Electric Water Heater vs Heat Pump Water Heater: Which Costs Less to Run?
Hot water is typically the second-largest energy use in an all-electric home, which makes this comparison worth real money.
Electric Water Heater · per month
$72.60
2.9 hours/day · 3,500–5,500 W
Heat Pump Water Heater · per month
$16.69
3 hours/day · 400–1,500 W
Verdict
The heat pump water heater wins overwhelmingly — the same showers on roughly one-third the electricity, often saving $200–500 per year depending on state rates and household size. Resistance tanks win only on upfront cost and in unheated spaces too cold for a heat pump to work well. With current federal and utility incentives, payback is often under three years.
Side by side
| Electric Water Heater | Heat Pump Water Heater | |
|---|---|---|
| Typical power | 3,500–5,500 W | 400–1,500 W |
| Typical usage | 2.9 hours/day | 3 hours/day |
| Energy per month | 397 kWh | 91 kWh |
| Cost per month (US avg) | $72.60 | $16.69 |
| Cost per year (US avg) | $872 | $200 |
| Cost per month in Hawaii | $190 | $43.78 |
Rates as of July 2026. Adjust the assumptions on each appliance's page: Electric Water Heater · Heat Pump Water Heater.
Frequently asked questions
Which is cheaper to run: a electric water heater or a heat pump water heater?
At typical usage and the current U.S. average rate (18.3¢/kWh), the heat pump water heater is cheaper: about $16.69/month versus $72.60/month for the electric water heater — a difference of $55.91 per month.
How much could I save per year by choosing the heat pump water heater?
About $671 per year at typical usage and average rates. In Hawaii (48¢/kWh) the annual gap grows to roughly $1,760.
Do these numbers apply to my state?
The ratio between the two stays the same everywhere, but the dollar gap scales with your rate — from Louisiana at 12.7¢/kWh to Hawaii at 48¢/kWh. Open each appliance's page for the exact cost in your state.