Water heaters use about 20% of a home’s energy. An important element of an ENERGY STAR Home Upgrade is a heat pump water heater that earns the ENERGY STAR label, which is up to 4 times more efficient and uses 70 percent less energy than a standard model. Upgrading to a high efficiency heat pump water heater can help you prepare for a clean energy future, as our energy supply gets cleaner and more renewable every day.

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Your home’s water heater uses more energy than your refrigerator, clothes washer, dishwasher, and dryer combined! Switching to an ENERGY STAR certified heat pump water heater as part of your ENERGY STAR Home Upgrade can save you hundreds of dollars every year on energy costs. 

Why a Heat Pump Water Heater Is a Smart Choice

Greater Reliability, Performance and Efficiency

An ENERGY STAR certified electric water heater uses different technology and can save a household of four more approximately $470 per year on its electric bills, compared to a standard electric water heater, and more than $4,500 over its lifetime. Larger families—that typically use more hot water—will save even more! While a heat pump water heater costs more upfront, the savings will pay back the difference in about three years for a household of four. Replace your aging electric water heater before it fails and start enjoying the savings right away.

Ask the Expert Small MarkVisit Ask the Experts for more information on when you should replace your water heater.


Not only are today’s super-efficient models quieter and more efficient than before – they are backed by decades of research and innovation. Models that have earned the ENERGY STAR are independently certified and come with a minimum 6-year manufacturer warranty for added peace of mind.

Super-Efficient in All Climates

Heat pump water heaters use a hybrid system that reliably and efficiently produces hot water in both warm and cold climates.

Ask the Expert Small MarkVisit Ask the Experts to learn how heat pump water heaters work in cold climates.

Cleaner and Safer for Your Home

ENERGY STAR electric water heaters generate hot water without burning fuel inside the home. They are easy to install and safer to operate with dramatically lower total carbon emissions. If your current water heater runs on gas, oil, or propane, switching to an electric heat pump removes a potential source of carbon monoxide (CO) and nitrogen dioxide (NO2) from your home. It can even help reduce ground-level ozone, a common environmental problem in many metropolitan areas.

Convenient User Controls

Unlike standard electric water heaters, heat pump water heaters include a convenient control panel which allows you to adjust temperature settings and select between various operating modes. Heat pump water heaters are intelligent and easy to use.

Ready to find the right heat pump water heater for your home? The ENERGY STAR Heat Pump Water Heater Installer Finder can help!

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While an ENERGY STAR certified electric water heater may cost more upfront, you can start enjoying the energy bill savings right away by replacing your aging electric water heater before it fails. Take advantage of rebates, tax credits and other financing that may be available to you.

Financial Incentives

Rebate Incentives

Generous rebates are available through local utility companies in many parts of the country. Visit the ENERGY STAR Rebate Finder and enter your zip code to see what incentives are available in your area.

State and local tax incentives may exist in your region. Check eligibility details before making your purchase.

Federal Tax Credits

Heat pump water heaters that have earned the ENERGY STAR are eligible for a federal tax credit of 30% up to $2,000. Learn more about this tax credit.

Assistance for Low-to-Moderate Income Families

  • The Department of Energy offers a  Weatherization Assistance Program (WAP) available for households that qualify for Supplemental Security Income, Aid to Families with Dependent Children, and other income eligibility criteria. This program includes a home energy assessment and help with weatherization upgrades, like fixing or replacing old windows or water heaters.
  • The Low Income Energy Assistance Program (LIHEAP) offers help with home repairs and upgrades based on household size and income. For example, a 4-person household with an annual income of $39,750 would qualify for LIHEAP.  
  • Your local electric utility may offer energy efficiency upgrade support for low-income customers. When available, these programs typically include a home energy assessment accompanied by direct install of energy saving devices including ENERGY STAR certified smart thermostats. Like LIHEAP and WAP, eligibility is usually based on household size and income in relation to a percentage threshold above the Federal Poverty Level or Area Medium Income (AMI). Depending on where you live, these programs may be working with state agencies who provide low-income services more broadly. A small but growing number of utility companies are paying for ENERGY STAR Home Upgrade packages, which customers pay back over time via a charge on your utility bill. This method of payment for upgrades is tied to location and will not follow you or your credit if you move. Importantly, the energy savings from the upgrades should result in a lower bill overall. Ask your utility what programs they offer to help you with the ENERGY STAR Home Upgrade.

Learn How Much You Can Save by Switching to an ENERGY STAR Certified Heat Pump Water Heater!

Savings Calculator for ENERGY STAR Heat Pump Water Heaters (EXCEL, 442 KB)

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You may have questions about which tank size is right for your home or where your new water heater will be installed. Here are some simple considerations to help you plan for your new heat pump water heater.

Heat Pump Water Heater Installation Considerations

In most homes hybrid electric water heaters can be installed right where your current water heater sits. There are a few simple installation considerations to help you choose the right heat pump water heater for your home.

  • Tank Size: Choose a size that meets your needs. Heat pump water heaters are generally a bit larger than conventional water heaters. They typically come in 50-, 65-, and 80-gallon options. If your existing water heater meets your needs, consider replacing it with the same size. If your family needs have increased, you might consider a larger tank. If you do not have the necessary space to accommodate a larger tank, consider a split system heat pump water heater. This includes a small unit mounted outside the house which is linked to the hot water tank inside. 
  • Condensate drainage: Heat Pump Water Heaters produce a small amount of clean condensate water which can be directed to a nearby drain or condensate pump.
  • Location: Heat pump water heaters typically perform best in spaces that range between 40º–90ºF Locating your water heater in a basement or garage can be a great option if the space normally remains above freezing.
  • Air circulation: Access to air is important for your heat pump water heater to run at peak performance. Most models need about 750 to 1000 cubic feet of air, which is about the size of a 10 ft x 10 ft room. If your water heater is tucked away in a tight closet, a simple louvered door or duct will do the trick. Your installer will determine the proper setup based on manufacturer specifications.
  • Access to 240V Electric Outlet: If your existing water heater is electric then you already have a 240V outlet. If you are switching from a gas, oil, or propane, you may need to check with your electrician about locating a 240V outlet. Properly licensed plumbers will know what to look for when installing your heat pump water heater. The electrical requirements of installing a heat pump water heater are no different than that of a standard electric tank. Some homes may need an electric panel upgrade to make room for the new 240V outlet. This can be done by a properly licensed electrician.

Ready to find the right heat pump water heater for your home? The ENERGY STAR Heat Pump Water Heater Installer Finder can help!