The Full Story on Rebates and Incentives for Heat Pump Water Heaters
June 14, 2022
Across the country, local utilities and incentive programs offer rebates and credits for switching to Heat Pump Water Heaters (HPWHs). The goal is for homeowners to adopt high efficiency HPWHs to reduce energy demand, lower carbon emissions and help utility companies provide a reliable energy supply.
Why Are There Rebates and Incentives for Heat Pump Water Heaters?
Many states and cities have set aggressive carbon emission reduction targets. For example, California’s target is to reach net zero or carbon neutrality by 2045. This huge goal requires incremental changes. Switching from a gas or even an electric water heater to a heat pump water heater is one of the most effective ways to reduce carbon emissions. Many building codes and incentive programs are accelerating HPWH adoption by mandate or by giving homeowners and contractors installation rebates.
Additionally, with the shift to all electric buildings and more electric vehicles, the demand on the electric grid is increasing. Not only do HPWHs reduce carbon emissions, but they also reduce energy demand. Utility companies need to reduce the overall energy demand during peak usage times to avoid blackouts and service disruptions. Because they are an effective solution in managing a stable energy supply, more utility companies provide rebates for HPWH purchases.
How Are Heat Pump Water Heaters So Efficient?
Rather than operating on electricity alone, heat pump water heaters like the Rheem® ProTerra® Hybrid Electric Heat Pump Water Heater have a hybrid operation. While in a heat pump mode, they superheat the heat energy from the surrounding air and transfer that heat to the water in the tank. As you can imagine, homeowners save money on their utility bills and lower their impact on the electric grid and the environment.
Where to Look for Savings
While heat pump water heaters cost a little more than standard water heaters, many times the price is offset by the rebates, incentives and energy bill savings. Check with your local utility company as they may offer rebates and incentives for purchasing a heat pump water heater. Visit our incentives page and rebate finder to see offers. Search for rebates on the ENERGY STAR website.
Savings on your energy bill really add up. You can save up to $491 in energy costs per year – that’s almost $5,000 over 10 years. Those savings are based on the estimated annual operating cost savings of the 40-, 50-, 65- and 80-gallon Rheem ProTerra Hybrid Electric Heat Pump Water Heater models compared to a standard electric water heater of like capacity with minimum efficiency.
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