How Much Does It Cost to Install a Heat Pump Water Heater?

Heat Pump Water Heater in living room
April 29, 2022

When many California homeowners think of heat pumps, they think of HVAC systems like mini-splits, but heat pump technology is used in a variety of appliances and home systems, including heat pump clothes dryers and heat pump water heaters.

Water heating is the second-highest source of energy use in a home after heating and cooling—about 20% of your home’s total energy use!—so just like heat pump HVAC systems, there are a lot of savings to be had by installing a heat pump water heater in your Sacramento, Rocklin, or Elk Grove home. But are heat pump water heaters expensive? Today we’ll dive into some facts about heat pump water heaters and what they cost homeowners.

How Much Do Heat Pump Water Heaters Cost Compared to a Traditional Water Heater?

Like regular water heaters, there is no fixed price for heat pump water heaters. The cost of a water heater, whether it’s a heat pump water heater or not, will depend on a number of factors, including:

  • Brand and model

  • Size of tank

  • Efficiency rating

But overall, the average cost of a heat pump water heater will be more than a traditional electric or gas-powered water heater—sometimes as much as double. Does that make heat pump water heaters too expensive? No! As we’ll show you, energy savings from heat pump water heaters actually make them the more affordable option for your home! What’s more: with the current rebates and TECH initiatives available, the cost of installing a heat pump water heater is usually less than the cost of installing a standard tank water heater. 

How Much Can You Save with Heat Pump Water Heaters?

When considering the cost of a new water heater, the upfront price to purchase and install the water heater is only one part of the equation. If you saved $500 by going with a traditional water heater, but your annual water heating bill was $300 less every year with a heat pump hot water heater, would you still choose the traditional water heater?

That hypothetical is actually very close to reality! An ENERGY STAR-certified heat pump hot water heater saves the average home $315 every year compared to a traditional unit. With an average lifespan of 10-15 years, that’s $3,150-$4,725 in savings, far more than your entire upfront costs.

Plus, heat pump hot water heaters can qualify for different energy efficiency incentives, including federal tax credits and California utility incentives from SMUD, PG&E, Roseville Electric, and more, which can reduce your upfront costs by hundreds or even thousands of dollars!

Find the Right Hot Water Heater for Your Home with Brower

No matter what your budget is, Brower Mechanical is here to help you find a hot water heater for your Sacramento-area home. From traditional storage tank units to tankless hot water heaters and heat pump hot water heaters, we’ll work with you to find the best way to lower your energy bills while providing all the hot water your home needs.

Get a free quote for heat pump water heater installation from Brower Mechanical. Call (916) 624-0808 or contact us today to get started.

Save money and energy!

Install a heat pump water heater to meet all your hot water needs.

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