Heat pump water heaters (HPWHs) use electricity to move heat from one place to another instead of generating heat directly. Therefore, they can be two to three times more energy efficient than conventional electric resistance water heaters. To move the heat, heat pumps work like a refrigerator in reverse. Follow this link for more information on how HPWHs work.
Heat pump water heaters are unique to other water heaters in that their performance and efficiency are dependent on the conditions in which they are operated. Is a HPWH right for your home?
Currently, there is a $600 rebate for qualifying heat pump water heaters!