Learn About Heat Pump Water Heaters!

You’re invited to learn about heat pump water heaters and if they are a good choice for your home. The City of Bozeman and NorthWestern Energy have partnered to host a free heat pump water heater education event with experts from Evergreen Energy.

Frequently Asked Questions (FAQ)

Does the installation process for a heat pump water heater (HPWH) involve electrical rewiring?

The installation process might require electrical upgrades, depending on the existing electrical setup of your home. Typically, HPWHs require a 240V electrical outlet. If your current water heater is electric and utilizes a 240V outlet, similar requirements are likely in place for the HPWH. However, electrical upgrades become more probable if your existing water heater is powered by natural gas. To ensure a safe and compliant installation, we strongly advise enlisting the services of a qualified electrician to evaluate your specific electrical requirements.

Is a HPWH the same thing as an on-demand (tankless) water heater?

No, a heat pump water heater is different from an on-demand system. On-demand, or tankless water heaters, heat water directly without the use of a storage tank. On-demand systems are not eligible for a the City’s rebate. Heat pump water heaters do use a storage tank. The heat pump component makes these units more than over 200% more efficient than on-demand systems.

Will a HPWH work in my existing space?

HPWHs are generally taller than conventional tank water heaters, so assessing clearance is an important factor.

In addition to spatial dimensions, HPWHs require sufficient air flow around them to operate efficiently. Because they pull air from the surrounding space, they need more airspace than the typical water heater. HPWHs require about 750 cubic feet of air space. However, there are many different ways the space can be configured for the heat pump to operate efficiently, including direct venting to the outside.

Because HPWHs take in warm air and extract the heat, they vent a small amount of cool dry air. If HPWHs are not vented to the outside and installed in conditioned air spaces, it could decrease the performance of your HVAC system in the winter.

Garages, basements, and laundry rooms are typically great places for an installation. However, the air temperature should remain between 40° to 90° F year-round for the heat pump to operate efficiently. 

Do HPWH's make noise?

HPWHs do produce some noise that sounds like a fan or air filter when running. If your water heater is located near living spaces or bedrooms, you might want to consider the potential for noise disturbance. Insulating the area or choosing a HPWH model known for quieter operation could be beneficial

Since HPWH's use refrigerant in the heat pump component, is there a risk of refrigerants leakage?

Most hybrid heat pump water heaters are pre-charged with refrigerant, and their installation process generally does not require the installer to directly handle the refrigerant. This design aspect significantly simplifies the installation and minimizes the risks associated with refrigerant handling.

I've heard heat pumps don't work in cold weather, is that true?

It's important to clarify that air source heat pumps, which are typically used for heating and cooling spaces, are different from heat pump water heaters (HPWHs). While both use heat pump technology, they operate differently. HPWHs are designed specifically for water heating and are typically installed in indoor spaces like garages or basements, extracting heat from the indoor air, which makes them less impacted by outdoor temperatures compared to air source heat pumps with outdoor units. Additionally, most HPWHs are hybrid systems, meaning they can switch to electric resistance heating as a backup in conditions where the heat pump is less efficient. Air source heat pumps can also be a good option here in Bozeman, today’s cold climate models can operate down to -15 F now.

Am I eligible for the rebate?
The installation address must be connected to City of Bozeman water to receive the rebate (if you receive a City of Bozeman water bill, you qualify).
If the Applicant is not the owner of the building, the owner must provide a letter of approval. Applicants for commercial projects and multi-family (4+ units) buildings must contact sustainability@bozeman.net

What heat pump water heater units qualify?
Newly purchased units that meet the Consortium for Energy Efficiency (CEE) standard. A list is available at: https://www.ahrinet.org/certification/cee-directory

What if I already installed a heat pump water heater?
Units installed prior to July 1, 2023 are not eligible. Installations after July 1, 2023 are welcome to apply.

Can I use the rebate for new construction installations?
Yes, the rebate is applicable for new construction or retrofit projects.
What do I need from my plumber for the rebate application?
An invoice that includes the installation date and the make/model of the unit.

Can I submit the rebate before the unit is installed?
No, the unit must be installed prior to submitting the rebate application. Submitting an optional Pre-Application can ensure the funds are available and your installation qualifies.

Can I apply for additional tax credits and incentives?
Yes, if you are eligible you can stack these with the City of Bozeman rebate. See ENERGY STAR Heat Pump Water Heater Tax Credit.