Heat Pump Water Heaters
Keep your water warm and the savings flowing with a heat pump water heater.
Water heating accounts for around 20% of energy use in the average home. Choosing a heat pump water heater (also known as a hybrid water heater) can provide the hot water you need while lowering your monthly energy bills.

Unlike other water heaters, heat pump water heaters don’t burn fossil fuels, don’t require additional piping or ventilation, are 4x more efficient, and also serve as a dehumidifier.

Heat pump water heaters also act as dehumidifiers, because they draw moisture from the area they are in. This is great if it’s installed in a humid area of your home, like a basement.
Learn More about Heat Pump Water Heaters
Dollars & Sense
- Cut your water-heating costs in half when you switch to a heat pump water heater, saving you $200–$400 per year or more depending on how much hot water you use.
- Rebates: NYS Clean Heat helps you save money on your heat pump water heater purchase.
- Federal tax credits: Cover 30% of the cost on eligible water heater models, up to $2,000 per year.
- Low-interest loans: Get loans starting at 4% to help finance your project.
Benefits & Considerations
- Efficiency: Heat pump water heaters perform up to three times more efficiently than standard water heating systems.
- Safety: Heat pumps don’t require burning fossil fuels or fuel storage, eliminating the potential release of carbon monoxide.
- Longevity: These systems last longer than standard systems and cost half as much to operate.
- Dehumidification: Heat pump water heaters also act as dehumidifiers, because they draw moisture from the area they are in. This is great if it’s installed in a humid area of your home, like a basement.
Questions for Your Contractor
- What is the best location to put a heat pump water heater in my home?
- What size tank do I need? Do I need a bigger size than my current water heater?
- What mode should my heat pump water heater be set to for the greatest efficiency — hybrid or energy saver?
- Will I need to update my electric service?
- How long will installation take? Where and when will you need access?
- How do I use my heat pump water heater for optimal comfort and efficiency?
- What other energy-saving strategies can be used to lower my water-heating bills?
- What maintenance is required? Is annual service needed?
- What is the expected lifespan and warranty?
Frequently Asked Questions
Where is the best location for heat pump water heaters?
Heat pump water heaters are taller than most other water heaters and require at least 1,000 cubic feet of air space. They can also be louder than other water heaters (similar to a basement dehumidifier), so you’ll want to keep them out of living spaces. The best location for a heat pump water heater is an unfinished basement or separate utility room.
Where are heat pump water heaters sold?
Heat pump water heaters are sold and installed by local plumbers, or you can purchase one directly from most large retail stores.
What type of maintenance is required on heat pumps?
Just like your old water heater, routine maintenance can extend your water heater’s life and keep it running efficiently. Read your owner’s manual for specific maintenance recommendations.
Heat Pump Planner
Take a deeper dive into heat pump water heaters and start to explore other types of heat pumps too.
Inflation Reduction Act
Learn how federal tax credits and rebates are helping New Yorkers choose heat pumps.
MyEnergy
MyEnergy is New York State’s home energy upgrade planning tool that’s designed to maximize your financial savings, streamline home energy projects, and help you discover the benefits of going electric.
A heat pump water heater is a great option for many New York homes, but it may not work in your space. If you don’t have a basement, or live in an apartment or condo where you don’t have access to your water heater, you can consider other options, such as:

Electric Storage Water Heater:
This is a conventional storage water heater. It consists of an insulated tank in which water is electrically heated then stored until needed.

Electric Tankless / On-Demand:
Tankless water heaters provide hot water only as needed without a storage tank. They use intense flashes of heat against water-filled coils.

Solar Water Heaters:
Solar water heaters rely on solar energy to generate heat. This type of heater requires two parts: a solar collector and an insulated storage tank. These heaters typically have a backup source of energy for days with minimal sun.
NYS Clean Heat
NYSERDA and New York’s energy companies are partnering to help homeowners save money and energy with financing, rebates, and resources to get a heat pump water heater.
Where Heat Pumps Fit in Your Path to a Clean, Efficient, and Comfier Home
Heat pump water heaters are a key equipment upgrade on your path to a clean, efficient home. Make the most of your upgrades when you start by preparing your home, then explore cleaner, more efficient options.
Get Your Home Ready


Choose Electric Appliances & Equipment


Drive Electric & Go Solar


Get Started with a Free Home Energy Assessment
Pair your heat pump water heater with a no-cost home energy assessment. Work with a NYSERDA participating contractor to find out if your basement is a good fit for a heat pump water heater and learn all of the places your home is wasting energy — then get financial incentives to help fix it.