Discover the Benefits of a
Heat Pump Water Heater

Wondering how a Heat Pump Water Heater (HPWH) can upgrade your home’s hot water system and save you money? Connect with one of our participating contractors to explore your options and get a quote. For a limited time, you could receive an instant incentive* of up to $3,000 to help cover the cost of materials and installation.

*NorthWestern Energy does not allow fuel switching. To qualify, 
homeowners must have an existing electric resistance tank.

NorthWestern Energy’s Heat Pump Water Heater Program helps customers upgrade to energy-efficient water heaters by offering incentives to make installation more affordable.

What Are the Advantages of a Heat Pump Water Heater? 

  • A HPWH is a modern, highly efficient electric appliance that delivers reliable hot water while using significantly less energy than conventional models, often making them a strong choice for both performance and efficiency.
  • Rather than generating heat with electric elements, a HPWH extracts
heat from the surrounding air and transfers it to the water, like a refrigerator in reverse!

How Do Heat Pump Water Heaters Improve Efficiency
and Save Money?

  • HPWHs can be two to three times more energy-efficient than traditional water heaters, according to the Department of Energy.
  • This improved efficiency translates to lower utility bills. According to ENERGY STAR®, HPWHs can save you up to $550 annually, depending on household size.
  • HPWHs come with a 10-year warranty and are built for longevity, offering peace of mind with your investment.
  • Smart features like Vacation Mode help you save even more while you’re away!

Is a Heat Pump Water Heater Right for Your Home?

  • If your current water heater is
between 8 to 12 years old, it might be time to consider an upgrade. Switching to a HPWH is a smart choice!
  • HPWHs require a little more space to operate efficiently. Your contractor can help you assess the best location, ensure all requirements are met, and if a HPWH is appropriate for your home.
  • HPWHs operate at noise levels comparable to those of a refrigerator. Installing outside of bedrooms or “quiet areas” of the home maintains maximum comfort.
  • Because HPWHs extract heat from the surrounding air, they can cool the area around them. This makes them perfect for insulated or conditioned garages, basements, utility rooms, laundry rooms or low-use areas.

Check If Your Home Qualifies

Homes That May Qualify* Homes That Are Not Eligible at This Time
  • NorthWestern Energy residential customers in Montana with electric water heating
  • Existing single-family or manufactured homes on a permanent foundation
  • Homes replacing natural gas water heaters
  • New construction (homes must be at least 12 months old)
  • Commercial properties
  • Self-installed systems
  • Rental properties

*Only one incentive is offered per residence. Funding is limited and available on a first-come, first-served basis.

Follow These Easy Steps to Get Started 

Step 1: Contact a Local Contractor

Browse our list of 
participating contractors 
in your area to reach out 
and discuss an upgrade to a HPWH. 

Step 2: Schedule a Home Assessment 

Your contractor will conduct a home walk-through to 
determine the best location for your HPWH, address any pre-installation concerns 
and provide a project cost estimate.  

Step 3: Install Your Heat Pump Water Heater

Once approved, your contractor will install your new system, confirm it is working properly and guide you through its features and key functions.

Step 4: Enjoy Reliable Hot Water and Savings 

Heat Pump Water Heaters meeting ENERGY STAR® standards deliver dependable performance and high energy efficiency, helping households use less energy and potentially lower water‑heating costs.