Money in the bath

Pump up your savings by upgrading to a heat pump water heater

Man giving baby a bath

While your steaming hot shower may leave you feeling like royalty, the appliance heating that water may be dethroning money from your wallet. 

A variety of energy resources power different kinds of water heaters to warm the water that people use in their daily lives. The type of water heater in your house could lead you to spend significantly more on energy costs than needed. An energy efficient heat pump water heater can save homeowners hundreds (or even thousands) of dollars over the life cycle of the appliance. There are several reasons to consider upgrading to a heat pump water heater:

  • More energy efficiency means more savings. Upgrading from an older electric resistance tank or propane water heater, for instance, to a heat pump water heater could lead to significant energy savings. The heat pump water heater’s electric energy is more cost effective than propane, and it uses much less energy than typical electric resistance water heaters. The lower electricity use means more money left in your bank account each month.
  • You can reduce your carbon footprint. If you are switching to a heat pump water heater from a propane or natural gas water heater, you will significantly lower your carbon footprint (especially as renewables are generating an increasing amount of electricity on the energy grid). You also will remove a potential source of carbon monoxide in your house. 
  • It’s a complimentary dehumidifier too! A heat pump water heater also acts as a dehumidifier, reducing the humidity in nearby air. If your water heater is in your basement (which is sometimes a damp space in a house), a heat pump water heater can help make the space cooler and drier. If you run a dehumidifier in the basement, you may find that you can run it less – or maybe not at all. The heat pump water heater can save you even more energy and money!

While heat pump water heaters cost a bit more upfront than other types of water heaters, you will save more over the long-term in lower energy costs. You also can receive a Power Moves rebate offered by your local electric cooperative to upgrade to a qualifying heat pump water heater. Contact your local electric co-op’s energy advisor for details, or visit