What Is a Hybrid Water Heater? A hybrid water heater, also known as a hybrid heat pump water heater or electric heat pump water heater, works like a refrigerator but in reverse. While a refrigerator removes heat from an enclosed box and releases it to the surrounding air, a hybrid water heater captures heat from the surrounding air and then transfers it to water in an enclosed tank. It then blows out the cooler air. Because it moves heat from one place to another instead of generating heat directly, it is a much more efficient way to heat water. Why Choose an ENERGY STAR® Certified Hybrid Water Heater? Water heating is the second largest energy expense in your home behind heating and cooling—accounting for approximately 14%–18% of your utility costs. Hybrid water heaters can cost less than half as much to operate compared to traditional water heaters. Not only do they heat water, but they also cool and dehumidify the space around them. In addition, hybrid water heaters that are ENERGY STAR certified are independently tested to ensure that they meet a high level of quality. How Much Can I Save? On average a family of four can save around $3,700 over the lifetime of the unit. Don’t wait for your old water heater to break! Replace it now with an energy-efficient hybrid water heater and take advantage of Atlantic City Electric’s $750 rebate. Installation Considerations To avoid placement and spacing issues with your new hybrid water heater, make sure you can answer “Yes” to all the questions below before purchasing one. Hybrid Water Heater Installation Location Questions ✔ Is the location in an unoccupied space where cooling and noise will not be an issue? ✔ Does the location offer more than 1,000 cubic feet of surrounding air (that is, approximately the space of a 12-foot by 12-foot room)? (Your hybrid water heater will not be as efficient if placed in a closet—even one with louvered doors—and you need adequate clearance around air entry and discharge.) ✔ Does the location offer sufficient height to install? (Hybrid water heaters are usually taller than traditional water heaters to accommodate the heat pump.) ✔ Can the location accommodate, or does it already have, a condensate drain or pump? ✔ Is ambient air temperature consistently above the freezing range (32°F)? (Hybrid water heaters do not operate in freezing temperatures like outdoors or in garages during winters in northern climates.) ✔ Does the ambient air temperature remain between 40°F–90°F year-round? (An ideal spot would be near a furnace in a basement that is warm all winter.) Source: energystar.gov