Heat Pump Water Heater Energy Costs and Usage

It's important for you to know that by switching to a heat pump you may or may not see savings on your energy bill. There are several factors to consider:

How Heat Pump Water Heaters Work

According to the Department of Energy, heat pump water heaters are three times more efficient than conventional electric water heaters. While we can't guarantee you will save on your energy bill, your new heat pump water heater will use less energy.

Utility Rate, Appliance Efficiency, and Climates

You can find more information about your rates and energy use on your electric utility's website. When swapping from gas to electric-powered appliances, the exact impact on your utility bills will depend on several factors (including, but not limited to, the cost of gas in your region, the cost of electricity in your region, and how efficient your appliances are). But using an efficient heat pump can often lower your heating bills dramatically, especially in climates like California where winters do not get too cold.

Enroll in Load Shifting and Rewards Programs

There are several ways to monitor and help reduce your home’s energy usage and costs. Enrolling in a demand response program such as OhmConnect or My Energy Optimizer can help you optimize your entire household’s electricity use. Your heat pump water heater can also help you take advantage of lower electricity rates if your household is on a time-of-use-rate plan with the utility. Your contractor will help you program your heat pump water heater to heat water during times of the day when electricity prices are lower and then keep it hot for when you need it. You may also be eligible to participate in a water heater rewards program offered by your utility that will pay you rewards for shifting your water heating to off-peak times.

Find the time-of-use rate plan that will help you save most on your electric bills.

Explore demand response programs available to you.

Check if your utility offers a water heater rewards program.