Important Financial savings from 120-Volt Warmth Pump Water Heaters

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Some fascinating information crossed our desk this week out of California. The Tech Clear California program, which gives warmth pump and warmth pump water heater incentives in California, reported in an earlier assembly this 12 months some important financial savings for the 120V plug-in warmth pump water heater (HPWH). Their information confirmed what was extensively anticipated however by no means confirmed: that the 120-volt warmth pump water heater prices much less to put in and in addition reduces the necessity to upsize {an electrical} panel.

As just a little reminder, warmth pump water heaters are by far probably the most environment friendly technique to warmth water — 3 to five instances extra environment friendly than every other know-how, together with tankless gasoline heaters. As a result of their low power use, a warmth pump water heater will keep away from 1 ton of CO2 emissions yearly in comparison with gasoline water heaters, and save $400–$500 in power payments in comparison with electrical resistance fashions.

One problem with warmth pump water heaters up till 2023 was that they needed to be hardwired with 240 volts of electrical energy. This will create difficulties when changing gasoline water heaters, which don’t have electrical energy on website. A house owner should then run a brand new electrical line to the water heater location, which may set off a panel upsizing. In 2023, two producers (Rheem and A.O. Smith) introduced 120 volt, plug-in warmth pump water heaters to market that may plug into a typical outlet. These items run virtually solely on their warmth pump, avoiding {the electrical} resistance backup heating that 240V fashions have.

The TECH program simply revealed a knowledge set that features a substantial variety of 120-volt HPWH installations within the first 2 years since they have been dropped at market. Of the 7,665 HPWHs that TECH rebated from Q1 2023 to Q1 2025, 21% put in 120-volt HPWHs. These 120V HPWH installations price, on common, about $1,700 or about 22% lower than the 240V HPWH installations. Furthermore, solely 2% of the 120V HPWHs required {an electrical} service improve, whereas over 1 / 4 of the 240 volt mannequin HPWHs did.

That is all a giant deal. Fewer electrical service upgrades imply that extra folks can readily get warmth pumps when their water heater fails as a result of they gained’t have to attend (generally weeks) for electricians and allowing workplaces to approve and do important electrical work on their residence. Lowering prices brings HPWHs throughout the attain of extra prospects. The 120-volt warmth pump water heater thus has proved it is a vital software to permit properties with gasoline water heaters to extra simply and cost-effectively change to warmth pumps.

We must always be aware that we’ve heard some considerations from installers and producers in regards to the 120-volt HPWH and its longer restoration instances (with out electrical resistance backup). Massive households with greater than 4 folks or properties with water heaters positioned open air are most likely not proper for this plug-in mannequin.

But, I’ve run the 240-volt warmth pump water heater in my residence on “warmth pump solely” mode (the place the electrical resistance backup isn’t used), successfully utilizing it as a 120-volt HPWH for 8 years, and we’ve by no means had an issue. We additionally put in a 120 volt HPWH in our Cleveland rental two years in the past, and it has been performing fantastically properly with out one criticism.

Lastly, producers like GE are actually making HPWHs which have the potential to be run on each 120 volts and 240 volts. This next-generation, “versatile voltage” HPWH would possibly simply seal the deal by permitting properties to simply set up a HPWH when their gasoline one breaks, plug it into a typical outlet, after which add a 240-volt electrical connection later in the event that they discover they aren’t getting sufficient scorching water.

In any case, it’s thrilling to see information that reveals important price financial savings from 120-volt HPWHs and important reductions in electrical upgrades.

Be part of us on HPWH Day (October 23) to have fun the fantastic warmth pump water heater!

Tip of the hat to Ted Tiffany at BDC for drawing our consideration to this story.