Heat Pump Water Heater fAQ

We do our best to answer questions and to clear up heat pump myths that are so prevalent out there. The short version is that if designed correctly, heat pumps are more straightforward than you might think. But read below for a full list of questions. And if you’re ready to get started, reach out!

an A.O. Smith 50 gallon heat pump water heater with the words heat pump on top and water heater tank and two arrows pointing to the different components

A heat pump water heater is similar to a regular tank water heater in that it still has a tank for water storage. It is so efficient due to using a heat pump, instead of natural gas or expense electric resistance, to heat the water. It extracts heat from the surrounding air and uses that to heat the water.

If you have a natural gas water heater: You’ll save about half on your energy spent for water heater, or perhaps a little more.

If you have a electric resistance water heater: You’ll save about 70-75% on your energy spent for water heater, or perhaps a little more. This is huge!

The big one right now is through Xcel Energy (if you have them for your utility service). They offer a $2,250 rebate per unit to replace your existing water heater with a new energy efficient heat pump water heater.

Please see our full article here for more rebates around Colorado and more.

While being noisy is a personal perception, HPWH’s aren’t completely silent. The newer ones operate with a low hum at about 40-50 decibels when the heat pump is on, and are much quieter than units that were made even 1-2 years ago. Usually if the unit is by itself in a utility closet or not directly in a bedroom or area where people hang out or sleep, its usually not an issue at all.

If you’re operating it only with the backup electric resistance heaters (just like a regular electric water heater), it’ll be silent in that mode.

The cost to install a heat pump can vary based on a few variables, but it typically ranges from $5,000 to $9,000 depending on the size of the unit, correct equipment pricing (tariffs and other factors), sales tax, permits, installation, labor and miscellaneous materials, drain line considerations, electrical and more.

Modern heat pump water heaters work down to 37 degrees Fahrenheit per their specifications. This means that they can operate in a basement, crawlspace, or other colder room in your home. It’s not necessarily ideal, because they will use more energy/electricity to operate, but they will still be more efficient than gas or traditional electric resistance.

In Colorado, it’s best not to have the HPWH installed outside, as it often gets below freezing, which is below the normal operating temperatures.

With proper maintenance, heat pump water heaters can typically last 10 to 15 years. The common standard parts warranty on these units is 10 years now as well. Regular servicing, keeping the filter clean, and otherwise checking on it semi-frequently can extend this lifespan and ensure your unit is operating at its most efficient.

Your new HPWH will usually install in the same location as your existing tank water heater. It’s about the same size or maybe a little taller since the heat pump unit is at the top of your new HPWH tank unit. The hot and cold water taps into the tank in the same way. The electrical may be different, as you typically might need a different or larger electrical circuit if you have a natural gas tank now. There will also need to be a drain for a condensate drain line on the new HPWH units. If you don’t have one, then you can use a condensate pump (a little extra cost) to pump water up and out of your home.

You sure can. In fact, the State of Colorado has provided $30M to the Colorado Green Energy Bank known as the Colorado Clean Energy Fund RENU financing. This programs has many benefits over traditional equipment financing, such as:

  • Up to 15 year loan terms
  • No prepayment penalties
  • Very loan low costs to get started
  • Works with many local credit unions
  • Lower interest rates vs. traditional financing

We are an approved RENU contractor and this is by far our most recommended way to finance your heat pump in Colorado. You can read more about this program here, or contact us to ask about how you can finance your own heat pump.

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Theresa M profile picture
Theresa M
October 31, 2026
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Justin was on time, professionlal, and efficient. Just Heat Pumps rocks.
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Keith K profile picture
Keith K
October 26, 2026
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Just Heat Pumps did a great job installing our system. So far the heat pump is working great, our home is comfortable and the installation was very affordable.
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Bob M profile picture
Bob M
October 23, 2026
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The annual maintenance program continues Just Heat Pumps philosophy that they want your system running right. If not it reflects on them. Justin was great, polite, calm, friendly, and informative regardless of how many questions I asked. Also not indication at all that I should be spending more or need something or else. No upselling in sight. I have recommend these guys to several neighbors and will continue to spread the word when I can.
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David B profile picture
David B
October 20, 2026
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Every single person I talked to at JHP listened to me and thoughtfully and thoroughly answered every question and concern I had, especially Tom (sales), Ryan and Ben (installation), Xerxes (head honcho), and Kevin and Tino who poured the concrete slab AND went above and beyond to remove an old unit from my crawl space that I couldn’t figure out how to do on my own. The professionalism exhibited by every member of the team could not have been higher, but the most enduring impression was everyone’s pride in their work and how much they obviously enjoyed being a member of the JHP team. It’s too soon to say how the system they installed will perform, but I have every confidence that should any issues arise, they will be addressed with the same level of care and expertise shown during the installation. A rare and exceptional group of people who take pride in their work while treating you with common human decency. A memorably positive experience all the way around.
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David L profile picture
David L
October 19, 2026
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Efficient, knowledgeable, friendly staff. Great system performance throughout the house through our very hot summer.
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Paulette S profile picture
Paulette S
October 13, 2026
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Our experience with Just Heat Pumps was outstanding. Xerses and Erin, other JHP staff, and their contractors for installation and electrical work were very skilled, professional, and conscientious. It’s just over a year that JHP installed mini split wall and ceiling units in our home. During one of the hottest summers in Colorado history, we stayed super cool. We used the heat feature as a supplement to our hot water heat system in the winter and the house was uniformly warm and comfortable. We also had our annual service inspection, and the system was thoroughly checked and cleaned. Before we chose JHP, we met with several companies to find they were pretty good sales people, but short on technical knowledge and unable to solve a few workarounds that we needed. We chose JHP because they had the tools to right size our units, make helpful suggestions, and genuinely knew the pros and cons of various options. We have been so pleased with Just Heat Pumps and would not hesitate to highly recommend this awesome company.
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Greg M profile picture
Greg M
October 13, 2026
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We got our annual tune up on the system. Everything is in good shape. Kevin was our service technician and he was terrific! He was polite, courteous and friendly. He answered my questions and explained why the fan periodically activates when the system is "Off". This is a great local company with great design and service. They have my wholehearted recommendation for their products and services. Thank you Xerxes, Erin and Kevin - you do a great job.
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Jim S profile picture
Jim S
October 13, 2026
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Complementary maintenance service to clean the outside unit, check out the system, and answer question. Everything is working great and glad to have the Just Heat Pumps team taking care of it all.
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Garrison H profile picture
Garrison H
September 20, 2026
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Just Heat Pumps replaced our furnace with a heat pump and was fantastic to work with through the entire process! They were prompt, professional, transparent, and friendly. Xerxes takes a data driven approach to specifying the best system. The installation team even asked if we wanted to write anything in the concrete pad they poured for mounting the condenser, which our daughters loved!
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Robert G profile picture
Robert G
August 24, 2026
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Working with Just Heat Pumps LLC was a 5-star experience all around. Their depth of knowledge on modern heat pump systems, efficiency ratings, and local Denver incentives set them completely apart from traditional HVAC outfits. The installation was handled on schedule with meticulous attention to detail and clean workmanship. Our home stays perfectly comfortable, and the system is remarkably efficient and quiet. Highly recommend them to anyone making the switch to an all-electric heat pump setup!
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