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Electrifying our Hot Water Heater with a Hybrid Heat-Pump

Two of our favorite things are long hot showers and high-tech gadgets.  What do those two things have in common?  You can get them both with an electric hybrid heat-pump water heater.

Our new Rheem Performance Platinum hybrid unit from Home Depot uses heat pump technology to significantly cut energy costs—about half that of a gas-fueled unit and less than a third of a traditional electric water heater.  And it’s all-electric, so it eliminates the burning of natural gas in the house and venting of exhaust emissions into the atmosphere.

After some research, we settled on an 80-gallon Rheem Performance Platinum hybrid heat-pump water heater from Home Depot.

We’ve had the unit for about three weeks, and its performance has been excellent, providing plenty of hot water for showers, washing clothes, and running the dishwasher.  If we were to ever experience unusually high demand—for example, several guests visiting—it can be switched to high-demand mode to run like a traditional electric unit using a heating element to warm the water more quickly.

And the Rheem Performance Platinum unit is also WIFI enabled so that you can remotely monitor hot water status and energy use—with options to change from heat pump to high demand mode if necessary, or even to schedule those changes in advance by time of day or day of the week for predictable demands.

We couldn’t be more pleased with the switch from gas to electric for our water heating.  As part of our electrification transition, we’ve eliminated the second biggest source of emissions from our home, while reducing our operating costs.  The Rheem electric hybrid heat-pump water heater provides plentiful hot water, with lots of assurance that running out should never be a concern.  The hybrid is the best of both worlds—an energy-efficient unit in normal operation, with an option to switch to a traditional electric heating element if needed.  The higher upfront cost will be quickly recouped with a combination of lower annual operating costs and Federal tax incentives designed to promote energy efficiency and electrification.

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Hot water heaters—with apologies for the redundant terminology—are one of the great inventions of modern life.  Nothing beats a nice, long hot shower or bath.  And hot water is an essential ingredient for kitchen cooking and cleaning, as well as laundry.

Hot Water Heaters Fueled by Natural Gas: A Great 20th Century Machine

Hot water heaters fueled by natural gas were awesome machines in the 20th century, reliably producing hot water with fast recovery. 

Hot water heaters fueled by natural gas were awesome machines in the 20th century.  They reliably produce hot water year after year, and the fast recovery enabled by the heat they can blast ensures that you are unlikely to ever run out of hot water.  We’ve had one in our home for almost 19 years, and we have never run out of hot water, even with five people living in the house.  It has been totally reliable, except for a couple of times when temporary natural gas shortages in the area caused it to shut down.  Our unit is relatively efficient in its use of fuel, converting a large fraction of the natural gas energy supplied to it into hot water, with a power vent into a small PVC exhaust pipe to the roof of the house.

Our gas hot water heater served us well for 19 years.

But gas-fueled water heaters run on a fossil fuel, and their exhaust fumes add directly to the already-too-high levels of CO2 in the atmosphere.  To solve the climate crisis created by burning fossil fuels, we need to convert all our machines to electricity, making the transition every time one needs replacement.

The Need to Electrify Our Machines for the 21st Century

But gas-fueled water heaters run on a fossil fuel, and its exhaust fumes add directly to the already-too-high levels of CO2 in the atmosphere.  To solve the climate crisis created by burning fossil fuels, we need to convert all our machines to electricity, making the transition every time one needs replacement.  And we need to power those new electric machines with electricity from non-carbon sources.

Water heating is the second largest use of energy in American homes—at almost 20 percent of residential energy consumption—and gas water heaters currently comprise slightly more than half the water heaters.

Today, water heating is the second largest use of energy in American homes—at almost 20 percent of residential energy consumption—exceeded only by space heating at 43 percent.  Gas water heaters currently comprise slightly more than half the water heaters in the US, so in those cases, the energy they use translates directly into emissions and higher levels of atmospheric CO2.

Our gas hot water heater served us well, but it was venting CO2 into the atmosphere during its 19-year service life.
After the installation of our new electric hybrid heat-pump water heater, we’ve eliminated one of the sources from CO2 emissions from our home.

Electric hot water heaters have been available for many years, but their heating elements use a lot of electricity, leading to high operating costs.

Electric hot water heaters have been available for many years—about 40 percent of current units in the US are powered by electricity.  But those units, which directly warm the water with a heating element, use a lot of electricity, leading to high operating costs.

Electric Hybrid Water Heaters

Electric hybrid water heaters, which use modern heat-pump technology to transfer heat from the air to warm the water, are much more energy efficient, and therefore less expensive to operate.  They’re called “hybrid” units because, in addition to the heat-pump mode, they can also use a traditional heating element to rapidly warm water in high-demand situations—providing the best of both electric worlds.

Energy-efficient hybrid water heaters use heat pump technology with a Uniform Energy Factor (UEF) rating of 4.0 and an estimated annual energy cost of only $150—compared to about $500 for a traditional electric water heater or $300 for a gas-fueled unit.

