California homeowners pay the second-highest electricity rates in the nation. Only those living in Hawaii pay more. Since water heaters make up nearly 20% of your energy use, finding ways to make heating more efficient can make a significant dent in your utility bills.

If you need a new water heater, choosing a hybrid heat pump water heater is a smart choice for a lower heating bill. Hybrid heat pump water heaters use electricity to move heat from the surrounding air into the water tank, rather than generating heat directly. This process is much more efficient than traditional electric resistance heating.

Hybrid Water Heater Key Features

  • Utilizes heat pump technology for primary heating
  • Includes electric heating elements as backup
  • Up to four times more efficient than standard electric water heaters
  • ENERGY STAR-certified with UEF ratings up to 3.88

Energy Savings and Cost Reduction

Energy-saving heat pumps can dramatically reduce energy consumption. Compared to a standard electric water heater, a hybrid heat pump uses 70% less energy. That can save you about $600 a year on your utility bill. 

Hybrid Water Heaters’ Environmental Benefits

By reducing energy consumption, hybrid heat pump water heaters also help decrease California’s carbon footprint. This results in lower greenhouse gas emissions and no production of deadly carbon monoxide.

As a state, California has a goal of becoming carbon neutral by 2045, reducing emissions by at least 85% below 1990 levels. Hybrid water heater installation can help you do your part in meeting these goals.

Installation Considerations

There are some key factors you should consider if you want optimal performance. 

Hybrid heat pump water heaters work best when they are installed in spaces that have good air circulation. This may require a slightly larger space than a traditional water heater, although there are ducting kits available for installation in smaller spaces to help manage airflow.

Optimal results for maximum energy savings are in areas with temperatures around 65°F or higher. 

Hybrid Water Heater Financial Incentives

Hybrid heat pump water heaters are a bit more expensive. However, there are several incentives available to California homeowners to help offset the costs, including:

  • Federal tax credits of up to 30% of purchase and installation costs (max $2,000)
  • Up to $900 instant rebates for California residents for eligible installations
  • Additional local and utility company incentives (amounts vary by jurisdiction and region)

The water heater experts at Payless Water Heating and Plumbing can help you identify and maximize potential rebates and incentives.

Hybrid Water Heaters’ Long-Term Benefits

Investing in a hybrid heat pump water heater can provide long-lasting advantages besides reducing your energy costs. The potential lifespan of a hybrid water heater is up to twice that of traditional water heaters — meaning lower total costs of operation and less worry for a longer period.

Because of their robust nature, you can also get extended warranties. For example, some models provide coverage for 10 years on tanks and parts.

There are also smart features built into today’s models, giving you enhanced control and efficiency over settings.

California Water Heater Installation or Repair

While tankless water heaters remain a great option, adopting hybrid heat pump water heater technology enables you to significantly reduce your energy bills while contributing to a more sustainable future. The combination of energy efficiency, cost savings and available incentives makes these systems an attractive option for anyone looking to upgrade their water heating solution.

You can trust Payless Water Heaters for all of your water heater installation or repair needs. Our experienced technicians provide same-day local water heater services with the highest-performing equipment in the industry. If you’re in the market for a high-quality water heater for your home, call the experts at Payless Water Heaters today at (888) 548-5632.

Frequently Asked Questions

Do hybrid water heaters save money?

Compared to a standard water heater, you can save up to $600 a year in energy costs.

How much electricity does a hybrid heat pump water heater use?

A hybrid heat pump water heater uses around 2.5 kWh per day — about four times less than a standard water heater.

What are the advantages of a heat pump hot water system?

They are highly energy efficient, have lower operating costs, a longer lifespan, and are more eco-friendly.