One of the bigger energy users in U.S. homes is the hot water heater. Just like heating and cooling our homes, hot water is key to a comfortable and healthy home.  

There are several different types of hot water heaters on the market and similar to using a Heat Pump for efficiently heating and cooling the air in your home, you can use a Heat Pump Water Heater (HPWH) for energy efficient water heating. A HPWH is up to three times more efficient than a standard electric water heater, that can save Bozeman residents about $2,800 on their electric bill over the life of the water heater!

With the $500 Heat Pump Water Heater Rebate from the City of Bozeman, you can save even more! 

Heat Pump Water Heaters 

Heat pump water heaters use electricity and refrigerant to extract heat from the surrounding air and transfer it to heat the water in the storage tank. Most units also have electric resistance heat as backup when needed.

Hot Water Solutions is a great resource to learn more about heat pump water heaters. 

Which Water Heater?

If you are in the market for a new water heater, selecting an efficient option can save you money on monthly utility bills for years to come. Here's a snapshot of how different water heaters might impact your utility bill.

*Cost per unit of energy reflect NorthWestern Energy's average monthly gas ($0.943/therm) and electric ($0.119) rates for Montana in 2022. Energy factors reflect ENERGY STAR© minimum efficiency criteria. The numbers were calculated using Efficiency Maine's Water Heater Calculator. 

Installation Considerations

• HPWHs are a freestanding unit for indoor locations. Because they pull air from the surrounding space, they need more airspace than the typical water heater. HPWHs require about 750 cubic feet of air space. However, there are many different ways the space can be configured for the heat pump to operate efficiently, including direct venting to the outside.
• HPWHs are typically taller than conventional models.
• HPWHs sound like a fan or air filter when running, so ensure that noise will not be an issue.
• The most common type of HPWH available is a 240-volt unit. This may require electrical upgrades in your home. 120-volt units for smaller applications are newly available on the market.
• Because HPWHs take in warm air and extract the heat, they vent a small amount of cool dry air. If HPWHs are not vented to the outside and installed in conditioned air spaces, it could decrease the performance of your HVAC system in the winter.
• Garages, basements, and laundry rooms are typically great places for an installation. However, the air temperature should remain between 40° to 90° F year-round for the heat pump to operate efficiently. 

Heat Pump Water Heaters for Homeowners

Watch the recording: Heat Pump Water Heaters for Montana Homeowners training. This session covered what heat pump water heaters are, how to determine if one is right for your home, key questions to ask your contractor, available rebates and incentives, and more. Hosted by local experts and featuring insights from recent installations, this training is a great opportunity to learn how heat pump water heaters can save energy and money in Montana homes.

Rebates, Tax Credits, and Financing

Tax credits for qualifying heat pump water heaters are currently available. The City of Bozeman offers a $500 rebate for qualifying heat pump water heaters. Through the Inflation Reduction Act, additional rebates for Heat Pump Water Heaters will be available in 2024 for qualifying products and residents! Learn more about rebates, tax credits, and incentive options.

Resources