Benefits of heat pump water heaters

Heat pump water heaters are three times more efficient than conventional electric water heaters and can lower operating costs by 50%.

Lower greenhouse gas emissions

Lower greenhouse gas emissions than heating water with oil, propane, natural gas, or electric resistance

Cost competitive

Save money on utility bills compared to heating water with propane, oil, or electric resistance


Provides dehumidification to the room where the heat pump water heater is located

Smart controls

Wi-Fi controls enable homeowners to remotely control and monitor the water heater

The Technology


Heat is transferred from the surrounding indoor air into a hot water tank. Hot water is then piped throughout the home. When needed, a backup source of heat in the tank will provide supplemental hot water

diagram illustrating heat pump water heater functionality and intergration in the home

Heat pump water heaters are ideal for:

New construction | System replacements | Home remodel


Explanation of Heat Pump Water Heater

This Old House | 6 min. 26 sec.

This Old House plumbing and heating contractor Richard Trethewey explains how a heat pump water heater works and the installation process

two young sisters standing in front of a heat pump water heater tank in their basement

Featured Customer Story

Tony’s New Heat Pump Water Heater

The heat pump water heater paid for itself in less than five years and helped Tony and his family continue their journey towards minimizing household greenhouse gas emissions.

Incentives and Financing

mass save logo

Mass Save®

Instant $750 rebate for residents replacing an existing electric, oil, propane, or natural gas water heater

Municipal Light Plant

If you live in a town served by a Municipal Light Plant (MLP) check your MLP’s website for incentives and rebates.

Federal Tax Credits

Inflation Reduction Act: Federal tax credit of 30% up to $2,000/year.

Federal Rebates

Inflation Reduction Act: Up to $1,750 depending on your household size and income.

Financing Options

Mass Save® HEAT Loan: Up to $25,000 at 0% interest over terms of up to 7 years

Example Cost for a 2,000 FT2 Home

Cost after incentives is estimated by subtracting Mass Save rebate and Federal Tax Credit from up-front cost.
Cost after incentives may be substantially lower if your household qualifies for income-scaled Federal rebates.

Example up-front cost before incentives


Example cost after


Things to Consider

If you answer yes to ANY of these questions, then a heat pump water heater is a good fit for your home

Installing a heat pump water heater could save hundreds of dollars a year on your utility bill.

Consider replacing your water heater before it fails or leaks all over the floor. A heat pump water heater can replace your existing water heater, and the installation can be done by a plumber.

Heat pump water heaters need to be located in a minimally warm area with enough open space for air circulation to operate efficiently.

Many HPWH also have Wi-FI integration which enables alerts, service warnings and more active monitoring of the system. Leak protection systems are also increasingly common, automatically shutting off water to, or sealing up areas surrounding, a leak to prevent flooding.

It’s counterproductive to create heat in the basement in the summertime while trying to keep the rest of your home cool. A heat pump water heater efficiently uses heat from the surrounding air instead of combusting fuel onsite to create hot water.

Contact installers to find out how a heat pump water heater could work for you

Questions to ask your installer


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Consider another low-emissions solution: solar hot water

shot of new england home with solar panels on roof for solar hot water

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Pledge to reduce your home’s carbon footprint by replacing old systems and appliances with clean energy technologies over time.

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Let's work together to reduce greenhouse gas emissions from our homes and build a clean energy future for Massachusetts.