A typical electric water heater has an efficiency of 90 percent and costs $390 a year to operate at a unit cost of electricity of $0.08/kWh. A typical heat pump-powered water heater has a COP of 2.2 but costs about $800 more to install. Determine how many years it will take for the heat pump water heater to pay for its cost differential from the energy it saves.

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Water heater The McGraw-Hill Companies, Inc. Jill Braaten, photographer Type Efficiency Gas, conventional Gas, high-efficiency Electric. conventional Electric, high-efficiency 55% 62% 90% 94%