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If you could help homebuyers save approximately $550 annually on energy bills with a household appliance they will use every day, would you consider the investment? This is the promise of modern heat pump water heaters (HPWHs), a technology that has evolved significantly since its inception in the 1980s.
Heat pump water heaters represent a leap forward in energy efficiency and environmental conservation. Manufacturers have made substantial improvements, making them a viable option for today’s homes. As the push for sustainability intensifies, adopting HPWH technology presents a unique opportunity for contractors to distinguish themselves and meet the evolving needs of their clients.
Benefits
The benefits of HPWHs are significant. According to ENERGY STAR®, these products create the same hot water while using 70% less energy than conventional water heaters, which is significant considering water heaters are the second largest source of energy consumption in the home. HPWHs use less energy by using heat from the surrounding air to warm the water, rather than relying solely on electricity or gas.
Paul Campbell, ICF’s director of energy and sustainability marketing, underscores the advantages. “If you’re building a new home, there is no reason you shouldn’t install a heat pump water heater,” Campbell says. “They eliminate the need for fossil fuels, are emission-free and enhance the overall health, safety and comfort of the home.”
Past challenges
Historically, the high upfront cost and noise of HPWHs have posed challenges. However, recent technological advancements and financial incentives have addressed these issues, making HPWHs more affordable and quieter than ever. Federal tax credits, state rebates and utility incentives now help reduce the initial purchase price. For instance, Xcel Energy provides rebates starting at $400 for HPWHs, and most models come with a 10-year warranty, according to Rob Buchanan, Xcel Energy program manager. Today’s HPWHs are as quiet as a running refrigerator, a significant improvement from earlier models.
The long-term energy and cost savings are substantial. Over the appliance’s lifespan, this can total more than $5,600 in savings, according to ENERGY STAR.
Additionally, modern HPWHs offer extra features such as vacation mode settings, energy usage tracking, and participation in energy-saving incentive programs. Many models also provide smartphone connectivity for added convenience.
Cold climate ready
For those concerned about performance in colder climates, modern HPWHs are designed to handle a range of temperatures. They work best in environments where the air temperature remains at or above 38°F, well below the year-round temperature of most Minnesota basements. Hybrid models can provide hot water even if the temperature drops below this threshold. ENERGY STAR-certified units are versatile, suitable for various locations from basements in Minnesota to garages in Southern California. Most models can be installed in the same location as existing water heaters.
Equal space
In terms of space, HPWHs have a similar footprint to traditional units but with fewer overhead components. “They have a filter, but it’s no more complex than the one in your furnace,” Campbell explains. Most units feature a 12-inch filter that is easily maintained, and some come with a backup electric resistance element for high hot water demand.
Change is coming
A significant change is coming. Starting in 2029, the Department of Energy (DOE) will mandate that all new water heater installations be energy-efficient heat pump models. By 2029, over 50% of new electric storage water heaters will need to use heat pump technology, compared to just 3% today.
Now or later
With the 2029 DOE deadline approaching, the choice is whether to embrace this technology now or wait until the mandate takes effect. Either way, homeowners and builders should prepare for new designs and innovations aimed at making the transition to heat pump water heaters as smooth as possible. The benefits in terms of energy savings and environmental impact make it a compelling option for those looking to future-proof their homes and contribute to sustainability.
Compared to a standard electric resistant water heater, a heat pump water heater 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.**Source: ENERGY STAR