What Do Heat Pump Water Heaters Cost To Install?

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If you’ve heard of heat pumps, odds are you’re thinking of the electric heating and cooling systems that are taking California homes by storm in 2022. But heat pump technology is also a money-saving alternative to traditional units in water heating.

Heat pump water heaters are two to three times more efficient than traditional gas water heaters. This results in hundreds of dollars saved every year in your California home, or more than $3,400 over your new water heater’s lifespan for a family of four.

Interested in upgrading your old water heater to a more energy efficiency model? You likely have two main questions:

  • How much will it cost to install a heat pump water heater?

  • Where can you find a local contractor you can trust to help you find the right unit and install it properly?

Does Heat Pump Water Heater Installation Cost More?

In exchange for greater energy efficiency, lower monthly water heating costs, and a longer lifespan, heat pump water heaters generally cost more than a traditional electric or gas water heater. As we mentioned earlier, though, you can recoup those higher upfront costs through the annual savings that come with using a more efficient unit to heat the water for your home. Installation costs for heat pump water heaters are generally on par with gas water heaters, and there are a number of local and statewide programs offering incentives to help encourage adoption of heat pump technology and home electrification.

What Makes Installing a Heat Pump Water Heater More or Less Expensive?

There are so many different brands and models of heat pump water heaters that it would be nearly impossible to give one overarching price. The installation cost of your heat pump water heater will depend on several factors, including the size of your tank, the model and efficiency rating, and more. Additional factors that can increase the installation costs of replacing your old water heater with a heat pump unit include:

  • Having to move the water heater

  • Longer circuits

  • Replacing other indoor/outdoor components that are in poor condition

On the flip side, California homeowners also have additional ways to SAVE on heat pump water heaters, including rebates and incentives that can lower upfront costs like the TECH Clean California program, where $3,000 to $6,600 in incentives are available for installation of a heat pump water heater. These kinds of incentives can make it less expensive for a homeowner to replace their water heater with a heat pump model compared to a traditional unit.

How to Find the Best Heat Pump Water Heater Contractor Near You

The easiest way to get an accurate price on heat pump water heater installation in your home is to find a local contractor who can give you a quote based on your family’s needs. The Clean Energy Connection makes that process easier than ever with our 100% free online directory of California clean energy contractors.

The Clean Energy Connection is funded by a non-profit organization dedicated to supporting energy efficiency throughout the state and has no financial stake in which company you pick. The Clean Energy Connection vets every company included in the directory to ensure they are appropriately licensed and have a track record of delivering exceptional customer service. The Clean Energy Connection is easy to use, and you can sort results by contractor name, location, services offered (including heat pump water heaters), and more!

Start using the Clean Energy Connection directory.