A heat pump water heater, also known as an air-source heat pump water heater, uses a heat pump to transfer heat from the air to water, rather than generating heat directly. It works by absorbing heat from the air and transferring it to the water in the storage tank. This type of water heater is highly efficient and can be up to three times more energy efficient than traditional electric resistance water heaters.

Air-source heat pump water heaters are suitable for both residential and commercial applications and they can work in all weather conditions. They are also relatively easy to install and maintain and can be used for both heating and cooling. They are also ideal for places where the cost of electricity is high or where natural gas is not available. They use electricity to run but they can extract heat from the air so they are more energy efficient than traditional electric water heaters.