Water heater and contractor

Heat Pump Water Heaters

A heat pump water heater (HPWH) draws heat from the surrounding air and stores it in the water, using heat that's already there. A conventional electric water heater (ERWH) creates heat using electrical resistance, just like a stovetop or a toaster. That's inefficient—and costly.

Sacramento's mild climate is ideal for energy-saving heat pump water heaters. Your savings will depend on how much hot water your family uses, but it's common for heat pump water heaters to pay for themselves within five or six years.

Upgrade to heat pump water heater from standard electric water heater

$1,000

Replace your standard electric water heater with a new ENERGY STAR® heat pump water heater (50 gallon minimum with Energy Factor of 2.0 or greater required).

This item may qualify for greater rebates under the HPP program.

Water heater must meet all applicable codes and be properly permitted by local authorities.

Upgrade to heat pump water heater from gas water heater

$1,500

Switch from a gas water heater to a new ENERGY STAR® electric heat pump water heater (50 gallon minimum with Energy Factor of 2.8 or greater required).

This item may qualify for greater rebates under the HPP program.

Water heater must meet all applicable codes and be properly permitted by local authorities.

Click here for a do-it-yourself guide to replacing a gas water heater with an electric ENERGY STAR® heat pump water heater.

How it works

Rebates are processed on a first-come, first-served basis. You should receive your rebate about four to six weeks after all paperwork has been received.

  1. Download the SMUD Residential Rebate Application, which lists all the documentation you need.
  2. Get a building permit.
  3. Hire a qualified contractor to install the HPWH, or install it yourself, following best practices.
  4. Fill out the online rebate application or submit your rebate form within 60 days after installation.

Please note that all rebates are subject to change and available while funding lasts.

For more information, call Jim Mills at 916-732-6798 or email James.Mills@smud.org.

Get a rebate up to $1,500

Heat pump water heaters not only save on energy, but can also earn you money!

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How heat pump water heaters work

Watch a short video explaining heat pump water heaters.

Watch video