Surprisingly, your water heater is one of them, and it is the second largest at that. Conventional storage tank water heaters generally cost anywhere from $350 to $450 a year, and while gas-powered heaters tend to cost less than electric heaters by around $100 annually, it still begs the question: is there a better way to heat my water? This is where hybrid – or “heat pump” – water heaters step up to the plate, bringing customers’ yearly energy costs down into the $100s. Read our overview of this air compressor technology in our blog post here.

To elaborate further on the heat pump mechanism, hybrid heaters remove warm air from the surrounding area and use it to heat refrigerant in the top of the unit. This heat pump technology is nothing new – air conditioners and refrigerators operate in a similar manner, and heat pump water heaters simply harness this tried-and-true technology with the goal of heating rather than cooling. The hot refrigerant then travels down to the bottom of the water pump in piping that wraps around the outside the tank, thus heating the water within. It is important to note that the water remains untouched by the heating element itself, as this prevents mineral buildup common to standard water heaters with internal heating mechanisms. From there, the hot water rises to the top of the tank where it is transported into your home. This system is the key to energy conservation, and thus, massive savings!