My Experience Switching to a Heat Pump Water Heater
Posted on August 10, 2021 by Will Gehrke
Tags, Energy
CUB is a big proponent of energy efficiency. Energy efficiency saves money, reduces emissions, and has been a major focus of CUB’s work since 1984. In the context of my work at CUB, I recently became aware of a new energy efficiency technology: heat pump water heaters. Heat pump water heaters warm water by pulling heat from the surrounding air, rather than relying on electric heat.
Under ideal weather conditions, heat pump water heaters produce three times the energy used to power the heat pump. In other words, heat pump water heaters use one third of the electricity of conventional electric water heaters. CUB estimates that the average residential customer would save $17 per month using a heat pump water heater.
Due to the cost savings and environmental benefit of heat pump water heaters, I recently chose to install a unit in my home. To install a heat pump water heater, the unit requires enough space (approximately 100 square feet) to pull heat from the surrounding area. As a byproduct of this action, heat pump water heaters cool the area around the unit. This means that heat pump water heaters may not be suitable for finished basements or living areas due to increased heating costs.
If there is not enough space to draw heat, the unit must be ducted to the outside of the home, which means additional installation costs. Heat pump water heaters also require a drainage line to either a sewer pipe or the outside of the residence. Many electric resistance water heaters can be replaced with heat pump water heaters without major plumbing or electrical retrofits.
Heat pump water heaters typically require the assistance of a licensed professional to successfully complete the job. It was not an easy process for me to find an installer. I had to contact five different water heater installers to find someone who could install my heat pump water heater. Two of the installers gave me quotes for a heating and cooling system rather than a water heating system. Two other installers refused to install these units and told me to use a conventional water heater.
In my experience, installers are not familiar with heat pump water heaters, even though these appliances are widely available in the Pacific Northwest. I ultimately had success using the Energy Trust of Oregon’s Trade Ally program, which connects residential customers with trusted energy efficiency contractors.
If I wasn’t motivated to install a heat pump water heater to save energy, I would have likely installed a conventional water heater which uses three times more energy. This is a shame because the marketplace and installers in Oregon appear to be holding back more widespread adoption of heat pump water heaters.
Another barrier is that consumers balk at the higher initial cost of heat pump water heaters and lack familiarity with the technology. As of 2021, the average 50-gallon resistance water heater costs $400, whereas a typical heat pump 50-gallon water heater costs $1100. However, heat pump water heaters have lower operating costs, and the average residential customer can save a total of $800 on their energy bills after four years.
More needs to be done to make higher-efficiency home energy systems like heat pump water heaters more accessible to low-income households. Thankfully, customers do have some options. The federal government provides a $300 tax rebate for the purchase of a heat pump water heater. Additionally, the Energy Trust of Oregon currently offers an instant rebate of $500 for customers of Portland General Electric and Pacific Power who purchase heat pump water heaters. These two incentives combined allow customers of either utility to buy a heat pump water heater at a cheaper initial cost than a conventional resistance water heater.
If you use electricity to heat your home’s water and have the funds available, CUB believes that investment in a heat pump water heater is worth considering. Because of their efficiency, heat pump water heaters reduce energy demand on a system level. During peak times of electricity demand (mornings and evenings), water heaters consume a large amount of energy to run warm water through dishwashers, washing machines, showers, and sinks. Our region’s electricity system uses a combination of hydroelectric power and fossil fuel generation to meet this peak demand. If every home installed heat pump water heaters, residential customers would be responsible for less of the peak demand costs, and overall residential rates would be less expensive.
To keep up with CUB, like us on Facebook and follow us on Twitter!
12/15/22 | 2 Comments | My Experience Switching to a Heat Pump Water Heater