The Big decision - Stay with gas or electrify with a Heat Pump Water Heater (240V or 120V)
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
Eco-Savings Calculator
Updated: Dec 2025 EIA Rates
Methodology: Comparison based on standard 0.6 UEF fossil-fuel tanks vs. 3.5 UEF HPWH. Gas/Propane rates sourced from DOE & EIA 2025 fuel outlooks.
Source of Local Equivalent Fuel Costs
Natural Gas: The calculation is based on the Energy Information Administration (EIA) December 2025 residential outlook. It assumes a household switching from a standard 0.60 UEF (Uniform Energy Factor) gas tank to a 3.50+ UEF Heat Pump. The savings represent the cost of ~220 therms of gas (offset) minus the cost of ~1,100 kWh of electricity (new load) at your specific state’s rate.
Propane: Propane rates are based on the EIA Heating Oil and Propane Update. Since propane is a delivered fuel and significantly more expensive per BTU than natural gas, the “Propane Offset” value is roughly 2.2x higher than the gas offset, making the heat pump savings much more dramatic for these users.
-For a swap out of a gas water heater, a remodel or new construction project where easy access to a 240V 30A electrical outlet is NOT an issue, select a 240V Heat Pump water heater. You’ll get faster recovery as needed with backup electric resistance elements.
-For a fast swap out of an existing gas water heater with no easy access to a 240V 30A electrical outlet, select a 120V Heat Pump Water Heater. No electrical work or hard wiring required with a 120V Heat Pump water heater. No electrical panel upgrade required. It 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.