What does a heat pump water heater cost to install?

Prices checked October 2026. Wages: BLS, May 2025.

A heat pump water heater pulls heat out of the room air and puts it into the tank, a bit like a refrigerator running backward. The estimate above assumes one (sometimes sold as a hybrid electric heater) replacing an electric tank in a space that already suits it. The equipment price comes from current listings at public online retailers for 50, 65 to 66 and 80 gallon models. Installation is the Department of Energy's average for this kind of heater in its 2024 water heater rule, where DOE treats heat pump models as the high-efficiency tier of standard electric tanks. The labor half of that figure is scaled to plumber wages in your metro or state.

The base figure does not cover turning a home that was never set up for one into a home that is. A gas-to-electric switch usually needs a new 240 volt circuit. A small closet may need louvered doors or ducting. A basement without a floor drain needs a condensate pump. Those are site costs, and a quote that includes them will run above the range. The condensate pump, expansion tank and drain pan appear below as separate lines.

Installed price by size, national

Size	Unit (list)	Low	Typical	High
50 gallon	$2,376	$3,100	$3,400	$4,900
65–66 gallon	$2,809	$3,550	$3,850	$5,350
80 gallon	$3,450	$4,050	$4,500	$5,500

Installation averages $1,042 nationally for the common size (DOE, inflated to August 2026); about 50% of that is labor, which we scale to local wages.

Extras that may be added

Item	Typical	Range
Thermal expansion tank (where code requires it)	$200	$150–$360
Drain pan with drain line	$50	$36–$85
Condensate pump	$200	$160–$320

What moves the price

Capacity

Heat pump models recover hot water more slowly than a gas tank in their most efficient mode, so many installers size up one step from the old heater. An 80 gallon unit costs more and is taller and heavier, which can matter in a closet or on a platform.

Room size and air temperature

These heaters pull heat from the surrounding air. DOE advises at least 1,000 cubic feet of air space and a location that stays between 40 and 90 degrees all year. A cramped utility closet can work only with vented doors or ducting, and each fix adds labor.

Electrical supply

A.O. Smith's hybrid manual calls for a 208/240 volt, 30 amp circuit with 10 gauge copper wire. Replacing an electric tank that already has that circuit is a simple reconnect. Coming from gas, an electrician has to run a new circuit, and your panel needs room for a double-pole breaker. Neither is in the base range.

Condensate drainage

The unit dehumidifies the room as it runs and makes water that has to go somewhere. A nearby floor drain or laundry sink keeps this simple. Otherwise a condensate pump is needed, which is listed as its own extra.

Local wages and installer experience

Labor is about half of DOE's installation average and is scaled by your area's plumber pay. In some markets fewer installers do these regularly, and quotes from shops that rarely install them tend to come in higher to cover the unknowns.

Repair or replace?

Most repairs on a heat pump water heater land on the electrical side (elements, sensors, control board) or the heat pump section (fan, compressor, refrigerant circuit). Fix a board or sensor on a unit still under warranty without much thought. Out of warranty, a sealed refrigerant-system repair on an older unit is often a poor buy, because the tank behind it keeps aging and DOE applies the 15.1-year electric tank figure to these heaters. Other savings estimates assume a 13-year life. Many models can keep running on their backup elements while you decide, at a higher electric bill. A leaking tank settles it. Replace the whole heater.

Run the numbers for your unit.

What a complete quote lists

Model number, capacity, rated UEF and whether it runs on 240 volt or 120 volt power
Removal and disposal of the old water heater
Electrical work: reconnecting an existing circuit, or a new circuit and breaker (priced separately)
Condensate drain route, and a condensate pump if there is no gravity drain
Any door louvers, grilles or ducting needed to meet the air volume requirement
New relief valve and discharge line, plus water connectors
Thermal expansion tank on a closed system, and a drain pan where a leak would cause damage
Permit and inspection fees
Setup of the operating mode and temperature, explained to you before the installer leaves
Tank, compressor and parts warranty terms, plus the installer's labor warranty

Paste your quote and we'll tick these off for you.

Common questions

How much electricity does a heat pump water heater save?

DOE's Energy Saver guide says heat pump water heaters can be two to three times as efficient as conventional electric resistance tanks. For a family of four, the federal efficiency label program estimates savings of several hundred dollars a year compared with a standard electric heater, with payback in a few years.

Will it make my basement or garage cold?

It cools and dries the air around it. In a basement that is often a plus in summer. In a cold garage, performance drops and the backup elements run more. DOE notes a warm space, such as a furnace room, helps it work better.

Can it go in a closet?

Only if the closet has enough air, which in practice means louvered doors, a transfer grille or ducting. Check the installation manual for the specific model's minimum room volume before buying.

Is it noisy?

There is a compressor and fan, so it makes a sound similar to a dehumidifier when the heat pump is running. Avoid placing it right next to a bedroom wall if you can.

How long does it last?

ENERGY STAR uses a 13-year life in its savings estimate, while the 2024 federal rule applies the standard electric tank average of about 15.1 years. Checking the anode rod at least once a year, as the manufacturer manuals advise, helps reach those numbers.

Does the estimate include switching from gas?

No. The base range assumes the electrical service and space are ready. Capping the gas line, running a new 240 volt circuit and any vent removal are extra work that a fair quote lists line by line.