Should I install a heat pump water heater?
Heat pump water heaters are two to three times more efficient than conventional electric water heaters. They use electricity to move heat from the surrounding air into the water, rather than generating heat directly. They cost more upfront but can save a family of four about $350 per year on electricity. They work best in basements or unconditioned spaces that stay above 40 degrees year-round.
Why It Matters
A heat pump water heater can cut your water heating costs by half and qualifies for federal tax credits of 30 percent of the purchase price.
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