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 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!
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.
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.
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:
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.
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.
Author: Nate Jutras, ENERGY STAR Certified Products
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