To put some numbers on the energy-efficiency point, hybrid water heaters using heat pump technology are Energy Star rated, and our new Rheem unit has a Uniform Energy Factor (UEF) rating of 4.0.  That translates to an estimated annual energy cost of $149.

In comparison, Rheem’s new traditional electric water heater relying on only a heating element has a UEF of .93, with annual operating cost of $489—more than three times higher than a heat-pump unit.

Depending on the model, hot water heaters fueled by natural gas have Uniform Energy Factors ranging from .64 to .70, with estimated annual operating costs of about $300 ($271 on the low end to $320 on the high end)—roughly twice the cost of an electric hybrid heat-pump unit.  And all the energy use of a gas-fueled water heater translates directly into emissions.

Upfront Costs

The upfront purchase cost of hybrid hot water heaters is higher than either a gas unit or a traditional electric water heat.

After some product research, we settled on a Rheem water heater from Home Depot, installed by a local contractor they provided. 

After some product research, we settled on a Rheem Performance Platinum electric heat-pump water heater from Home Depot.  Rheem is a well-established, American-based company, and its heat-pump water heaters are well regarded, appearing at the top, or near the top, of most reviews.  They are consistently well rated on performance, efficiency, noise level, and engineering quality.  And their association with Home Depot makes for a convenient shopping experience with a well-known business.

The upfront cost of heat-pump hot water heaters is higher—about $1,000 more than a gas unit and $1,000-2,000 higher than a traditional electric unit.  But the higher upfront cost will be quickly offset by lower operating costs and Federal tax savings intended to promote the adoption of energy-efficient units.

Equipment costs for the Rheem electric hybrid heat-pump water heaters range from $1,700 for a 50-gallon unit to $2,700 for an 80-gallon unit (with a 65-gallon option at $2,200).  We opted to pay the higher $2,700 cost for the 80-gallon unit because we were replacing a 75-gallon unit and wanted to ensure that we never run out of hot water. 

For comparison, equipment cost for a Rheem 75-gallon replacement gas unit would have been about $1,000 less than the heat-pump unit—a difference largely offset by the 30-percent Federal tax credit for the electric hybrid unit—an incentive intended to promote the purchase of high-efficiency electric units. 

Traditional electric units with heating elements are much cheaper—about $2,000 less than the 80-gallon hybrid, and $1000 less than a 50-gallon hybrid unit.  But the upfront difference would be quickly offset in operation by much higher energy costs—about three times higher, an additional cost of more than $300 per year.

Home Depot’s local installer provided high-quality service.

Home Depot provides a recommended set of local installers, and they put us in touch with a local plumbing company called Fairfax Electric, Plumbing and Gas in Fredericksburg, Virginia.  The company is rated highly in Washington Consumer Checkbook and other rating sites, and their performance for our installation lived up to those high expectations.  Their communications throughout the process were professional and responsive—including a follow-up call the evening after the installation to make sure the unit was working properly.  The scheduling was fast—delayed only by a few days while they waited for more Rheem units to be delivered to them.  And the installation itself was on time, quick (less than two hours), and done properly.

Total cost for equipment and installation was about $4,000, including a drip pan, an expansion tank required by the County, and the capping off of the old gas line and exhaust pipe.  The total cost of a comparable gas unit would have been about $3,200—about the amount of the Federal tax credit.

Getting “Electric Ready”

Depending on your home set-up, replacing a gas hot water heater with an electric unit—either hybrid or traditional—may also require some electrical work. 

Depending on your home set-up, replacing a gas hot water heater with an electric unit—either hybrid or traditional—may also require some electrical work.  The Rheem hybrid unit requires a dedicated 240-volt, 30-amp circuit, whereas our previous gas unit needed only a 120-volt outlet for the power vent.  So to prepare for the installation of the Rheem hybrid unit, we had to have an electrician install a new 240-volt circuit in the basement, at an additional cost of $600.

It’s wise to plan ahead by getting “electric ready” for the all-electric future.  The “big three” in home electrification—charging electric vehicles and powering HVAC heat pumps and hybrid water heaters—all require dedicated 240-volt circuits.  So if you’re having electrical work done—especially if you’re building a new home or launching a major renovation—you should have the required electrical circuits installed all at once and in advance.

Our experience with the electric water heater illustrates a more general point about preparing for the all-electric future.  The “big three” in home electrification—charging electric vehicles and powering HVAC heat pumps and hybrid water heaters—all require dedicated 240-volt circuits, as well as a 200-amp electric service panel.  So as you prepare for the transition to all electric machines in your home, it is wise to plan ahead by getting “electric ready.”  If you’re having electrical work done—especially if you’re building a new home or launching a major addition or renovation—you should have the required electrical circuits run all at once and in advance—including a 200-amp electrical service panel, if you don’t already have one.  That way, you should be able to minimize costs and not be stuck waiting for an electrician when you suddenly need to replace an old furnace or water heater that dies.

Performance So Far

So how does the Rheem hybrid water heater perform?

In three weeks of operation, we’ve had plenty of hot water for those long showers, as well as for washing clothes and dishes.

