A heat pump water heater project is a smaller undertaking than many other home energy projects. Our Energy Navigators can help walk you through the steps.

1. Determine the age of your current system. You might want to replace it right now, or wait until it is closer to it no longer functioning. It is good to have a plan even if you wait until your current unit fails. 
2. Check your electrical panel. You may need to add extra capacity to your electrical panel (but several companies now make HPWHs that run on 120V power from a standard outlet). See our Electrical Panel guide.
3. Explore financing options. Our Guide to Financing explains the options available for rebates, tax credits, and other ways to make installation more affordable.
4. Determine your hot water needs. Choosing a system that works for you depends on how many people live in your home, and your unique hot water needs. 
5. Research options. There are many options. You can read about what’s working (and not!) from your neighbors, as well as check reviews, and talk with your plumber or contractor.
6. Get quotes. Reach out to trustworthy and experienced contractors and plumbers and get a written quote. Be sure the quote includes any additional electric, venting, or drainage work that might be required. We can share a list of local contractors that others have been pleased with. 
7. Pick a contractor and get it done! Save your receipts for taxes. And take a picture of your old system as evidence that you actually did the project. 

Tell us about your experience. We all benefit from your experiences in making these shifts away from fossil fuels. What did you learn along the way that others might learn from? Write a testimonial. (You’ll need to create an account on the Energy Navigators website to do so).

Water heaters aren’t the most glamorous of home appliances. Tucked away in the basement or a closet, they’re easily ignored…until they break.

Whether you’re in immediate need of a new water heater, or want to prepare yourself for your next replacement, consider a heat pump water heater. 

In 2024, switching to a heat pump water heater could be the easiest, cheapest  action you can take to improve your home’s efficiency and lower its green house gas emissions. Thanks to federal tax cuts, anyone can get a heat pump water heater at an extremely reduced price.

To get a head start, you can watch this video by The Build Show in collaboration with the Environmental Protection Agency (EPA). 

How do heat pump hot water heaters work?

Instead of generating heat from the combustion of gas, electrical heat pump water heaters compress air from outside, which heats it, and then heats the water stored in the tank. Instead of generating heat from the combustion of gas, electrical heat pump water heaters compress air from the surrounding area. This compression heats the air, in turn heating the water stored in the tank. 

For this reason, it’s best to install heat pump water heaters in a naturally warm space, so that they can operate more efficiently. 

Watch this video to learn more about how they work, and to see a real heat pump water heater in action. 

How much can a heat pump hot water heater save me in energy costs?

For a family of four, a heat pump water heater can save up to $200-500 in annual energy costs, and $5,600 over the heat pump’s lifetime. 

How much do heat pump hot water heaters cost?

Heat pump water heaters cost an average of $1,500 to $3,000, not including installation. The federal government is currently giving a 30% tax credit, up to $2,000 to all households that install a heat pump water heater, and in Vermont, low-moderate income households are eligible to receive a 90-100% rebate on costs ($4500-5000). 

To learn more about the costs of installing a heat pump water heater, read this article.

How much more efficient are heat pump hot water heaters?

Heat pump water heaters can be up to twice or even three to four times as efficient as traditional water heaters. Their efficiency can be optimized by proper installation, good placement, and regular maintenance.

Do I have enough space?

Most heat pump hot water heaters are taller than conventional hot water heaters and require at least 450 cubic feet of space to work most efficiently. If you want to install your heat pump water heater in a small space, work with a contractor who can advise you on ducting and noise mitigation. 

Intellihot is the only company currently manufacturing tankless water heaters, and primarily for large, commercial applications. It’s likely that other companies will begin to develop tankless water heaters as heat pump technology continues to progress.

How much maintenance do heat pump water heaters require? 

Heat pump water heaters operate most efficiently, and will last longer with regular maintenance. Every month, give your heat pump a visual inspection to look for leaks, rust or other signs of wear. Heat pump water heaters come with an air filter at the point where air enters the compressor. It’s important to check the filter and clean it with a dry toothbrush to get rid of the debris. Each year it’s important to flush your heat pump water heater, and clean the condensate lines. 

Read more about heat pump water heater maintenance here. 

Can I install it myself? 

Installing your heat pump water heater can save you hundreds of dollars, but you will most likely need a permit from your town, as well as several materials. 

For a comprehensive guide to DIY heat pump water heater installation, go here, and to read about someone else’s experience with a heat pump water heater install, read this Bloomberg article and this Reddit thread.

What are the non-energy related benefits?

Aside from reduced energy costs, heat pump water heaters are safer and cleaner than alternatives. They don’t generate heat, and can’t have dangerous gas leaks or toxic emissions.

Sources referenced: 

• Heat Pump Water Heater DIY Installation Guide: https://hotwatersolutionsnw.org/installation/do-it-yourself 
• Heat Pump Water Heater Installation: 4 Pitfalls to Avoid: https://www.bloomberg.com/news/articles/2023-01-23/heat-pump-water-heater-installation-four-pitfalls-to-avoid 
• How to Maintain and Troubleshoot Your Heat Pump Water Heater: https://www.waterheatersnow.com/blog/how-to-maintain-and-troubleshoot-your-heat-pump-water-heater 
• Intellihot: https://www.intellihot.com/?campaignid=19934364887&adgroupid&adid&gad_source=1&gclid=Cj0KCQjwv7O0BhDwARIsAC0sjWNmTJrAoogcGqw6xNAf_YS5HkE23qJUjvCrdvwgOI-CNgCtS4dUt84aAnOWEALw_wcB 
• Is a Heat Pump Water Heater Right for Your Home?: https://www.energystar.gov/products/ask-the-experts/heat-pump-water-heater-right-your-home#:~:text=Compared%20to%20a%20standard%20electric,savings%20of%20more%20than%20%245%2C600
• Lessons Learned From a Heat Pump Water Heater Home Installation: https://www.reddit.com/r/heatpumps/comments/10jmrfa/lessons_learned_from_a_heat_pump_water_heater/ 
• Water Heater Buying Guide: https://www.youtube.com/watch?v=wt95SE2ogNI  
• What is a heat pump water heater?: https://www.youtube.com/watch?v=QKOqjw0s_F0 
• What goes into the Cost of Installing a Heat Pump Water Heater?: https://www.energystar.gov/products/ask-the-experts/what-goes-cost-installing-heat-pump-water-heater#:~:text=Expected%20costs%20for%20materials%20and,the%20cost%20of%20the%20unit.