energy than traditional electric or gas models. Here’s a closer look at how they work, the benefits they provide and why now may be the perfect time to switch.
How Do Heat Pump Water Heaters Work?
Conventional water heaters generate heat directly, but heat pump water heaters pull heat from the surrounding air to warm water. They rely on proven technology to simply and efficiently move heat from your basement or garage into the water tank. This process makes heat pump water heaters two to three times more efficient than conventional water heaters.
Benefits of Heat Pump Water Heaters
- Energy Savings: Heat pump water heaters are highly efficient, consuming less electricity than standard electric water heaters. This translates into lower utility bills over time, helping you save money while reducing your carbon footprint.
- Incentives and Rebates: A growing number of incentive programs will be available this year for customers who choose energy-efficient appliances, such as heat pump water heaters. These incentives can offset the upfront costs of your upgrade. Additionally, current federal tax credits of up to 30% of the project cost can help make the switch more affordable.
Making the Switch: What You Need to Know
If you’re considering upgrading to a heat pump water heater, here are a few tips to help you get started:
- Heat pump water heaters require adequate space with good airflow since they draw heat from the surrounding air. They’re ideal for basements or garages.
- While heat pump water heaters are designed for easy installation, consulting with a qualified contractor ensures optimal performance and adequate hot water to meet your needs.
- Some heat pump water heaters may have a higher upfront cost than standard models, but incentives, rebates and long-term energy savings can make them a cost-effective investment for your home.
Energy Efficiency with Heat Pump Systems
We’re committed to empowering our customers with energy-efficient solutions that benefit their wallets and the environment. Learn more about federal tax credits available for eligible customers and explore programs like the High Efficiency for Low-income Program (HELP) for additional assistance.
I read recently that in cold climates, the heat pump water heaters should be placed inside but have access to warm outside temperatures when seasonally available. Is that true, or can we just use inside air regardless of the outside temp? And for a simple install, what’s a good cost estimate, with or w/o 240 wiring?
Hi Rick. Great questions. We recommend consulting with an HVAC professional to make sure you have the most accurate information on options and cost for your situation.
Good idea 💡, something to look into.
How much does heat pump cost? Is there a payment plan that can be done to get a heat pump?
Hi Angel, we don’t sell heat pumps, nor do we have financing. Heat pump prices vary depending upon the size of your home and efficiency. Reach out to a contractor in your area to learn more about the price of a system for your home and any rebates for financing offers they may have available.
Why is there never any pricing?
Hi Carl, we don’t sell heat pumps, nor do we have financing. Heat pump prices vary depending upon the size of your home and efficiency. Reach out to a contractor in your area to learn more about the price of a system for your home and any rebates for financing offers they may have available.
Might be interested. Presently have gas, will this possibly be more cost effective, would be in basement near gas furnace. Basement stays at about 60 to 65 degrees. We have a stand by generator that could possibly be utilized to provide power in power off emergencies.
No. HP would cost more to operate. 60 is also too cool to effectively operate. Consult a manual for one.
I have a 16×80 mobile home. The water heater is totally enclosed within a clothes closet. Not much airspace available.
I have a 1920 home and my light bill is 950 dollors in the winter what would it cost to install a water heat pump i am retired and do not file income tax so how would the 30percent help me.the house is 1900 square feet.
Hello Frank, we recommend speaking with a professional heat pump water heater installer to make sure the model you choose will qualify for the home improvement credit. Here’s a link to the home improvement credit details.
Does or will AEP have a rebate or incentive program for the heat pump water heaters?
Chris, eligible customers may be able to receive a heat pump water heater through our HELP Program. Get more details at AEPOhio.com/HomeUpgrades.
What is the downside of this type of water heater? Does the water get as hot as with a gas water heater? What is the comparison with on-demand water heater?
Great question, K. Heat pump water heaters help lower operating costs and can reduce energy consumption by 75% compared to traditional units. The water temperature is determined by the thermostat on the unit, so as long as the same setting is programmed, the water temperature will be the same. To compare water heaters, you would need to review the uniform energy factor (UEF) for each model being compared — the higher the rating, the more efficient the unit.
May be ok for new construction but not for a remodel. Kind of reminds me of solar and wind! We would never consider one without documented proof of monthly savings!
Does AEP give discounts to Seniors for upgrades.
We currently do not offer any discounts for seniors, P. Thanks for asking.
Is there a gain to use this with geothermal superdeheater?
Hi Darrel. Thanks for the question. We recommend reaching out to your HVAC professional for specifics about your situation. Here’s some general information about heat pump water heaters and desuperheaters from the U.S. Department of Energy.