Heat Pump Water Heaters

Heat pump water heaters (HPWH) are a more recent market entry with nearly triple the efficiency of electric resistance models. HPWHs function similarly to space heating heat pumps: instead of generating heat from electric resistance coils, heat is moved from ambient air to a hot water tank. The ambient air can come from either inside the building or from the outdoors. Once heat has been extracted from the air, cold air is discharged from the unit.

The Maryland Clean Buildings Hub (the Hub), an initiative of the Maryland Energy Administration, empowers Maryland’s building owners to make well-informed energy investments in their properties by connecting them to financial, educational, and technical assistance. Sign-up for the Hub newsletter here. Have questions? Contact [email protected].

Tips

Water heating is one of the more difficult areas to retrofit for buildings, but the challenges are not insurmountable:

Considerations may include increased equipment space needs, additional venting requirements, and possible noise mitigation, and comfort issues for residents.

It is critical to engage a mechanical design team early in the process to assess the feasibility of the retrofit.

Incentives

Building owners and operators can tap into a range of incentives to help defray the costs of heat pump water heaters. The Maryland Clean Buildings Hub (the Hub) is committed to help building owners or operators understand the range of incentives that they may be eligible to receive.

State:

MEA's Electrifying Community Buildings Grant Program: This program provides funding for eligible commercial buildings seeking to replace existing fossil fuel-powered equipment with efficient electric alternatives.

MEA's Commercial & Industrial Grant Program: This program provides eligible commercial buildings funding for cost-effective energy efficiency and conservation upgrades for existing, major renovation, and new construction projects that are above minimum code and performance standards and claim at least 20% energy savings.

MEA's Decarbonizing Public Schools Grant Program:This program provides incentives for school districts looking to expand their capacity to manage energy data and reduce energy use and greenhouse gas emissions while planning for future high-performance schools.

MEA's Local Government Energy Modernization (L-GEM) Grant Program: This program provides incentives for local governments to undertake decarbonization planning, energy efficiency, clean energy, and electrification projects.

DHCD's Multifamily Energy Efficiency and Housing Affordability Program (MEEHA): Greenhouse Gas Reduction Program: This program promotes energy efficiency and housing affordability in affordable multifamily rental housing developments.

DHCD's BeSMART Energy Efficiency Loan for Homeowners Program: Provides financing to improve the energy efficiency and comfort of your home. By replacing and upgrading appliances, heating, ventilation and cooling systems, and whole house envelope improvements – homeowners can save on their utility bill.

Local:

Electrify Montgomery County: This pilot program helps homeowners transition from fossil fuels (oil, gas, and propane) to electric alternatives, such as heat pump water heaters.

Frederick County Green Homes Appliance Rebate Program: The Green Homes Appliance Rebate program provides rebates for ENERGY STAR appliances for low- to moderate-income households located in Frederick County.

Montgomery County Green Bank Structured Financing: The Montgomery County Green Bank’s Structured Financing program provides financing for commercial properties seeking to complete energy performance improvements and source of significant energy savings and GHG reduction.

Montgomery County Green Bank Small Business Energy Savings Support Program: This program provides small businesses with up to 100% financing for energy efficiency improvements.

Montgomery County Healthy, Efficient, Electrified, Climate-Adapted Pilot Homes Grant Program: This program provides funding for climate adaptations for low- and moderate-income homes in Montgomery County.

Prince George’s County Green Energy Loan Program: This program provides loans up to $250,000 for commercial building energy efficiency improvements and renewable energy measures.

Utility:

Visit the Financial Resources or EmPOWER Maryland page to review all Maryland utility incentive opportunities.

BGE Heat Pump Water Heater Rebate

Delmarva Power Heat Pump Water Heater Rebate

Pepco Heat Pump Water Heater Rebate

Potomac Edison Business Program

SMECO Residential Heat Pump Water Heater Rebate

Resources

The Hub invites you to explore the materials below to help guide your next steps. Use these resources to help move your building decarbonization project forward with greater confidence.

ENERGY STAR Product Finder: Use the ENERGY STAR Product Finder to find ENERGY STAR-certified heat pump water heaters.

Heat Pump Water Heater Guide: Covers the basics of integrated heat pump water heaters, including design, installation, and maintenance. It highlights best practices and common technical considerations for professionals supporting heat pump water heaters for single-family and multifamily new construction.

Heat Pump Water Heaters for Residential Customers Fact Sheet: Learn about what a heat pump water heater is and how they work, including a buyers guide covering what to consider when buying and installing a new heat pump water heater.

Heat Pump Water Heater Technical Guide: Covers the benefits and features of heat pump water heaters, how they work, an installer flowchart, design considerations, installation best practices, code and inspection checklists, FAQs, and more.

Suggestions for additional resources can be directed to [email protected].