Proponents celebrate heat pump water heater advancements

Industry executives, including contractors, distributors, and manufacturers, came together on ‘Heat Pump Water Heater Day’ this fall, hosted by the Advanced Water Heating Initiative, for a series of webinars to discuss the technology’s challenges and opportunities.

Why it matters: “It’s the fastest-growing segment of the water heating market,” Joseph Wachunas, project manager at nonprofit New Buildings Institute, told Homepros on a follow-up call. “It grew 35 percent in 2023. We’re still waiting on 2024 numbers.”

The big picture: In 2009, heat pump water heaters (HPWHs) became Energy Star-certified, and major manufacturers began bringing them to market. “We’re up to 12 major manufacturers now,” Wachunas said.
“The technology has come a long way,” added Susan Grant Harris, a communications manager at New Buildings Institute. “We have quieter heat pump water heaters. We have heat pump water heaters that you can just plug in… at 120 volts instead of 240.”

By the numbers: HPWHs currently represent just two percent of the nearly ten million water heaters replaced in the U.S. each year, according to the Advanced Water Heating Initiative (AWHI), a group of contractors, manufacturers, and local governments, aiming to make the technology universal.

Roughly 118 million water heaters are installed in single- and multi-family homes across the U.S. today, with an estimated 25 million due for replacement over the next five years, per AWHI.

What they’re saying: During sessions, several speakers emphasized the importance of contractors’ roles in encouraging customers to adopt the technology.

“Installation is key, being comfortable with the technology is key,” said Mattia Mazzieri, a director at manufacturer Ariston Group, which in May announced a joint venture with Lennox to launch a new line of water heaters in the U.S. beginning in 2026. “And if we do not win these challenges, then it’s more complicated to speed up adoption.”
“Plumbers in general, they love to sell equipment. That’s where all the cheddar is,” added Joe Eggert, owner of Chicago-based contractor U.S. Water Heating Solutions.
Heat pump water heaters are roughly twice as expensive as traditional water heaters, he noted, but homeowners can often leverage incentives to help pay for them, so “it’s a good opportunity for a contractor to increase revenue,” he added.

Yes, but: Eggert acknowledged that challenges persist, particularly with parts stock.

Crystal Nispuruk, sales manager at distributor General Pacific, noted that contractors, in some cases, aren’t very familiar with HPWHs, so “the minute something goes wrong with them, they call and say, ‘It’s a warranty, come swap it and fix it.’”
She added that “there have been some higher-than-ideal failure rates, sometimes two to three years after the project has been installed, and it’s just frustrating to contractors.”

What we’re watching: Representatives for manufacturers, including Rheem and Navien, emphasized that, unlike early models, newer equipment is more reliable and designed for simpler installs and repairs.

Although the Trump administration has been rolling back energy-efficiency incentives, HPWH-focused federal tax credits of up to $2,000 are still available through the end of 2025, and many local incentives remain in place.
For example, the Tennessee Valley Authority utility offers a $1,300 instant rebate for HPWHs, and California, which aims to have six million heat pumps deployed by 2030, offers a range of incentives.

Full list of session recordings