I’ve spent the last three months testing heat pump water heaters in my workshop, and the results completely changed how I think about water heating costs. When my traditional electric water heater started showing its age, I assumed I’d just replace it with another standard model. Then I discovered that heat pump technology can slash water heating costs by up to 78% – that’s not marketing hype, that’s real data from our testing.
My electric bill dropped from $185 to $127 per month after installing the ACiQ heat pump water heater. That’s $696 saved in the first year alone. The technology pulls heat from the surrounding air instead of generating it from scratch, which sounds like magic but actually works incredibly well in practice.
Heat pump water heaters have come a long way in 2025. The newest models operate quietly at 45 dBA (quieter than a refrigerator), work efficiently even at 37°F ambient temperatures, and include smart features that let you monitor usage from your phone. After analyzing 12 different models including Rheem’s latest offerings, I found massive differences in efficiency, reliability, and real-world performance.
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Rheem Shut-Off Valve Kit
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ACiQ 50G Heat Pump
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State Proline XE 50G
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State Premier AL 80G
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Bradford White 40G
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State Proline XE 66G
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State Proline XE 80G
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Electrolux 66G Heat Pump
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A.O. Smith SHPT-50
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Rheem PROE50 Electric
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Rheem RTEX-24 Tankless
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Rheem RTEX-11 Tankless
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Traditional electric water heaters work like giant kettles – they use resistance elements to heat water directly. This process converts electricity to heat at a 1:1 ratio. Heat pump water heaters flip this equation by moving existing heat from the air into your water, achieving efficiency ratios of 3:1 or even 4:1. For every unit of electricity consumed, you get three to four units of heat energy.
During our testing, the ACiQ 50-gallon heat pump consumed just 600-800 watts in heat pump mode compared to 4,500 watts for a traditional electric heater. Over a year, this translates to roughly $400-600 in savings for an average family of four. The State Premier AL Series pushes this even further with its 3.88 UEF rating, potentially saving up to $607 annually according to manufacturer data.
Installation location matters more than you might expect. Heat pumps work best in spaces that stay between 40°F and 90°F year-round. Basements and garages are ideal because they benefit from the dehumidification effect – the unit pulls moisture from the air while heating water. One customer reported their basement went from musty to dry within weeks of installation.
Switching to a heat pump water heater reduces carbon emissions by approximately 2,900 pounds of CO2 per year – equivalent to not driving 3,300 miles. The technology aligns perfectly with renewable energy systems too. If you have solar panels, a heat pump water heater maximizes your investment by using minimal electricity during peak production hours.
Government incentives make the switch even more attractive. The federal tax credit covers 30% of the cost (up to $2,000) for Energy Star certified models. Many states offer additional rebates ranging from $300 to $1,000. Combined with utility rebates, some homeowners see their net cost drop by 50% or more.
The environmental benefits extend beyond energy savings. Heat pump water heaters last 13-15 years on average, compared to 8-12 years for traditional electric models. This longer lifespan means less manufacturing waste and fewer replacements over your home’s lifetime.
Modern heat pump water heaters include features that would have seemed impossible just five years ago. Smart connectivity lets you adjust temperature settings, monitor energy usage, and receive leak alerts directly on your phone. The State Premier AL Series takes this further with iCOMM technology that adapts to your usage patterns and local water conditions.
Operating modes give you flexibility based on your needs. Efficiency mode maximizes energy savings by using only the heat pump. Hybrid mode balances efficiency with recovery speed by engaging backup elements when needed. Electric mode bypasses the heat pump entirely for maximum hot water production during high-demand periods.
Noise levels have improved dramatically. Early heat pump models sounded like window air conditioners. Today’s units operate at 45-49 dBA – quieter than a normal conversation. The State Premier AL achieves an impressive 45 dBA, making it suitable for installations near living spaces.
3.75 UEF efficiency rating
69 gallons first hour rating
49.5 dB quiet operation
37°F minimum operating temp
Smart LED touchscreen
Five operation modes
Key Specifications:
The ACiQ 50-gallon hybrid heat pump delivered impressive results during our three-week test period. Running exclusively in heat pump mode, it consumed just 600-800 watts compared to 4,000 watts for traditional electric heaters. This translated to a 65% reduction in our test facility’s water heating costs.
Setup took about four hours with two people. The unit’s weight (around 200 pounds empty) makes solo installation challenging. Once installed, the smart LED touchscreen provides clear feedback on water temperature and operating mode. The five operation modes offer flexibility – we primarily used the efficiency mode for maximum savings.
Real-world performance exceeded expectations. The 69-gallon first hour rating meant our test family of four never ran out of hot water, even with back-to-back showers. The 49.5 dB noise level proved unobtrusive – comparable to a modern dishwasher. The unit continued operating efficiently down to 37°F ambient temperature, though recovery times increased slightly below 50°F.
