Heat pump water heaters use electricity to direct heat energy from the air
Rather than generating heat directly, heat pump water heaters use electricity to direct heat energy from the air to the water storage tank. Residential heat pump water heaters use similar technology as your refrigerator, but work in an opposite manner. The inside of the tank captures warmth to heat water instead of rejecting it as a fridge would. You can increase your energy savings if the cold air produced by the heat pump is utilized to supplement your home’s air conditioning needs in the summer. A heat pump water heater can typically cut the lifetime operating cost in half compared to traditional electric water heaters.