| Heat pump hot water heaters (HPWH) – also referred to as hybrid hot water heaters or electric heat pump water heaters – are the most energy-efficient water heaters on the market. HPWHs efficiently transfer heat instead of creating it, which leads to hundreds of dollars per year in savings for the average household. They are 3 to 4 times more efficient than traditional water heaters, work in all climates and typically have longer warranties!
A HPWH takes air from inside the room, extracts heat from that air and transfers the heat to water in the tank. The air exiting the HPWH is cooled and dehumidified. In the summer that cool dry air helps dehumidify and cool your home. This is also true in the winter so some of the heat from your furnace will be used to heat your water. An option is to install ducting to bring outside air into the HPWH and expel cooled air to the outdoors. The ducting could be bypassed in the summer to take advantage of dehumidification and cooling in the house. In cold climates, you should not duct outside air into the HPWH. Intake air below 40 F can reduce the efficiency of the HPWH, so it might be best to duct the cold exhaust air to the outdoors in the winter and to the indoors in the summer but draw air from inside the house year round. Rewiring America has a wealth of information on HPWH regarding: why and when you should replace your current water heater with a HPWH; how they work; their efficiency; purchase, installation and operating costs (savings); and Tax Credits and Rebates According to a recent analysis by Rewiring America, HPWHs cost between $3,600 and $6,500 installed. The biggest factor that will impact the cost of installation is what kind of water heater you are replacing. Replacing an electric water heater costs between $3,600 and $4,800. Replacing a gas water heater costs between $4,300 and $6,500. 120 Volt options and DIY installations can reduce these costs significantly. Swapping out a gas water heater for a heat pump water heater costs more on average because it often requires additional electrical system costs (e.g. adding a 240 Volt outlet). Costs: The exact total cost of a HPWH depends on a number of factors including which unit you buy, how long it takes to install, can you do a DIY installation and how many incentives you qualify for.
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Series TopicsInflation Reduction Act (IRA) and Bipartisan Infrastructure Law (BIL) Summary Energy Audits and Energy Efficiency Heating, Ventilation and Air Conditioning Heat Pumps Heat Pump Clothes Dryers and Induction Ranges Rebates and Credits Community Solar CRP Electrification Resources Community Climate Action Plans Rebates are managed by each state. The status of Ohio’s plan for its $249M share of the proposed rebate program can be found here |
| Unit Cost | The size and brand will make a difference in the unit cost. HPWHs cost between $1,200 for 50-gallon tanks to $2,500 for 80-gallon tanks made by the high-end manufacturers. |
| Labor to Install | Time is money! And the total time required to install a water heater can vary significantly depending on where your current set-up is located and how it’s situated in your home. |
| Electrician Labor | If you’re replacing a conventional electric water heater, you’ll already have the electrical set up for a HPWH. But if you’re replacing a gas heater, you may need to hire an electrician to run a 120- or 240-Volt Circuit. |
Ongoing Savings: People can save $80 – $230 per year on their water heating bills by switching to a heat pump water heater. The median annual energy costs of a conventional hot water heater is $230, while the median cost of a heat pump water heater is $90 per year. That’s a 60% reduction in water heating costs.
Credits and Rebates: Federal Energy Efficient Home Improvement Credit (25C) provides a 30% tax credit (up to $2,000) for HPWHs that is reset every year. Federal Home Electrification and Appliance Rebates (HEAR) allow for a discount of up to $1,750. Credits are available now. Rebates will be implemented differently in each state. Ohio has received $5 million to set up the Rebate program and it is hoped it will be operational in 2025. Tax code 25C also offers a 30% credit (up to $600) on electrical changes/upgrades that might be needed depending on the type of water heater being replaced.
⏰ Now is the time to come up with your plan for your water heater replacement with a HPWH. Consider making the replacement when your current water heater is around 10 years old to avoid an emergency replacement! ⏰
For questions, comments, or to provide testimonials, additions to vendor list above or good resources for future topics etc. contact ohio@thirdact.org . Brought to you by THIRD ACT OHIO’s Democratizing Energy Committee