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What Is a Heat Pump Water Heater?

February 13, 2025
What Is a Heat Pump Water Heater?

You may have heard of a heat pump water heater (HPWH) and its variation the hybrid electric heat pump water heater. But what are they? We’re about to tell you everything you need to know about these impressive, innovative, and energy-efficient ways to provide hot water in homes. These machines not only transfer heat from the surrounding air to the tank water — they also provide homeowners with significant energy and cost savings. Thanks to the significant rebates available, combined with reduced energy bills, heat pump water heaters are becoming a popular option with plumbers and homeowners. This article will cover not only how a heat pump water heater works but the HPWH types available, who should consider investing in one, and the benefits associated with them.

What Is a Heat Pump Water Heater?

We’ll start with the Rheem® ProTerra® Hybrid Electric Heat Pump Water Heater. It’s a heat pump and electric water heater in one. It provides up to 4x the efficiency of a standard water heater.1 It produces zero emissions on-site and fewer greenhouse gases than traditional water heater tanks. By extracting heat from the surrounding air and transferring that heat into water in the tank, this heat pump water heater uses about a third of the electricity that a traditional electric water heater would use.

What Is a Hybrid Water Heater?

The term hybrid water heater refers to a combination of a heat pump and a conventional electric water heater. They can switch between using a heat pump for efficiency and conventional electric elements or faster heating when needed. In short, all hybrid water heaters have heat pump technology, but not all heat pump water heaters are hybrid with electric elements. This technology makes hybrid electric water heaters a better choice for colder climates.

How a Heat Pump Water Heater Works

A heat pump works a lot like a refrigerator in reverse. The heat transfer process pulls heat energy from the air to heat water in the tank.

A refrigerant system absorbs heat from the surrounding air. The compressor superheats the refrigerant, which passes through condenser tubing wrapped around the tank. The water in the tank absorbs the heat. Presto — your heat pump water heater has just used heat energy from air to create hot water!

The Hybrid Electric Heat Pump incorporates two electrical elements that help heat water when the heat pump alone can’t keep up with demand. For example, when the temperature dips near 37°F, it’s more challenging to draw heat energy from the cold air. In this scenario, its electric elements turn on to ensure you have hot water when you need it while maintaining the energy efficiency for which they are known.

Benefits of Heat Pump Water Heaters

1. Tax credits and incentives: Because they are considered energy-efficient upgrades, heat pump water heaters qualify for ENERGY STAR 5.0® certification, federal and local incentive programs, and federal, residential 25C tax credits. These programs allow purchasers to save greatly in the upfront cost. Visit our resources page and check with your local utility company for information about tax credits, incentives, and rebates.

2. Energy cost savings: It’s not only the upfront cost rebates that save homeowners money. Heat pump water heaters are so efficient that homeowners can save up to $576 per year on their utility bills — that’s up to $ 5,760 over 10 years.2 They use 75% less energy than a standard electric water heater.3

3. Earth-friendly efficiency: Heat pump water heaters help minimize your environmental impact, producing zero emissions on site and fewer greenhouse gases through reduced energy use. This is one of the reasons there are so many programs that support homeowners making the switch to heat pump water heaters.

4. Smart features: Powered by EcoNet® technology, these units provide built-in Wi-Fi and coordinate with the EcoNet app on a smart device, allowing users to have control from anywhere. Scheduling and energy usage tracking can maximize your savings, and the Hot Water Availability Indicator and operation modes ensure homeowners won’t run out of hot water.

5. Long-Lasting: Perhaps one of the best benefits of all, heat pump water heaters have a longer lifespan compared to traditional water heaters. According to the U.S. Department of Energy, heat pump water heaters can last about 10 to 15 years, while traditional tank water heaters usually last 8 to 12 years.

Types of Heat Pump Water Heaters

The Hybrid Electric is the ideal heat pump water heater solution where 240V electric service is available. Rheem also offers 120V Plug-in Heat Pump models to replace gas water heaters, requiring minimal to no electrical work. Our Rheem ProTerra Plug-in Heat Pump Water Heaters are up to 5x the efficiency of a standard gas water heater.4 Our “Which ProTerra is right for you?” product selector tool can help homeowners find the right heat pump water heater. As always, the plumber is the best resource for water heater selection.

A common misconception is that heat pump water heaters are not a solution for larger homes. Rheem offers its Proterra Heat Pump in various sizes, including 40-gallon, 50-gallon, 65-gallon, and 80-gallon models that can provide hot water for households of up to six people.

Did you know? Rheem also has solutions for commercial spaces.

Who Should Consider a Heat Pump Water Heater?

Heat pump water heaters are an excellent choice for:
· Homeowners in areas with high electricity costs, such as the West Coast.
· Those focused on reducing their carbon footprint and lowering energy bills.
· Homes in mild climates, where heat pump performance isn’t hindered by extreme cold. In colder areas, a hybrid model may be more effective.
· Homes with adequate installation space (at least 1,000 cubic feet), as these systems require room air volume for the integrated heat pump system.

Maintenance Reminder

It’s important to schedule annual professional maintenance for your water heater to ensure its longevity and efficiency. Find a Rheem plumber or contractor near you to help with installation and maintenance.

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See It in Action

1Based on comparison of a 50-gallon Rheem Hybrid Electric Heat Pump and a standard electric tank of like capacity with minimum efficiency. 2Based on estimated annual operating cost savings of the 40, 50, 65 and 80-gallon models. 3Based on comparison of a 50-gallon Rheem Hybrid Electric Heat Pump and a standard electric tank of like capacity with minimum efficiency. 4Based on comparison of 40- and 50-gallon Rheem ProTerra Heat Pump water heaters and standard gas ULN water heaters of like capacity. Efficiency varies by gallon capacity.

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