an old conventional electric water heater on the right, and a new heat pump water heater pictured on the left with the words Simple Heat Pump Water Heater Savings Calculator as the headline

You may have heard of the newer heat pump water heaters, and I bet you’re wondering if you should spend more up front versus just replacing your existing conventional tank heater with the same unit or same type.

It is quite tempting to just go with the same old conventional water heater, given that it’ll most likely be less up front cost. But before you do, perhaps just take a look at the energy savings that the new ones will give you.

This is especially important if you’re a homeowner, or even an investor or rental property owner and you pay for the utility/electric bills.

We’ll need a bit of info up front for you to calculate the savings and return on investment accurately, but it’s worth it.

This calculator is a simpler version of our more hefty Energy Guide Electric Heat Pump Savings Calculator – which uses old and new EnergyGuide labels to figure out your true savings. But this one may work just fine.

We also have a similar Natural Gas to Electric Heat Pump Savings Calculator.

What Makes This Calculator Different

  • Uses the latest State electric kWh I could find.
  • Uses actual kWh usage figures from popular water heater models found at Home Depot and Lowes.
  • Includes real inflation calculations.
  • Factors in maintenance of replacing your existing/old tank water heater within a 10 year period (10 years is the warranty on the new heat pump units).
  • Includes the savings of the Inflation Reduction Act Heat Pump Water Heater Federal Tax Credit.
  • Shows detailed 10 year Return on Investment and Payback numbers in table and graph form so you can see all the numbers.

So give it a go! Feel free to ask questions in the comments below.

Watch the Video on How to Use The Calculator

Conventional vs. Heat Pump Water Heater Electric Usage

a comparative chart showing the kwh and electric usage of both conventional tank water heaters and heat pump water heaters

I looked up all the yearly electrical usage numbers (in kWh) for the standard sizes for conventional tank water heaters along with the heat pump water heaters at Home Depot and Lowes.

The numbers are the averages of A.O. Smith (Lowes) and Rheem (Home Depot), but the electrical usage is very similar for each size between the two brands.

Water Heater Size:Electric Conventional Water Heater Yearly kWh Usage:Heat Pump Water Heater Yearly kWh Usage:

And here’s a savings chart for the different water heater sizes in relation to different electric rates so you can see roughly what you’d save per year when switching to a heat pump water heater:

A range chart of the different savings amounts for different kWh rates throughout the country for switching from conventional tank to heat pump water heaters

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