More home buyers than ever are choosing energy-efficient heat pump water heaters over fossil-fueled water heaters. In 2022, American homeowners installed over 4 million HPWHs, and sales of HPWHs increased by 26%. Sales of gas water heaters decreased by 17% for the same period. When homes switch from a standard electric or gas model to a HPWH, they can save as much as one ton of carbon emissions each year.
Not only do HPWHs perform up to three times more efficiently than conventional systems, they also last longer and cost less to operate. With the current rebates, tax incentives and low-interest financing options available, now is the prime time for real estate professionals to get up to speed on water heater efficiency to better serve clients. 4 Burner Gas Stove
What should home buyers know before making the switch?
The HPWH is a highly efficient way to heat water as it transfers heat rather than creating it. The unit is around three times more energy efficient than standard electric or gas models.
HPWHs use electricity to extract heat from the surrounding air to warm water in a storage tank. A fan pulls in the surrounding air and blows it across evaporator coils filled with refrigerant. The warmed refrigerant is pumped through a compressor to increase pressure and temperature before traveling through condenser coils to transfer the built-up heat to the water. After cooling, the refrigerant returns to the evaporator coils and repeats the process.
HPWHs are a cleaner, safer, more efficient and affordable option to heat water. Because the process of transferring heat also draws moisture from the air, HPWHs offer additional dehumidification benefits if installed in a humid environment like a basement.
Some states offer rebates or other incentives to encourage your clients to upgrade to a more efficient option. In New York, for example, homeowners can save more than $3,000 between federal tax credits and utility rebates with additional rebates coming later this year when Inflation Reduction Act Home Energy Rebates become available.
To learn more about tax credits, rebates and incentives in your market, visit your state or local government’s energy authority.
HPWHs are relatively simple to install without major disruptions to your home life. Water heaters are typically located in the basement or garage of a home, and the space must meet certain criteria:
For a typical single-family home, the tank will range in size from 50 to 80 gallons, and systems often include a backup heater. While you can find HPWHs sold at most large retailers, be sure to encourage clients to choose a professional installer who can recommend the best location for installation and size based on energy use needs for their homes. Professional installers will also provide any necessary plumbing or electrical needs for proper installation.
Like conventional water heaters, HPWHs require routine maintenance. Performing this maintenance or getting your HPWH serviced regularly can extend the water heater’s life and minimize loss of efficiency. Routine maintenance can include visual inspection for damage, draining once a year to avoid the buildup of sediment or checking the pressure relief valve and anode rod for functionality throughout the year. Alongside this routine maintenance, homeowners should be aware of a few HPWH-specific maintenance checks:
Whether your clients are buying or selling, pay attention to the water heating system and consider whether it might be time for a replacement. If the water heater is more than 10 years old, has visible corrosion, or is leaking, it might be time for an upgrade. If a HPWH isn’t an option for the space, there are other energy-efficient options to consider, including electric storage water heaters, electric tankless water heaters, or solar water heaters.
Courtney Moriarta is the director of the single family residential team at the New York State Energy Research and Development Authority.
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