Water-heater replacement guide
Estimate heat pump water heater payback using your rates
A heat pump water heater can use much less electricity than a resistance tank, but its installed-price premium and local electricity rate determine whether the upgrade pays back during its life.
This model also compares a gas tank, including the monthly gas account charge when it remains relevant.
How to use this tool
Estimate daily hot water
Use household draw data when available; gallons and temperature rise determine the delivered heat load.
Use current utility rates
Enter variable rates from recent bills and keep the gas customer charge separate.
Use exact UEF ratings
Enter certified UEF for each quoted model rather than marketing savings percentages.
Confirm rebates
Set incentives to zero unless the program currently serves your state, income, and installation date.
How UEF affects energy use
UEF measures delivered hot water relative to energy consumed in a standardized test. A 3.3 UEF heat pump model uses roughly one third as much electricity as a theoretical 1.0 UEF resistance unit for the same modeled load.
Costs outside the simple equipment quote
- Electrical-panel or circuit work
- Condensate drainage and air-duct changes
- Changes to conditioned-space heating or cooling
- Anode, filter, or contractor maintenance
- Gas account charges that continue for other appliances
Current federal incentive treatment
IRS guidance says the Section 25C Energy Efficient Home Improvement Credit is not allowed for property placed in service after December 31, 2025. The 2026 default is therefore zero. State-administered Home Energy Rebates and utility programs vary, so enter only a confirmed amount.
Confirm electrical capacity, condensate drainage, noise, airflow, installation-space temperature, and local code with a qualified installer. This is a planning estimate, not an equipment-sizing tool.
Sources and further reading
Frequently asked questions
How much electricity does a heat pump water heater use?
It depends on delivered hot-water load and UEF. The calculator derives the load from daily gallons and temperature rise, then divides by the entered UEF.
Is a hybrid water heater the same as a heat pump water heater?
Usually. “Hybrid” commonly describes a tank that can use a heat pump plus electric resistance elements for high demand, recovery, or low ambient temperatures.
Can this compare a heat pump water heater with gas?
Yes. Choose Gas tank, enter gas UEF, therm price, and the monthly gas service charge. Indicate whether installing the heat pump removes that gas account.
Is the federal heat pump water heater credit still available in 2026?
No for property placed in service after December 31, 2025, according to current IRS guidance. Other rebates may exist and must be entered manually.