Heat Pumps for Hot Water: Installed Costs in New Homes

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As states across the country take steps to decarbonize buildings, it’s critical they accelerate the transition to electric appliances for space heating, water heating, and cooking. Heat pump water heaters (HPWHs) are far more efficient than gas or resistance options and can effectively heat water without the emissions associated with gas appliances.

HPWHs are poised for explosive growth in the new construction market in coming years thanks to significant technological developments and policy momentum—but costs for these systems are still largely unknown or misunderstood. This new analysis fills a critical knowledge gap by providing the most comprehensive cost database to date for HPWH systems installed in both single-family and multifamily developments. The analysis shows that HPWHs are often cost-competitive with natural gas alternatives today when considering the often-externalized cost of gas infrastructure.

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