this post was submitted on 06 Aug 2025
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What’s the upfront price difference in the water heaters?
My utility company chipped in $1,600, so it ended up being the cheapest option anyway. The federal tax credit is 30% of the project cost up to $2,000, and it is still good if you install before the end of the year.
This 65gal Rheem heat pump water heater goes for $2,150 plus shipping and install.
This 55gal Rheem resistance water heater goes for $820 plus about equivalent shipping and install as a heat pump water heater
In my area (in the SF Bay Area) there's barely any upfront cost, as there's something like $4k in local and state rebates plus the 30% federal tax credit.
2-3x more expensive, but they normally pay off in about 5 years.
Home depot regularly has them on huge sales and it paid for itself within two years just by the electric savings.