DHW and Heat Pump Water Heaters

Introduction to DHW and Heat Pump Water Heaters

Domestic hot water (DHW) heaters provide hot water for a variety of uses including restrooms, dishwashing, and showers. Domestic hot water is typically heated in electric, natural gas, fuel oil, or propane-fired storage tank or instantaneous heaters and is stored at a temperature of around 130°F. Fossil-fueled DHW heaters typically operate with an efficiency ranging from 80 to 96%. Electric heat pump water heaters are up to 3 to 4 times more efficient than the standard electric water heaters. 

How Heat Pump Water Heaters Work

Electric heat pump water heaters (HPWH) operate by transferring heat from the room air to an insulated water storage tank. The technology is very similar to a typical air conditioner except that it is rejecting heat to the water inside of a tank instead of outside. HPWH’s are more efficient than traditional water heaters because of their ability to use electricity to move heat from the surrounding air rather than generating it directly. 

Average Lifespan: 8-20 years

Typical Payback Period: 5-10 Years

For Smart-E Loans:

Eligible measure and technical standards:

Heat pump water heaterENERGY STAR, Energy Factor ≥3.0
Indirect water heater – natural gasAttached to ENERGY STAR boiler of ≥90% AFUE
Natural gas storage or condensing water heaterENERGY STAR Certified, Thermal Efficiency (TE) ≥94% or Uniform Energy Factor (UEF) ≥0.86
On-demand tankless water heater –
natural gas
ENERGY STAR, Energy Factor ≥0.94 with electronic ignition
On-demand tankless water heater – propaneENERGY STAR, Energy Factor ≥0.82