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!

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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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