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Is a Heat Pump Water Heater Right for Your Home?

When was the last time you thought about your water heater? It is likely tucked away in a closet, down in your basement, or out in your garage, and rarely remembered unless your shower turns icy. But when it comes time to replace your water heater, are you up to date on the most efficient technology and the best options for energy and cost savings?

The Hype about ENERGY STAR Heat Pump Water Heaters

The most efficient current options on the water heater market are ENERGY STAR certified heat pump water heaters (HPWHs), which are electric. Compared to a standard electric resistant water heater, a HPWH can save a family of four an estimated $550 a year on their energy bill with an expected average lifetime savings of more than $5,600!

Why Choose a Heat Pump Water Heater?

HPWHs are not only cost effective, but they are also much more environmentally friendly. Energy cost savings are such that if all electric water heaters sold in the United States were ENERGY STAR certified, we would save more than $8.8 billion each year and prevent nearly 170 billion pounds of greenhouse gas emissions equivalent to the emissions from more than 16 million vehicles.

But how are HPWHs so efficient, and what makes them innovative? Heat pumps use electricity to move heat from one place to another – in this case, from surrounding air to water – as opposed to generating heat directly.

Who Should Get a HPWH?

Is a HPWH right for your house, in your neighborhood, with your climate? There are a few important considerations when answering this question.

Cold Weather: Today’s HPWHs have proven to be highly efficient and effective, even in cold climates. With most water heaters being placed indoors, the best practice of surrounding air temperatures of 40 degrees or more is not usually an issue. 

Space/Placement: HPWH efficiency will suffer in confined spaces, like closets. The EPA recommends placing your HPWH in a location with 700  cubic feet of surrounding air (approximately the size of a 10-foot by 10-foot utility room with a 7-foot ceiling) to allow for adequate clearance around the heater for air entry and discharge. Remember, proper air flow matters!

Fuel Type: The most common type of heat pump water heater requires a dedicated 240 Volt outlet—perfect for homes with an existing electric water heater. If a gas water heater is being replaced or if a 240V outlet is not available, HPWH models that utilize 120V outlets are now available in many markets to help avoid expensive electric panel upgrades and make HPWHs more accessible. 

Who is Talking about HPWHs?

ENERGY STAR teamed up with “The Build Show” with Matt Risinger to provide free HPWH expertise and buying advice. Risinger’s channel has historically been a resource for contractors and tradespeople, but this video provides general guidance for homeowners as well. The Build Show compared HPWHs to other types of water heaters, including both gas and electric options, on six characteristics:

1. Initial cost: The cost of the heater and installation.
2. Annual fuel cost: The estimated cost - of the electricity or gas - to use the heater for a year.
3. First hour recovery: How much hot water you get in the first hour of use.
4. Max temperature:  The hottest temperature your water heater can reach.
5. Gallon size: How many gallons of hot water your water heater can hold.
6. Uniform energy factor: A measurement of a water heater’s energy efficiency. The higher the UEF, the better, because it correlates to how many dollars of hot water you get out per dollar put in.

 

Cost FactorHPWHTank ElectricTank GasTankless GasInitial Cost$1,500-$3,000$450-$1,200$500-$1,500$800-$2,000Annual Fuel Cost$104-$160$400-$600+$200-$300$175-$225First Hour Recovery60-10055-7260-85100+Max Temperature140-160140140140Gallon Size40-8040-8040-80N/AUE Factor3.3-4.00.90.6-0.80.8-0.9Rebates (Local)$300-$800N/AN/AN/A

 

 

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Additional reading:
Why Monobloc Heat Pump Bulk Orders Matter?

With combined local and federal* incentives and lifetime fuel cost savings when compared with tank electric, tank gas, and tankless gas, ENERGY STAR certified heat pump water heaters can have impressive lifetime cost and energy savings.

*As of 1/1/2023 homeowners can claim a 30 percent federal tax credit (up to $2,000 per year) on the cost of a heat pump water heater, plus installation. Learn more about this tax credit on the ENERGY STAR site.

Next Steps

Find out if a HPWH is right for you. Take a look at the ENERGY STAR Home Upgrade page. Then, check out rebates and special offers where you live, and find a qualified installer and retailer near you.

https://youtu.be/-IIKPIKyGO4

Hybrid water heaters, also known as heat pump water heaters, are gaining a lot of popularity and for good reason. More clients are wanting to be more energy efficient and make smarter investments with their money when it comes to replacing items in their homes, and upgrading your water heater is the perfect opportunity to do so. Did you know that according to energy.gov the average household with an electric water heater spends 25% of their electric bill heating water? The average tank style water heater can cost $400.00-$600.00 per year to operate which is more than the average refrigerator, dishwasher, washing machine and dryer combined.  For clients that want to save money on the energy costs of heating water, a hybrid water heater can be an excellent choice.

Pros of a Hybrid Water Heater?

