Heat Pump vs Standard Electric Water Heater: Is the Upgrade Worth It

Swapping a standard electric resistance tank for a heat pump water heater is the easiest upgrade path, since the 240V wiring is often already in place. The heat pump unit uses roughly a third to a quarter of the electricity for the same hot water, so the entire cost difference comes down to purchase price minus your electric rate savings over time.

Illustration of a heat pump water heater standing next to a standard electric storage tank water heater.

Likely Causes, Ranked

Existing 240V wiring often reusable
This is why replacing electric-with-heat-pump is typically the cheapest heat pump conversion path.
Electricity savings scale with your rate and usage
Higher electric rates and higher hot water usage both shorten the payback period.

FAQ

How much less electricity does a heat pump water heater use?

Heat pump water heaters typically use roughly a third to a quarter of the electricity of a standard resistance tank for the same amount of hot water, though the exact multiple depends on the model and how often it falls back to backup resistance heat.

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

Sources

DOE and ENERGY STAR efficiency ratings comparing heat pump and standard electric resistance water heaters