Anyone who owns a home that uses hot water should at least consider getting a heat pump water heater.
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Even if your current water-heating system is working fine, you should still start thinking about it. After all, regular access to heated water is a luxury we often take for granted, so it’s all the more frustrating when your system fails on you.
It might take 10, 15, even 20 years, but eventually, your hot water heater is bound to break. So you need to have a plan in place before that happens. Otherwise, you’ll be left without hot water for who knows how long. And no one wants that.
Heat pump water heaters are the future. In fact, in July , the US Department of Energy proposed a new set of standards that would essentially phase out most non–heat pump models by . But the question of whether it’s the best choice for you right now is a bit more complicated.
If you want the most energy-efficient option available, get a heat pump water heater. Unlike electric and gas heaters, which must create heat to warm the water, heat pump water heaters simply take the heat particles that already exist in the air and move them into the water. As a result, heat pump water heaters usually have an efficiency rating between 3.0 and 4.0 UEF (Uniform Energy Factor, the standard US measurement); that’s about three to five times higher than you get with even the best gas and standard electric water heaters out there.
You don’t have to worry about losing energy in the conversion process, either—every watt of energy that goes into a heat pump model results in three to four times the equivalent heat energy.
“A gas system is a great energy producer. But a heat pump water heater is a great energy transfer,” as Leo Pesegoginski, a project manager at Boston Standard Plumbing, succinctly explained it to us.
A heat pump water heater could be a great choice if you want to reduce your utility bills. The amount of savings will depend on your current setup, as well as where you live. If you already have an electric water heater, for example, a heat pump will use only about a quarter of the energy. If you’re switching from a gas-powered system, however, the savings might not be as impressive—though most people are still likely to save some money by making the switch.
It’s also great if you’re looking to electrify your home. In fact, there are some models—like the A. O. Smith model we recommend—that can plug directly into a standard wall outlet without any additional electrical upgrades, making it easier than ever to move away from fossil-fuel dependence.
Most heat pump water heaters also come with smart-home-integration options, including Demand Response (which can help you sync up to the local electrical grid), and they further optimize energy use not just in your home but across your entire community. This sort of electrification is a major step toward broader decarbonization and sustainability goals.
A heat pump is also the best way to take advantage of financial energy incentives from the Inflation Reduction Act. While heat pump water heaters tend to cost more upfront than other home water-heating systems, installing one can earn you a tax credit of up to $2,000, which can help to offset that price difference. And some states offer additional incentives on top of that. By contrast, even the most efficient natural gas water heaters will still only qualify for a $600 credit at best.
A heat pump water heater is a particularly good choice if you live in a humid area or you have a dank basement. Heat pumps tend to pull in moisture from the air around them (not unlike an air conditioner). This is a normal part of the process—but it can also be a nice bonus feature because it makes the water heater work like a dehumidifier at the same time.
That excess water still has to go somewhere, though. If you already have a sump pump or other wet-basement solution in place, then you should be fine; if not, you may need to add extra piping to make sure that water drains out with the rest of the plumbing.
But it isn’t a great choice if you expect heating on demand. “You can’t have hot water on demand because heat pumps only slowly accumulate the heat,” explained Joel Rosenberg, senior program manager for special projects at Rewiring America. As a result, heat pump water heaters tend to have a longer recovery time—that is, the time it takes to reheat a tank of water after you’ve used it all up.
Tank-based water-heating systems also inevitably deal with some level of standby heat loss, but heat pump units are so efficient that this should be minimal.
“Once the heat pump water heater gets to the right temperature, it maintains it with very little energy input,” Rosenberg said. (If you don’t want to deal with water storage or standby heat loss, you might want to look into a tankless system.)
A heat pump water heater is also not great if you value silence. Unlike other water heaters, heat pump water heaters use fans to help draw in the air. And fans tend to make a little noise (though it’s still quieter than what’s considered normal conversation level). If your water heater is tucked away in the basement or a utility closet, you might not even notice it; if it’s closer to your living space, however, it could be a source of frustration for some people.