1. Can save up to $4700.00 in energy costs in the first ten years
2. Can last up to 2X longer than a traditional tank style water heater
3. Improved warranty over a standard tank style water heater
4. Doesn’t require upgrades to the electrical system to install
5. Smart App connectivity (RUUD Ultra Series)
6. Leakguard technology (RUUD Ultra Series)

The Cons?

1. Upfront cost
2. Increased size
3. If not used in hybrid mode energy savings are void

The Benefits of a Hybrid Water Heater

Unmatched Energy Efficiency

Hybrid water heaters, when used correctly, are incredibly energy efficient– they can save homeowners about $470.00 a year on water heater costs compared to a standard electric water heater! These savings add up quickly and in just the first ten years can pay clients back on their investment with energy savings of around $4700.00.

Longevity and Warranty

RUUD Hybrid water heaters are built to last and under intensive testing showed that they could last up to twice as long as a standard water heater with proper maintenance, of course this helps compensate for the initial investment of the upgrade and helps the water heater to continue to pay you back on your investment for many years.
RUUD hybrid water heaters come out of the box with an exceptional warranty. A standard electric water heater comes with a 6 year warranty on the tank, a 2 year warranty on the parts and 1 year on the labor. A RUUD hybrid water heater comes with a manufacturer warranty of 10 years on the tank, 10 years on the parts and 1 year on labor.

Hybrid Compared to Electric Tankless Water Heaters

Upgrading an electric water heater for more energy efficiency gives you two options: one is an electric tankless water heater and the other is a hybrid water heater. Electric tankless water heaters are more energy efficient than standard tank style water heaters, but they don’t touch the energy efficiency of a hybrid water heater. While a tankless electric water heater runs at about 99% efficiency a hybrid water heater can easily operate at 370% efficiency. The other thing to consider if trying to choose whether to upgrade to a hybrid or a tankless unit is that tankless units require that the electricity be upgraded in order to handle the energy demands of hot water on demand.  Hybrid water heaters do not require any electrical upgrades for installation.

A Smarter Water Heater

The RUUD hybrid water heater is currently the only hybrid water heater on the market that is a smart water heater. The RUUD hybrid water heater comes with an app called Econet. This app allows clients to easily adjust the temperature, track their energy usage and even set the operating mode right from their smartphone. The smart water heater is so advanced that there is an app for our technicians that will connect to the water heater and allow the plumber to review detailed alerts and alarm codes.

The Ecosmart app empowers our clients to set the water heater to one of 5 operating modes to best accommodate your family’s needs which can change from day to day. These 5 operating modes allow you to adjust the hybrid water heater to meet your lifestyle from energy saver operating at its most energy efficient all the way to high-demand for those situations that require that your water heats quickly with the use of more energy, even set it on vacation mode right from your phone.

Leak Detection and Automatic Protection

The RUUD hybrid also comes with an incredible feature called Leakguard, this amazing feature prevents your water heater from flooding your home by sensing if there is any water leaking from the tank and shutting the water heater down while sending you an alert through your smart app. This feature limits water leaks to 20 oz rather than potentially hundreds of gallons of water if the tank should leak while you’re not home.

The Cons of a Hybrid Water Heater

The Initial Investment

Let’s cover the cons– the hybrid almost sounds too good to be true so let’s get into the downfalls of a hybrid water heater. The first and most obvious is the upfront upgrade fee. The hybrid water heater, with all of its advanced technology, improved warranty and custom installation, is more than a standard water heater of the same capacity. The initial investment of a hybrid water heater can easily be 40% more than a standard electric water heater.
Like many upgrades that pay you back, they require an upfront initial investment that, over time, pays itself off and then produces a profit (putting money back into your wallet)– this is the case with a hybrid water heater. If you plan on staying in your home for the potential lifespan of your water heater, then the investment is absolutely worth it; however, if you’re not, then the initial investment won’t have an opportunity to pay you back. The initial investment increase typically pays itself off in the first 2 years and then the water heater just continues to save you money on your electric bill.

Increased Size

The size of the hybrid water heater is larger than a standard water heater, so if space is an issue for you a hybrid water heater may not work for your home. The water heater dimensions should absolutely be checked if being installed in small spaces like closets.

Configuration of the Hybrid

The hybrid water heater won’t save you a dime if not set correctly. If you leave the water heater in “high-demand mode”, then energy efficiency isn’t that much better than a standard tank; likewise, allowing it to run on 100% electric mode won’t allow you the opportunity to benefit from the advanced energy saving technology.

Services in Phoenix & Beyond

When you’ve found yourself in need of plumbing services in the Phoenix, Glendale, Scottsdale, or Chandler area, you can trust Robins Plumbing to provide you with prompt and expert care, contact our team today! In addition to our toilet services, we also offer a variety of residential and commercial plumbing services, including: drain cleaning, water heater repair and replacement, sewer camera inspection and locating, backflow prevention, commercial and residential jetting, water treatments, and more. Visit our reviews online to see what others have to say about our local plumbing company!

The company is the world’s best Split system water heater supplier. We are your one-stop shop for all needs. Our staff are highly-specialized and will help you find the product you need.