Heat Pump Water Heater Calculator in Arkansas
See whether a heat pump water heater is worth it in Arkansas. Compares operating costs against electric, gas ($1/therm), or propane using local rates ($0.119/kWh).
Data last updated July 2026. Sources & methodology
What Arkansas Residents Should Know
Electricity in Arkansas averages $0.119 per kWh — well below the national average. For a typical three-person household, heating water with a standard electric resistance tank costs roughly $363 per year, while a heat pump water heater doing the same job draws about a third of the electricity, costing around $96. That gap, roughly $267 every year, is what pays off the higher upfront price.
Against natural gas the math is closer but still favorable in Arkansas: at $1.00 per therm, a standard gas tank costs roughly $155 per year for the same household, versus about $96 for a heat pump water heater. Whether the difference justifies switching depends on installation cost and how long you plan to stay — run the calculator above with your actual numbers.
One practical note for Arkansas homeowners: heat pump water heaters need roughly 700–1,000 cubic feet of surrounding air and run best in a garage, basement, or utility room that stays above about 40°F, since they pull heat from the air around them. With a typical 10–15 year lifespan, the annual savings above usually repay the higher purchase price well within the unit's service life.
With the federal 25C credit having ended December 31, 2025, state and utility programs are now the main incentives — Arkansas residents can access up to $500 through state heat pump programs, and many utilities offer their own water heater rebates of $300–$1,500. Heat pump water heaters typically install for $2,500–$4,000, so these rebates meaningfully shorten the payback period.
Avg. Electricity Rate
$0.119/kWh
Avg. monthly bill: $126
Regular Gas Price
$2.85/gal
Natural gas: $1.00/therm
Incentives in Arkansas
Federal clean energy tax credits ended in late 2025 under legislation passed in July 2025; they are shown below for reference since recent purchasers may still claim them. State programs are governed separately and many remain active — always verify current details with the program before purchasing.
| Incentive | Type | Amount | Description |
|---|---|---|---|
| Energy Efficient Home Improvement Credit (Heat Pump - 25C)Ended | tax credit | 30% | Federal tax credit of 30% up to $2,000 for qualifying heat pumps. Ended December 31, 2025 — systems placed in service after that date do not qualify. State and utility heat pump rebates remain available in many states. |
| Entergy Arkansas Heat Pump Water Heater Rebate | rebate | $500 | Up to $500 per unit on qualifying ENERGY STAR heat-pump (hybrid) water heaters at participating retailers, under Entergy Arkansas's 2026 residential program. |
Heat Pump Water Heater in Arkansas: Frequently Asked Questions
- Is a heat pump water heater worth it in Arkansas?
- For a typical household in Arkansas, a heat pump water heater uses about a third of the electricity of a standard electric tank — roughly $96 a year versus $363 — saving about $267 annually, which is what pays back the higher purchase price.
- How much does a heat pump water heater cost to run in Arkansas?
- At Arkansas's $0.119/kWh rate, a heat pump water heater costs roughly $96 per year to run for a three-person household.
- Are there rebates for heat pump water heaters in Arkansas?
- Yes. Arkansas programs including Entergy Arkansas Heat Pump Water Heater Rebate can help, and many utilities add water-heater rebates of $300–$1,500. The federal 25C credit ended December 31, 2025.
Run the Heat Pump Water Heater Calculator
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