Your water heater accounts for approximately 18% of your home’s energy consumption, making it one of your largest energy expenses. Heat pump water heaters (HPWHs) offer a proven solution that can significantly reduce both your energy bills and environmental impact while improving your home’s safety and efficiency.
Key Benefits of Heat Pump Water Heaters
- Reduced Environmental Impact: Heat pump water heaters operate entirely on electricity, eliminating the need for fossil fuels. Studies show that switching from gas to electric HPWHs could reduce California’s water heating emissions by up to 77%.
- Enhanced Home Safety: Unlike gas water heaters, which have an open flame, HPWHs eliminate the risk of carbon monoxide and nitrogen dioxide leaks in your home. This all-electric operation creates a safer indoor environment and better air quality for your family.
- Long-Term Cost Savings: While HPWHs can require a higher initial investment, they consume significantly less energy than conventional units. Additionally, these systems can heat water during off-peak hours when electricity rates are lower, storing hot water for use during peak periods (4–9 pm).
- Extended Life Span: HPWHs typically operate for 13–15 years, compared to 10–12 years for conventional water heaters. This extended life span reduces replacement frequency and long-term maintenance costs.
Understanding Heat Pump Technology
Heat pump technology is already familiar in most homes. For example, your refrigerator operates on the same principle. Like refrigerators in reverse, heat pump water heaters use electricity and a refrigerant system to pull heat from ambient air and transfer the heat to the water in the storage tank. This heat transfer process makes HPWHs three times more efficient than conventional gas water heaters.
Rebates for Residential Customers
MCE customers have access to several rebate programs that help offset the initial cost of a heat pump water heater installation. Single-family homeowners are eligible for a $1,000 rebate through the BayREN EASE Home Program.
To find other available rebates and incentives, visit mceCleanEnergy.org/find-rebates-and-incentives
Our new Herramienta de búsqueda de contratistas can help homeowners find contractors who work with MCE and help take the guesswork out of finding a reliable contractor.
Rebates for Contractors
Contractors can access up to $4,600 in rebates for heat pump water heater projects through MCE’s Residential Flex Market program. Contractors can also receive incentives through TECH programs. Marin County residents can access an additional $500 rebate through Electrify Marin, with income-qualified homeowners eligible for an extra $1,500 incentive.
MCE also offers an Emergency Water Heater Loaner Incentive Program that provides contractors with $1,500 per unit for installing HPWHs after providing temporary loaner units.
This program addresses the common scenario where water heaters fail unexpectedly, allowing homeowners to maintain hot water service while contractors complete necessary electrical upgrades and install the new heat pump system.
If you’re a contractor and you’re interested in learning more about MCE’s programs, you can learn more on our Incentivos y recursos para contratistas página.
Planning Your Home Electrification Strategy
Installing a heat pump water heater is an effective first step toward home electrification. This upgrade can complement other electric systems such as heat pump space heating and induction cooking stoves. An approach to electrification maximizes both environmental benefits and long-term cost savings. Learn more at mceCleanEnergy.org/home-electrification
Take advantage of these incentives to make your next water heater upgrade both environmentally responsible and financially smart.
