Is a Heat Pump Water Heater Worth It in California?

checking for hot water

If it’s time to replace your old gas water heater in California, installing a heat pump water heater is a smart decision. Heat pump water heater systems can make your home more efficient by using carbon-free energy. They have many benefits for California homeowners and are an important step on the path toward whole-home electrification

Keep reading to learn more about the pros of heat pump water heaters and why you should consider installing one at your home. 

Benefits of Heat Pump Water Heaters 

Energy Efficient Water Heating 

Heat pump water heaters work by capturing heat from the surrounding air and using it to heat water that’s stored in a tank, unlike gas water heaters that create heat by burning natural gas. This is a much more efficient process that will reduce the amount of energy your water heater consumes. 

Reduces Greenhouse Gas Emissions 

One of the main benefits of heat pump water heaters in California is that they run on electricity rather than fossil fuel. Electricity can be provided by carbon-free sources such as solar PV panels, making electric water heaters cleaner and more sustainable than their gas counterparts.

California has aggressive goals for reducing greenhouse gas emissions, and the transition from gas to electric water heating is essential to meeting those goals. 

Can Be Powered by Free Solar Energy

If you already have solar panels or you’re thinking about installing them, it doesn’t make sense to install a gas water heater. Solar panels can power electric appliances, like heat pump water heaters, for free. 

Safer and Healthier than Gas Water Heating 

Gas water heaters come with a whole host of health and safety concerns, including carbon monoxide leaks. Heat pump water heaters have fewer safety risks and won’t create indoor air pollutants that make your family sick. 

Tax Credits & Rebates Can Reduce Installation Costs 

There are several incentives for heat pump water heater installation you can take advantage of in California. 

  • Inflation Reduction Act energy efficiency tax credit - Get a federal tax credit worth 30% of your heat pump water heater installation costs, up to $2,000. 
  • SMUD heat pump water heater rebates - Save up to $3,000 on heat pump water heater installation with SMUD rebates. 
  • TECH Clean California heat pump water heater rebates - Rebate amounts and availability varies depending on your utility provider. 

Additional rebates for heat pump water heaters may be available, depending on where you live and what utility service provider you use. An experienced clean energy contractor near you will be able to help you understand what rebates are available in your area. 

Find a Heat Pump Water Heater Installer Near You 

The Clean Energy Connection makes it easy to find the right contractor for your heat pump water heater installation. Our free online directory connects you with clean energy contractors in California that have gone through a thorough vetting process that includes regular California State License Board license checks and customer satisfaction surveys. You can search the directory based on location, services, rebates, financing, and much more. It is 100% free to use for both homeowners and contractors, and we have no financial stake in who you choose. 

Upgrade to a heat pump water heater.