Heat Pump Water Heater Rebates


Get $600 back when you purchase and install a heat pump water heater. With a heat pump water heater, you can enjoy all the benefits of your current electric water heater while paying less than half as much for hot water.

Heat pump water heaters use electricity to move heat from one place to another instead of generating heat directly. This process makes them two to three times more energy efficient than standard electric water heaters.  

Benefits include:

  • Compared to a standard electric water heater, a heat pump water heater uses 60% less energy. That can save you up to 10% on your energy bill.
  • With a heat pump water heater, you can select a specific water temperature, choose different operating modes depending on demand, even set it to “vacation” when you’re gone.
  • A 10-year warranty means you can rest easy with a steady supply of hot water for many years to come.

Things to consider:

  • Heat pump water heaters have tank gallon capacities similar to standard electric models, with the same range of temperature adjustments. They are slightly taller than standard electric water heaters.
  • They can be installed in heated and unheated locations such as a garage, basement
    or utility room.
  • Most units require at least 800 cubic feet of air-flow around them;
    this is the equivalent of 10′x10′x8′ of space.
  • Heat pump water heaters generate sounds similar to a freezer.
  • While in operation, heat pump water heaters release cool, moist air.

If your hot water tank is 10 years old or older, a heat pump water heater may be right for you

Here's how we calculate your return on investment:
  • Average cost of a heat pump water heater, 50 gallon: $1,299
  • Average cost of a traditional water heater, 50-gallon: $599
  • Difference in cost: $700
  • Subtract your $600 PUD rebate and
  • You pay just $100 more
With average annual savings of $52 on water heating costs, you'll be paid back in two years! Plus you'll keep on saving 50% or more on water heating costs. That's a good investment!

Energy efficiency
Heat pump water heaters are rated by tiers; the higher the tier, the more energy efficient.
Chelan PUD offers a $600 rebate on Tier 2 and 3 models and a $300 rebate on Tier 1 models.    

Check this Qualified Products List.

Existing single-family homes qualify for the rebate (no new construction). The heat pump water heater must replace an electric storage water heater.

Contractor installation is recommended, but a homeowner may install the water heater following manufacturer’s specifications. The manufacturer's checklist should be submitted as part of your rebate application.

For do-it-yourself installation tips and more information on how heat pump water heaters work go to the Hot Water Solutions website.

Limit two rebates per address.

We will accept applications for qualifying heat pump water heaters purchased during the previous year.

To apply for a rebate