Heat Pump Water Heater Cost in 2026 (Installed)

A heat pump water heater typically runs $3,600 to $6,500 installed. Replacing an existing electric tank usually lands at the lower end ($3,600–$4,800) since the wiring is often already compatible; replacing a gas tank costs more ($4,300–$6,500) because it usually needs new electrical circuits run.

Illustration of a blank estimate sheet and calculator next to a heat pump water heater installation.

Likely Causes, Ranked

Replacing an existing electric tank
Often the cheaper conversion since 240V wiring may already be in place.
Replacing a gas tank
More expensive because a new dedicated electrical circuit typically has to be run to the water heater location.
120V plug-in models
Can cut installation cost meaningfully by avoiding new circuit work entirely.

FAQ

Is a heat pump water heater worth the extra upfront cost?

It depends on your electricity rate and available rebates — the running-cost savings usually offset the higher purchase price over several years, but the payback period varies a lot by location.

Written by HotWater Decoded — water heater repair specialists. Technically reviewed by a licensed technician on our team.

Sources

Rewiring America’s 2023–2026 heat pump water heater cost analysis ($3,600–$6,500 range)
HomeGuide installed cost data ($2,000–$4,600 range)