HEAT PUMP
WATER HEATERS
Heat pump water heaters take the heat from the air to heat the water in their tanks. They can produce lots of hot water, just like traditional heaters and they are often more efficient. To learn more, check out this video from Efficiency Maine.
Heat pump water heaters move heat instead of generating it, making them more efficient than traditional water heaters.
Heat pump water heaters have low operating costs. While they might have higher upfront costs, they can save you a substantial amount of money on your monthly energy bills.
Heat pump water heaters can last 10-15 years if well-maintained, while traditional water heaters typically last 8-12 years.
Heat pump hot water heaters can help dehumidify spaces in your home. However, they are not substitutes for dehumidifiers.
Page updated May 19, 2026
POTENTIAL SAVINGS
Heat pump water heaters can save you hundreds of dollars annually thanks to their high efficiency and their reliance on stored energy. Rebates and other incentives lower the upfront cost of these systems and allow you to start saving sooner.
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Efficiency Maine provides a savings calculator to help you determine how much you could save based on your fuel costs and your existing system.
FINANCIAL INCENTIVES
Rebates
​There are a few different ways to receive a rebate on a heat pump water heater:
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$399 after an instant discount at Granite Group.**
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$449 after a $950 instant discount at Lowe’s.**
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$449 after a $950 instant discount at Home Depot.**
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Participating distributors offer an instant discount to contractors.
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Heat pump water heaters purchased without an instant discount qualify for an $950 mail-in rebate.
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Unlike other Efficiency Maine rebates, there is no requirement to use a registered vendor to receive the rebate. ​
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To learn more and apply for the rebare, visit Efficiency Maine.
Tax Incentives
The federal tax credit for heat pump water heaters expired at the end of 2025.