January 23, 2025
Heat Pumps Water Heaters

By Shelley Navari 

If you're looking for ways to combat ever-increasing energy costs, you may want to consider replacing your aging or broken water heater with a heat pump water heater. These innovative systems provide an energy-efficient alternative to traditional electric-resistance water heaters, offering significant savings and additional benefits.

The Technology Behind Heat Pump Water Heaters

Like the well-known heat pumps that heat and cool your home, heat pump water heaters use two to three times less energy than traditional electric water heaters by transferring heat from the surrounding air rather than generating it directly.

Key Differences Between Heat Pump and Traditional Electric Water Heaters

Heat Pump Water Heaters:

  • Space & Electric Requirements:  These units are taller than traditional water heaters because they house a compressor at the top. Depending on the gallon capacity, you will need at least six feet of vertical space and about 700 cubic feet of area for proper installation. Your home may also need an electric upgrade since heat pump water heaters require a 220 Amp panelboard and GFI (ground fault interrupter) outlet. However, there are Vermont rebates for an electric upgrade to help with the cost.
  • Cool Air Emission: They emit cool air during operation, which may lower the temperature in the installation area by 2-5 degrees. This makes them ideal for basements or other larger, unconditioned spaces.
  • Operating Costs: Heat pump water heaters can cost up to 50% less to operate compared to electric resistance water heaters. If you currently use a boiler with an indirect storage tank, your potential savings could be even greater.
  • Noise Levels: These units produce some noise due to small fans used to circulate air.
  • Dehumidifying Capability: Heat pump water heaters can function as a dehumidifier, potentially reducing the need for a separate unit in damp areas.

Selecting a Heat Pump Water Heater

At the Energy Co-op, we have been installing heat pump water heaters for hundreds of Vermont homes for many years. Our experienced technicians will guide you through the selection and installation process, ensuring you receive all available rebates, warranties, and discounts.
We install Rheem® Prestige® ProTerra™ Hybrid Electric Water Heaters, known for energy efficiency, smart features, and quiet operation. With built-in WiFi Technology and the EcoNet App, you can control temperature, monitor energy use, and receive alerts— right from your phone.

Heat Pump Water Heater Rebates

Efficiency Vermont and local utilities currently offer attractive rebates for heat pump water heaters, making it easier to make the switch. These rebates can significantly reduce the initial investment, allowing you to enjoy energy savings sooner. Additionally, many heat pump water heater models qualify for federal tax credits, adding another layer of affordability.

The Bottom Line

Installing a heat pump water heater is a simple yet impactful way to reduce energy consumption and utility bills. Not only will you save money, but you'll also enjoy plenty of hot water and the peace of mind that comes with making an environmentally friendly choice.
Contact the Energy Co-op today to learn more about heat pump water heaters and schedule a free consultation with one of our experts. Start saving energy and money while enjoying hot showers for the whole family!