And it might not be the best choice if you have limited space. Most heat pump water heaters need a minimum of at least 700 cubic feet of space around them to have enough air from which to extract that ambient heat. Though some models, like the 120-volt A.O. Smith, need only about 450 cubic feet. (The US Department of Energy recommends 1,000 cubic feet for optimal performance.)
If you’re planning to install your water heater in an open part of the basement, that’s great! If you’re trying to replace a tankless unit or squeeze your water heater into a tight utility closet, you might need to add some sort of venting or duct system, which could add to the cost.
Another thing to note is that you may need to increase the capacity when replacing an electric or gas model with a heat pump. Most contractors and manufacturers recommend upsizing the tank by roughly 30%, to compensate for the extra-long recovery time. A home that ran on a 50-gallon natural gas water heater, for example, should upsize to a 65-gallon heat pump water heater. This helps to ensure that there’s always some extra hot water, in case you’re about to run out—but it also means you need a little more clearance space.
Also, be warned: A heat pump water heater can have a higher upfront cost. Most heat pump models cost at least twice as much as an equivalent-size electric or gas water heater; any additional installation complications can add to the price as well.
There are plenty of financial incentives available to help reduce the costs, and the increased efficiency will likely help to make up the difference over time. But if you’re tight on money at the moment—and the rebates and tax breaks don’t work for you—then a standard gas or electric replacement might be the better choice right now.
The most efficient water heater we’ve seen has a hybrid backup system and plenty of smart-home features. But it may have a slower recovery time than you’re used to.
Rheem has been manufacturing hot water heat pumps since the mid-s. The company’s fifth-generation model, the Rheem ProTerra XE65T10HS45U0, offers the most well-rounded combination of high-efficiency performance along with other convenient features, including smart-home connectivity and a hybrid electric backup system, which kicks on when the tank is running low.
Like most heat pump water heaters, this model also comes with a 10-year warranty.
The upfront cost is an investment, but it should pay off in the long run.
The Rheem ProTerra XE65T10HS45UO is extremely energy-efficient. Depending on what size tank you get, the ProTerra models clock in between 3.88 and 4.07 UEF; that makes them at least four times better than any other non–heat pump water heater out there. Nearly every heat pump model we’ve seen has been at least a 3.0, but very few make it all the way to 4.0 or beyond.
If you run out of hot water, this model has a hybrid backup heating system. If you have a hot-water emergency—like when kids and guests take way-too-long showers—the Rheem model also has a regular (non–heat pump) electric resistance coil that kicks on to refill the water tank faster.
“It’s basically a standard electric water heater on the bottom—just like millions of people already have—with a heat pump on the top,” explained Scott Cohen, director of marketing at Rheem.
Although the heat pump component can recover about 27 gallons of hot water per hour on its own, the electric backup can handle up to 75 gallons.
“It sacrifices some of the efficiency for the comfort of the homeowner,” Cohen said. “But that allows people to adopt this new technology without having to change their behavior.”
And with the unit sized correctly for the home’s typical demands, the backup system would rarely operate.
The Rheem model comes with a variety of handy smart-home features. That includes Demand Response and leak protection.
Whereas most heat pump hot waters have basic smart-home connectivity (app/voice control, scheduling, energy monitoring, and so forth), the Rheem also comes with built-in leak protection, including an automatic water-shutoff system in the case of an emergency. Water damage is one of the most common (and expensive) forms of home damage, and many insurance companies offer discounts to homeowners who install some kind of smart leak detector—which can save you even more money in the long run.
Like most hot water heat pumps, this one comes with a 10-year warranty. The energy savings you get from this model over the course of those 10 years can help make up for the higher upfront cost, too.
But it may require a little more-routine maintenance. Heat pump water heaters like the Rheem use fans to pull the air in, which means they also have a built-in air filter that will occasionally need to be cleaned. This isn’t much different from the filter you’d find on an air conditioner or dehumidifier (or other large appliances with fans), but it still marks a noticeable change from the set-it-and-leave-it water heaters that most people are used to.
You may also need to have some additional electrical work done. If you already have an electric water heater, then don’t worry about it; you can fit your new heat pump model right into the existing infrastructure.
