Jul. 21, 2025
Combining efficiency with innovative technology, ECO₂ Systems LLC provides the split system heat pump water heater system for a more cost-effective and sustainable water heating solution.
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A split system heat pump water heater is an advanced, energy-efficient water heating solution that uses renewable energy sources to heat water. Unlike traditional water heaters that directly generate heat through electricity or burning fuel, heat pump systems transfer heat from ambient air.
The "split system" refers to the separation of the heat pump unit (which captures and transfers heat) and the storage tank. This design offers greater flexibility in installation and better efficiency performance, especially in climates with temperature variations.
By leveraging ambient air, heat pump systems use significantly less electricity than conventional electric or gas water heaters.
While there’s no one-size-fits-all solution for water heating, the split system heat pump water heater offers significant advantages depending on your priorities. Here are some signs it might be the right fit for you:
Before explaining how a split system heat pump water heater works, let's review the basics behind heat pump technology. Instead of creating heat via a resistance element, heat pumps use electricity to move heat from one place to another. Many people liken heat pump technology to a refrigerator working in reverse. The process of moving or transferring heat instead of generating heat is significantly more energy-efficient. Trane, one of the leading HVAC manufacturers in North America, estimates that a heat pump can transfer 300 percent more energy than it uses. Compare this to even the best high-efficiency gas furnace, which has a 95 percent efficiency rating. Heat pump technology can drastically lower the energy we use for home heating while also reducing the demand for fossil fuels like coal and natural gas.
Heat pump water heaters rely on the same principle of using electricity to move heat from one place to another to reduce energy consumption drastically. With most heat pump water heaters, the compressor unit is located inside the home. A split system heat pump water, in contrast, has a different configuration. Like mini-split heat pumps, the compressor is located outside the house, and it takes its heat from outdoor air rather than indoor air. Split-system heat pump water heaters were designed initially for use in countries like Japan with relatively mild winter temperatures. However, as heat pump technology has improved, these mini-split systems are now effective in areas with significantly colder temperatures. Some split system heat pump water heaters can effectively generate hot water even when outdoor winter temperatures drop to -25°F.
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The primary difference with a split system heat pump water heater is where the compressor's location. Most hybrid heat pump water heaters place the pump and compressor within the home. Hybrid options rely on a fan that pulls in conditioned air from within your home via an evaporator. The refrigerant in the evaporator absorbs heat from the air, eventually passing the heat through the condenser coil around the tank. This process transfers the heat to the water. With a hybrid system, you essentially utilize the heat within your home to heat the water in your tank. A split system heat pump water heater, on the other hand, is located outside the home. The compressor extracts heat from outdoor air with this system instead of the conditioned air inside your home. With both types, cooler air is "dumped" by the heat pump after the heat is extracted and passed through the refrigerant and the coils.
One of the main advantages of a split system heat pump water heater over a hybrid heat pump water heater is that the cool air is not dumped into your home in the winter. Hybrid heat pump systems are certainly more energy efficient than traditional tank-style water heaters. However, they do come with an "energy penalty" in the winter as they extract the heat from inside your home and release cooler air back into your home. This process lowers the temperature of the indoor air. Though you might welcome the extra cool air during the summer, it can put additional stress on your home heating system during the winter.
The US Department of Energy estimates that heat pump water heaters can be two to three times more energy-efficient than conventional electric resistance water heaters. They can allow homeowners to save between $160 and $490 each year. Most traditional, tank-style water heaters have an energy factor (EF) of around 1. In contrast, some split system heat pump water heaters can have an EF rating of up to 3.5. We have not found reliable studies on how much more energy efficient a split system is over a hybrid system. But, these systems should certainly lower your winter heating bills by not dumping cool air into your home.
Because a split system heat pump water heater cuts down on your home energy use, it is considered an environmentally-friendly home technology. However, some heat pump water heaters (both hybrid and split-system types) will use refrigerants with high global warming potentials (GWP). For example, many heat pumps will use either the R138a refrigerant with a global warming potential of 1,438. Even worse, the R-410A refrigerant has a GWP of 2,088. Fortunately, these are being phased out over time by governments globally. Some companies are now switching to carbon dioxide (CO2) refrigerants with a global warming potential of 1. To limit the environmental impact of your split system heat pump, make sure to search for products that use CO2 refrigerants.
Without a doubt, the ECO₂ Systems SANCO2 is the leading split system heat pump water heater on the market. Sanden initially designed the product in Japan, but it is now available in North America, branded as ECO₂ Systems as of . This product uses CO2 as its refrigerant, allowing it to function efficiently across a wide temperature range. It can effectively extract heat to heat water down to ambient temperatures of -25°F. The SANCO2 warms the water up to 176°F at a rate of 20 Gallons per Hour. The product has three different sized tank options, with a giant 119-gallon tank costing just under $5,000.
Daikin Altherma is another company offering a split system heat pump that also provides water heating. The company uses R-32 refrigerants with a GWP several times lower than traditional refrigerants used in heat pumps.
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