Electric water heaters (storage tank)

The fuel decides this, not the model

Across 1,364 certified units on this fuel the median runs $787 a year. Across the 588 certified heat-pump water heaters the median is $196 — a gap of $591 a year, computed the same way for both from certified UEF and EIA average prices. Choosing between two units on this page changes a fraction of that. Changing fuel changes all of it.

A heat-pump water heater typically installs for $3,900 against $500–$3,500 for a like-for-like swap here, so on mid-range assumptions the switch repays itself in about 3 years , and even on the worst pairing in the data — the cheapest possible swap against a heat pump needing a panel upgrade — about 14. A tank lasts 10 to 15 years, so this is the rare upgrade that pays for itself well before it dies.

Running costs are computed from certified UEF and EIA average energy prices — see our methodology. Installed ranges were compiled 2026-07-18 from multiple cost guides and widened, not averaged, where sources disagreed; no single typical figure is asserted for tank swaps, which is why a range is shown. A heat pump water heater needs clearance, condensate drainage and usually a 240V circuit, and it cools and dries the space it sits in — a plus in a garage, a minus in a conditioned closet. The federal 25C credit expired 31 December 2025 and does not apply; state and utility programmes may, and are on our rebates page.