Rogelio Alvarez

By: Rogelio Alvarez on September 27th, 2023

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How Much Do Heat Pump Water Heaters Cost?

Heat Pump Water Heater

Are you looking to find ways to make your home more environmentally friendly? A heat pump water heater is an ideal green choice for providing your house with accessible hot water. But how much does a heat pump water heater cost, and is it worth the investment?

Whether it’s heat pump-sourced air conditioning or electric water heaters, we at Monkey Wrench Plumbing, Heating & Air have been helping homeowners in Los Angeles and the surrounding areas find greener alternatives for their homes. Heat pump water heaters debuted in 2009, and we’ve seen and accounted for all the factors that can affect their price. 

Investing in a heat pump water heater can cost $9,500 to $13,000, with installation fees included. Other factors that affect the price of a heat pump water heater include.

  • Brand
  • Size
  • Modifications
  • Installation Material
  • Optional add-ons
  • Maintenance

In this article, we’ll review all the factors that can affect the price of a heat pump water heater so you can get an idea of what the cost will look like should you decide you want this water heater for your home. Let’s jump right in!


What Affects the Cost of Heat Pump Water Heaters?

It’s important to note that heat pump water heater manufacturers and installation companies can price these products at their discretion. To help offset the cost of heat pump water heaters, homeowners should review and consider applying for California rebates and federal tax credits for heat pump water heaters

The following factors affect the final price of a heat pump water heater. We’ll start by reviewing how the brand of heat pump water heater plays a role in pricing. 



Just like with a new car, the brand and model of your heat pump water heater will affect the overall price. Choosing a high-end manufacturer, like Rheem, may mean a slight increase in the cost of the unit compared to other brands like A.O. Smith, for example. 

When choosing a heat pump water heater, be sure to factor in the differences in cost, efficiency ratings, warranty, and any additional features one brand may offer over another. Side-by-side comparisons of popular heat pump water heater brands can help homeowners decide which one to choose more easily. 

Once you can narrow your heat pump water heater search to a single brand, you can start to consider what size you should get based on your home’s design. 



When it comes to buying a water heater, size matters. The number of people in your home and the combined hot water needs determine the size of your heat pump water heater. The bigger the water heater, the higher the cost.   

Heat pump water heaters are available in the following capacities.

  • 40 to 45 gallons: The most common size of water heater installed, and it is suitable for smaller households with one to two individuals. 
  • 50 gallons: A 50-gallon heat pump water heater can provide plenty of hot water in moderate-sized households with two to four people. 
  • 65 gallons: For larger homes with four to six people, a 65-gallon heat pump water heater is suitable. 
  • 80 gallons or more: A heat pump water heater that can hold 80 or more gallons is ideal for large homes with multiple bathrooms and hot water fixtures.

The difference in cost between the various gallon capacities of heat pump water heaters ranges from hundreds to a few thousand dollars. One method to finding the right sized heat pump water heater is to consider a home’s current water heater size. If the old water heater is 40 gallons, getting the replacement heat pump water heater one size higher is generally recommended. 

After finding a size, one price factor to also consider is if any modifications are needed to complete the heat pump water heater install. 



Whether it’s the same location or a new one, any modifications made to the installation site will be factored into the final price of the heat pump water heater. Heat pump water heaters can heat water by absorbing the surrounding air and need at least 1,000 cubic feet to function properly. So, if there is less than 1,000 cubic feet of air space surrounding the heater, there won’t be enough space available for the heat pump water heater to pull in air. 

For example, if the heat pump water heater has to be placed in the basement or a corner of the attic, these difficult-to-reach areas can drive up the installation cost. Additionally, suppose you would like to move your water heater from one part of your home to another. In that case, you can expect to pay more to accommodate the new heat pump water heater’s required electrical wiring or water lines.

Even if major modifications aren’t required, a heat pump water heater costs can include any necessary material to complete the installation. 


Installation Material

Purchasing a heat pump water heater doesn’t always guarantee that any additional materials required for installation are included. Depending on the scope of the heat pump water heater installation, you may have to pay a few hundred dollars extra for the following supplies. 

  • Pressure relief valves
  • Any new piping for water and drainage line connections
  • Any electrical work

While every installation has a few modifications that need to be made, the more that need to be updated or replaced will increase the overall cost of installing your heat pump water heater.


Optional Add-ons

Although entirely optional, heat pump water heaters have additional components that can be beneficial. You will still have hot water, but these add-ons can help hot water flow, prolong the life of the heat pump water heater, and keep your house safe.

Here are some add-ons that can increase the cost of a heat pump water heater by several hundred to a few thousand dollars. 

  • An expansion tank: An expansion tank helps control thermal expansion and can help relieve pressure buildup. 
  • Circulation pump: A recirculation pump helps reduce the wait time for hot water. 
  • Water Filtration: Water filtration often isn’t included when installing a water heater, but factoring in water filtration can save you thousands of dollars in the long run by protecting your heat pump water heater.

If you’re in an area like Los Angeles with hard water, installing a water treatment system like a water softener can prevent limescale buildup in a heat pump water heater. Most heat pump manufacturers recommend installing water filtration to combat hard water. In most manuals, manufacturers can void warranties if your water hardness exceeds a certain amount of grains per gallon.



Though annual maintenance isn’t a cost you have to worry about during installation, remember that yearly maintenance for your heat pump water heater will be one of the most important things you do to protect your water heater.

On top of the draining service that tank-style water heaters require, heat pump water heater air filters must be cleaned every 2-3 months. While you can drain a heat pump water heater yourself, we recommend you call a certified technician to perform maintenance on your unit at least once a year.


Is a Heat Pump Water Heater Worth the Price?

We reviewed the different factors that affect the overall price of a heat pump water heater with installation. Every homeowner has different hot water demands depending on their house’s size, but the price range for a heat pump water heater is similar to the ranges we see in the field. Now, you can place yourself in a better position to prepare for a heat pump water heater installation or continue your search with other alternatives. 

We at Monkey Wrench Plumbing, Heating & Air have spent the last 15 years and counting assisting homeowners to navigate the water heater market by presenting several options that best meet their hot water needs and financial budget. Heat pump water heaters may be a pricier option, but we’ve seen how beneficial they are for homes looking to make a more environmentally friendly approach. 

If you’re interested in starting a heat pump water heater installation in your home, contact us using one of the buttons below. You can also book an appointment with a certified technician through our online scheduler

Heat pump water heaters are one of the few choices available for a new water heater installation. To explore options based on your budget, check out this article on how much other water heaters cost