Heat pump water heaters are more expensive to buy and install than conventional electric water heaters (although utility rebates and tax credits may be available to reduce this cost). However, because they are so much more efficient, the lower electricity bill will more than cover the difference. Over the typical 13-year life of a water heater, total cost for purchase, installation, and operation of a 50-gallon hybrid water heater can be up to 60 percent lower than for a conventional electric water heater depending on electricity rates and the coefficient of performance. This chart shows NRDC’s estimate of typical lifetime costs across the range of electricity rates in the United States and the range of equipment and installation costs found in the market. (The chart shows only conventional and hybrid models because they are the most commonly available on the market; pure heat pump water heaters have only just been launched in the United States and there is currently only one model available). Include Diagram.