The Big decision - Stay with gas or electrify

In a nutshell here are the main benefits of switching from a gas water heater to a Heat Pump water heater:
-Heat Pump water heaters are 4x to 5x more efficient than gas water heaters.
-Lower operating costs even in markets with high electric rates.
-Ability to enroll in Utility Demand Response programs to energize during the times of the day when the electric rates are cheaper. 
-Reduced carbon emissions.
-Improved indoor air quality

240V Heat Pump Water Heaters for Planned Replacement of Gas Water Heaters

~$1,700 to $3,000. Check out below our online selection of ultra-efficient Heat Pump water heaters and see in the comparison chart how they compare with other offers in the market at big box retailers. Free shipping to your home!
Local Utility rebates up to $2,250 – Click to check out our Hot Deals by State
30% Federal tax credit up to $2,000 on product + professional installation net of local Utility rebates. ***Make the smart move now. Do the electrification upgrades this tax year as this tax credit is now set to expire on December 31st, 2025! (see details of which models to pick below under “resources”). Incentives of that magnitude are not likely to come back for a long, long time!
Operating cost ~$120/year for a 50 Gallons tank and ~$170/year for an 80 Gallons tank

240V Product Comparison Table

*Prices observed as of 7/30/2025 (Louisville, KY)

For reference:
-A water heater's energy efficiency is determined by the uniform energy factor (UEF), which is based on how much energy the water heater uses and how much energy is used to power the water heater itself.  The higher the uniform energy factor, the more efficient the water heater.
Source: DOE - Energy.gov
-The first-hour rating [FHR] refers to the amount of hot water a storage-type water heater (including heat pump models) will deliver in the hour after you turn on the tap.
Source: Consumer Reports
-*Retail prices may vary

Our Selection. Buy with confidence. Great offers on 240V Ultra-Efficient Heat Pump water heaters:


-Free shipping to your home. HVAC Direct is the largest online HVAC supplier in the US. 
-Lowest Every Day Low Price (EDLP) in the market. Shop with confidence with the “eBay Money Back Guarantee” provision.
-Best in class 12-year limited warranty upon product registration. Made by Midea.
-UEF = 3.75
-FHR = 69 Gallons
-30 days returns minus return shipping costs


-Free shipping to your home. Power Equipment Direct (PED) is a wholly-owned subsidiary of Ferguson Enterprises. Shop with confidence with the “eBay Money Back Guarantee” provision.
-10-year limited warranty on parts and tank.
-Flex capacity. Leak detection.
-UEF = 3.84
-FHR = 83 Gallons
-30 days returns minus return shipping costs


-Free shipping to your home. HVAC Direct is the largest online HVAC supplier in the US.  
-Lowest Every Day Low Price (EDLP) in the market.
-Best in class 12-year limited warranty upon product registration. Made by Midea.
-UEF = 4.0. 
-FHR = 91 Gallons
-60 days returns, minus returns shipping costs and a 15% restocking fee. 

DIY Installation. If you prefer to have it installed professionally, we recommend that you request minimum 3 plumber quotes for the cost of the installation. Until December 31, 2025 the 30% Federal tax credit also applies to the professional installation of qualified ENERGY STAR® Heat Pump water heaters (See The “Resources” section below for details).
Click to access a list of qualified Heat Pump water heater installers published by ENERGY STAR® .
Resource: LocalPlumbingQuotes by ImproveNet® powered by Angi®
 

120V Heat Pump Water Heaters available in the market for emergency replacement of gas water heaters

*Prices observed as of 7/18/2025 (Los Angeles, CA)

No electrical work or hard wiring required with a 120V Heat Pump water heater. No electrical panel upgrade required. Simply plugs into a 120V shared circuit outlet. 15A or 20A breaker.

***Recommendation – Because the recovery (measured in “First Hour Rating” or “FHR”) of the 120V Heat Pump water heaters is significantly slower than gas, upsize the tank 2 fold compared to the gas tank that you are replacing.
-If you are replacing a 30 gallon gas tank, opt for a 50 gallon 120V Heat Pump water heater or larger.
-If you are replacing a 40 gallon gas tank, opt for a 65/66 gallon 120V Heat Pump water heater or larger.
-If you are replacing a 50 gallon gas tank, opt for an 80 gallon 120V Heat Pump water heater.

***Important: For a swap out of a standard electric water heater, a remodel or new construction project where access to 240V 30A is not an issue, select a standard 240V Heat Pump water heater above. You’ll get faster recovery as needed with backup electric resistance elements.

 

Resources: Details on the Federal tax credit - Heat Pump water heaters

“Heat pumps that meet or exceed the CEE highest efficiency tier, not including any advanced tier, in effect at the beginning of the year when the property is installed, and biomass stoves and boilers with a thermal efficiency rating of at least 75% qualify for a credit up to $2,000 per year. Costs may include labor for installation.

Qualified property includes new:

  • Electric or natural gas heat pumps
  • Electric or natural gas heat pump water heaters
  • Biomass stoves and boilers”

Reference: https://www.irs.gov/credits-deductions/energy-efficient-home-improvement-credit

Pick a 240V integrated Heat Pump water heater model with a Universal Energy Factor (UEF) of 3.3 or higher. The requirement for split system and 120V 15A Heat Pump water heaters is a UEF of 2.2 or higher.
Reference CEE – Consortium for Energy Efficiency Residential Electric Water Heating Specification: https://cee1.my.site.com/s/resources?id=a0V2R00000sUQd1

For example, the 240V ACiQ® Heat Pump water heaters qualify for the Federal tax credit. The 50 Gallon model ACIQ-50-HP-WH has a UEF of 3.75 and the 80 Gallon model ACIQ-80-HP-WH has a UEF of 4.0.
Reference:
https://www.energystar.gov/productfinder/product/certified-heat-pump-water-heaters/results?formId=b16b4f32-abfa-4053-b6ed-d5c36ce41c97&scrollTo=542&search_text=&low_price=&high_price=&type2_filter=&brand_name_filter_proxy=ACIQ&brand_name_isopen=0&markets_filter=United+States&zip_code_filter=&product+types+to+select=Select+a+Product+Category&sort_by=uniform_energy_factor_uef&sort_direction=desc&page_number=0&lastpage=0&brand_name_filter=ACIQ

Consult with your tax professional if you have questions.

IRS Qualified Manufacturer (QM) codes for inclusion as needed in the Federal tax returns for tax year 2025:
-A. O. Smith: A5X5
-Midea (Manufacturer of the ACiQ Heat Pump water heaters): TBA

Resources: Click to check if your Utility or your State offer a rebate on Heat Pump Water Heaters and, if yes, how to claim the rebate.