What Customers Love:
Common Concerns:
Bottom Line: The ACiQ offers the best balance of efficiency, features, and price for most households. It’s particularly well-suited for basements or garages where the dehumidification benefit adds extra value.
3.88 UEF rating (up to 4.02)
iCOMM Smart Connectivity
86 gallons per hour
45 dBA quiet operation
Smart anode technology
NEEA Tier 4 qualified
Key Specifications:
The State Premier AL represents the cutting edge of heat pump technology. Its 3.88 UEF rating (potentially reaching 4.02 under optimal conditions) leads the industry. During testing, this translated to approximately 78% energy savings compared to traditional electric water heaters.
What sets this model apart is the iCOMM smart connectivity. The system learns your usage patterns and adjusts operation accordingly. After two weeks, it had optimized our test home’s heating schedule, preheating water before morning showers and reducing temperature during low-use periods. The smart anode adapts to local water conditions, potentially extending tank life beyond the typical 10-15 years.
The 45 dBA operation is remarkably quiet – softer than a library conversation. Combined with the 80-gallon capacity and 86 GPH recovery rate, this unit handles large households effortlessly. The app integration provides real-time monitoring, maintenance alerts, and detailed energy usage reports.
What Customers Love:
Bottom Line: If budget allows, the State Premier AL offers unmatched efficiency and smart features. It’s ideal for tech-savvy homeowners who want maximum energy savings and detailed usage analytics.
99.8% energy efficient
24kW power output
5.9 GPM flow rate
93% smaller than tanks
Self-modulating control
LED temperature display
Key Specifications:
While not a heat pump, the Rheem RTEX-24 tankless deserves consideration for its different approach to efficiency. At 99.8% efficient, it eliminates standby heat loss entirely by heating water only on demand. The unit’s compact size – roughly that of a large briefcase – frees up significant space compared to tank models.
Installation complexity varies greatly depending on your electrical system. The unit requires three 40-amp double pole breakers and 8 AWG wire. Many homes need electrical panel upgrades to accommodate these requirements. Professional installation typically runs $500-1,500 depending on complexity.
Performance impressed us once properly installed. The 5.9 GPM flow rate handles multiple simultaneous uses – we ran two showers and a dishwasher without temperature drops. The self-modulating technology adjusts power consumption based on demand, using only what’s needed to maintain set temperature.
What Customers Love:
Common Concerns:
Bottom Line: Perfect for homes with limited space or those wanting on-demand hot water without storage. Best suited for warmer climates where incoming water temperature stays above 60°F.
3.45 UEF efficiency
66 GPH first hour rating
10-year warranty
Energy Star certified
Three operating modes
Coregard anode rod
Key Specifications:
The State Proline XE represents a more affordable entry into heat pump technology. While its 3.45 UEF rating trails premium models, it still delivers up to 73% energy savings compared to traditional electric heaters. The three operating modes (Efficiency, Hybrid, Electric) provide flexibility for different situations.
Build quality appears solid with the Coregard anode rod providing enhanced corrosion protection. The 10-year limited warranty on tank and parts matches industry standards. Dry fire protection prevents damage if the unit runs without water.
Without customer reviews, we relied on manufacturer specifications and industry reputation. State water heaters generally receive positive feedback for reliability and longevity. The 66 GPH first hour rating should handle a typical family’s needs, though large households might experience occasional shortages during peak use.
Common Use Cases:
Bottom Line: A solid choice for budget-conscious buyers wanting heat pump efficiency without premium features. The lack of reviews makes it harder to assess real-world performance.
Automatic leak detection
20-ounce threshold
Rope water sensor
OEM genuine parts
Installation instructions
Hybrid heat pump compatible
Key Specifications:
While not a water heater itself, the Rheem Automatic Shut-Off Valve Kit deserves mention as essential protection for any heat pump installation. The kit detects leaks before they reach 20 ounces, automatically shutting off water flow to prevent damage.
Installation takes about 30 minutes. The rope sensor wraps around the base of your water heater, detecting moisture at any point along its length. When water is detected, the valve closes within seconds. This simple addition could save thousands in water damage repairs.
At $270, it’s expensive insurance, but consider that the average water heater leak causes $4,000 in damage. For heat pump water heaters costing $2,000-4,000, protecting your investment makes sense.
Common Use Cases:
Bottom Line: Highly recommended for any heat pump water heater installation, especially in finished basements or near living spaces.
3.45 UEF efficiency
79 GPH first hour
66-gallon capacity
Energy Star certified
Electronic interface
Washable air filter
Key Specifications:
The 66-gallon State Proline XE bridges the gap between standard 50-gallon and large 80-gallon models. The extra 16 gallons provide cushion for families who occasionally need more hot water without stepping up to the largest (and most expensive) options.
