Tucson Hybrid Heat Pump Water Heater Cost, Reviews, FAQ

What is a Heat Pump Water Heater?

A heat pump water heater is a somewhat newer technology (been around since the 70's, but not commercially available until 2009) that works by transferring heat from the surrounding air to the water inside the water heater tank. It uses a compressor and refrigerant to absorb heat from the air and move it into the water, making it more efficient than traditional electric water heaters.

How Much Energy Will I Save Per Year?

Energy savings will be relative to your home and lifestyle use of hot water. Based on the EnergyGuide estimates, most people will save between $200-$500 per year on operational water heating costs.

Let’s take a look at the potential energy savings of a recent water heater swap we completed.

How Much Does a Heat Pump Water Heater Installation Cost in Tucson?

For most projects, the cost to install a heat pump water heater in Tucson ranges from $3200 to $3800. This includes the Heat Pump water heater, all incidental materials, supply and delivery of the water heater unit to your home, the complete installation, haul-off of your old tank, and a 10-yr warranty covering the tank, parts, and labor.

How Does Upgrading to a Heat Pump Now Benefit You?

You’ll Be Ahead of the Curve: Water heater manufacturers are preparing to phase out standard electric water heaters because of the new energy efficiency standards proposed by the Department of Energy, which will take effect in 2029.

While this new energy mandate will phrase out traditional electric water heaters, it’s designed to save you money on energy bills. 

Unmatched Energy Savings: Heat Pump water heaters really are a game-changer, using up to 70% less energy than traditional electric water heaters. Saving several hundred dollars or more per year with a 10-year warranted water heater is quite significant.

Even if your current water heater is functioning without noticeable issues, the energy consumption will be much more than a heat pump. Switching now saves you money.

Generous Rebates & Tax Incentives:  Take advantage of the current rebates before they are gone. These financial incentives are not common. In fact, these are the best water heater incentives we’ve seen in our 23 year company history.  30% on the project cost from the Fed and an additional $400 credit from TEP. 

What if My Water Heater Currently Works, Should I still Upgrade?

This depends on what’s important to you. 

It’s common for people to wait until their water heater leaks or just completely stops working before replacing their unit.

People even ask us, “If it ain’t broke, don’t fix it,” right?

While that sentiment is certainly true in many scenarios, it doesn’t hold up for everything, especially when it comes to appliances, like water heaters.

Unlike a plumbing fixture, a water heater costs money to operate. Even when your water heater seems to work “just fine” without any noticeable issues, its performance and cost effectiveness might tell a different story.

Since a water heater costs money to operate, we shift the conversation from “if it ain’t broke, don’t fix it” to “If it wastes money, maybe consider a replacement.”  

To check your potential energy and money savings, look at the energy guide sticker on your current water heater and locate where it says “Estimated Yearly Energy Cost.”  Then compare that number with a new water heater’s “Estimated Yearly Energy Cost.”  

The other important factor to consider, is that water heaters accumulate scale build up inside the tank.  When this occurs, your water heater must heat the sediment build up and the water to reach the set temperature of the thermostat.  This causes your water heater to use more energy than it would if hard water was not an issue.

According to some research, water heaters operating with scale build up on the inside of the tank, use 25% more energy to heat the water.  The older your water heater is, the more scale build up it will accumulate. 

Simply put, keeping a 15-20 year old water heater operational is usually wasteful. 

How Does a Heat Pump Water Heater Work?

The basic principle of a heat pump is that it moves heat from one place to another. In the case of a heat pump water heater, a heat pump mechanism that sits on top of the water heater tank pulls in air and extracts the heat from the air and then transfers this heat to the water in the tank.

To make it even more simple, think of how a refrigerator works. Your refrigerator is also a heat pump. It pulls out the warm air from inside the fridge transferring this heat to the outside of the fridge. This process cools down the inside of the refrigerator. A heat pump water heater works virtually the same, just in reverse.

To get a more technical idea of how it works, here is a brief video:

Should I Go With a Heat Pump Water Heater?

There is not one answer that applies to everyone.  While there is certainly some energy savings each year, the initial cost to buy one is 2-3X that of a conventional water heater.  

Reasons you might go with one: 

-They can save $200-$500 per year in operating costs.

-New energy mandates are requiring electric water heaters to be more efficient, which means your future water heater may have to be a heat pump. 

-There are currently federal tax credits and many local utility company credits and incentives. 

-They have better warranties than traditional water heaters and are designed to last longer. 

-They have been in the US market for over 15-years and have proven longevity. 

Reasons you might not go with one: 

-Initial cost to buy can be 2-3x that of a standard water heater. 

-They require a little maintenance, such as cleaning of the air filter

-It makes a bit of noise when heating the water.  It’s not loud, but can be heard if you are in the same room with the water heater.  It sounds close to what old refrigerators sound like when they are cooling the fridge to temperature. 

-They require a 30-amp circuit/breaker.  Most traditional water heaters are already powered with this source, but some older homes may need an amp upgrade.  

-It needs a drain to discharge condensation. Condensation can be discharged to an outside wall. Convenient if your water heater is in the garage. But if your water heater is in the middle of the house, it may not be easy to create a drain. 

Is it Worth Getting a Heat Pump Water Heater?

This is difficult for anyone to answer objectively, as there isn’t one answer that applies to all properties.  If you ask most Licensed Plumbers if a heat pump water heater is worth getting, they’ll usually say “yes, it is.”  The reason they feel this way is based on the comparison of the energy guide stickers.  

Let's compare the energy guide estimated use on a new 50-gallon standard electric water heater from Rheem and a new 50-gallon heat pump water heater, also from Rheem. 

Heat Pump Water Heater Explained

Heat Pump water heaters generally operate on the same basic principles, but they can have some differences in design, features, and applications.

The operation starts with a fan drawing in the air into the upper enclosure of the heat pump, where it passes through a filter to remove dust and debris.

The heat from the air is absorbed by an eco-friendly refrigerant within the evaporator coil, and cool, dehumidified air is then expelled.

The refrigerant, pumped by the compressor through the refrigerant system, undergoes a temperature increase.

This heated refrigerant is then directed to the condenser, which is wrapped around the water heater tank, transferring heat from the refrigerant to the water.

Heat pump water heaters are more energy efficient because they move heat rather than generate it directly.

To compare the energy use of your water heater, check the energy guide sticker located on the side of your water heater tank.

You can also look into the available tax credits for installing a heat pump water heater, such as the current Federal tax credit of up to $2,000.

Additional incentives are available with TEP or your local utility company.

If you want to determine how to maximize your tax credits, visit energystar.gov to learn more.