Electric water heater vs. heat pump water heater: running cost
A heat pump water heater is cheaper to run: about $234 a year versus $810 for an electric water heater at typical use and 17.99¢/kWh, a $576 difference.
| Electric water heater | Heat pump water heater | |
|---|---|---|
| Typical watts | 4,500 W | 450 W |
| Watt range | 3,000–5,500 W | 300–4,500 W |
| Typical use | 4,500 kWh a year | 1,300 kWh a year |
| Energy per year | 4,500 kWh | 1,300 kWh |
| Cost per hour | 9.2¢ | 2.7¢ |
| Cost per day | $2.22 | 64¢ |
| Cost per month | $67.46 | $19.49 |
| Cost per year | $810 | $234 |
| Per year in Hawaii (43.51¢) | $1,958 | $566 |
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What drives the difference
- Electric water heater: A 40-50 gallon electric tank serving 3-4 people typically uses 4,000-5,000 kWh a year, including 400-600 kWh of standby heat loss. Water heating is often the second-largest electric load in a home.
- Heat pump water heater: Heat pump water heaters move heat from surrounding air into the tank, using 300-550 W while running and about 1,100-1,500 kWh a year for a typical family.
Ways to cut either cost
Reduces hot water demand so the unit stays in heat pump mode.
See options on AmazonUses 60-70% less electricity, saving roughly 2,500-3,000 kWh a year.
See options on AmazonWe may earn a commission from qualifying purchases. It never changes the numbers we show. Disclosure.
Frequently asked questions
Which costs more to run, an electric water heater or a heat pump water heater?
At typical use and the U.S. average rate (17.99¢/kWh), an electric water heater costs about $810 a year versus $234 for a heat pump water heater. That's $576 more, or 3.5× as much.
How many watts do electric water heater and heat pump water heater use?
An electric water heater typically draws 4,500 W (range 3,000–5,500 W). A heat pump water heater draws 450 W (range 300–4,500 W). Watts alone don't decide cost. Hours of use, cycling and standby matter just as much.
Rates: EIA, 12 months ending 2026-07. Methodology.