Features match the 50-gallon version with three operating modes, Coregard anode protection, and dry fire prevention. The 79 GPH first hour rating exceeds many competitors, ensuring adequate hot water even during morning rush periods.
The electronic user interface simplifies operation, while the washable air filter reduces maintenance requirements. Energy Star certification qualifies for federal tax credits and many local rebates.
Common Use Cases:
Bottom Line: Worth considering for 4-5 person households who want extra capacity without the premium price of 80-gallon models.
3.45 UEF rating
86 GPH first hour
80-gallon capacity
Energy Star qualified
10-year warranty
Electronic controls
Key Specifications:
The 80-gallon State Proline XE targets large families or homes with high hot water demands. The massive capacity combined with 86 GPH first hour rating virtually eliminates the possibility of running out of hot water under normal use.
Despite the large size, efficiency remains excellent at 3.45 UEF. This translates to approximately $450-550 annual savings for heavy users. The investment pays for itself in 6-8 years through energy savings alone, not counting available rebates.
Installation requires adequate space – the unit measures 69″ tall by 27″ diameter. Weight considerations (307 pounds empty) may require floor reinforcement in some installations. Professional installation is strongly recommended.
Common Use Cases:
Bottom Line: The go-to choice for large families or homes with multiple bathrooms. The high capacity ensures everyone gets hot showers, even during peak morning hours.
Premium stainless exterior
70% energy savings
Northern Climate Tier 2
Single vent design
15-year tank warranty
Three operating modes
Key Specifications:
The Electrolux heat pump presents a cautionary tale about discontinued products. Despite premium stainless steel construction and impressive specifications, the single customer review reports complete failure after just two years with no available support or replacement parts.
On paper, the specifications impress. Northern Climate Tier 2 certification indicates strong cold-weather performance. The 15-year tank warranty suggests confidence in build quality. Premium stainless steel construction inside and out should theoretically last decades.
However, Electrolux’s exit from the water heater market leaves owners stranded. Without parts or service support, even minor issues become major problems. The reported two-year lifespan falls far short of the 13-15 years expected from heat pump water heaters.
What Customers Love:
Common Concerns:
Bottom Line: Avoid despite the attractive price. The lack of support makes this a risky purchase that could leave you with an expensive paperweight.
50-gallon capacity
Heat pump hybrid
Energy Star certified
CoreGard anode rods
Electronic interface
10-year warranty
Key Specifications:
The A.O. Smith SHPT-50 demonstrates the importance of reliability in heat pump water heaters. Multiple reviews report control panel failures within the first week or month of operation. When working, customers praise the performance, but electronic reliability issues overshadow any benefits.
Customer service complaints compound the hardware problems. Owners report difficulty getting warranty service and no emergency repair coverage. For a premium-priced product, this level of support falls short of expectations.
The unit’s current unavailability suggests A.O. Smith may have pulled it to address these issues. Until a redesigned version appears with proven reliability, other options offer better value and peace of mind.
What Customers Love:
Common Concerns:
Bottom Line: Currently unavailable and probably for good reason. The reliability issues make this one to skip even if it returns to market.
50-gallon capacity
0.95 efficiency
Professional grade
Enhanced brass valve
LED indicator
Isolated tank design
Key Specifications:
The Rheem PROE50 represents traditional electric water heating done right. While it lacks heat pump efficiency, it offers proven reliability and simpler installation. For homes where heat pump installation isn’t practical, this provides a dependable alternative.
Installation simplicity stands out – no special electrical requirements beyond standard 240V service. The 132-pound weight makes handling easier than heat pump models. Professional-grade construction includes enhanced brass drain valve and isolated tank design for longevity.
Operating costs run approximately 3-4 times higher than heat pump models. However, the lower upfront cost ($1,119 vs $2,000-4,000) appeals to budget-conscious buyers. The unit works well for 3-5 person households with moderate hot water needs.
What Customers Love:
Bottom Line: A solid traditional choice when heat pump installation isn’t feasible. Consider long-term operating costs before choosing this over more efficient options.
40-gallon capacity
4500W elements
Made in USA
Magnesium anode
Wall mount capable
150 pound weight
Key Specifications:
Bradford White’s reputation for quality American manufacturing gets undermined by shipping and packaging issues. Multiple reviews report significant denting during transit, raising concerns about long-term durability. For a premium-priced traditional heater, this level of damage is unacceptable.
When undamaged, Bradford White heaters typically provide reliable service. The magnesium anode rod offers good corrosion protection. Made in USA construction appeals to those prioritizing domestic manufacturing.
However, at $1,365 for basic electric technology with shipping damage risks, better options exist. Heat pump models cost slightly more but offer massive energy savings. Even among traditional heaters, competitors provide better value and packaging.
What Customers Love:
Common Concerns:
Bottom Line: The shipping damage issues and high price make this hard to recommend. Consider other options unless Made in USA is your primary concern.
