Why does a heat pump water heater cost more than a gas water heater?

Sometimes, upgrading from a gas water heater to a heat pump water heater can cost more than simply replacing it with another gas model. There are good reasons for this, and you can still save money over the lifetime of the water heater!

• Unit Cost: The heat pump water heater itself can be more expensive than a traditional gas water heater, especially if it's a high-efficiency model.
• Installation Complexity: Installing a heat pump water heater can be more complex than a traditional water heater, especially if additional work is needed to accommodate its size, the installation of a condensate line and / or pump, and electrical work. The good news is that these are mostly one-time infrastructure upgrades that will also support all future water heaters.
• Permitting and Code Compliance: Ensuring the installation meets all local building codes and regulations can add to the cost. Many quotes for gas water heater installation unfortunately do not include permits, which are required by law. QuitCarbon recommends always installing to code and obtaining permits, which are often required for rebate programs.
• Contractor Costs: Contractors need to enroll in rebate programs or undergo additional training to install heat pump water heaters, which can add to the overall cost.
• Warranty and Accountability: Contractors may factor in the cost of providing a warranty for the installation and ensuring the project is completed successfully, which can contribute to the higher cost compared to a basic installation.

At the end of the day, when factoring in rebates and lower utility bills from the extremely efficient operation of a heat pump water heater, most people will save money over the 10-15 year lifespan of the heater. Plus, you'll get a quality installation that complies with local regulations, and you'll be doing your part to reduce carbon and local air pollution.