TECHNOLOGY BASICS: What are Heat Pump Water Heaters

Heat pump water heaters (HPWHs) are an efficient, electrified alternative to natural gas and electric resistance water heating in commercial and multifamily buildings. By extracting heat from ambient air and transferring it to water through a refrigeration cycle, HPWHs can achieve coefficients of performance (COP) two to four times greater than traditional electric resistance heaters. This efficiency translates to lower operating costs, reduced energy use, and significant greenhouse gas (GHG) reductions.

In commercial settings, HPWHs are typically deployed as large split or monoblock air-to-water heat pumps paired with insulated storage tanks, or as modular skid systems that combine multiple smaller units. Both configurations allow flexibility in meeting centralized domestic hot water (DHW) loads and, in some cases, hydronic space heating needs. HPWH product evaluation on the Hub is focused on their use for DHW loads.