14 Things to Know About Heat Pump Water Heaters | Contractor

09 Jun.,2025

 

14 Things to Know About Heat Pump Water Heaters | Contractor

Electrification is the environmental buzzword of the day. Expect more interest in electric products from environmentally-conscious consumers and more mandates away from gas by local governments. This means you can expect an increase in electric water heaters and with it, an increase in heat pump water heaters. Here are 14 things you need to know about heat pump water heaters.

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1. Lower Utilities

Heat pump water heaters are considerably less expensive to operate than straight electric water heaters. This is their primary advantage.

2. Lower Carbon Footprint

Because heat pump water heaters use less electricity, they are more environmentally friendly than straight electric. A little more than 60% of the nation’s electricity is based on fossil fuel generation. Reduce electric usage and you reduce fossil fuel generation.

3. You Need Power

Typically, a heat pump water heater requires 240 volts. If you are replacing a gas water heater and do not have sufficient power available, you will need to subcontract with an electrical contractor if you do not have an electrician on staff.

4. You Need Space

Recommendations for heat pump water heaters run around one thousand square feet. In other words, you need around a 10’ by 10’ room. For basements and garage installations, you should be in good shape. As a rule, water heaters located in closets will need to be moved. If the closet is in the garage, it might be possible to simply remove the closet door.

5. There is an Ambient Temperature Range

According to the U.S. Department of Energy, heat pump water heaters need to be operated in spaces where the temperature stays above 40 deg. F and below 90 deg. F. Most basement application should be fine. Some garage may be questionable. Attic applications, like many in Texas, are questionable.

6. Free Cooling

The heat pump water heater provides some cooling. Heat pumps remove heat from the surrounding ambient air and literally use a compressor to pump the heat through refrigerant into the storage tank’s water. Removing heat results in cooler air. This is a benefit in the summer, but a small liability in the winter.

7. Free Dehumidification

When the heat pump pulls heat from the ambient air, it also squeezes out moisture. A heat pump water heater can reduce the clammy feeling of some basements.

8. You Must Drain Condensate

The moisture that the heat pump water heater squeezes out becomes condensate, which has to go somewhere. If there is not a readily available drain, adding one will need to be factored into the cost.

9. Recovery Times are Slow

If hot water recovery is limited to the heat pump alone, it will be slow (i.e., think hours). Electric resistance heat can hasten the recovery, but at the price of eliminating much of the savings. An alternative is to use a larger storage tank.

10. Heat Pump Water Heaters Make Noise

When water is heating, there is a compressor running. There is some accompanying sound. In most cases it will not be a problem, but you should be aware of it and set customer expectations accordingly.

11. Longer Life

Heat pump water heaters are projected to have a slightly longer life than conventional storage water heaters. The difference is only a couple of years, but it helps.

12. They Cost More

The primary downside to a heat pump water heater is price. The cost from the manufacturer is roughly three times the cost of a conventional storage water heater. The installed cost may range up to four times as much. Fortunately, some consumers are willing to pay significantly more to reduce ongoing utility payments, especially if they anticipate rising rates in the future. Others are willing to pay a premium to reduce their carbon footprints.

13. Incentives Offset Costs

Government officials love heat pump water heaters. Accordingly, there are federal, state, and some local incentives. For up-to-date information on government incentives, visit the DSIRE database (https://www.dsireusa.org/).

14. More Profitable for Plumbers

Installing a heat pump water heater may take the same amount of time as a storage water heater. Even if it costs more, you can price in the added labor. Because the material costs are so much higher, if you maintain your margins, your total gross profit dollars and gross profit per man hour jumps considerably, making heat pump water heaters very profitable for plumbers.

Offer the Option

It is impossible for you to tell the difference between customers who might be willing to pay a premium for a heat pump water heater from those who want the lowest first cost. Thus, they should included as an option on every water heater replacement quote. Some will want them, others will not. Yet others might select a better storage water heater because it seems low cost in comparison to the heat pump water heater. You have nothing to lose by offering the product. Offer the option and let the customer decide.

5 Things to Consider When Purchasing New Hot Water Heaters

Are you thinking about getting a new hot water heater for your Waterford, MI area home? It’s not as simple as just picking any old water heater and installing it. There are a few important things to keep in mind to make sure you get the best one for your needs. 