But if you’re looking to upgrade from a natural gas system, you’re going to need to run the wires for a 240-volt connection—which could also mean upgrading your electrical panel, if you don’t already have a configuration that can support the additional breaker.
The Signature 900 offers all of the benefits of a heat pump water heater without the need for an electrical upgrade. It’s far more efficient than a traditional electric heater, but other heat pump models can outperform it.
The A. O. Smith Signature 900 HPV10-66H01DV offers a lot of the same perks as other heat pump water heaters, including a high efficiency rating, smart-home features, and a 10-year warranty.
But it stands out because it’s one of the few models that require only a 15-amp (120-volt) circuit. So if you have a standard outlet available where the heater’s located, you could install it without bringing in an electrician or having to upgrade your electric panel.
Even at that lower voltage, it still has room for a backup hybrid heating component, too.
If you’re going through a contractor, the A. O. Smith Voltex HPTV-66 is the wholesale version that’s otherwise essentially identical.
The A. O. Smith Signature 900 can be plugged into any standard electrical outlet. Yes, really; you can run an entire 80-gallon water heater system with a regular ol’ wall outlet, without having any additional electrical wiring (though you could still hire a plumber to do the water-supply fittings and related work).
“It’s really aimed at the emergency replacement of a gas water heater,” explained Arthur Smith, a product manager (and member of the namesake family) at A. O. Smith. “It simplifies the installation process but still provides the same efficiency benefit without the upfront cost.”
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It doesn’t need as much space as other heat pump water heaters. While most hot water heat pumps require around 700 to 1,000 cubic feet of space to have enough hot air to pull from, the A. O. Smith model can work in spaces as small as 450 cubic feet. (It still works more efficiently in a larger space.)
The water in the tank gets even hotter, too, which means you use less of it. Heat pump water heaters can be slow to recover when they run out of water. But the Signature 900 has a clever solution: It overheats the water by default and then mixes it with cold water on the way out of the tank, so it meets your target temperature before it hits the pipes.
This ultimately uses less hot water to achieve the same results. “That means we can store more thermal energy and ultimately deliver more hot water,” Smith said.
It’s one of the quietest heat pump water heaters we’ve seen. With a decibel rating of just 45 dB-A, the Signature 900 falls well below the standard threshold for “normal conversation level.” For most people, a fan at that volume will just disappear into the white noise of the background (though, again, it will depend on your specific situation).
It has a backup heating system, but it’s not the most powerful. This is a trade-off for using a heat pump water heater with a standard wall plug—it just can’t pull the same amount of energy as a standard 240-volt model. Still, the Signature 900 can refill its tank in about an hour using just 900 watts, while our other picks all have capacity for up to 4,500 watts.
It’s not quite as efficient as a 240-volt system, either. The 120-volt Signature 900 has an efficiency rating between 3.0 and 3.46 UEF, depending on the size of the tank. While that’s not as high as it could be if you went for the full electrical-panel upgrade, it still beats any standard electric or natural gas alternative you can find.
It’s slightly more expensive, too. 120-volt heat pump water heaters tend to cost a little more than a 240-volt model of the same size. But, hey, at least you don’t have to pay for an electrician!
This is the quietest heat pump water heater we’ve seen, and the LG’s smart-home features can integrate with the company’s other appliances. But this is LG’s first heat pump water heater. So compared with our other picks, with this one you may find there’s less availability or fewer qualified installers.
The LG APHWC501M Inverter Heat Pump Water Heater is one of the best and quietest choices out there.
It also works with the LG app, so if you already have other LG appliances in your room, you can integrate them all together into a more-robust smart experience.
Plus, it looks cool—which is not a thing you often hear about a water heater.
The LG model is the absolute quietest and one of the most efficient. This model uses LG’s dual inverter compressor technology, which we’ve tested on other products, including a long-standing portable air conditioner pick. That compressor works in conjunction with the heat pump itself to result in an impressive efficiency rating of 3.9 UEF or higher (depending on the size of the tank).
The variable speed also means it has a gentler sound, even on the fan, with the LG typically measuring around 42 decibels—quieter than any heat pump water heater out there. That’s quieter than even the quietest dishwasher available right now.
