If your current hot water heater uses electric resistance elements to heat your hot water, or if you have a hot water heater that runs off of propane or fuel oil, you should consider installing an air source heat pump hot water heater. Air source heat pump hot water heaters, also commonly referred to as heat pump water heaters, use electricity to move heat from the surrounding air into your hot water tank. Because the technology moves heat rather than generating heat, heat pump water heaters are often two to three times more efficient than electric resistance hot water heaters and are also much cheaper to operate than fuel oil and propane hot water heaters. Since they remove heat from the surrounding air, they can cool a space and therefore should be installed in areas with sufficient amounts of air (not in a closet) where heating set points are lower, such as a basement, or in spaces with excess heat, such as a furnace or boiler room.