A heat pump water heater, also called a hybrid water heater, works like a fridge in reverse: it pulls heat out of the air around it and moves that heat into the water in the tank. Here is how it works, what it needs in your basement, and when it is worth it in Ontario.
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How it works
A regular electric tank heats water with elements, like a kettle. A heat pump water heater mostly moves heat that is already in the air around it into the water. That is why it uses so much less electricity.
The heat pump loop
Your fridge takes heat out of the food and dumps it into your kitchen. A heat pump water heater does the same job the other way around: it takes heat out of the room air and dumps it into the water.
The refrigerant goes round and round the same sealed loop: it absorbs heat from the air, the compressor squeezes it hotter, it gives that heat to the water, and a valve lets it cool off so it can pick up more heat. Manufacturers rate these units at roughly 3.5 to 4 times the efficiency of a standard electric tank. For example, Rinnai lists its 50-gallon REHP at a UEF of 3.75, and a typical standard electric tank is about 0.93.
Operating modes
Most heat pump water heaters let you pick a mode on the control panel or in an app. The names change by brand, but they usually look like this:
What it needs
A heat pump water heater needs a few things a regular tank does not. We check all of them before we quote.
Your basement
Because it takes heat and moisture out of the air, a heat pump water heater works like a small dehumidifier and air conditioner for your basement.
Is it worth it?
The honest answer depends on what you have now.
| Heat pump (hybrid) tank | Regular electric tank | Gas tank (power-vented) | Tankless (gas) | |
|---|---|---|---|---|
| How it heats | Moves heat from the air, elements as backup | Electric elements | Gas burner | Gas burner, only when a tap is on |
| Electricity use | About a quarter to a third of a regular electric tank | Highest | Small (fan and controls) | Small (fan and controls) |
| Needs | Space, drain, 240 V (most models) | 240 V | Gas line, vent, outlet | Gas line, vent, outlet |
| Hot water supply | Tank; slower recovery on heat pump only | Tank | Tank, fast recovery | Endless, flow limited |
| Effect on the room | Cools and dries it | None | None | None |
| Best for | Electric homes, damp basements | Lowest upfront cost | Gas homes, simple swap | Gas homes, big families |
Heat pump water heater prices: from $4,900 + HST installed, replacing an electric tank. See heat pump water heater installation. Comparing tankless? See tankless water heater installation. Prices for every option are on our water heater replacement cost page.
Brands
They all work the same basic way. The differences are size, efficiency, how quiet they are, app control and warranty.
Specs are from each maker's published Canadian brochures and buying guides and can change. We confirm the model, size and warranty in your written quote.
Rebate
Ontario's Home Renovation Savings program pays $500 for an ENERGY STAR certified heat pump water heater that replaces your existing water heater. It is part of a bundle, not a stand-alone rebate:
Homes heated with natural gas must be Enbridge Gas customers. Homes heated with electricity, propane, oil or wood qualify through the electricity grid. The program also pays $600 toward the two assessments once the bundle is done. Rules change, so check homerenovationsavings.ca before you start, and see our plumbing and water rebates page.
Questions we get asked
A fan pulls room air over a cold coil, which absorbs the heat. A compressor makes that heat hotter, and a coil around the tank passes it into the water. Backup electric elements help when you use a lot of hot water at once.
Yes. Most are sold as "hybrid" because they combine a heat pump with regular electric elements. The heat pump does most of the work and the elements help when needed.
The heat pump needs the room above about 3°C (37°F) on most models. Below that it switches to its electric elements, so you still get hot water, just at regular electric cost.
Yes. It pulls moisture out of the air, and that water has to go somewhere. A nearby floor drain is easiest. If there is none, we add a condensate pump and run it to a drain. A.O. Smith's spec sheet says a condensate pump is required when no suitable drain is available.
If you are replacing an electric tank, no: the 240-volt wiring is already there and we connect the new unit to it. If it is going in a new spot, or replacing a gas tank, a licensed electrician needs to run a new 240-volt, 30-amp circuit first.
It cools the air around it by a few degrees while it runs and dries it out. In summer that is a bonus. In winter your furnace or boiler makes up the heat, or you can switch the unit to Electric mode for the coldest months.
Usually not. If you have natural gas, we still recommend a power-vented gas tank to replace a gas tank, because gas is usually the cheapest way to heat water in Ontario. A heat pump water heater is a good choice when you are replacing an electric tank, or putting in a water heater where there was none before, like a new build or a big renovation.
A gas tankless gives endless hot water and suits gas homes with big hot water use. A heat pump water heater suits electric homes and basements with room and a drain. See the comparison table on this page, or ask us to look at your space.
Yes, $500 through Home Renovation Savings, but only as part of a bundle with a home energy assessment and at least one other upgrade. Homes heated with natural gas must be Enbridge Gas customers.
Rinnai and A.O. Smith both cover the tank and the parts for 10 years. Rinnai's warranty needs a licensed installer, regular maintenance and a drain pan under the unit. Labour coverage from the manufacturer is shorter, so ask us about our labour warranty.
Heat pump water heaters
See our heat pump water heater installation prices, or call or book a visit. We look at your space, drain and power, tell you honestly whether a heat pump water heater makes sense, and give you one written price before we start.
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