Heat Pump Water Heater

Heat pump water heaters are an exciting domestic hot water solution with benefits for your business and customers.

Differentiate and future-proof your business.

With generous federal incentives, heat pump water heaters (HPWH) are poised to take off in the market. Offering heat pump water heaters, also called hybrid water heaters, puts your business ahead of the curve and prepared for changing efficiency requirements.

Explore training resources

Highlight your company’s HPWH expertise

Save your customers energy.

HPWHs are up to four times more energy efficient than traditional gas or electric water heaters.

Family standing smiling in front of their house

Help customers reach their decarbonization goals.

HPWHs benefit from an increasingly green electric grid. As more Minnesotans become interested in sustainable options, the HPWH market is sure to grow.

Explore heat pump water heater resources for contractors

Our collected resources include heat pump water heater (HPWH) installation guidance, training documentation, and financial incentives for customers.

Try the cost estimator spreadsheet.

Explore the easy-to-use HPWH operational cost estimator spreadsheet. Created by Dan Wildenhaus at the Center for Energy and Environment, the calculator is based off the Department of Energy’s HPWH cost modeling work and allows for adjustment of the assumed therms or kWh per day and the EF/UEF specifications.

Download the cost estimator spreadsheet

Watch an installation guide.

Please see below for Northeast Energy Efficiency Alliance and Hot Water Solutions Northwest’s contractor guide on HPWH installations.

Browse previous training material.

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Dan Wildenhaus, Center for Energy and Environment’s senior technical manager and residential advisor, led a heat pump water heater (HPWH) training session on April 5th, 2023, in St. Louis Park. Dan is a former contractor with eleven years of experience with inverter-driven heat pumps and heat pump water heaters.

Download the presentation deck PDF

Financial resources available to customers:

Rebates, financing, and tax credits are available to qualifying homeowners.

City Resources

The City of St. Louis Park reimburses residents up to $1,000 for HPWH installations. Visit the City of St. Louis Park’s Climate Champions for Homes to learn more.
The City of Edina reimburses residents up to $1,000 for HPWH installations. An energy assessment is required prior to any equipment installation. Visit the City of Edina’s Community Climate Action Fund to read the full list of eligibility requirements.
Residents of Eden Prairie, Edina, or St. Louis Park, contact our Energy Advisor service for guidance on completing projects and lining up resources. EnergyAdvisor@mncee.org / 612-244-2484

Utility Resources

Rebates up to $500 are available from Xcel Energy. This rebate is only applicable for Xcel Energy customers who already have an electric water heater and are installing an HPWH. Visit Xcel Energy’s Water Heater Rebates page to view rebate eligible installers and learn more.

Federal Resources

Upfront product discounts up to $1,750 will be available late 2023 or early 2024 from the Inflation Reduction Act. All project costs are covered for households earning less than 80% of their Area Median Income. Half the project costs are covered for households earning between 80% and 150% of their Area Median Income. The annual cap across all electrification rebates from the Inflation Reduction Act is $14,000. Visit Rewiring America for more information.
A 30% tax credit is available through the 25C Tax Credit with an annual cap of $2,000. Visit ENERGY STAR for annual caps and more information.

Financing

Low-interest financing is available through the Minnesota Housing Finance Agency’s Fix Up Fund. Visit the CEE Lending Center to view options.

Interested in highlighting your HPWH expertise?

Electrify Everything created the HPWH Installer Network to connect residents interested in HPWH solutions with experienced contractors. Join the network to get your business listed!

Learn more about the HPWH Installer Network

Highlight your expertise in heat pump water heater solutions by joining our Installer Network.

Electrify Everything created the Heat Pump Water Heater (HPWH) Installer Network to connect residents interested in HPWH solutions with experienced contractors.

Members of Electrify Everything include the cities of Eden Prairie, Edina, Minneapolis, Rochester, and St. Louis Park, in collaboration with Center for Energy and Environment (CEE).

How to join:

1. Watch our recorded training

The HPWH training recording is led by Dan Wildenhaus, CEE’s senior technical manager and residential advisor. In the training, Dan covers customer benefits of HPWH technology, application considerations in our climate, sizing and installation recommended practices, and more.

View The Recorded Training

2. Pass the eight-question quiz

Passing the quiz will confirm your viewing of the training.

Open The Quiz

3. Complete the intake survey

Open the survey

4. Complete the paperwork

After you complete the quiz, CEE will contact you to complete the Participation Agreement and to get proof of insurance documentation.

How membership works:

Electrify Everything will refer residents to the Installer Network during its work promoting residential electrification.
Installer Network membership lasts for one year following enrollment.
Installer Network membership can be renewed for the next year if:
- The employee who attended the training is still employed at the company, or
- The company has installed at least three HPWHs in the preceding year.
- The Participation Agreement is re-signed.

Want to learn more? Contact Arbor Otalora-Fadner at aotalorafadner@mncee.org or call 612-455-7801