Yes. The product is referred to as a heat pump water heater or an electric hybrid water heater.

Upgrading to an efficient electric hybrid water heater will save you money over time, but that’s just the beginning. Depending on mode, hybrid water heaters have faster recovery rates compared to standard electric models, come with a longer standard warranty, and are often eligible for hundreds of dollars in utility rebates and tax credits.

Yes. ENERGY STAR certified products are independently certified to deliver energy savings and help protect the environment. When choosing an electric hybrid water heater, look for the blue ENERGY STAR certification mark on the side of the tank.

If you are relatively handy, or if you have installed a standard electric water heater before, you might want to install your own electric hybrid water heater. All the tools and materials you need are available at your local hardware store, and by doing it yourself you can save money versus professional installation. See this guide for step-by-step instructions, and your local utility may also have resources to assist you.

If your electric hybrid water heater is installed before January 1, 2022, it may be eligible for a $300 tax credit — on top of any rebates offered by your local utility. Learn more about the Nonbusiness Energy Property Credit.

Electric hybrid water heaters are generally available in 50-, 65- and 80-gallon sizes. A helpful guide is to use the number of consecutive 10-minute showers in a typical day: 1–2 showers would require a 50-gallon unit, 3 showers would require a 65-gallon unit and 4+ showers would require an 80-gallon unit.

If you are switching from a standard electric water heater and want to maximize energy savings, consider sizing up from 50 to 65 gallons or from 65 to 80 gallons. This will reduce the likelihood the electric hybrid water heater will need to switch from using its energy-efficient heat pump as the primary heat source to the backup electric elements during times of high demand. The electric elements, which standard electric water heaters rely on to heat water, use far more energy to run and can reduce some of the potential savings.

In the Northwest, electric hybrid water heaters work well in most semi-conditioned and unconditioned spaces, such as garages and basements. Electric hybrid water heaters generally require more space than standard electric water heaters and will require at least 750 cubic feet (about 8.5’ x 9’ x 10’) of surrounding air space to operate effectively. Be sure to leave enough clearance to be able to clean the air filter on the top of the tank.

If you want to install your hybrid water heater in a tight space or in a living area, an installer can advise about the possible need for ducting, noise mitigation, and louvered doors.

Electric hybrid water heaters operate efficiently in temperatures as low as 37 degrees Fahrenheit in heat pump mode, which is the most efficient mode. If you live in a cold climate that often experiences sub-freezing temperatures, there’s a good chance an electric hybrid water heater may need to be installed inside the home in a conditioned living space. Never put a water heater, whether standard electric or electric hybrid, in a location that could possibly be exposed to freezing temperatures, as pipes connected to the water heater could possibly freeze.

Because heat pumps emit noise at about the same decibel level as a high-end dishwasher, it’s important to avoid installing near a highly trafficked area in the home. Additionally, because electric hybrid water heaters utilize ambient air to heat water via a heat pump, it’s important to consider the space heat interaction. Consult with your local installer to determine the best options for cold climate situations. In the Northwest the interaction effect is negligible even in winter.

If your water heater is over 10 years old, you should start thinking about replacing it. Water heaters typically start failing when they are 10 to 15 years old, but waiting until it breaks can be costly: The average insurance claim for water damage due to a failed water heater is $4,000. And to make things worse, you may be stuck without hot water or end up with a flooded home.

If you’re not sure how old your water heater is, start by checking for a manufacturer label on the side of the tank. If it has a label, it should include the installation date. If the label is missing, or the installation date is not listed, you can use this serial number decoder to determine the age of your unit.

Unlike standard electric water heaters, hybrid models often have features like a user-friendly control panel, where you can easily adjust the water temperature or switch between hybrid, heat pump and vacation modes. Some models also offer Wi-Fi and Bluetooth connectivity and integration with smart home systems such as Google Nest.

Tankless water heaters (also known as on-demand water heaters) and high efficiency condensing storage water heaters are great choices for homes with existing storage gas water heat. Check with your local utility about available rebates for these products.

Electric hybrid water heaters use a heat pump to transfer heat from the surrounding air to the water and produce exhaust air that is cool and dry. Cold air exhaust may be an issue if the unit is installed in a conditioned living space, as the unit may have a cooling effect. Additionally, hybrid water heaters emit noise similar to the decibel level of a high-end dishwasher when running, which should be a consideration when choosing an installation location. Unlike standard electric water heaters, hybrid water heaters produce condensate and will require access to a floor or sink drain, or use of a condensate pump. For more information on installation considerations refer to manufacturer installation instructions or contact your local utility.