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Types of Electric Hot Water Heaters
1| Resistive
Cheap to buy, expensive to operate, fast reheat
Needs 240V circuit
Incentives
None
2| Hybrid (both resistive and heatpump)
More expensive to buy, less expensive to operate, fast reheat
Needs 240V circuit
Some dehumidification
Incentives
Federal
*30% of cost tax credit ($2000 cap/yr) incentive from IRA
*up to $1750 rebate LMI Incentive from IRA
Vermont
Rebate from Burlington Electric Department
$500-$800 (depends on efficiency),
+$400 for LMI
+$300-$600 through contractor (depends on efficiency)
3| Heat Pump
More expensive to buy, cheap to operate, slowest to reheat
Can plug into 120V outlet
Some dehumidification
Incentives
Federal
*30% of cost tax credit ($2000 cap/yr) incentive from IRA
*up to $1750 rebate LMI Incentive from IRA
Vermont
Rebate from Burlington Electric Department
$500-$800 (depends on efficiency),
+$400 for LMI
+$300-$600 through contractor (depends on efficiency)
The amount of hot water you have available to you depends on 3 things
Tank size
Re-heat power
Water Temperature
Heatpumps heat water up slower than electric resistance or gas so to compensate a larger tanks size and/or setting the tank to a higher temperature is used to achieve the same amount of hot water.
-higher tank temperatures don't mean scalding tap temperatures. Modern Heat pump hot water heaters have mixing valves so that extra hot tank temperatures are mixed with cold water so tap temps are within expectations (if set correctly).
*Federal IRA (Inflation Reduction Act) incentive that has been repealed by the Big Beautiful Bill Act in 2025 or is paused due to uncertainty of federal funding
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