Install Heat Pump Water Heater and receive up to $3000 rebate from SMUD.

We are a qualified Heat Pump Water Heater installers for SMUD.

What is a
Heat Pump Water Heater?

Heat pump water heaters use a small amount of electricity to move heat from the surrounding air to the water. And since it’s more efficient to move heat rather than generate it, the heat pump water heater can deliver hot water up to two and a half times as efficiently as a common electric resistance water heater.

Why Switch to a Heat Pump Water Heater – Benefits

  • Electric resistance water heaters are among the highest energy consuming products in your home. A heat pump water heater can reduce electricity use for water heating by up to 60%
  • Heat pump water heaters transfer heat from surrounding air to heat water, using ambient air to move heat instead of using electricity to create heat
  • Reduces the overall energy consumption and monthly utility bills
  • Cools the area it’s located in, usually the garage

How Heat Pump Water Heaters Work?

The primary heating mechanism is a vapor compression cycle ( like those in a refrigerator or air conditioner, but operating in reverse) that transfers heat from the surrounding air to the water stored in the tank. Auxiliary electric resistance elements are also included for reliability and quicker recovery. Most current HPWHs are truly hybrids: they integrate a heat pump and electric resistance element into a single storage tank.

heat pump water heater
heat pump water heater
heat pump water heater
heat pump water heater
heat pump water heater
heat pump water heater

Expected Annual Energy Savings By House Size

Number of Bedrooms Average Daily Hot Water Usage(Gallons) Annual Energy Savings(kWh) Annual Utility Bill Savings Return on Investment Payback Period (years)
1 35 1,750 $221 46% 6.6
2 45 2,000 $260 72% 5.8
3+ 55 2,200 $286 89% 5.3


  • Residence must be in SMUD service territory
  • Unit must have Uniform Energy Factor (UEF) of 2.87 or higher
  • Minimum of 50 gallon capacity
  • Installation must include a thermostatic mixing valve
  • Must submit copy of receipts, including:
  • Copy of the building permit
  • Copy of the contract/invoice or sales receipt
  • Copy of the receipt for mixing valve purchase
  • Must submit pre-installation and post-installation photos, including:

  • Gas water heater and surrounding
  • New electric HPWH and surrounding
  • Installed mixing valve on new water heater
  • Rebates and Financing

    SMUD residential customers that replace an existing electric storage tank water heater with a select Energy Star heat pump water heater are qualified to receive
    $1,000 rebate for electric to electric upgrade
    $3,000 rebate for gas to electric conversion