Heat pump water heaters: worth it in Pittsburgh yet?
A heat pump water heater can return about four dollars of hot water for every dollar of electricity. Here is who that actually pays back in Pittsburgh, and who should wait.
A heat pump water heater is one of the most efficient ways to make hot water there is. Using rough numbers, a standard electric tank returns about 97 cents of hot water for every dollar of electricity, while a heat pump water heater returns about four dollars of hot water per dollar of electricity. The catch is a high upfront cost, so it pays back best for homeowners who have solar, qualify for tax credits or rebates, or plan to stay in the home a long time. As a bonus, it dehumidifies your basement while it runs, which is a real perk in a Pittsburgh summer.
How efficient is a heat pump water heater, really?
Let me put it in plain numbers, and these are rough numbers to make the point. A regular 50 gallon electric water heater has an energy factor around 0.97. That means for every dollar of electricity you put in, you get about 97 cents worth of hot water back. On a heat pump water heater, for every dollar of electricity you put in, you get about four dollars of hot water back. Is it energy efficient? Absolutely. It is not even close.
The reason is that a heat pump water heater does not make heat the hard way. Instead of running electricity through a resistive element like a standard tank, it pulls heat out of the air around it and moves that heat into the water. Moving heat is far cheaper than creating it, and that is where the four-to-one number comes from.
The bonus nobody mentions: it dries out your basement
Here is a benefit people do not expect. Because a heat pump water heater pulls heat and moisture out of the surrounding air, it dehumidifies the basement while it works. In a Pittsburgh summer, that is huge. We deal with a lot of damp, clammy basements around here, and a heat pump water heater chips away at that humidity for free while it is making your hot water. If you have ever fought a muggy basement, you will appreciate that.
So what is the catch?
The catch is the initial investment. Heat pump water heaters are expensive up front, a lot more than a standard electric tank. That is the whole reason I do not put one in every home. The efficiency is fantastic, but the payback depends on how long you keep that efficiency working for you.
Who a heat pump water heater pays back
- Homeowners with solar power. If you are already making your own electricity, running a super-efficient water heater off it is a natural fit.
- People primed for a tax credit, manufacturer rebate, or energy company rebate. These are for customers who are in the know and able to take advantage of the incentives, which can take a real bite out of the upfront cost.
- Anyone staying in the home a long time. The longer you live with that four-to-one efficiency, the more the savings stack up and the better the payback gets.
Who should probably wait
If you are planning to move soon, or you are not set up for some kind of tax credit or energy rebate, the high upfront cost may not pay back before you leave. In that case a tankless or a standard tank may simply make more sense for your situation. There is no shame in that. The right water heater is the one that fits your plans, not the one with the fanciest spec sheet. If you are weighing your options, here is our straight talk on tank versus tankless for a Pittsburgh home.
Is the technology actually ready?
It is, and that part is not a concern for me anymore. Rheem is on their fourth or fifth generation of these units, and I think we have the best heat pump water heater on the market right now. They are super reliable, we back them with a great warranty, and they work great. The hesitation is never about whether the product is good. It is about whether the economics line up for your specific home. When they do, it is a genuinely great product. You can read more about how they fit a Pittsburgh home on our heat pump water heater page.
The quick version
- A standard electric tank returns about 97 cents of hot water per dollar of electricity; a heat pump water heater returns about four dollars (rough numbers).
- The upfront cost is high, which is why it is not the right pick for every home.
- Best for solar owners, rebate and tax-credit candidates, and long-term stays.
- It dehumidifies your basement while it runs, a real bonus in a Pittsburgh summer.
- The technology is proven: Rheem is on its fourth or fifth generation, reliable and well warrantied.
Is a heat pump water heater energy efficient? Absofreakinglutely. About four dollars of hot water for every dollar of electricity, versus roughly a dollar for a standard tank.
But the upfront cost is high, so I recommend it for folks with solar, a rebate or tax credit in play, or a plan to stay in the home a long time. If you are moving soon, it may not pay you back before you go.
David WahlCEO & Master Plumber, Wahl Family
Want a Pittsburgh company that does it the right way, the first time?
Call 1-855-GET-WAHLFrequently asked questions
How efficient is a heat pump water heater compared to a standard electric tank?
Using rough numbers, a standard electric tank returns about 97 cents of hot water for every dollar of electricity, while a heat pump water heater returns about four dollars per dollar. It is far more efficient because it moves heat from the surrounding air into the water instead of creating heat with a resistive element.
Will a heat pump water heater pay for itself in Pittsburgh?
It can, if you stay in the home long enough or stack incentives. The upfront cost is high, so the payback works best for homeowners with solar, those who qualify for tax credits or utility rebates, or anyone planning to stay put for years. If you are moving soon, it may not pay back in time.
Does a heat pump water heater really dehumidify the basement?
Yes. Because it pulls heat and moisture out of the air around it to make hot water, it dries out the surrounding space as a side effect. In a humid Pittsburgh summer, that basement dehumidifying is a genuine bonus on top of the energy savings.
Is the technology reliable, or is it too new?
It is reliable. Rheem is on its fourth or fifth generation of heat pump water heaters now, and we consider it the best on the market. We back it with a strong warranty and they perform well. The reason it is not for everyone is the economics, not the product.
Who should not buy a heat pump water heater?
If you are planning to move soon, or you are not set up to capture a tax credit or energy rebate, the high upfront cost may not pay back before you leave. In that case a tankless or standard tank is often the smarter buy. We will tell you honestly which one fits your plans.
For a Happy Home, Get Wahl
Pittsburgh and Allegheny County, since 1980. HVAC, plumbing, water treatment, sewer, and bathroom remodeling, all under one roof, all done the Wahl way.