Switch to heat pump and get a rebate of up to $1500
Most Alameda residents don’t spend much time thinking about their water heater until it fails. But when that day comes, homeowners have an opportunity to make a choice that benefits their wallet, their health, and the climate: replacing a gas water heater with a heat pump water heater. (Check out one Alameda homeowner’s experience.)
Heat pump water heaters are one of the most efficient home appliances available today, yet many people have never heard of them. What are they and how do they work?
A traditional gas water heater creates heat by burning natural gas. A heat pump water heater runs on electricity and works like a refrigerator in reverse. Refrigerators transfer heat from inside the refrigerator to the room it is in. A heat pump water heater moves heat from the surrounding air into the hot water tank. Because it moves heat rather than creating it, it is far more efficient than a gas water heater or a regular electric water heater.
Why make the switch?
There are a number of good reasons:
- Save money due to exceptional efficiency. Although heat pump water heaters cost more initially, they are 2-3 times more efficient than traditional gas and electric water heaters, saving a lot on annual energy bills, so they pay off in the long run.
- Better indoor air quality. Gas water heaters produce pollutants, including carbon monoxide and nitrogen dioxide. According to Alameda Municipal Power, replacing a natural gas water heater with a heat pump water heater can improve indoor air quality for better health and safety.
- Added comfort. Because heat pump water heaters remove heat from the air surrounding the water heater, they cool the room in which the water heater is located. If your heater is located in the basement this keeps your basement cooler for storage of items like wine.
- Lower climate pollution. Alameda Municipal Power’s 100% clean electricity supply means a heat pump water heater has zero greenhouse gas emissions, while a natural gas heater produces greenhouse gas emissions. Electrification of gas appliances is a critical element of reaching Alameda’s greenhouse gas reduction goals.
Alameda residents can receive a $1,500 rebate
On top of all the previously mentioned benefits, Alameda Municipal Power currently offers a rebate of up to $1,500 for homeowners who replace a natural gas water heater with an ENERGY STAR-certified heat pump water heater, to encourage electrification and greenhouse gas emissions reduction.
Eligible customers may also qualify for an additional rebate of up to $1,500 for an electrical panel upgrade if one is needed to support electrification. However, many heat pump water heaters need a 120V outlet and may not require a panel upgrade. Check with an electrician. Before beginning a project, homeowners should visit Alameda Municipal Power’s rebate page to review the latest requirements and incentive amounts.
Tips for easy installation
The easiest and least expensive time to switch is before your existing water heater fails. Emergency replacements often limit your options and can increase costs. Here are several ways to make the installation go smoothly:
- Replace before failure. If your gas water heater is 10 years old or older, consider planning rather than waiting for an emergency.
- Choose the right size. Most households can replace a 40- or 50-gallon gas water heater with a similarly sized heat pump model, but larger families may benefit from a larger tank.
- Check electrical capacity early. Many homes can accommodate a heat pump water heater without major electrical work, but it is wise to have an electrician evaluate your panel before installation.
- Use a contractor familiar with heat pumps. Experienced installers understand permitting requirements, condensate drainage, and rebate paperwork, making the process much easier.
- Obtain the required permit. A City of Alameda permit is required for AMP’s rebate program, so be sure to include permitting in your project planning.
Looking Ahead
Beginning in 2027, Bay Area air quality regulations are expected to make electric water heating the standard replacement option for many residential gas water heaters. Homeowners who switch now can take advantage of existing rebates, avoid a future emergency replacement, and start enjoying the benefits immediately.
When your water heater reaches the end of its life, consider making the climate-friendly choice. A heat pump water heater is one of the simplest home upgrades available today, reducing pollution, improving indoor air quality, and helping Alameda meet its climate protection goals.
Joyce Mercado is the author of Save the Planet in Your Spare Time: A Climate Protection Handbook for the Busy Person, a member of Community Action for a Sustainable Alameda (CASA), and President of the Rotary Club of Alameda. Her columns are collected at alamedapost.com/Joyce-Mercado. She can be reached at [email protected].
