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Green Hot Water

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Home Energy

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If your hot water heater or system is due for an upgrade, consider options like a heat pump hot water heater or solar hot water unit for a greener alternative! They are more energy efficient and that saves you money. Take advantage of remaining state incentives on these items.

What is a heat pump hot water heater?

Heat pump water heaters work by extracting heat from the air and transferring it. Because they transfer heat instead of generating it, they are highly efficient. Heat pump water heaters are three times more efficient than conventional electric water heaters. They are also less expensive to run than oil or propane water heaters. Even if you currently heat your water with natural gas, a heat pump hot water heater would probably still save you money.

There are currently State incentives to switch your system to a heat pump hot water heater. The Mass Save program has a $750 rebate available. Prior Federal tax credits expired on December 31st, 2025.

How does a solar hot water system work?

A solar hot water system captures heat from sunlight in solar collection cells and circulates the thermal energy to your water tank through a closed loop. These passive systems require little maintenance and work for decades. The Massachusetts Clean Energy Center has great resources for learning more about solar hot water. By generating its own electricity, this water system reduces the use of fossil fuels. They do not fully replace conventional water heaters, but can provide up to 80% of a building’s total hot water needs.

There are also State incentives available for solar hot water systems. A change to a solar hot water system qualifies you for Alternative Energy Certificates from the Massachusetts Department of Energy Resources (a $400-$1000 value). A State tax credit of up to $1,000 is also available.

Solar hot water works best in homes that have roof or ground space, get good sun exposure, and have medium to high levels of hot water use.

Already have solar hot water or a heat pump hot water heater? Let us know how the process went by leaving a Testimonial here!

 

Steps to Take

Heat pump hot water heater:

  1. Get a MassSave home energy assessment.

  2. Reach out to installers for a quote. Aim for at least three estimates. The Massachusetts Clean Energy Center has an energy installer search tool available here.

  3. Discuss these questions with your assessor to get the best sense for what might work for you.

  4. Let us know how your switch went by leaving a Testimonial on our Testimonials page.

Solar hot water:

  1. Get an assessment from a solar hot water installer. The Massachusetts Clean Energy Center has a search tool for many kinds of energy installers available here. Just put in your zip code and select “solar hot water”.

  2. Discuss these questions with your assessor to get the best sense for if a solar hot water system is the right fit for you.

  3. Let us know how it went by contributing a Testimonial.

 

Deep Dive

Find out more about combining IRA tax credits (while these credits remain) and MassSave rebates here, on the FAQ from MassSave. Keep in mind that IRA tax credits expired at the end of 2025 or in 2026, depending on the category.

Who should use a heat pump water heater? 

Homes that use high cost fuels for heating hot water.  A heat pump water heater could be an excellent investment for you if you currently are using a conventional electric or high fuel cost water heater. The savings from replacing a gas water heater with a heat pump water heater will be small due to the currently low price of natural gas. Available incentives and rebates can offset the added upfront cost and reduce payback time.

Homes with a partially finished or unfinished basement with enough space. Heat pump water heaters are a bit taller than most traditional water heaters and need sufficient airflow to operate in heat pump mode. However, they need no exhaust connection to a chimney. They need space around them and should not be located in a small enclosed space unless ducted. They should ideally be placed in an unfinished space (like a basement) in order not to impact your heated living space. They will lower the temperature of the surrounding space by 5 to 10 degrees F. If you locate it near your (non-heat pump) furnace, a heat pump water heater may be able to take advantage of the wasted heat generated by your furnace.

Homeowners who are concerned about climate change. All heat pump water heaters run on electricity, and if the electricity source is backed by 100% renewables, no fossil fuels will be used in production of hot water.

What are some additional benefits to heat pump hot water heaters? 

Continuous dehumidifying! A heat pump water heater will dehumidify whatever space it is in, much as air conditioning does. This reduces the need to run a dehumidifier in your basement, saving energy and money.

Remote Monitoring. Some heat pump water heaters have wifi capability built in. You can monitor performance, change temperature, set the unit to vacation mode, or even receive a text alert on your smartphone if there is a problem with the system. Some models are even able to automatically detect leaks and send you a notification.

How is a heat pump water heater different from a heat pump?

Heat pump water heaters differ from air source heat pumps for heating/cooling in that all of the heat pump elements are packaged within the storage tank. Most heat pump water heaters are “hybrid” water heaters and include conventional electric resistance heating elements to provide backup heating when hot water demand is high.

What about solar hot water? Where can I start?

New England Solar Hot Water (NESHW) is one company in the area offering installation of solar hot water systems. Their “New England Drain Back” system consists of the solar collectors on the roof, the storage tank inside your home, pump and controls, and an insulated line set that runs between the solar collectors and the storage tank. If you have used NESHW or another provider, please leave a testimonial with your experience above!

Testimonials

In 2019, while we were updating our heating system, we also evaluated our electric hot water heater and considered the opportunity to replace it with…
Low-cost, low-carbon footprint hot water
Submitted by: MarkandJennifer Minnichelli

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