heat pump water heaters.

: get pumped about heat pump water heaters for all your hot water needs! 

Energy-efficient water heating technology

The Basics. 

Also known as hybrid water heaters, these use heat pumps - a mechanical system that uses a small amount of electricity to move heat from one location to another instead of using combustion energy to directly heat water. Heat pumps draw heat from the surrounding air and release cooler air. Replacing your standard electric (a.k.a. electric resistance) or methane gas water heater with a new heat pump water heater can lower energy bills - by an average of $200 to $600 a year! 

If you installed a heat pump water heater by December 31, 2025, make sure you tell your tax professional, so you can take advantage of 30% tax credit* (check if you have a qualified model).

*Note: As of January 6, 2026, the IRS website had not been updated to reflect the expiration of these tax credits on December 31, 2025.​​​

$3000 incentive for NorthWestern Energy Customers

If you're a NorthWestern Energy customer and are switching from an existing electric water heater to a heat pump water heater, you should be eligible for a $3,000 incentive to cover unit and installation costs.

​Talk to your contractor or plumber about the program. ​They can learn more and apply on your behalf HERE. Your new HPWH must be on an eligible list and your plumber must be too. Some of the local businesses that are trained include: Apex, Garden City, Gavlak, Hellgate, High Mountain, Highline, Mickelson Plumbing, Plumb-Tech, Sentinel Mechanical. ​

Efficiency. 

Heat pumps are far more efficient because they are "heat-movers" rather than "heat-makers;" i.e. they don't spend energy on heat generation. Today's heat pump technology can reduce electricity use for heating water by ~50% compared to electric resistance water heating. ​

Health and Safety. 

Unlike methane gas water heaters, heat pump water heaters don't leak, burn incompletely, emit carbon monoxide, or rely on potentially dangerous faulty gas lines as their energy source. 

Climate. 

Heat pump technology is essential to decarbonizing the built environment.

Because heat pumps are electric and don't use fossil-fuel combustion to operate, there are zero on-site greenhouse gas emissions. Choosing a heat pump over traditional systems also makes your home “net zero ready” as our electric grid gets greener, replacing fossil fuels with renewable energy like solar and wind.

Key Benefits of heat pump water heaters: 

1. Technologically mature:  work darn well and getting better every year.
2. Easy to install in new construction.
3. Can be easy to retrofit in existing buildings especially if replacing an electric water heater.
4. Quick payback and long-term savings (not quite as fast when switching from a gas water heater).
5. Improved health and safety: no gas lines or leaking methane, and ​improved indoor air quality. 
6. ​Zero on-site greenhouse gas emissions!​

Find Local Retailers & Installers

Watch the Huseth's Story

Abby & Eric made a plan to transition their aging, gas-powered water heater to a heat pump water heater. Watch their story!

County Commissioner Dave Strohmaier with his heat pump water heater!

Water Heating: Heat Pump Water Heater (HPWH)

:​ a heat pump water heater simply replaces your current water heater with a more efficient tank. It's not complicated! 

• Cost: HPWHs typically have higher initial costs than conventional storage water heaters - they run anywhere from $1400 - $2400 depending on size and model. However, given their significant energy savings, they typically pay for themselves in as little as 1-2 years.
• Installation: Heat pump water heaters require installation in locations that remain in the 40º– 90º F (4.4º – 32.2º C) range year-round and provide at least 1,000 cubic feet (28.3 cubic meters) of air space around the water heater. Air passing over the evaporator is usually exhausted into the room or, in some cases, vented to the outdoors. Installing them in a space with excess heat, such as a furnace room, will increase their efficiency.
• Equipment: Tall, cylindrical indoor water heater tank. Most require a dedicated 220 Volt outlet—the same as for existing electric water heater--though 120 V models now exist. Electric panel upgrades may be needed if replacing a gas water heater.​
• Learn more. The Missoula Electric Co-op has more detailed information so you can see if this is the right appliance for you. Head HERE. 

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