The most important thing, of course, is not running out of hot water.  In three weeks of operation, we’ve had plenty of hot water for those long showers, as well as for washing clothes and dishes.  The unit is equipped with WIFI, and a phone app allows us to monitor the hot water levels.  So far, we have never been below one-third, and usually at two-thirds.

The heat-pump mode, though extremely energy efficient, replenishes hot water at only about 20 gallons per hour—half the rate of a gas-fueled unit.  But that turns out to be a non-issue for three reasons: it’s fast enough, we have a large 80-gallon tank, and the high demand mode is available through a remote app setting if needed.

The heat-pump mode, though extremely energy efficient, replenishes hot water at only about 20 gallons per hour—half the rate of a gas-fueled unit.  But that turns out to be a non-issue for three reasons.  First, as we have monitored the hot water levels after our morning showers, the unit has been replenishing the hot water in an hour or two, even in heat-pump mode.  Second, the 80-gallon capacity provides additional assurance of plentiful supply.  And as a third level of assurance, we have the option to temporarily turn on the (less energy-efficient) high demand mode if we ever run low.  The app even allows us to create a schedule for high demand mode by time of day and day of the week.  So, for example, if we had a number of house guests, all taking showers in the morning, we could set the unit to operate in high demand mode from 8:00 to 10:00 in the morning to quickly replenish the hot water supply.

The Rheem heat-pump water heater is WIFI-enabled and comes with a phone app that allows the owner to monitor hot water levels and energy usage and set the heating mode.
The Rheem hybrid water heater allows the user to remotely switch the mode of operation if needed to meet periods of high demand.
The phone app for the Rheem hybrid water heater allows the user to set a schedule for switching from the energy-efficient heat-pump mode to high-demand mode if needed.

The only time the low heating rate of the heat-pump mode was an issue was during initial operation, when the unit had to heat 80 gallons of cold water.  I watched the hot water level for a few hours after the morning of installation and grew concerned as the phone app continued to show “empty” on the hot water level.  In the late afternoon, I called the plumbing installation company, Fairfax Electric, Plumbing and Gas, and got a quick confirmation of my guess: I should switch to high demand mode until the unit was fully heated.  And, sure enough, the unit registered a full tank of hot water an hour or two later, at which time I switched back to heat-pump mode.  (Fairfax lived up to their high-quality rating by calling back that evening to make sure everything was working properly.)

We have not had to consider switching to high demand mode since then.

In addition to strong water-heating performance, noise has also been of no concern.  In fact, it is actually quieter than our old gas unit when its power vent fan was running.

A hybrid unit does need to be located in an area where it can draw in plenty of surrounding air to feed its heat pump.  That is not an issue in our unit’s basement location, but could be an issue for water heaters located in closets or other confined spaces.

Energy Efficiency

So does the hybrid’s energy efficiency live up to the claims?

Energy efficiency has also lived up to expectations, using a little more than 3 kilowatt-hours per day, at an annual cost of about $168—very close to the Energy Star estimate.  That compares to about $500 for a traditional electric water heater, or $300 for a gas unit.

Energy efficiency has also lived up to expectations in the first three weeks of operation.  With two people taking long showers and running plenty of laundry, the Rheem hybrid unit has consistently used a little more than 3 kilowatt-hours of electricity per day.  That adds up to about 1,200 kilowatt-hours per year, and at 14 cents in Virginia, that’s a cost of about $168—close to the Energy Star label of $149 in estimated annual operating cost.  A traditional electric unit would cost about $500 a year to operate, more than three times as much, and a gas unit would cost about $300, twice as much.

The Rheem hybrid heat-pump water heater provides a phone app that allows the user to track energy usage–which has been a little more than 3 kilowatt-hours per day.

The heat pump technology built into a hybrid unit is backed by a nine-year warranty.

The heat-pump technology built into a hybrid unit is not new, but it is inherently more complex than a gas-fueled or traditional electric unit, which are both extremely reliable.  The Rheem hybrid is backed by a nine-year warranty and Rheem’s reputation for quality engineering—along with the backing of Home Depot as the seller and a high-quality local installer available for any maintenance that might be needed in the future.

Summary

We couldn’t be more pleased with the switch from gas to electric for our water heating. 

The hybrid is the best of both worlds—an energy-efficient unit in normal operation, with an option to switch to a traditional electric heating element if needed. 

As part of our electrification transition, we’ve eliminated the second biggest source of emissions from our home, while reducing our annual operating costs.  The Rheem electric hybrid heat-pump water heater provides plentiful hot water, with lots of assurance that running out should never be a concern.  The unit includes a useful WIFI-enabled phone app to monitor hot water levels and energy usage, with the capability to switch operating mode if needed to sustain adequate hot water during periods of unusual demand. 

The hybrid is the best of both worlds—an energy-efficient unit in normal operation, with an option to switch to a traditional electric heating element if needed. 

The higher upfront cost will be quickly recouped with a combination of lower annual operating costs and Federal tax savings designed to promote energy efficiency and electrification.