Heat pump water heater
HPWH · hybrid water heater
A heat pump water heater is a storage water heater that heats water by moving heat from the surrounding air into the tank; ENERGY STAR integrated models are rated at UEF 3.30 or more, against 0.95 for a standard electric tank.
Because it moves heat instead of making it, a heat pump water heater uses far less electricity than a resistance tank for the same hot water: at UEF 3.30 against 0.95, about 29% as much. ENERGY STAR also certifies 120-volt plug-in and split-system models, with a lower minimum of UEF 2.20.
It needs space and warmth to work well. ENERGY STAR advises installing it in an interior space that stays between 40 and 90 °F year-round with about 1,000 cubic feet of air around it, and notes that it cools the space it is in.
The federal tax credit for these units ended with 25C for property placed in service after December 31, 2025. The state-run HEEHR program caps its rebate at $1,750, and since May 29, 2026 covers replacing existing electric equipment rather than gas.
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