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Some homeowners don’t even consider HPWHs because the technology requires a relatively large up-front investment. The purchase price of a HPWH typically runs three or four times higher than a conventional model. To fairly judge the cost-effectiveness of a water heater, however, you must consider the cost of running it as well as the cost of the equipment itself. By virtue of their unparalleled efficiency, HPWHs often cover their extra cost within a few years, and from then on any savings go right into your pocket.
Another important factor to weigh in your decision: There are a number of rebates available to help mitigate some of the purchase price. For instance, if you install an ENERGY STAR HPWH unit in 2016, you qualify for a $300 federal tax credit. The utility, energy service provider, or municipal government in your area may offer additional incentives. Visit the ENERGY STAR Rebate Finder for a comprehensive list. Don’t delay. If you do your research now, as soon as your existing water heater approaches the end of its 10- to 15-year lifespan, you’ll be ready to act promptly to replace it, if not with a heat pump water heater, then with any unit boasting the ENERGY STAR label.
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