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Hybrid Electric Heat Pump Tank Water Heaters

Reduce your energy bill by more than $600 annually when you upgrade from a standard electric water heater to an American hybrid electric smart heat pump water heater - that's $6,000 in savings over 10 years!

NOTICE: Include A. O. Smith's Qualified Manufacturer (QM) code A5X5 when filing federal tax return form 5695.

Learn About Heat Pump Tech in 60 Sec.

American high-efficiency hybrid electric heat pump water heaters are up to four times more efficient than standard tank units. By using ambient air to heat the water, they keep your tank full of hot water and ready when you need it.

Federal Tax Credits & Local Utility Rebates

Up to $1,000 in local utility rebates may be available in your area when you upgrade to a heat pump water heater!


The federal tax credit for heat pump water heaters ended on December 31, 2025. Use American's Qualified Manufacturer (QM) code A5X5 for federal tax return form 5695.

Local utility rebates available in limited geographical areas. For information on the Federal Tax Credit, go to: energystar.gov. Check with your tax advisor for applicability. Offer details and expiration may vary. See Rebate Center for details.

What Our Customers Are Saying

Benefits of Hybrid Electric Heat Pump Tank Water Heaters

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Energy Savings

Heat pump water heaters draw heat from the surrounding air to warm your water, reducing operating costs. With up to 4X the efficiency of a standard electric water heater, they can save over $600 per year on energy for a similar tank size.

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High Efficiency

American hybrid electric heat pumps feature a UEF rating of up to 3.88 and are ENERGY STAR® certified. You could save up to $2,000 with federal tax credits, and additional local utility rebates. Up to $1,000, may be available. 

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Long Lasting

Hybrid heat pump tank water heaters are built with innovative peace-of-mind, anti-leak protection & alerts and compatible with an optional automatic shut-off valve. Paired with various limited warranty, these units provide years of hot water for your home.

How it Works

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Hybrid electric heat pump water heaters combine two heating methods in one unit: a heat pump and traditional electric heating elements. This dual approach delivers efficient water heating for your home.


The Heat Pump Process

The main heating method uses a heat pump mounted on top of the storage tank. A fan pulls air from the surrounding space through an evaporator coil containing refrigerant. The refrigerant absorbs heat from this air, even air that feels cool to you, and contains usable heat energy.

The refrigerant, now warmed, flows through a compressor that increases both its temperature and pressure. The heated refrigerant then moves through condenser coils wrapped around the water tank, transferring its heat to the water inside. This process is similar to how a refrigerator works, but in reverse. Instead of removing heat to cool things down, it captures heat to warm things up.


Why This Matters

Moving existing heat from air to water uses far less electricity than creating heat from scratch. That's why hybrid heat pump water heaters are up to four times more efficient than standard electric models. Rather than relying only on your home's electricity to heat water, these units pull heat that's already present in the air around them.


Backup Electric Elements

The "hybrid" part means the unit also has traditional electric heating elements as backup. These activate automatically during periods of high hot water demand or when air temperatures drop below 37°F. This backup heating makes sure you always have hot water, even when conditions aren't ideal for the heat pump to work at peak efficiency.



Operating Modes

American hybrid heat pump water heaters offer different operating modes you can select based on your needs. The default mode balances heat pump and electric heating for everyday efficiency. You can switch to heat pump-only mode for maximum energy savings, or high-demand mode when you need extra hot water for guests or heavy use periods.


Still Have Questions?

With American smart hybrid electric heat pump technology, you can save more than $600 annually when you upgrade from a standard electric of similar capacity. The heat pump uses heat available in your home to minimize operating costs, which can save you hundreds of dollars annually compared to a standard tank electric water heater. 

American hybrid heat pump water heaters typically last 10-15 years with proper maintenance. Our models come with 6- to 10-year limited warranties depending on the unit. Built with commercial-grade components and innovative anode technology, these water heaters deliver reliable performance for years.

Choosing a smart hybrid heat pump water heater for your home will help save money throughout the water heater’s life and follows the same installation process as a standard electric water heater. The initial purchase cost of a hybrid electric heat pump tank water heater is usually higher, which can change the cost of installation depending on your plumbing contractor. However, many utility companies around the United States provide rebates to assist in the initial upfront costs of the electric heat pump. Use American’s Rebate Finder to search for rebates in your area.

Hybrid heat pump water heaters work well if you have adequate space and want to reduce energy costs. They need at least 450 cubic feet of air circulation and work best in basements, garages, or utility rooms. If your current electric water heater is in a closet or tight space, a standard electric model might be a better fit.

Featured Smart Hybrid Electric Heat Pump Tank Water Heaters