An ENERGY STAR® certified heat pump water heater can save you up to $350 a year on your electric bills.

Heat pump water heaters are gaining popularity throughout Michigan, especially among customers who want to ensure their home is running efficiently, saving them on their monthly energy bill. This technology is an effective way to improve your home’s comfort and efficiency. Learn how a heat pump water heater could benefit you, your home, and your monthly budget.

Heat pump water heaters use electricity to move heat from one place to another instead of generating heat directly. Therefore, they can be 2-3x more energy efficient compared to a conventional electric resistance water heater.


Water heaters with new energy-efficient heat pump technology are a highly efficient way to heat water, offering a reduction in energy usage, saving you money on your energy bill.

  • Energy Efficient – Uses up to 63% less energy than traditional electric water heaters.
  • More Control – With different operating modes, you can create customized settings.
  • Environmentally Friendly – Significantly reduce carbon emissions and pollution factors.


Most models come with control panels that allow you to select from different operating modes, which is useful during high hot water demand, including:

  • Efficiency/Economy Mode – Maximize your energy efficiency and savings by only using the heat pump to heat water.
  • Auto/Hybrid Mode – This setting is ideal for daily use, providing energy-efficient water heating with sustained heat.
  • Electric/Heater Mode– This high-demand setting is the least energy-efficient, using only the electric element to heat water.
  • Vacation & Timer (not available on all models) Mode – Save on your energy when away from home by placing the unit in “sleep” mode to maximize your savings.


Before installing a heat pump water heater, there are some considerations you should ask yourself and a qualified installer to determine if this is best for your home.

  • Is the location for the heat pump water heated best suited for installation?
  • Does the temperature in the installation space remain constant between 40-90 degrees Fahrenheit all year round? Garages are not recommended for this reason.
  • Does the location have, or can it have the proper drain or pump?

There are different options and considerations for heat pump water heaters. Make sure to speak with a local, qualified installer to help you choose the best, most efficient heat pump water heater and ask about rebates.


Download our Homeowner’s Guide to Heat Pump Water Heaters