Replace your gas water heater with a heat pump water heater, which uses 70% less energy.

How they work: Heat pump water heaters, also known as hybrid water heaters, use 70% less energy than standard electric water heater models by moving heat from one place to another rather than generating it directly. Heat pump water heaters will offer a substantial opportunity for savings when replacing a gas hot water heater.

Heat pump water heater benefits

  • Up to three times more efficient than standard electric water heater models
  • Save money
  • Safe and reliable performance
  • Environmentally friendly

Economics for Heat Pump Hot Water Heater

  • Unit + Installation will be about $3,800-$4,200
    • Water heater installation must comply with state and local building codes. Also, installation requires both plumbing and electrical work. Should work with qualified, licensed contractors with experience.
  • Energy savings: $300-400/year projected

Rebates

  • Golden State Rebates
    • $500 if replacing electric
    • $700 if replacing gas
  • Switch Is On (Federal tax credit)
    • Eligible for 30% of costs, including labor up to yearly maximum limit of $2,000 for heat pump water heater installs on existing home (not new build)
  • CPUC Self Generation Incentive Program (coming soon)
    • Requires systems to be designed, installed, and operated in a manner that shifts electricity use from peak to off-peak periods and reduces GHG emissions using a “thermostatic mixing valve” that allows pre-heating of water during off-peak hours when electricity use is low.