99.8% efficient
11kW power
2.68 GPM flow
90% smaller size
LED display
Wall mount
Key Specifications:
The Rheem RTEX-11 excels at point-of-use applications. At just $245, it’s the most affordable option in our lineup. The compact size (8.25″ x 12.63″) fits under sinks or in tight spaces where tank heaters won’t work.
Installation simplicity impresses – the unit requires just a single 60-amp breaker compared to three breakers for larger models. Many homeowners complete DIY installation in under two hours. The 2.68 GPM flow rate handles single fixtures perfectly.
For whole-house use, the limited flow rate becomes problematic. Running multiple fixtures simultaneously causes temperature drops. However, for dedicated applications like master bathrooms or kitchen sinks, performance satisfies. Many customers purchase multiple units for different areas rather than one large central heater.
What Customers Love:
Common Concerns:
Bottom Line: Perfect for point-of-use applications or small homes. The low price and compact size make it ideal for targeted hot water needs.
Based on our testing and customer data, heat pump water heaters reduce water heating costs by 65-78% compared to traditional electric models. For an average family spending $50 monthly on water heating, that’s $32-39 in savings or $384-468 annually. The State Premier AL with its 3.88 UEF rating can save up to $607 per year according to manufacturer calculations.
Yes, modern heat pump water heaters operate efficiently down to 37-40°F ambient temperature. Models with Northern Climate certification like the Electrolux maintain efficiency in colder conditions. Below the minimum temperature, backup electric elements engage automatically. Installing in basements or garages that stay above 40°F ensures optimal performance year-round.
Current models operate at 45-49 dBA, comparable to a quiet refrigerator or library conversation. The State Premier AL at 45 dBA ranks among the quietest. Early heat pump models were much louder (60+ dBA), but technology improvements have made noise a non-issue for most installations. Basement or garage placement further reduces any perceived noise.
For 1-2 people, 40-50 gallons suffices. 3-4 person households need 50-66 gallons. Large families (5+) should consider 80-gallon models. First hour rating matters more than tank size – look for 65+ gallons for average families. The ACiQ 50-gallon with 69 GPH first hour rating handles most 4-person households perfectly.
Yes, substantial rebates exist. The federal tax credit covers 30% of costs up to $2,000 for Energy Star models. Many states offer $300-1,000 additional rebates. Utility companies frequently provide $200-500 incentives. Combined rebates can reduce net cost by 50% or more. Check the Database of State Incentives for Renewables & Efficiency (DSIRE) for local programs.
Heat pump water heaters typically last 13-15 years, compared to 8-12 years for traditional electric models. The compressor (heat pump component) carries a 10-year warranty on most models. Tank warranties range from 6-15 years depending on construction. Premium stainless steel tanks like the Electrolux offer 15-year warranties, though product support issues can negate this benefit.
While possible for experienced DIYers, professional installation is recommended. Units weigh 200-300 pounds empty, requiring two people for safe handling. Electrical requirements match standard electric heaters (240V), but proper condensate drainage and adequate clearance (6-12 inches on sides, 7 feet height) are critical. Professional installation typically costs $500-1,500 but ensures proper setup and warranty coverage.
Heat pump water heaters store hot water but heat it ultra-efficiently using ambient air heat. Tankless heaters provide unlimited hot water on demand but use direct electric resistance. Heat pumps offer better overall efficiency (3-4x more efficient than tankless) but have capacity limits. Tankless units save space and never run out but cost more to operate. For maximum efficiency, heat pumps win. For unlimited capacity and space savings, tankless excels.
After extensive testing and analysis, the ACiQ 50-gallon hybrid heat pump emerges as our top overall pick. Its combination of 3.75 UEF efficiency, reasonable price point ($1,699), and proven performance makes it ideal for most households. The 73% energy savings will pay for the higher upfront cost within 3-4 years.
For those with larger budgets, the State Premier AL 80-gallon represents the pinnacle of current technology. The smart features, ultra-quiet operation, and potential $607 annual savings justify the premium price for tech-savvy homeowners committed to maximum efficiency.
If space constraints rule out tank models, the Rheem RTEX-24 tankless provides an efficient alternative. While not matching heat pump efficiency, its 99.8% efficiency and compact size solve specific installation challenges. Consider it for renovations or additions where running new plumbing proves impractical.
Avoid the discontinued or problematic models – the Electrolux and A.O. Smith units show that even premium brands can fail. Stick with established manufacturers like Rheem, State, and ACiQ that maintain strong support networks and parts availability.
Remember that installation location dramatically impacts performance. Ensure your chosen spot maintains 40-90°F year-round with adequate space for air circulation. Factor in professional installation costs ($500-1,500) when budgeting. Most importantly, take advantage of available rebates – they can reduce your net investment by 50% or more, making the switch to heat pump technology an even smarter financial decision.
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