by 
A Palo Alto homeowner had an old gas water heater and wanted out. Gas means a flue, a gas line and the usual carbon monoxide worries, and the homeowner wanted something cleaner and cheaper to run. They also wanted hot water that shows up fast, with no long wait at the tap.
What We Installed
We picked a SANCO² CO₂ heat pump system. It has two parts:
- SANCO GS5-45HPC outdoor heat pump unit. It pulls heat from the air and uses it to make hot water.
- SANCO 83-gallon storage tank. It holds the hot water and delivers it through a factory-supplied mixing valve.
The SANCO ECO-RDR-S2 residential controller is the main part that controls the whole system. To fix the wait for hot water, we added a recirculation pump run by a Leridian SRC-32 controller.
What We Did on Site
- Removed the old water heater.
- Shut off the gas line and capped the flue pipes.
- Installed the new tank and heat pump unit.
- Ran a new electrical line.
- Ran new copper piping.
- Installed the recirculation pump with its controller.
The heat pump and tank connect with plumbing only, which kept the install simple.
Why This System Works So Well
The big difference is the refrigerant. SANCO² uses CO₂, which lets the system make hotter water than most heat pumps can. It fills the top of the tank with 145–150°F water and recovers from a big draw at 20+ gallons per hour. In practice that means more hot water in the first hour, so back-to-back showers and a running dishwasher are no problem.
Based on the manufacturer’s numbers, it can save about 80% compared with a standard electric resistance heater and 40% or more compared with a hybrid heat pump unit. CO₂ also has a very low global warming potential, and with no gas burning there is no carbon monoxide risk. The unit keeps making hot water even when outdoor temperatures drop below -25°F, so a Palo Alto winter is easy for it.
Paying Less with Rebates
Palo Alto offers a rebate of $3,500, plus an extra $500 for projects completed before October 31. That can bring the rebate to $4,000, a big chunk of the equipment cost. We checked the rebate details with the homeowner before the job started.
So, What’s the Result?
The homeowner now has a modern electric water heater with no gas line, no flue and fast hot water at every tap, and the rebate took a good part of the upfront cost. Plus, installation work is covered by a 3-year warranty.
Thinking About the Same Upgrade?
Call Fuse Service or email us to learn more! We’ll check which rebates apply to your home and put together a quote.
