top of page

Hot Water

Energy Efficient Water Heater


What is a heat pump water heater?


A heat pump water heater is a type of water heater that uses electricity to move heat from the surrounding air or ground into a tank to heat water. It works by circulating a refrigerant through a cycle of evaporation, compression, and condensation, similar to a refrigerator or air conditioner.  Heat pump water heaters are more efficient than conventional electric resistance water heaters because they do not generate heat directly. Instead, they move heat from one place to another, using only a small amount of electricity to power the heat pump compressor and fan.

Overall, heat pump water heaters can save homeowners a significant amount of money on their energy bills compared to traditional electric water heaters. They are also a more environmentally-friendly option, since they produce fewer greenhouse gas emissions than gas or oil-fired water heaters.

How Much Can You Save?


  • IRS tax credits available now:

  • Federal Tax Credit: 30%, capped at $2000


Starting late 2023:

  • For families making <150% of the Area Median Income (AMI): Point-Of-Sale Rebates up to $1,750


Need an electrical upgrade first? You can get tax credits and incentives for that too!


  • IRS tax credits available now for electric panel upgrades: Federal Tax Credit: up to $600


Starting late 2023:

  • For families making <150% of the Area Median Income (AMI):

  • Point-Of-Sale Rebates for Wiring: up to $2500

  • Point-Of-Sale Rebates for Electric Panel: up to $4000

Learn More

Incentives and rebates: Rewiring America IRA (Inflation Reduction Act) Calculator

Electrify your home and take advantage of incentives:

Find an Energy Star rated heat pump water heater:

bottom of page