The company is the world’s best Heat Pump Water Heater With Water Tank supplier. We are your one-stop shop for all needs. Our staff are highly-specialized and will help you find the product you need.

In this guide, Kotz Heating, Cooling & Plumbing will help you explore five key considerations when purchasing a new water heater.

Types of Water Heaters

Water heaters come in different shapes and sizes. The first thing to decide is what type of water heater will work best for you. There are several types: tankless, storage tank, solar, heat pump, and tankless coil & indirect water heaters.

  • Tankless Water Heaters: These are small and don’t store water. They heat water on demand, which means you’ll never run out of hot water. Tankless water heaters are energy-efficient and take up less space. However, they can be more expensive upfront.
  • Storage Tank Water Heaters: These are the most common and come in various sizes. They store hot water in a tank and keep it heated at all times. While they are affordable, they can be less energy-efficient, as they continuously use energy to maintain hot water in the tank.
  • Heat Pump Water Heaters: These are like magic! They use electricity to move heat from the air or ground to heat water, making them super energy-efficient. They are ideal if you want to save on energy bills in the long run.
  • Solar Water Heaters: This type of water heater uses the heat from the sun to heat the water. The upfront cost can be higher but since they use a renewable energy source, they are environmentally friendly!
  • Tankless Coil & Indirect: These water heaters work in conjunction with a main furnace or boiler to provide hot water on demand without the need for a tank. 

Consider your hot water needs and budget when choosing the type of water heater that suits you best. Don’t forget to think about the available space in your home, too!

Energy Efficiency

Speaking of saving on energy bills, it’s very important to pick an energy-efficient water heater. Look for the Energy Star™ label. When you see Energy Star™, you know the appliance meets strict energy efficiency guidelines set by the government. Energy-efficient water heaters can help you save money while being kind to the environment.

Size Matters

No, we’re not talking about the size of your house, but the size of your new water heater! The size of the water heater you need depends on your household’s hot water demands. If you choose a storage tank water heater, you’ll need to consider its capacity. A larger family might need a bigger tank, so no one ends up taking an unwanted cold shower. However, if you’re going for a tankless water heater, there’s no need to worry about capacity as they heat water on demand.

To determine the right size for a storage tank water heater, you can use the “First Hour Rating” (FHR) and “Recovery Rate” information provided by the manufacturer. The FHR tells you how much hot water the heater can provide during peak usage times, while the recovery rate indicates how quickly it can reheat the water in the tank.

Installation Costs

Replacing a hot water heater involves installation by a professionally trained plumber. Installation costs can vary depending on the type of water heater and your home’s plumbing setup. You have to consider these costs when planning your budget. 

While tankless water heaters may cost more upfront, their installation can be simpler and more affordable than replacing a storage tank water heater, which might require additional plumbing adjustments.

Also, don’t forget to factor in any potential rebates, tax credits, or incentives for choosing an energy-efficient water heater. These can help offset the initial cost and make the investment more budget-friendly in the long run.

Kotz Heating, Cooling & Plumbing offers all these water heater options. Our water heater installations are done efficiently, with your complete satisfaction in mind. Contact Kotz to schedule your water heater replacement today.

Maintenance and Warranty

Like any other appliance, water heaters need maintenance to stay in good shape and last longer. Before buying, check the manufacturer’s recommended maintenance schedule. Some water heaters, like tankless models, might require less maintenance than others.

Additionally, pay close attention to the warranty. A good warranty can provide peace of mind, knowing that you won’t have to worry about costly repairs if something goes wrong. Different parts of the water heater may have different warranty periods, so make sure you understand what’s covered and for how long.

When you purchase a Kotz Heating, Cooling & Plumbing Red Carpet Maintenance Program for your HVAC system, you get a reduced rate for a plumbing maintenance agreement. Kotz ensures your new water heater will be properly maintained so you never run out of hot water.

In conclusion, choosing a new water heater is not a decision to be taken lightly. You need to consider the type of water heater that suits your needs, its energy efficiency, the right size for your household, installation costs, and the maintenance and warranty options. By carefully weighing these factors, you can make an informed decision and ensure you have a reliable source of hot water for years to come.

If you’re looking for a water heater replacement in Waterford, MI, make sure to consult with Kotz Heating, Cooling & Plumbing. Kotz will provide personalized advice and professional installation services. 

With the right water heater, you’ll have plenty of hot water for showers, dishes, and all your other daily needs while keeping your energy bills in check.

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