Morrell Falls, Montana


After space heating and cooling, water heating is typically the largest energy user in the home since hot water is necessary for so many domestic activities. Whether you are replacing a worn-out existing water heater, looking for the best model for a new home, or looking to upgrade to a more efficient unit, it pays to choose carefully.

Heat pump water heaters represent the first large technological change in electric water heaters since their invention. Traditional electric water heaters utilize a pair of electric resistant elements to maintain a consistent temperature inside the storage tank. Up until the introduction of these new hybrid water heaters, most of the improvements to electric tank water heaters were centered around adding insulation to tank.

Learn more on our Heat Pump Water Heaters page.

Rebates are available for qualified installations of heat pump water heaters which replace existing electric storage water heaters. Qualified installations require the purchase and installation of a qualified model in accordance with manufacturer specifications.

Heat Pump Water Heater Rebate Form (PDF)


  • Conserve water. Your biggest opportunity for savings is to use less hot water. Take showers rather than baths and reduce shower time to five minutes. Install water-conserving shower-heads and faucet aerators.
  • Insulate hot water pipes. Insulating hot water pipes will reduce losses as the hot water is flowing to your faucet and, more importantly, it will reduce standby losses when the tap is turned off and then back on within an hour or so.
  • Lower the water heater temperature. Keep your water heater thermostat set at the lowest temperature that provides you with sufficient hot water. For most households, 120ºF water is fine. Each 10ºF reduction in water temperature will generally save 3–5% on your water heating costs. When you will be away from home for an extended period of time, you can turn the thermostat down to the lowest setting, or choose a model that offers a vacation setting which maintains a tank temperature of 50°F.