The plan is to develop a refined HPWH optimized for a home with a PV system in three major ways not found on typical HPWHs. It is significantly more efficient than current HPWHs since it can extract heat from water as well as air, it can store low-cost energy to reduce use of higher cost energy, and it can talk to the web and the grid to “know” when to store and when to use energy for the best savings from the PV system. This is an improvement over current HPWHs because it eliminates most of the fan noise and cold air they produce. With higher efficiency, better use of available energy, and less noise, this design will advance the electrification of home water heating, eliminate carbon pollution and increase home and community safety.