An energy-efficient heat pump water heater (HPWH) is a type of water heating system that uses heat pump technology to heat water for residential or commercial use. Unlike traditional water heaters, which generate heat directly, a heat pump water heater works by transferring heat from the surrounding air (or sometimes from the ground or water) to the water in the tank. This makes it highly energy-efficient, as it uses electricity to move heat rather than generate it, which can reduce energy consumption by up to 60% compared to conventional electric water heaters.
Since this system doesn't create heat directly but moves existing heat from the air to the water, it requires much less energy than traditional water heaters.