A Heat Pump Water Heater (HPWH) is an energy-efficient device that heats water by transferring heat from the air or ground to the water tank. It works similarly to a refrigerator but in reverse, using electricity to move heat instead of generating it. This process can significantly reduce energy consumption compared to traditional electric water heaters. HPWHs are ideal for moderate climates and can provide substantial savings on energy bills. They typically require more space than conventional water heaters and may need to be installed in areas with adequate airflow. Overall, they offer a sustainable option for heating water in homes.