
Heat pump water heater
“The water header has performed well and meets all our hot water needs. With the efficiency, tax deductions, rebates, and self-installation, it just made sense to go with a heat pump water heater.”
Adam S. – Redmond, WA
“I’m so happy to have installed a brand new hot water heater for my home. PSE’s rebate program was helpful to my family’s budget. I’ll definitely recommend switching to friends and others.”
Heeman C. – Lakewood, WA
What you get
PSE electric customers can save on qualifying electric heat pump water heaters either directly from a participating retailer or after purchase using our rebate form.
- $750 back on qualifying Tier 3 or Tier 4 heat pump water heaters
- View our qualified product list
Higher rebate levels are available through PSE’s Efficiency Boost program. See below or visit pse.com/boost for more details:
- $850 back on qualifying Tier 3 or Tier 4 heat pump water heaters
- View our qualified product list
- Learn more about Heat Pump Water Heater NEEA Tiers
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What is a heat pump water heater?
Unlike traditional electric resistance water heaters, heat pump water heaters use advanced technology to pull warmth from the air, intensify it through a compressor, and transfer that heat into the water in your tank. Think of it as moving heat rather than creating it from scratch. Conventional water heaters are more like running a space heater and a heat pump water heater is more like a heat shuttle, using minimal electricity to save you money on your energy bill.
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Benefits of heat pump water heaters
- Energy efficiency – Heat pump water heaters are remarkably efficient, using up to 70% less electricity than traditional electric water heaters. It only takes a small amount of electricity to power the heat transfer process. In optimal conditions, they can deliver up to 3x more energy in hot water than they consume in electricity.
- Better for the environment – By using less electricity, heat pump water heaters can significantly reduce your home’s carbon footprint. The average household can reduce their water heating carbon emission by up to 50%. This equals taking a car off the road for several months each year.
- Longer lifespan – Heat pump water heaters typically last 13-15 years, compared to 8-10 for traditional designs. This is due to their advanced technology and overall higher-quality components.
- Energy efficiency – Heat pump water heaters are remarkably efficient, using up to 70% less electricity than traditional electric water heaters. It only takes a small amount of electricity to power the heat transfer process. In optimal conditions, they can deliver up to 3x more energy in hot water than they consume in electricity.
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Installation considerations
- Professional vs. do-it-yourself – While some homeowners will have the skills and background to self-install, for many, a professional installation will be the right choice. Proper installation requires basic knowledge of plumbing, electrical systems, and local building codes. Proper sizing, placement, and warranty coverage are also things to consider before self-install.
- Installation location considerations – Ideally, the install location will maintain temperatures been 40-90°F year-round. Attached garages, basements, or utility rooms often work well. The install location should allow for proper ventilation and have enough height clearance for maintenance access.
- Ventilation requirements – Proper ventilation is crucial for efficient operation. The unit needs good airflow to extract heat efficiently. Installation spaces should be at least 1,000 cubic feet and some installations may require additional venting or ducting to ensure proper airflow.
- Drainage needs – Heat pump water heaters produce water condensation (like you see on the outside of a drinking glass on a hot day), and must be properly drained. Installation requires access to either a floor drain or a condensate pump. The drainage system should be properly sized to handle the expected water volume (typically several gallons per day).
- Existing plumbing compatibility – Your existing plumbing must accommodate the new unit’s connections and meet current building codes. Consider factors like pipe size, water pressuring, and shutoff valve locations. Some installations may require updates to existing plumbing to ensure proper and safe operation.
- Noise and vibrations – To minimize noise due to vibrations; install the unit on a level, solid surface. Installation best practices generally include the addition of earthquake straps and rubber grommets where the unit is attached to the ground or wall to reduce vibrations.
- Professional vs. do-it-yourself – While some homeowners will have the skills and background to self-install, for many, a professional installation will be the right choice. Proper installation requires basic knowledge of plumbing, electrical systems, and local building codes. Proper sizing, placement, and warranty coverage are also things to consider before self-install.
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Is a heat pump water heater right for your home?
- Space requirements – Heat pump water heaters need adequate room to operate – typically a space with at least 1,000 cubic feet of air volume. The unit should have several feet of clearance around it for proper air circulation. These are important considerations, especially for smaller homes.
- Normal hot water usage – Assess your households hot water usage patterns and peak demand times. While 50-65 gallon water tanks are common, consider sizing up when more than two people live in the household. Consider factors like simultaneous shower use, appliance operation, and daily routines when sizing your systems. Most models include backup heating elements to help with periods of high demand. It is also worth considering that heat pump water heaters have a longer recovery time than traditional water heaters, so considering a larger unit will help ensure hot water is always available.
- Noise considerations – Heat pump water heaters produce sound similar to a window air conditioner (around 45-55 dB). While not loud, this noise should be considered when choosing an install location. Avoid installing units near bedrooms or frequently used living spaces if noise sensitivity is a concern.
- Space requirements – Heat pump water heaters need adequate room to operate – typically a space with at least 1,000 cubic feet of air volume. The unit should have several feet of clearance around it for proper air circulation. These are important considerations, especially for smaller homes.
Do I qualify?
Equipment requirements
- Qualifying equipment models can be found here
- The new installed equipment must comply with all federal, state and local code requirements
- Post installation, the equipment must consume PSE electricity or natural gas
- Learn more about Heat Pump Water Heater NEEA Tiers
Rebate requirements
- You will need an electronic image of your paid installation invoice and purchase receipt for your installed equipment. These documents must include an installation date, installation address, brand, model number(s) of all rebated equipment, and the amount paid.
- Your rebate application must be submitted within 30 days of installation.
- Only one rebate will be issued per qualified single-family residence.
- You must have an online PSE account to apply online.
- Rebates are only available on new, qualifying equipment. Rebates cannot exceed the pre-tax purchase price of any rebated equipment. Equipment that is replaced under warranty will not be eligible for a second rebate.
- Equipment must be installed on or after January 1, 2025.
If applying for increased Efficiency Boost rebates:
- All above requirements still apply.
- Review these income guidelines to ensure you qualify for Efficiency Boost.
- If you qualify, complete the online (fastest) or downloadable rebate form above (English/Español). Be sure to fill out the Efficiency Boost qualification section to receive your higher rebate amount.
- If you have additional questions about Efficiency Boost, please visit the Efficiency Boost page for more details.
Get started in one of two ways
In-store rebate
Receive an in-store instant discount at participating Lowe’s and The Home Depot locations. Please review our list of participating stores and typical retail/discount prices. Simply request your discount at pse.com/coupon at home or on your smartphone at the store, and you will be issued a coupon to use at the register.
If you believe you qualify for the increased rebate (see details in ‘Do I qualify?’ section above), you will need to use the online application below. The in-store coupon is not available for the Efficiency Boost rebate amount.
Working with an Installer
You may wish to have your installer purchase your new heat pump water heater for you as part of their standard approach to projects. The installer can provide an instant rebate to you on their agreement with you for the installation. Or you can apply online for a rebate. (See “Post-purchase rebate” below) If you are looking for an installer to provide a proposal for this work, learn more about our Trade Ally Network here.
Post-purchase rebate
If you’ve already purchased your qualifying heat pump water heater and you did not receive a rebate, you can apply online or via mail to claim your rebate.

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