Heat Pump Water Heaters, the New Face of Electric Water Heating

A heat pump water heaterBy Ryan Davies

CEC Customer & Energy Services Supervisor

Water heating is predominately the second largest user of electricity in the Northwest, coming in at an average of a quarter of the typical bill.  Standard electric water heaters are common, however new technology has provided another option with the potential to cut your water heating costs in half.  The heat pump water heater is the choice option over a standard electric water heater.

  • You must be a CEC member heating your home’s water with electricity.
  • You must live in a single-family home or manufactured home. If you rent your home, the homeowner must approve a heat pump water heater installation.
  • The heat pump water heater must replace an existing electric tank style water heater (in existing homes).
  • The heat pump water heater must be listed as an approved product in the BPA qualified products list , an excel spreadsheet. Tier 2 & 3 units qualify for the $600 rebate.
  • The unit must be installed according to manufacturer’s specifications.
  • Homeowner installs are eligible as long as they are installed to manufacturer’s specifications.
  • The installation will be verified by CEC as meeting BPA standards.
  • Rebates are limited to one per residence.

Many CEC members have already installed this new technology, and taken advantage of the cash rebate that is offered through the cooperative.  As major manufacturers continue to increase product performance and availability, this will continue to reduce product and installation costs.

Aside from replacing your standard electric water heater with a heat pump water heater, there are many no cost options to help save you money as well.


  • Try turning down the temperature setting on your water heater from the default 120° F.
  • Drain your water heater each year to reduce sediment build up.
  • Insulate exposed hot water lines.
  • Limit shower length to 5-7 minutes (I know this one is not easy).
  • Install high efficiency shower heads.
  • Fix dripping faucets.
  • Don’t let the water run while you are shaving or brushing your teeth.


With the CEC rebate and potential manufacturer’s rebates it is a great time to purchase a heat pump water heater.  To learn more about the program, visit our heat pump water heater program page or call and request to speak to one of our Energy Specialists.