It has more-robust smart-home integration. If you have other LG appliances in your home, you can run them off of the same app as your heat pump water heater, so you can consolidate your scheduling, energy monitoring, and more. You can even use Demand Response to sync your entire home to the grid.
The LG is the nicest-looking water heater we’ve ever seen. While researching this guide, we visited a large regional plumbing wholesale warehouse, where the clerk joked that the LG looked more like a “fancy refrigerator” than a water heater. Aesthetics might not be your top priority, but this is a nice perk.
But LG is new in the water heater space. While LG has plenty of experience with heat pump technology and heating/cooling products in general, the APHWC501M is the company’s first foray into water heating (though LG does sell an air-to-water heat pump system as well).
By contrast, A. O. Smith has been making heat pump water heaters since and other water heaters for nearly a century. Rheem is similarly on its fifth-generation model, with another 70 years of general water heater experience on top of that.
Although LG makes plenty of other great products, the company doesn’t have quite the same pedigree with water heaters.
You’ll also have to go through a contractor to get it. Even if you don’t need to hire a licensed contractor for a full electrical upgrade, the LG is currently available through wholesale channels. You could still ask your plumber for this specific model, but you won’t be able to buy one at a store and then just hire someone to switch out the connections.
Whether your old water heater has gone kaput, you’re looking to save some money on your utility bills, or you’re on a quest to get off gas and electrify your home, you may want to consider switching to a heat pump water heater. Using the same tried and true heat exchanging technology that has long-powered refrigerators, a heat pump is an extremely efficient way to get a hot shower.
There are significant benefits for making the switch from a gas water heater or an electric resistance water heater to a heat pump model. But there are some tradeoffs as well. Whether it makes sense for your home will depend on what you value.
A heat pump water heater looks an awful lot like any other water heater, except it’s a little bulkier owing to a chamber on top that houses the compressor and fan. Much like a heat pump for space heating, it operates essentially as a refrigerator or air conditioner in reverse: drawing warmth out of the air, transferring heat into the water in the tank, and sending the cold air back out.
If you keep your water heater in a musty basement or garage, this process carries a nice side benefit. “Lots and lots of people appreciate heat pump water heaters because they dehumidify the basement,” said Sean Armstrong, managing principal of sustainable housing firm Redwood Energy in California. “You get a dry basement out of the deal.”
By comparison, electric water heaters pass electricity through resistance coils that heat up and, in turn, heats up the water in the tank. Gas-powered heaters effectively use a flame to heat up the water in the tank.
Heat pumps are capable of pulling warmth out of the air even on really cold days. Heat pump water heaters operate well in temperatures as low as 37 degrees Fahrenheit – a temperature that is higher than heat pumps for space heating, which can operate at close to 0 degrees. However, if the heat pump is kept in a basement, it is probably unlikely that temperatures would dip that low.
Heat pump water heaters also come with a backup plan; they are often referred to as hybrid water heaters, because they are usually equipped with electric resistance technology as a complementary option if the surrounding air temperature is too cold or demand for hot water is high.
For something that you probably don’t give much thought about, it turns out heating up hot water for your home requires a lot of energy. According to the U.S. Department of Energy, water heating is usually the second-largest energy expense in a home, accounting for about 18% of household energy usage.
Because heat pump water heaters do not actually generate heat themselves and use relatively little power compared to a standard gas or electric water heaters, they are incredibly efficient – more than three times as efficient as a typical electric resistance or gas water heater, according to ENERGY STAR. That, in turn, can bring a significant reduction in utility bills over the course of a year.
If you’re upgrading from an electric resistance water heater to a heat pump water heater, you may reduce your water heating costs by two-thirds or more. It’s a little more complicated to make the same comparison to gas heaters because it depends on the comparative costs of gas and electricity where you live. But most likely you will wind up paying less for hot water with a heat pump system.
There may be some differences depending on where you live, but you can probably expect to spend between $3,000 and $6,000 to have a heat pump water heater installed.
The unit itself can range in price from between $1,200 and $3,000, largely based on the size of the storage tank (they are available in increments between 40 and 80 gallons).
