Heat Pump Water Heaters

Franklin PUD pays rebates for qualifying heat pump water heaters (HPWH) in both new and existing homes.

Incentive Amounts:

Tier 2 or 3 with 50 gallon tank: $750
Tier 2 or 3 with 60 - 80 gallon tank: $1000 

The new HPWH must meet the requirements of the Advanced Water Heater Specification. That Specification, and a Qualified Product List can be found on the Northwest Energy Efficiency Alliance's website

Program Requirements

In existing homes, the heat pump water heater (HPWH) must replace an electric storage water heater. Please download the Heat Pump Water Heater and Appliance Rebate Application and fill out the Heat Pump Water Heater Participation Form. All required documentation must submitted before an incentive can be paid. 

What is a heat pump water heater?  How does it work?*

Heat pump water heaters use up to 60% less energy than standard electric water heaters. That means you’ll get the benefits of your current water heater but pay less.

Heat pump water heaters work like a refrigerator, but in reverse – while a refrigerator pushes heat from inside the unit out to the air around it, a heat pump water heater pulls heat from the surrounding air to warm the water in the storage tank.

Where Can I Install a Heat Pump Water Heater?*

Heat pump water heaters can be installed in a variety of heated, unheated and unheated “buffer” locations. An unheated “buffer” location is a room that does not have its own heat source, but is next to a room that does, such as a garage, basement or utility room

Note that heat pump water heaters require more space than traditional electric water heaters for proper operation.

  • They need to be in a room large enough to provide access to adequate air exchanges.
  • They need to be installed no closer than 7 inches from any wall while operating in heat pump mode.
  • They discharge chilled air and condensate (water) that must be plumbed to a drain.
  • You may not be accustomed to hearing any noise from your existing water heater.  Heat pump water heaters make a fan noise while operating in the heat pump mode.

Follow the manufacturer’s installation directions closely to insure proper operation and that your HPWH will qualify for a utility rebate.

* This information and more on heat pump water heater operation, features, installation, retailers and promotions can be found at https://hotwatersolutionsnw.org.

Infographic of how a heat pump water heater works