Save Money, Simplify Your Home & Help the Planet

Water Heater Insider Tips, Plus What Your Neighbors are Saying

City of Palo Alto
PaloAltoConnect
6 min readJun 26, 2024

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Switch to a Heat Pump Water Heater.

Thinking about upgrading your water heater? Consider joining over 400 of your neighbors by switching to a heat pump water heater (HPWH). Greener and innovative appliances have arrived and are becoming the go-to choice for Palo Alto residents. Our HPWH program makes switching easier and more affordable than ever before, offering big savings and a seamless customer experience. Gain insider tips and what your neighbors are saying about their easy installs and why they switched. Save money, simplify your home, and help the planet; three reasons to choose a heat pump water heater.

Go green to save green on a HPWH.

Save Money 💲

Heat pump water heaters can save Palo Alto residents hundreds of dollars per year on hot water expenses and are more efficient than traditional gas water heaters.

Insider Tip: If your home has older or unique configurations, you may qualify for a $1,000 installation credit to help offset any additional costs associated with complex installations.

Here’s what one resident had to say about the cost savings:

“Tired of high gas prices? So was I! I found the City’s HPWH program online while searching for an affordable heat pump water heater installer. Not only was it more cost-effective than other quotes I received, but cutting out gas while saving money was awesome. The results have been fantastic, and I couldn’t be happier with my decision!”

Karen, Your Neighbor

Save big on a HPWH.

Seamless Program 👌

Palo Alto’s HPWH program is designed to #HeatPumpItUp and make the switch as easy as possible. The program takes care of it all, from permitting and contractors, to installation financing. DIY rebates are available too!

🏡 Insider Tip: Planning and budgeting for a new home appliance may seem stressful, but our program offers an excellent long-term financing option. Take advantage of a low down payment and convenient monthly installments of $20 added to your utility bill over a 5-year term.

Another happy resident shared their experience with the program’s ease:

“The City’s staff have been incredibly helpful with the process of switching over to a heat pump water heater. Finding a contractor was straightforward and I am very happy with how everything panned out.”

— Sonal, Your Neighbor

Say hello to a new Heat Pump Water Heater.

Commit to a Greener Community 🌱

Heat pump water heaters are an environmentally friendly choice compared to gas water heaters. They use electricity to extract heat from the surrounding air, which significantly reduces greenhouse gas emissions compared to traditional water heaters. By switching to a heat pump water heater, you’re joining your neighbors in making a positive impact on our environment and building a greener Palo Alto.

📲 Insider Tip: Did you know you can control your heat pump water heater with a mobile app? This allows you to optimize your hot water experience and monitor energy usage from anywhere!

This resident feels good about contributing to a greener future:

“Joining the HPWH program was a step towards aligning my lifestyle with my environmental values. The process was smooth, and the benefits immediate. I’m not just enjoying a top-notch water heating system; I’m part of a movement towards a more sustainable Palo Alto.

— Nancy, Your Neighbor

Go green with a Heat Pump Water Heater.

What to Expect When You #HeatPumpItUp

Heat pump water heaters have some differences from conventional gas water heaters. Some highlights are efficiency, safety and cleanliness.

Efficient: At least 3 times more efficient than methane gas water heaters.

Safe: Heat pumps are all-electric, so there are no gas combustion emissions or hazards.

Clean: Heat pumps powered by the City of Palo Alto Utilities energy are 100% clean.

Understanding some of these differences will help you prepare your home for the upgrade and choose which option is right for you.

1. Upsize the Tank to Ensure Plenty of Hot Water

Water heaters have tanks that heat up the water before sending it through the pipes to your faucets. Generally, we recommend upsizing the tank from 50 to 65 gallons or 65 to 80 gallons to ensure you have ample hot water and the HPWH is operating efficiently. Hybrid models have different heating modes. It is possible to heat up water faster using the electric resistance mode, but it’s 3x less energy efficient.

You could also set the tank to a higher temperature to increase the volume of hot water. The installation plumber will work with you to set the perfect temperature for your use and needs.

2. Plan for the Power You’ll Need

The standard heat pump water heater installed in the full-service program requires a 240-volt circuit and covers this installation labor. However, if your home’s electrical panel is at capacity you may be a candidate for a 120-volt HPWH. If the panel needs to be upgraded, this can be provided as part of the City’s full-service program.

3. Find the Right Space

HPWHs typically need more space. They require a minimum width of 25 inches, they’re slightly taller, and best suited in a garage or basement. They may be installed in a closet if it is properly ventilated since they need air flow. For water heaters inside closets, louvered doors can be used to ensure adequate ventilation. There are other options available for additional cost if space is limited.

4. Heat Pump Water Heaters Have a Cooling Effect

Heat pumps remove heat from the surrounding air and use a compressor to pump the heat through refrigerant into the storage tank’s water. This results in cool air exhaust that can be a big benefit in the summer, but less welcomed in the winter. If the heat pump water heater is placed in a conditioned space like an indoor closet, venting the cool exhaust air to the outdoors is important.

5. Plan to Drain Condensate

When a heat pump pulls heat from the air, it also squeezes out moisture, which becomes “condensate.” Think of a cold glass of ice water on a hot summer day. The dehumidifying effect taking the water out of the air is a benefit, especially in damp basements, and the condensate needs to be drained. Sometimes a laundry sink or drain is readily available. In many cases the condensate needs to be piped outdoors.

6. Time-Based Recirculation Pumps Aren’t Compatible

Some homes use recirculation pumps to reduce the time to wait for hot water, but they are inefficient and not compliant with state building code. It’s recommended to use an on-demand recirculation pump with manual on/off controls and a sensor that shuts the pump off when the temperature in the pipe meets a specified temperature.

Resources to Switch

Ready to #HeatPumpItUp and make the switch to a heat pump water heater?

One call does it all. Call (650) 713–3411 or visit our program page to learn more and get started today!

https://www.cityofpaloalto.org/switch

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City of Palo Alto
PaloAltoConnect

Official communications from the City of Palo Alto. Connect about issues of interest to our community. Follow us on social media: www.cityofpaloalto.org/connect