State guide
Heat Pump Water Heaters in Arizona
Local rates, rebates, and climate change which heat pump models make sense.
Arizona operating costs use local energy prices, not national averages.
Electricity15.5¢/kWh
Gas$1.73/therm
Inlet water62°F
Live models35
Arizona electricity is 10% below the national average. Here's what that means for heat pump operating costs.
Running cost in Arizona
Arizona electricity
15.5¢
per kWh (EIA, Dec 2025)
US average
17.2¢
per kWh
Best HP annual cost
$128
A. O. Smith HPTS-50-2
Electric resistance
$696
~4,500 kWh/yr baseline
Gas tank baseline
$346
~200 therms/yr
Inlet water temperature (62°F annual average) is close to the DOE test standard (58°F). Rated UEF values are a reasonable approximation of real-world performance.
Why Arizona changes the call
01Energy cost
Arizona electricity is 10% below the national average. That directly affects how much a heat pump saves compared to a standard electric tank.
02Climate impact
Incoming water averages 62°F annually and drops to about 52°F in winter. Colder water means the heat pump works harder and real efficiency is slightly lower than rated.
03Available incentives
State and utility rebates can significantly change the payback period. Check what's currently available before finalizing your decision.
Rebates in Arizona
The federal $2,000 tax credit (IRA Section 25C) expired December 31, 2025. State and utility rebates listed below may still be available. Verify current status at the links provided.
APS Home Energy Efficiency Rebates
$250-$350
Who: Arizona Public Service (APS)
Eligibility: ENERGY STAR certified. Must be APS residential customer.
https://www.aps.com/en/Residential/Save-Money-and-Energy/Rebates-and-Incentives
Eligibility: ENERGY STAR certified. Must be APS residential customer.
https://www.aps.com/en/Residential/Save-Money-and-Energy/Rebates-and-Incentives
SRP Water Heater Rebate
$250
Who: Salt River Project
Eligibility: ENERGY STAR certified heat pump water heater. SRP residential customer.
https://srpnet.com/energy-savings-rebates/rebates/default.aspx
Eligibility: ENERGY STAR certified heat pump water heater. SRP residential customer.
https://srpnet.com/energy-savings-rebates/rebates/default.aspx
IRA HEAR Rebate (Point-of-Sale)
Not yet available in Arizona as of March 2026. Up to $1,750 for income-qualified households when available.
Arizona has not yet launched its IRA HOMES or HEAR rebate programs.
Arizona has not yet launched its IRA HOMES or HEAR rebate programs.
Install requirements in Arizona
Electrical
Dedicated 240V, 30A circuit (most models). Some newer 120V plug-in models exist but most residential units require 240V. Check the unit's nameplate for exact requirements.
Condensate drain
Heat pump water heaters produce condensate during operation. A condensate drain line to an approved location (floor drain, condensate pump, or exterior) is required.
Air space
Approximately 700 cubic feet of surrounding air (roughly a 10x10x7-foot room). The heat pump extracts heat from surrounding air. Insufficient air volume reduces efficiency and can cause the unit to underperform. Some manufacturers allow ducting to supplement air supply in smaller spaces.
Noise
Heat pump water heaters produce operational noise similar to a window AC unit (45-55 dB). Consider placement away from bedrooms.
Best fits for Arizona
Annual operating cost at Arizona's 15.5¢/kWh rate. Sorted by lowest annual cost.
A. O. Smith
HPTS-50-2
$128/yr
46 gal
UEF 3.80
63" tall
Bradford White
RE2HP50-1NCTT
$129/yr
45 gal
UEF 3.89
46.1" tall
Navien
NWP500S050AUMB
$130/yr
44 gal
UEF 3.85
63" tall
Rinnai
REHP50BM
$130/yr
46 gal
UEF 3.75
66.4" tall
Rinnai
REHP50C
$130/yr
46 gal
UEF 3.75
66.4" tall
Rheem
PROPH50 T2 RH400-30
$131/yr
45 gal
UEF 3.88
61.75" tall
Rheem
PROPH40 T2 RH400-30
$133/yr
36 gal
UEF 3.83
62.3" tall
A. O. Smith
HPTA-50-2
$137/yr
46 gal
UEF 3.68
63" tall
A. O. Smith
HPTA-40-2
$139/yr
36 gal
UEF 3.60
66" tall
Noritz
NHP50
$145/yr
47 gal
UEF 3.46
58.3" tall
Bradford White
RE2H50S
$146/yr
45 gal
UEF 3.44
59.1875" tall
Noritz
NHP65
$151/yr
57 gal
UEF 3.34
63.8" tall
Bradford White
RE2HP65-1NCTT
$183/yr
65 gal
UEF 4.20
44.6" tall
Rheem
PROPH65 T2 RH400-30
$183/yr
59 gal
UEF 4.05
64.19" tall
Rheem
PROPH80 T2 RH400-30
$188/yr
72 gal
UEF 4.07
74.19" tall
Rinnai
REHP80
$189/yr
75 gal
UEF 4.00
74.2" tall
Rinnai
REHP80BM
$189/yr
75 gal
UEF 4.00
74.2" tall
Rinnai
REHP80C
$189/yr
75 gal
UEF 4.00
74.2" tall
A. O. Smith
HPTS-66-2
$191/yr
67 gal
UEF 3.70
61.5" tall
Bradford White
RE2HP80-1NCTT
$192/yr
75 gal
UEF 4.00
51.1" tall
Navien
NWP500S065AUMB
$192/yr
61 gal
UEF 4.03
63" tall
Rinnai
REHP65
$192/yr
60 gal
UEF 3.90
65.5" tall
Rinnai
REHP65BM
$192/yr
60 gal
UEF 3.90
65.5" tall
Rinnai
REHP65C
$192/yr
60 gal
UEF 3.90
45.5" tall
Rinnai
REHP65CW
$192/yr
60 gal
UEF 3.90
45.5" tall
Rinnai
REHP65W
$192/yr
60 gal
UEF 3.90
45.5" tall
Rinnai
REHP65WC
$192/yr
60 gal
UEF 3.90
45.5" tall
Navien
NWP500S080AUMB
$196/yr
74 gal
UEF 4.05
71.6" tall
A. O. Smith
HPTA-80-2
$198/yr
81 gal
UEF 3.88
69" tall
A. O. Smith
HPTS-80-2
$198/yr
82 gal
UEF 3.88
69" tall
A. O. Smith
HPTA-66-2
$200/yr
68 gal
UEF 3.84
61" tall
Bradford White
RE2H65T
$211/yr
64 gal
UEF 3.64
63.75" tall
Bradford White
RE2H80T
$214/yr
75 gal
UEF 3.59
70.8125" tall
Noritz
NHP80
$220/yr
74 gal
UEF 3.48
74" tall
Noritz
NHP120
$227/yr
109 gal
UEF 3.38
84.5" tall
Your next click
Sources
Electricity and natural gas rates: U.S. Energy Information Administration (EIA), residential sector, December 2025.
Rebate data compiled from state energy offices, utility program pages, DSIRE, and ENERGY STAR. Rebate amounts and eligibility change frequently. Verify at listed program URLs.
Inlet water temperatures estimated from NOAA climate normals using the Burch-Christensen mains water temperature model (NREL).
Model specifications from ENERGY STAR certified product data and manufacturer spec sheets.
Page generated March 15, 2026. Data freshness varies by source.