HVAC + PLUMBING ACAR CORNER Issues in the real estate industry
Cutting Costs With a Heat Pump Water Heater Submitted by Drew Gaebelein Keller Williams Living
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eat pump water heaters are an energy-efficient solution to gas and electric pumps that could save residential property owners money. More buyers than ever are choosing energy-efficient heat pump water heaters (HPWHs) over fossil-fueled water heaters. In 2022, Americans 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 single-family home owners switch from a standard electric or gas model to an HPWH, they can save as much as one ton of carbon emissions each year.
Illustration by Marjorie Schott, NREL; source: www.energy.gov
Not only do HPWHs perform up to three times more efficiently than conventional systems, they also last longer and cost less to operate. With current rebates, tax incentives and low-interest financing options available, now is a good time to get up to speed on water heater efficiency.
How heat pump water heaters work
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.
Benefits of HPWHs
HPWHs are often a cleaner, safer, more efficient and affordable option to heat water. Because the process of transferring heat also draws moisture 64
from the air, HPWHs offer additional dehumidification benefits if installed in a humid environment like a basement. Cleaner & safer HPWHs eliminate the risk of occupant exposure to carbon monoxide and other indoor air pollutants produced by combustion and also produce fewer greenhouse gas emissions. Efficient HPWHs are two to three times more efficient than gas or electric options. Efficiency means less running time,
thanks to faster heating. As a result, HPWHs may cut water heating costs by as much as 50%, depending on how much hot water you use and the type of heater being replaced. Affordable Nationally, heating water is usually the second-largest household energy expense after space heating and cooling costs and can account for as much as 20% of a home’s energy consumption. The average household spends approximately $400 to $600 each year on water heating. Switching from a Properties | May 2025