Heat Pump Water Heater Calculator

Are heat pump water heaters really as affordable as the claim to be?
Find out for yourself.
$356
Annual Savings
2.5
Years until profitable
TL;DR: By spending $1,200 on an upgrade now, you could save $300/year for 10+ years and drop your CO2 emissions drastically. ✨

  1. Existing Propane Heater Cost

Hot Water Usage

EPA-standard "minutes of hot water per day".
  • Assumes a 90°F typical rise in temperature.
  • Four 10-minute showers, 10 minutes for laundry and 10 minutes for dishes: 60 minutes.
minutes

Heater Efficiency

What fraction of the energy contained in propane is converted to heat in your water.
  • Typical values are 0.5-0.8.
  • Most manufacturers post specifications online. For example you can search Bradford White or see this example manual which claims an 80% Recovery Efficiency.

Fuel Cost

Dollars per gallon of propane/LP Gas
$

Yearly Operating Costs — Propane

Annual Fuel Costs
$524.00
Gallons Propane Burned
150 gal
CO2 Emitted
 lb

  1. Heat Pump Water Heater Installation

Sticker Price

How much you pay at the hardware store
$

Installation Cost

How much you pay to have it installed in your home
  • A self install can be as low as $100-$200 for hardware, or expect more for a professional install.
  • Installation cost is also covered under the Federal Tax Credit.
  • Most units require a 240 Volt power supply.
$

Local Incentives

Does your state, town, or utility offer any incentives beyond the Federal Tax Credit?
  • DSIRE is a good database of rebates to start you off
  • Vermont residents can claim $600 in rebates, or $800 if low-income.
  • Low-income Vermonters can get a 0% loan for up to 15 years to cover the cost.
$
Net Installation Cost
$
Total Installation Cost
$
Federal Tax Credit
$
Taxable income required for full credit in the first year
$

  1. Heat Pump Water Heater Operation

Assuming the same hot-water demand

Uniform Energy Factor

What factor of input energy is converted to heat.
  • Because heat pumps move heat rather than creating it, their efficiency is always over 100%.
  • Typical values are 3.8-4. (Larger heaters being more efficient)

Electricity Price

What you pay per kWh of power
  • You can see state averages here.
  • As with propane, expect this to go up with inflation – unless you generate your own electricity.
$/kWh

Yearly Operating Costs — Heat Pump

Electric Costs
$
Propane Costs
$524
Savings Versus Propane
$363
Years until revenue-positive
2.5
Electircy Consumed
844 kWh
CO2 Emitted

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The ‘Gotchas’

  • When selecting a new hot water heater, be sure to compare apple-to-apples with "first hour" gallons of water.
  • Heat Pump water heaters output cold air like an A/C. This can be a plus or a minus depending on the season. Most can be hooked up to ducting to control where the cold dry air goes.
  • Most units can be set to run in resistance heating mode (Efficiency Factor = 1). If you did this for half the year, your costs would be $642 annually.
  • If you pair your heat pump hot water heater with a heat pump air heater for wintertime (6 months of air-to-air heat pump, also with ~4x efficiency), your electric costs would be around $253 annually with a payoff for the water heater in years.

Created by Peter Ehrlich in 2023 as a Zero Percent Club project.
Inspired by U.S. Mortgage Calculator and Heat Pumps Hooray.