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A heat pump water heater uses electricity to move heat from one place to another, instead of generating heat directly. This makes them considerably more efficient than electric water heaters.
Heat pump water heaters generally have higher initial costs than conventional storage water heaters. However, they have lower operating costs, which offsets their purchase price. Before buying one, you should take in to account size, first hour heating, cost, and more.
Typically, a family of four can save over three hundred dollars a year by switching to a heat pump water heater.