A Boston homeowner recently shared their experience installing a heat pump water heater from a local startup, highlighting both the potential benefits and challenges associated with the emerging technology. The water heater, installed in late August, replaces a traditional natural gas unit and is designed to improve energy efficiency while reducing carbon emissions.
The company behind the product, Reservoir, recently secured $8 million in funding to expand sales of its smart heat pump water heater. The unit features proprietary software that tracks and predicts hot water use, aiming to minimize unnecessary heating. Additional features include remote control via an app, sensors for detecting minor leaks, and a built-in mixing valve that enhances the tank’s effective capacity. Reservoir offers two models: a “core” version priced at $4,450 and a “max” version for $5,450, with installation and electrical work included. These prices reflect Massachusetts’ Mass Save rebate programs.
The installation process prompted questions about the reliability and longevity of a relatively new company in a critical appliance market. CEO and co-founder Luke Winston-almanzar acknowledged the uncertainty surrounding the company’s future but emphasized that most components are standard and could be serviced by any plumber. Reservoir has installed roughly 100 units since December, primarily in the Boston area, and aims to sell 1,000 units by the end of the following year. Winston-almanzar also outlined plans to develop the water heaters into grid-connected thermal batteries, which could help manage peak electricity demand with homeowner consent.
Industry experts view heat pump water heaters as a cost-effective way to electrify home water heating while integrating with renewable energy. Mike Phillips, CEO of smart home energy company Sense, noted the potential of such appliances to respond adaptively to grid conditions. Similarly, Michael Rigney, CEO of competing firm Cala Systems, called heat pump water heaters the only cost-effective electrification path for water heating.
After installation, the homeowner reported no complaints about hot water availability from family members. The heater’s operation has also cooled an otherwise humid basement area. However, the financial impact has been mixed. New England’s high electricity rates—approximately 34 cents per kilowatt-hour through Eversource—mean the switch from natural gas to electric heat pump has not resulted in clear cost savings. The gas bill dropped by 92%, from $45.31 to $3.70 during the first full billing cycle post-installation, but the electricity bill nearly tripled, rising from $86 to $256, influenced by the heat pump water heater and charging of electric vehicles.
The homeowner’s analysis, incorporating utility data and external tools, suggests a modest annual savings between $50 and $150, which is below the initial $200 projection provided during early discussions with Reservoir. Still, the transition is seen as a step toward reducing home carbon emissions without imposing significant financial penalties.
Overall, this experience underscores both the promise and practical uncertainties faced by consumers adopting new energy-efficient technologies, especially from emerging companies in a competitive market.