Hot-water ownership cost

Compare the whole cost—not just the tank.

Use annual energy estimates from the EnergyGuide labels and your local rates. Add installed prices to compare simple ownership cost over time.

Your labels and prices

Electric rate ¢ / kWhComparison period yearsStandard electric use kWh / yearStandard installed cost $Heat-pump use kWh / yearHeat-pump installed cost $Propane use gallons / yearPropane price $ / gallonPropane installed cost $

Sample usage is illustrative. Use each candidate model’s EnergyGuide estimate and include installation changes, permits, venting, electrical work, and rebates separately.

Cost comparison

Electric / year$577.50

Heat pump / year$198.00

Propane / year$625.00

Lowest estimated ownership cost

Heat-pump

$5,480.00 estimated 10-year cost

Heat-pump premium payback4.5 years

Location and household demand matter

A heat-pump water heater moves heat from surrounding air into the tank. Performance can change with ambient temperature, installation space, operating mode, and hot-water use. It also cools and dehumidifies the surrounding area.

Compare labels, not marketing: annual EnergyGuide consumption estimates are a better starting point than assuming a universal percentage savings.

Read the water-heater guideInstallation conditions and payback explained.Calculate element costEstimate a standard electric element’s operation.

Reviewed for practical use by Gary · Designed by Gary & Quinnlan Rae