Heat pump water heaters in Victoria, BC: rebates, cost and drawbacks

The rebates, and who qualifies

Home Renovation Rebate: up to $1,000, at any income. The existing water heater has to be electric and the home's main one, the work has to be done by a licensed contractor, and the application goes in within six months of the invoice. Replacing a heat pump water heater that has broken is not eligible.

Energy Savings Program: up to $3,500, income-qualified. The amount depends on your income level and on what you are replacing, and the income limits are 1 person: $51,100 / $63,900 / $102,100; 4 people: $94,900 / $118,600 / $189,800 (Level 1 / 2 / 3). You register before the work, a program Registered Contractor installs it, and unlike the other program an emergency replacement of a broken water heater is eligible.

The gap is the household that heats water with gas, oil or propane and is over the income limits. The rebate for that switch is Northern BC only; not available in Greater Victoria.

What it costs

We found no installed price for Greater Victoria from a source that does not sell them. The nearest neutral figure is a City of Vancouver analysis, which puts a heat pump water heater at about $3,000 more than a conventional gas tank costing about $2,100, with permits and installation included. It is a Vancouver figure from an earlier study, so use it for the size of the gap rather than for a budget.

The saving is real but modest in dollars. BC Hydro says a heat pump water heater uses an average of 50 per cent less energy, and that the average household spends nearly $250 a year on electricity for hot water. Savings figures quoted in American dollars are based on American electricity prices and overstate what you will save here.

The drawbacks, stated plainly

A heat pump water heater takes heat from the air around it and blows out cooler air. BC Hydro lists what that means in practice: it emits around 50 decibels, it may need ducting, it is taller than a standard tank and may need more space, it may need a dedicated electrical outlet, and it produces condensate that has to reach a drain. American guidance asks for 1,000 cubic feet around the unit.

None of that is a reason not to buy one. It is a reason to choose the location before the equipment. An unfinished basement, a garage or a utility room with a floor drain is the natural place. A closet off a bedroom is not.

1. Measure the room: the unit needs air around it and headroom above it.
2. Find the drain: condensate has to go somewhere every day.
3. Check the electrical supply at the tank location.
4. Think about the sound and the cool air, and what is on the other side of the wall.
5. Decide which rebate you are applying under before you choose the contractor.

Where it fits in Greater Victoria

The climate helps. American guidance says these units work best where the surrounding air stays a few degrees above freezing, which an attached garage or a basement here usually does. A damp basement also benefits from the dehumidifying.

Replacing a working electric tank early rarely pays for itself on energy alone at local rates. Replacing one that is near the end of its life is where the rebate and the saving together make the difference, so the time to plan is before the old tank fails, because the any-income rebate does not cover a rushed replacement of a broken heat pump unit and an emergency leaves no time to arrange a registered contractor.