How is a heat pump water heater different from a conventional electric water heater?

How is a heat pump water heater different from a conventional electric water heater?

A heat pump water heater uses electricity to pump heat from the surrounding air into the water in the heater. A conventional water heater (aka a storage water heater) creates heat to warm the water and then moves it to your desired location, similar to how a central air system works for heating and cooling a home.