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How Does a Heat Pump Water Heater Work?

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A heat pump water heater is an energy-saving way to heat and store water in your home. Instead of creating heat like traditional gas or electric water heaters, it moves heat from the surrounding air into the water tank. This smart technology uses less energy, helping you save money on your monthly utility bill.


Unlike electric water heaters that use a heating element or gas models that burn fuel, a heat pump works like a reverse refrigerator. It pulls heat from the air and transfers that heat to the water in the tank. This process makes A. O. Smith heat pump water heaters one of the most energy-efficient options.

How Heat Pump Water Heaters Work in Winter vs. Summer

Knowing that a heat pump water heater relies on surrounding air, your next question might be: How does it work in different seasons?

how hybrid electric heat pumps work

How Does a Heat Pump Work in Summer?

In summer, it’s simple: the heat pump pulls in warm air, extracts heat, and uses it to warm the water. It uses up to 70% less electricity than a traditional electric water heater.


How Does a Heat Pump Work in Winter?

In winter, the process is the same, but cooler air means the heat pump has to work harder. A. O. Smith hybrid models are built for this. They operate efficiently down to 37°F. When the air gets colder than that, built-in electric heating elements automatically switch on to make sure you still have plenty of hot water.


Key Winter Facts:

  • Still works in cold air (above 37°F)
  • Backup heating kicks in below 37°F or when the average water temperature drops to 55°F.

How Do Heat Pump Water Heaters Work?

Heat pump water heaters work by pulling heat from the air around them and using it to heat water, instead of generating heat directly, making them an energy-efficient way to provide hot water for your home.

Air-Source Heat Pump Technology

The most common type of heat pump water heater is an air-source model. A fan pulls in air from around the unit. Inside the heat pump, there’s a closed-loop refrigeration system that includes:


  1. Evaporator: Air blows over cold refrigerant; heat transfers from air to refrigerant.
  2. Compressor: Increases the pressure and temperature of the refrigerant.
  3. Condenser: Transfers the refrigerant's heat to the water in the tank.
  4. Expansion valve: Allows for a high-pressure side to shed heat into the water through a condenser and a low-pressure side to absorb heat into the refrigerant, adjusting pressure so the cycle can be repeated over a wide range of ambient temperatures.


This system uses a small amount of electricity to move heat, not make it.

  • ENERGY STAR® certified
  • 65-gallon first hour rating
  • 10-Year Warranty

Why Are Air-Source Models Popular?

A. O. Smith heat pump water heaters, including the Voltex® AL Smart Hybrid, use this air-source method. They’re designed for indoor spaces, where ambient air stays above freezing.

Benefits and Trade-Offs of Heat Pump Water Heaters

Heat pump water heaters can save you money and energy. Understanding the advantages and disadvantages can help you decide if one is right for your home.


Advantages

  • Energy-efficient: Uses up to 70% less electricity
  • Environmentally friendly: Helps reduce carbon emissions
  • Lower operating costs: You’ll see savings on your utility bill over time


Things to Consider

  • Works best in warm spaces: Above 37°F - 120°F
  • Needs good airflow: Provide 450 cubic feet of air for best performance.
  • Costs more upfront: But long-term savings often make up for it

Why Choose a Heat Pump Water Heater?

Water heating is the second-largest energy expense in the average home. Switching to a heat pump water heater is a smart way to reduce usage without sacrificing comfort.

A. O. Smith offers smart hybrid electric models with features like:


  • Wi-Fi controls
  • Anti-leak detection
  • Energy-saving modes
  • Quiet operation

These units are ENERGY STAR® certified and often qualify for local utility rebates.

Need Help Choosing the Right Model?

Are you having problems with your tankless water heater and find yourself unsure how to proceed? Check out our media library for tons of resources, including spec sheets, manuals, technical support videos, product images and other helpful assets you can use for DIY fixes.


If you’re not comfortable with the recommended troubleshooting processes or just prefer to go straight to a professional, reach out to an A.O. Smith rep.

customer using phone

Need help picking the best Heat Pump for you?

Take our water heater selector quiz to find the correct water heater for your home.

Final Thoughts: Is a Heat Pump Water Heater Worth It?

Yes, especially if you want to save energy and lower your utility bills. An A. O. Smith hybrid heat pump water heater can replace your old electric tank with minimal installation changes and provide reliable hot water for years. With high efficiency, smart features, and backup heating when needed, it’s one of the most advanced water heating options on the market today.