Labor costs are mostly a function of how long it takes to complete the installation, and there may be additional costs for shutting off gas or adding electricity and wiring. You may also be able to save some money by purchasing the heater yourself and hiring somebody just to install it – although some installers may be unwilling to take that job on.
For comparison, a new electric resistance water heater may run you about one-third the cost of a heat pump model. The price for a gas model is typically somewhere in between those for electric resistance and heat pump models – though more environmentally friendly gas heaters, which may be required in some states or regions, are closer in cost to heat pump heaters.
There are tax incentives available for installing heat pump water heaters. The federal government’s Inflation Reduction Act provides a 30% tax credit on heat pump water heater installations, up to a maximum of $2,000, in order to encourage the adoption of cleaner and more efficient technologies. Those with tax liabilities can claim the credits when filing their returns for the year the heater was installed. State governments or utilities may offer additional incentives or rebates to reduce the cost even further, but that will depend on where you live.
One of the main disadvantages of a heat pump water heater is that it takes a lot longer to reheat water compared to gas models. Reheating can take a couple of hours or more, depending on the temperature of the surrounding air and the size of the tank. Gas heaters, by contrast, can reheat in as little as 30 minutes.
If you’re upgrading from an existing gas water heater and generally don’t have issues running out of hot water, then the difference probably won’t be much of a concern. But if you have a growing household that may demand more hot water in the future, or if you already tend to run out of hot water and don’t want to wait more than twice as long for it to reheat, you may want to purchase a larger-capacity heat pump unit than your existing tank to ensure it has enough hot water on demand.
The decision between a gas water heater, electric resistance water heater, and heat pump water heater will depend on your priorities. Mostly, it comes down to a series of decisions about costs, whether you want a cleaner or more efficient product, and how highly you value quickly heating your tank, said Jon Shelton, a solutions expert at Water Heaters Now in Minnesota.
Gas water heaters have the advantage of restoring hot water much more quickly than heat pump water heaters. However, many people still choose heat pump water heaters because they can be more affordable to operate – potentially much more affordable, depending on how the price of electricity compares to gas in your area. For those looking to move away from gas-powered appliances entirely, heat pump water heaters will do the trick. And if your home is equipped with solar panels, "it would be silly" to choose gas over a heat pump, Shelton said, since you’re generating your own power.
The advantages of a heat pump water heater over an electric resistance model are even more clear. While a heat pump is more expensive upfront, potential federal and state incentives can help narrow the gap. Even without those incentives, heat pump heaters are so much more efficient and affordable to operate that in most places you'll recoup the costs on utility bills alone within five to seven years.
“If you're paying a third of what you normally would for electricity, every day that thing’s operating you're saving money,” Shelton said. The only real argument for not opting for a heat pump model, Shelton said, is "if the upfront cost is too much.”
Redwood Energy’s Armstrong noted one exception in which it may make more sense to opt for electric resistance over a heat pump: if you live in a place with very low electricity rates. That’s because the reduction in an already-low electric bill may take much longer to pay off the difference between installation costs.
If you have one of those taller, skinnier water heaters and no space for a larger tank in your home, then it may be more difficult to set up a heat pump water heater. One solution is a split system, which puts a compressor outdoors that can be used to heat a skinnier or smaller tank indoors. However, these models tend to be more expensive.
Traditionally, heat pump water heaters have required a 240-volt outlet. If you don’t have one where you’re putting your water heater, then you may need to get one installed -- which can work out to several hundred extra dollars in installation costs. However, in the last several years manufacturers have introduced 120-volt models that can be plugged into any outlet. It may be a good alternative if you want to skip the electrical work, but it could come with some tradeoffs in terms of costs, efficiency, and speed.
Heat pump water heaters are equipped with a screen filter that should be taken out and cleaned regularly. Some experts define “regularly” as “monthly”; others say every six months is fine. You’ll also want to clean the unit’s evaporator coils every now and then, as you would for an HVAC system. Consult with your installer or your water heater’s manufacturer for details, but this is easy work that can be done by most homeowners.
A heat pump water heater can be expected to last about as long as a refrigerator – well over a decade, and perhaps 15 or more years.