Heat pump water heaters transfer heat energy from the air in your home to the hot water tank instead of generating heat directly with a burner. Heat pump water heaters utilize the same technology as your fridge, but do the opposite. Instead of using a heat pump to reject heat energy as a fridge would, heat pump water heaters draw heat energy from the air around the unit, transferring the warmth to the water inside. In the summer, you can even use the cold air produced by the heat pump to supplement your home’s air conditioning needs, maximizing your energy savings. Over its lifetime, a heat pump water heater can typically cut your water heating costs by half compared to traditional electric water heaters.