How a heat pump water heater differs from a standard tank
A standard electric tank makes heat with resistance elements. A heat pump unit moves heat out of the surrounding air and into the water, much like a refrigerator in reverse. That is why it can use less electricity for the same hot water.
The trade-off is that the unit needs air to pull from. It also cools and dries the room it sits in, makes a fan sound close to a dehumidifier, and stands taller than many old tanks. These four facts drive almost every installation decision.
If you only want a tank swapped for the same kind of tank, see our water heater replacement page instead. This post is for people weighing the heat pump route. Call (630) 822-9290 if you want to talk it through.
Check the space first
Look at where the current heater sits. A tight closet with a louvered door is the hardest case, because the unit chills its own intake air. A larger utility room, an open basement corner or a garage-side space usually works better.
Manufacturers publish a minimum room volume or ducting option in the manual. Read it before you buy, since a unit that starves for air falls back on its electric elements and loses the savings.
Measure the height too. Many heat pump models need extra clearance above the tank for the air path and for servicing, so a low ceiling can rule out a model that looks fine on paper.
| Item | Heat pump unit | Standard electric tank |
|---|---|---|
| How it heats | Moves heat from room air | Resistance elements |
| Room air needed | Yes, plus cooler exhaust | No |
| Condensate drain | Yes | No |
| Sound | Fan hum | Nearly silent |
| Electrical circuit | Often a dedicated one | Existing circuit often reused |
Think about noise and cold air as well. A unit beside a finished family room or a bedroom wall will be heard, and the cooled exhaust air can make a small space feel drafty in winter. A furnace room or open basement corner tends to handle both better.
Power, drain and plumbing connections
Most heat pump water heaters run on a dedicated 240 volt circuit. A few models use a standard 120 volt outlet. Either way, any new wiring belongs to a licensed electrician, and you should never open the panel or run cable yourself.
The plumbing side is what we handle. That means the cold supply shutoff, hot outlet, the temperature and pressure relief valve with its discharge pipe, and a drain line for condensate. The condensate has to go somewhere, so a floor drain or a small pump matters.
Unions where dissimilar metals meet and listed flexible connectors are part of the job too. Call Call (630) 822-9290 and we will tell you what we would check at your heater before quoting.
Switching from gas to a heat pump unit
Moving off a gas tank is a bigger job than a like-for-like swap. The gas supply has to be shut off and capped by a qualified person, the flue and draft hood come out, and a new circuit goes in. Do not try to cap a gas line yourself.
Gas customers should also know what the utility offers. Nicor Gas rebates for 2026 cover tankless units and power-vented or condensing gas tanks, and the program page does not list heat pump water heaters. If you are choosing between a gas upgrade and a heat pump, price both paths before deciding.
What the Village of Hoffman Estates expects
The Village of Hoffman Estates treats a water heater swap as a permitted job. Its water heater handout lists a $50 fee, a final inspection, and no same-day inspections, so build a day or two of slack into your schedule.
The handout also sets conditions that apply to any new heater. The cold supply needs a shut-off valve within 5 feet in the same room, and the relief valve needs a full-size metal discharge pipe ending 2 to 6 inches above the floor. Plastic pipe is not allowed there. Contractors register on the Village's BS&A Online portal to apply, which is one reason the permit is part of our job and not yours.
Beyond the handout, the plumbing side follows the Illinois Plumbing Code (77 Ill. Adm. Code 890), and the manufacturer's instructions are the standard for clearances and the condensate drain. Following them is what keeps the unit from running short of air and heat.
What affects the price of a heat pump install
The unit itself is only part of the bill. Because the price depends on your house, we quote it by phone after learning the details, and nothing starts until you agree.
What changes the price
Ask each contractor for a written scope that lists every one of these items. That makes quotes comparable. Call (630) 822-9290 to start with a short phone conversation about your setup.
Rebates: what we could and could not confirm
For 2026 we could confirm the Nicor Gas rebate of $150 on qualifying gas tankless and condensing tank heaters, installed between January 1 and December 31, 2026. It does not apply to an electric heat pump unit.
We could not confirm a current ComEd rebate for heat pump water heaters or the status of federal home rebates in Illinois. Check ComEd and the ENERGY STAR rebate finder yourself before you buy, and keep your invoice and model number.
When to call a plumber
Call a licensed plumber for the whole swap if you are changing fuel type, moving the heater, or cannot say where condensate will drain. Those are not weekend projects.
Call right away if the old tank is leaking, the floor around it is wet, or the relief valve is dripping steadily. Turn off the cold supply to the heater, switch off its power at the breaker only if the area is dry and you can reach the panel safely, and call (630) 822-9290. If you smell gas, leave the house and call Nicor Gas or 911 first.
If the tank has already failed, a water heater repair visit may be enough, but a leaking tank body usually means replacement. We also serve Schaumburg and nearby towns with the same installers.
It can, but it pulls heat from the room, so a very cold space slows heating and the unit leans on its electric elements. Read the manufacturer's stated operating temperature range for your model before you pick a spot.
The Village's water heater handout covers new, repair and replacement work and lists a $50 fee with a final inspection. Your plumber applies for it and schedules the inspection.
The plumbing connections need a licensed plumber, and the wiring needs a licensed electrician. A permit and inspection are also part of the process, so a do-it-yourself install can fail inspection.
A straightforward swap with an existing circuit and drain often fits in a day. A new circuit, ducting or a fuel change adds time, and the inspection happens afterward.
Recovery can be slower than a gas tank, and many units have modes that trade speed for savings. Tell us how many people use hot water at once so the size makes sense.