Heat Pumps Water Heaters

Heat Pump Water Heaters, also known as hybrid water heaters, use electricity to work. Not only do heat pump water heaters perform up to three times more efficiently than conventional systems, but they also last longer and cost half as much to operate. An additional benefit of heat pump water heaters is that they help to dehumidify their surrounding space. See this NYSERDA heat pump page for more information.

Incentives Available:

●    New York State Electric and Gas (NYSEG) offers a $700 rebate for heat pump water heaters.

●    The municipal electric Independent Energy Efficiency Program (IEEP) offers a $750 rebate for heat pump water heaters.

●    As of January 2023, there is a 30% federal tax credit for cold-climate air source heat pumps and heat pump water heaters for up to $2,000.

●    In addition, grant funding from NYSERDA’s EmPower+ program can often be used towards heat pump water heater installations. This program is for income-eligible households and provides up to $10,000 for low-income households or up to $5,000 for moderate-income households, with an additional $1,750 of specific funding for heat pump water heaters.

Location Considerations

Heat pump water heaters are taller than most other water heaters and require sufficient clearance. They are best placed in an unconditioned portion of your house, as they do remove heat from the surrounding air.

For more information, see our heat pump fact sheets [pdf].