Depending on the age of your current model, you may not be aware of how heat pump technology heats water. Heat pumps use electricity to move heat from one place to another, greatly reducing the amount of directly generated heat. When the demand for hot water is high, heat pump water heaters will rely on backup conventional water heater technology to ensure availability. According to Energy.gov, heat pump water heaters can be up to three times more energy-efficient than electric-resistance water heaters.
While the price tags on heat pump water heaters are higher than those on standard electric or natural gas models, the energy savings over the course of the heater’s lifespan will more than offset the upfront cost. To make the upgrade to heat pump water heaters easier on your wallet, California Energy-Smart Homes offers incentives for installing all-electric heat pump appliances, equipment, and technology to replace natural gas equipment. These incentives are available to property owners and contractors making alterations to residential buildings with an emphasis on increasing energy efficiency. If you are a utility customer in the San Diego Gas & Electric Company (SDG&E®), Pacific Gas and Electric Company (PG&E®), or Southern California Edison Company (SCE®) service territory, you could receive an incentive of $450 per heat pump water heater installed.